Interim Results for the six months to 30 June 2026
RNS Number : 4486VManx Financial Group PLC21 September 2026FOR IMMEDIATE RELEASE 21 September 2026
Manx Financial Group PLC (the ‘Group’)
Unaudited Interim Results for the six months to 30 June 2026
Manx Financial Group PLC (LSE: MFX), the financial services group which includes Conister Bank Limited, Conister Finance & Leasing Ltd, Payment Assist Limited, Edgewater Associates Limited and MFX Limited, presents its interim results for the six months ended 30 June 2026.
Jim Mellon, Executive Chair, commented: “I am pleased to report continued, resilient performance in the first half of 2026. The economic backdrop remains challenging, but we are beginning to see the benefits of our investment in artificial intelligence and automation that will benefit our customer service, the productivity of our employees and, ultimately, our shareholders.”
A copy of the Interim Report will shortly be available on our website: www.mfg.im.
Interim Results Presentation
Douglas Grant, Group Chief Executive Officer, and James Smeed, Group Finance Director, will host a live presentation relating to the interim results for the six months to 30 June 2026 via Investor Meet Company on Tuesday 29 September 2026 at 2.30 p.m. UK time.
The presentation is open to all existing and potential shareholders. Questions can be submitted before the event via your Investor Meet Company dashboard until 9.00 a.m. UK time on Monday 28 September 2026, or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and register for the Manx Financial Group PLC presentation via:
https://www.investormeetcompany.com/manx-financial-group-plc/register-investor
Investors who already follow Manx Financial Group PLC on the Investor Meet Company platform will automatically be invited.
This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No. 596/2014, which forms part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended. Upon publication of this announcement through a Regulatory Information Service, this inside information is now considered to be in the public domain.
For further information, please contact:
Manx Financial Group PLC
Beaumont Cornish Limited
Shore Capital
Tavistock Communications Limited
Denham Eke
Roland Cornish/
James Biddle
Toby Gibbs/
Oliver Jackson
Simon Hudson/
Adam Baynes
Tel: +44 (0) 1624 694694
Tel: +44 (0) 20 7628 3396
Tel: +44 (0) 20 7408 4090
Tel: +44 (0) 20 7920 3150
mfg@tavistock.co.uk
About Manx Financial
Manx Financial Group (AIM: MFX) is a diversified UK banking and financial services group with a proud Manx heritage. The Group holds Isle of Man and UK banking licences, allowing it to provide flexible funding solutions across both territories focused on SME lending. Knowledge of the SME sector has enabled MFX to build a portfolio of valuable subsidiaries, from start-ups to selective and accretive acquisitions, which are creating significant value for shareholders. These entrepreneurial subsidiaries are grouped under our entrepreneurial subsidiary Manx Ventures Limited.
Nominated Adviser
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it.
Chair’s Statement
Introduction
The first half of 2026 saw continued uncertainty across many economies, including the UK. Inflationary pressure, while less strong than some previous years, has proved persistent. The macroeconomic outlook is similar to last year’s: government finances remain stretched, economic growth is subdued and businesses and consumers alike continue to contend with higher costs.
For Manx Financial Group (“MFG”), the picture is somewhat different. On our home turf, the Isle of Man’s economy continues to demonstrate resilience. The Island benefits from political stability, comparatively strong public finances and a pragmatic approach to economic management. While no jurisdiction is immune from external influences, the Isle of Man remains one of the more attractive places globally in which to conduct business and deploy capital. Its continued economic strength supports the Group’s activities and reinforces our confidence in the long-term prospects of our home market.
Results
I am pleased to report another solid performance for the six months ended 30 June 2026. Profit before tax was £3.4 million, compared to £4.1 million in the corresponding period last year. While this represents a year-on-year reduction, it reflects the normalisation of profitability following the absence of some one-off benefits we enjoyed in prior periods. Together with our continued investment in technology, people and future growth opportunities, the Board believes we are in a strong position to build on this foundation in future years.
