Manx Financial Group plc on track for record growth in 2021

Each of Manx Financial Group PLC’s business units have reported strong results in the first six months of year

• Conister Bank’s growth strategy has been focussed on increasing its market share in resilient SME market sectors. The bank has also been accredited for five UK and Isle of Man government business support schemes including the Recovery Loan Scheme
• Bluestar Business Solutions Limited brokered £6.4 million
• Manx FX Limited has had a remarkable half-year benefitting from market volatility
• Edgewater Associates Limited increased assets under management by 11.6% to £375 million
• Manx Financial Group PLC recently acquired the outstanding shares in The British Lending Exchange and increased its shareholding to 90% in Beer Swaps Limited (t/a Ninkasi)

Manx Financial Group PLC (LSE: MFX), the financial services group which includes Conister Bank Limited, Conister Finance & Leasing Ltd, Blue Star Business Solutions Limited, Manx FX Limited and Edgewater Associates Limited, announces that it is on track for a strong year in 2021 through its strategy of continuing to provide much needed capital to small and medium sized enterprises (SMEs); by acquiring niche lenders within the SME market and by developing its diversified stable of financial service companies.

The strategy allows Manx Financial Group (Group) to both provide direct access to specialist markets and to reduce commissions paid. Following on the heels of the Group increasing its shareholding in Beer Swaps Limited (t/a as Ninkasi), the UK’s market leader of fermenting vessel leasing to the UK brewing industry, earlier this month it announced it, had exercised its option to acquire the remaining issued share capital of The Business Lending Exchange Limited from its existing shareholders after the Group had previously acquired 40% of the issued share capital in February 2018.

But underpinning the Group’s financial performance, providing high quality stable earnings, was Conister Bank Limited’s (Bank) lending performance on the Isle of Man coupled with that of its UK subsidiary, Conister Finance & Leasing Limited (“CFL”).  CFL provides funding through structured finance products to non-bank lenders and through its credit broker division to the SME market.

Each of the Group’s business units is also making steady progress and, unless there is a resumption of lockdowns and associated measures, the 2021 full year will see the Group well on the way to recording the levels of growth and profitability experienced prior to the onset of the COVID-19 pandemic.

The Group’s new debt collection company, Manx Collections Limited (MCL), which was approved for a Variation of Permissions by the Financial Conduct Authority to manage and collect debt on behalf of third-party lenders operating in the UK in June has also generated profitability in the first six months of trading. Meanwhile the Bank’s loan book grew by 11.5 % in the last six months, whilst the Bank’s deposit base grew by only 5.9% in the first six months of the year reflecting an improvement in the Bank’s operational efficiency.

Similarly, Manx FX Limited continues to perform incredibly well, thriving on the volatility in the foreign exchange markets. Edgewater Associates Limited, the independent financial advisory business, remains the largest on the Isle of Man with assets under management increasing by 11.6% to £375 million compared to £336 million by the end of June 2020. The UK-based brokerage, Bluestar Business Solutions Limited brokered £6.4 million in the first half of the year, up from the £3.8 million recorded by 30th June 2020.

Douglas Grant (pictured), Group CEO of Manx Financial Group, commented: “The Covid-19 pandemic created a challenging operating environment for many businesses, but we are pleased to report that, by focussing on a prudent growth strategy while maintaining and improving our existing services, we are on track for a solid year in 2021. As businesses continue to reposition themselves to remain competitive in the post-pandemic world, we will continue to seek out niche lenders with a competitive position in sectors in which the Group currently has minimal exposure.

“This will further allow us to support businesses working through a supply chain crisis as a result of worker shortages, transport disruption caused by Covid, the Suez Canal blockage in March and of course Brexit. We believe that demand for working capital in the UK is set to soar to unprecedented levels as more and more businesses desperately need capital to counteract supply chain issues to keep operating while adapting to life outside of the EU bloc.

“The UK is already experiencing a debt burden for SMEs which has ballooned to record levels and unfortunately this has created a relentless flow of weak zombie-like companies falling off a loan default cliff. It is imperative that we support sectors and businesses that are strong and nimble enough to adapt to the new economy, who can continue to contribute to its growth.”