FOR IMMEDIATE RELEASE 22nd February 2018
Manx Financial Group PLC (the 'Group')
Acquisition of 40% shareholding in The Business Lending Exchange Limited and £4 million wholesale funding agreement
Manx Financial Group PLC announces that Conister Bank Limited, a wholly owned subsidiary and the Isle of Man's only independent bank, has entered into a £4 million wholesale funding agreement on an "arms-length" basis with The Business Lending Exchange Limited ("BLX"). Simultaneously, but as a separate transaction, Conister Bank Limited has acquired a 40% shareholding in BLX at no cost, together with an option to acquire the remaining issued share capital, exercisable in 2021, on the basis of 60% of four times EBITDA. Douglas Grant, Managing Director of Conister Bank Limited, joins the BLX board with immediate effect.
This acquisition furthers Conister Bank's strategy of acquiring and consolidating a niche broker platform within the UK, providing a greater control over lending opportunities and associated costs.
BLX, formed in 2006, based in Cambridgeshire and regulated by the Financial Conduct Authority, holding Consumer Credit Authorisations, primarily lends to start-up companies and small businesses which require asset backed finance. Its systems and underwriting capability allow lending decisions to be made within one hour of application. For the year ended December 2017, after all expenses, including one-off costs of £51,000, BLX reported an unaudited profit on ordinary activities of £13,500 and had as at that date net assets of £95,000. Accordingly, the 40% shareholding will be consolidated in the Group's accounts at £38,000.
Chris Allan, Managing Director of BLX, commented, "We are delighted to enter into this business relationship with Conister Bank who share in our belief that many good UK SMEs are still incorrectly starved of credit by High Street banks."
Douglas Grant, Managing Director of Conister Bank Limited, commented, "BLX's focus on providing finance to smaller businesses is a market sector that has recently witnessed a reduction in lenders. This, along with the company's commitment to customer service and enhanced access to funding, will propel this business to a meaningful size in the next few years. We are pleased to be the debt provider and a major shareholder in this business and believe it will be a significant addition to our lending capability.'
For further information: -
Manx Financial Group - http://www.mfg.im/
Conister Bank Limited - http://www.conisterbank.co.im/
The Business Lending Exchange Limited - http://www.theblx.com/site/
Contacts:
Manx Financial Group PLC
Denham Eke, Chief Executive
Tel: +44 (0) 1624 694694
Beaumont Cornish Limited
Roland Cornish/James Biddle
Tel: +44 (0) 20 7628 3396
Britton Financial PR
Tim Blackstone
Tel +44 (0) 7957 140416