Operating income increased to £19.7 million (2025: £18.4 million) and the Group’s loan book grew to a record £422.9 million (2025: £392.6 million). Overall, the Group remains profitable, strongly capitalised and continues to enjoy great access to liquidity through its two deposit-taking licences.
Manx Financial Group is proud of the strength of our balance sheet. Total equity increased to £45.5 million during the period (2025: £41.2 million), while our lending activities continue to be supported by a substantial deposit base here on the Isle of Man where deep pools of liquidity exist. These resources mean we have the flexibility to navigate uncertainty, deploy liquidity efficiently and pursue strategic opportunities as they arise.
The disconnect between the Group’s market valuation and its underlying performance remains stark. Although our shares have recovered significantly over the past two years and now trade closer to their intrinsic value, we continue to believe that the market does not fully recognise either the earnings power of the business or the value of the assets we have assembled. Communicating the value and strategy of the Group to the wider investment market therefore remains an important priority for management and the Board.
Strategy
Our strategy remains unchanged. We are focused on growing the core portfolio of business where our Group cash reserves and liquidity confer genuine competitive advantages. We are constantly innovating, simplifying the Group’s structure, improving operational efficiency through technology and deploying our capital reserves where returns are most attractive.
In practical terms, we have made significant commitments to adopting AI. We originally designed automated processes to deal with our legacy motor Discretionary Commission Arrangements claims, and the results have been so encouraging that we are expanding the pilot to other areas of the business. Management and the Board expect that this will lead to improved outcomes and efficiencies across the Group, consistent with the technology programme discussed during the AGM.
Within our investment arm, we remain disciplined acquirers and will only pursue transactions that meet our financial and strategic criteria. We also continue to review the markets in which our subsidiaries operate, ensuring that Group capital is deployed towards those products and sectors where we can deliver sustainable long-term returns. In addition, we explore all opportunities to divest, or otherwise monetise, our investments when the timing is right.
Business review
Conister Bank continues to be the principal engine of the Group. During the period, the Bank increased its net loan book to £410.3 million while maintaining strong capital and liquidity positions. Deposits stood at £440.8 million at the half year, supporting continued lending growth and improved deployment of capital while preserving a substantial liquidity surplus. The Bank’s solvency and liquidity ratios remain robust, enabling further growth while maintaining prudent risk management standards. The Board currently expects that the provision established at the end of last year remains appropriate for the FCA’s motor finance redress scheme and does not currently anticipate any further provision.
Particularly encouraging has been the continued growth across several of our core lending activities. Unsecured personal lending increased significantly during the period, while our block discounting and specialist finance operations also performed well. At the same time, arrears and impairment trends remain well within the Board’s expectations despite the challenges facing consumers and smaller businesses across the UK. We continue to take a cautious approach to our underwriting operations, and credit quality remains a central focus across the Group.
Of our other subsidiaries, Payment Assist remains one of the Group’s most strategically important assets. The business now serves more than one million unique customers through a network of partners across the United Kingdom, primarily in the automotive repair space.
Advances increased during the period and the business continues to benefit from a strong market position in an area of lending that provides customers with access to finance for essential rather than discretionary expenditure. This resilience has been demonstrated repeatedly during periods of economic uncertainty.
The Board believes the scale of PAL’s customer base presents opportunities to introduce complementary financial and insurance products over time, supporting the Group’s broader portfolio of investee companies.
Our wealth management businesses also continue to thrive. Edgewater Associates remains one of the leading independent financial advisory firms on the Isle of Man, while CAM Wealth is expanding in the UK in line with expectations. MFX, our foreign exchange and international payments business, is a consistent performer, benefitting from the elevated levels of volatility that have characterised global currency and financial markets in recent years. Together, these businesses are helping us build a broader and more diversified financial services group.
Outlook
Looking ahead, I remain cautious about the macroeconomic picture but optimistic about the outlook for MFG. Inflation will continue to exert pressure on consumers and businesses, while weaker growth in the UK and beyond is going to have a negative impact on investment and confidence for some time. Nevertheless, periods like these often create opportunities for well-capitalised and well‑managed financial institutions like MFG.
The Group enters the second half of the year in a position of strength. We have robust capital reserves, substantial liquidity, a growing customer base and a diversified portfolio of financial services businesses operating in markets where the need for our products is clear. We will continue to explore opportunities to expand our product offering, including new fintech-led initiatives and selective geographic expansion where the regulatory and commercial environment is attractive.
We believe there are significant opportunities emerging in specialist lending and payment solutions and I will report further on our initiatives in these areas in due course. As always, we will pursue growth prudently and with a focus on long-term value creation rather than short-term expansion for its own sake.
I am personally confident in the Group’s long-term prospects and in our ability to create value for shareholders.
Finally, I would like to thank our customers, colleagues and fellow Board members for their continued commitment and support.
Jim Mellon
Executive Chair
17 September 2026
Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the
For the
For the
six months ended
six months ended
year ended
30 June 2026
30 June 2025
31 December 2025
£’000
£’000
£’000
Notes
(unaudited)
(unaudited)
(audited)
Interest revenue calculated using the effective interest method
6
30,259
28,388
58,906
Interest expense
(11,427)
(10,687)
(21,411)
Net interest income
18,832
17,701
37,495
Fee and commission income
2,103
2,224
4,002
Fee and commission expense
(3,064)
(3,081)
(6,795)
Net trading income
17,871
16,844
34,702
Other operating income
266
170
41
Gain on financial instruments
-
-
35
Realised gain on debt securities
9
1,550
1,398
2,561
Operating income
19,687
18,412
37,339
Personnel expenses
(7,156)
(6,463)
(13,373)
Other expenses
(5,909)
(4,684)
(11,856)
Provision for impairment on loans and advances to customers
(2,537)
(2,474)
(3,335)
Depreciation
(385)
(463)
(879)
Amortisation of intangibles
(308)
(299)
(647)
Share of profit of equity accounted investees, net of tax
46
51
87
Profit before tax
3,438
4,080
7,336
Income tax expense
(691)
(352)
(944)
Profit for the period / year
2,747
3,728
6,392
For the
For the
For the
six months ended
six months ended
year ended
30 June 2026
30 June 2025
31 December 2025
£’000
£’000
£’000
Notes
(unaudited)
(unaudited)
(audited)
Profit for the period / year
2,747
3,728
6,392
Other comprehensive income:
Items that will be reclassified to profit or loss
Unrealised (loss) / gain on debt securities
(155)
53
171
Related tax
16
(5)
(17)
Items that will never be reclassified to profit or loss
Actuarial gain on defined benefit pension scheme taken to equity
-
-
57
Related tax
-
-
(6)
Other comprehensive income, net of tax
(139)
48
205
Total comprehensive income for the period / year
2,608
3,776
6,597
Profit attributable to:
Owners of the Company
2,745
3,727
6,390
Non-controlling interest
2
1
2
2,747
3,728
6,392
Total comprehensive income attributable to:
Owners of the Company
2,606
3,775
6,594
Non-controlling interest
2
1
3
2,608
3,776
6,597
Earnings per share – profit for the period / year
Basic earnings per share (pence)
8
2.20
3.06
5.24
Diluted earnings per share (pence)
8
1.78
2.40
4.20
Earnings per share – total comprehensive income for the period / year
Basic earnings per share (pence)
8
2.09
3.10
5.41
Diluted earnings per share (pence)
8
1.70
2.43
4.33
Condensed Consolidated Statement of Financial Position
30 June 2026
30 June 2025
31 December 2025
£’000
£’000
£’000
As at
Notes
(unaudited)
(unaudited)
(audited)
Assets
Cash and cash equivalents
22,586
24,275
24,310
Debt securities
9
67,536
58,115
84,912
Equity instruments at fair value through profit or loss
189
154
188
Loans and advances to customers
5,10
422,881
392,558
407,872
Trade and other receivables
11
14,607
10,015
21,526
Property, plant and equipment
5,794
5,513
5,816
Intangible assets
4,761
5,175
5,049
Investment in associates
449
366
404
Pension asset
156
-
99
Goodwill
12
11,144
11,144
11,144
Total assets
550,103
507,315
561,320
Liabilities
Deposits from customers
440,762
406,504
452,461
Creditors and accrued charges
13
15,165
13,408
11,511
Contingent consideration
16
590
568
590
Loan notes
14
47,780
45,295
52,895
Pension liability
-
43
-
Deferred tax liability
292
294
308
Total liabilities
504,589
466,112
517,765
Equity
Called up share capital
15
19,932
19,626
19,932
Profit and loss account
25,551
21,548
23,594
Non-controlling interest
31
29
29
Total equity
45,514
41,203
43,555
Total liabilities and equity
550,103
507,315
561,320
Condensed Consolidated Statement of Changes in Equity
Attributable to owners of the Company
Non-
Share
Profit and loss
controlling
Total
capital
account
Total
interest
equity
For the six months ended 30 June 2025
£’000
£’000
£’000
£’000
£’000
Balance at 1 January 2025
19,626
17,632
37,258
55
37,313
Total comprehensive income for the period:
Profit for the period
-
3,727
3,727
1
3,728
Other comprehensive income
-
48
48
-
48
Total comprehensive income for the period
-
3,775
3,775
1
3,776
Changes in ownership interests:
Share-based payment expense
-
318
318
-
318
Acquisition of NCI net without change of control
-
(177)
(177)
(27)
(204)
Total changes in ownership interests
-
141
141
(27)
114
Balance at 30 June 2025
19,626
21,548
41,174
29
41,203
Balance at 1 July 2025
19,626
21,548
41,174
29
41,203
Total comprehensive income for the period:
Profit for the period
-
2,663
2,663
1
2,664
Other comprehensive income
-
157
157
-
157
Total comprehensive income for the period
-
2,820
2,820
1
2,821
Changes in ownership interests:
Dividend declared
-
(504)
(504)
-
(504)
Scrip dividend shares
306
(306)
-
-
-
Share-based payment expense
-
55
55
-
55
Acquisition of NCI net without change of control
-
(19)
(19)
(1)
(20)
Total changes in ownership interests
306
(774)
(468)
(1)
(469)
Balance at 31 December 2025
19,932
23,594
43,526
29
43,555
Balance at 1 January 2026
19,932
23,594
43,526
29
43,555
Total comprehensive income for the period:
Profit for the period
-
2,745
2,745
2
2,747
Other comprehensive income
-
(139)
(139)
-
(139)
Total comprehensive income for the period
-
2,606
2,606
2
2,608
Changes in ownership interests:
Dividend declared
-
(639)
(639)
-
(639)
Share-based payment credit
-
(10)
(10)
-
(10)
Total changes in ownership interests
-
(649)
(649)
-
(649)
Balance at 30 June 2026
19,932
25,551
45,483
31
45,514
Condensed Consolidated Statement of Cash Flows
For the
For the
For the
six months ended
six months ended
year ended
30 June 2026
30 June 2025
31 December 2025
£’000
£’000
£’000
(unaudited)
(unaudited)
(audited)
Reconciliation of profit before taxation to operating
cash flows
Profit before tax
3,438
4,080
7,336
Adjustments for:
Depreciation
385
463
879
Amortisation of intangibles
308
299
647
Impairment of loans and advances to customers
2,537
2,474
3,335
Net interest income
(18,888)
(19,028)
(37,495)
Realised gains on debt securities
(1,550)
(1,398)
(2,561)
Share-based payment (credit) / expense
(10)
-
373
Share of profit of equity accounted investees
(46)
(51)
(87)
Lease interest
56
-
191
Pension charge included in personnel expenses
-
(3)
1
Gain on asset disposal
-
(33)
-
Gain on financial instruments
-
-
(35)
(13,770)
(13,197)
(27,416)
Changes in:
Trade and other receivables
7,106
(2,703)
(14,217)
Creditors and accrued charges
2,769
5,658
1,680
Net cash used in trading activities
(3,895)
(10,242)
(39,953)
Changes in:
Loans and advances to customers
(17,546)
(22,674)
(42,856)
Deposits from customers
(13,617)
1,338
45,855
Pension contribution
(57)
-
(85)
Cash used in operating activities
(35,115)
(31,578)
(37,039)
Cash from operating activities
Cash outflow from operating activities
(35,115)
(31,578)
(37,039)
Interest received
30,259
28,388
62,915
Interest paid
(9,321)
(11,164)
(19,971)
Income taxes paid
(452)
-
(582)
Net cash (used in) / from operating activities
(14,629)
(14,354)
5,323
Cash flows from investing activities
Purchase of property, plant and equipment
(550)
(114)
(844)
Sale of property, plant and equipment
-
571
582
Purchase of intangible assets
(20)
(173)
(421)
Sale of intangible assets
-
-
26
Net sale / (purchase) of debt securities
18,771
22,476
(3,040)
Acquisition of a subsidiary net of cash acquired
-
(129)
(129)
Net cash from / (used in) investing activities
18,201
22,631
(3,826)
Cash flows from financing activities
Net (repayment) / proceeds of loan notes
(5,115)
3
7,603
Acquisition of non-controlling interest
-
(204)
(206)
Payment of lease liabilities
(181)
-
(279)
Dividend paid
-
-
(504)
Net cash (used in) / from financing activities
(5,296)
(201)
6,614
Net (decrease) / increase in cash and cash equivalents
(1,724)
8,076
8,111
Cash and cash equivalents – opening
24,310
16,199
16,199
Cash and cash equivalents – closing
22,586
24,275
24,310
Notes to the Condensed Consolidated Interim Financial Statements
For the six months ended 30 June 2026
1. Reporting entity
Manx Financial Group PLC (the “Company” or “MFG”) is a company incorporated in the Isle of Man. These condensed consolidated interim financial statements (“interim financial statements”) are as at and for the six months ended 30 June 2026 and comprise the Company and its subsidiaries (“Group”).
2. Basis of accounting
These interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with the last annual consolidated financial statements as at and for the year ended 31 December 2025 (“Annual Financial Statements 2025”). They do not include all of the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group’s financial position and performance since the last annual financial statements.
The accounting policies and methods of computation applied by the Group in these interim financial statements are consistent with those applied in the Annual Financial Statements 2025, and there have been no changes to the Group’s significant accounting policies during the period.
3. Functional and presentation currency
These financial statements are presented in pounds sterling, which is the Company’s functional currency. All amounts have been rounded to the nearest thousand, unless otherwise indicated. All subsidiaries of the Group have pounds sterling as their functional currency.
4. Use of judgements and estimates
In preparing these interim financial statements, management make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
The significant judgements made by management in applying the Group’s accounting policies and key sources of estimation uncertainty are the same as those described in the last annual financial statements.
5. Credit risk
A summary of the Group’s current policies and practices for the management of credit risk is set out in Note 7 – Financial risk review and Note 43 – Financial risk management on pages 61 and 94 respectively of the Annual Financial Statements 2025.
An explanation of the terms Stage 1, Stage 2 and Stage 3 is included in Note 45 (G)(vi) on page 103 of the Annual Financial Statements 2025.
A. Summary of credit risk on loans and advances to customers
2026
2025
30 June
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
(unaudited)
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
Grade A
377,145
-
-
377,145
345,579
-
-
345,579
Grade B
-
6,420
-
6,420
-
25,116
-
25,116
Grade C
-
-
63,430
63,430
-
-
43,765
43,765
Gross value
377,145
6,420
63,430
446,995
345,579
25,116
43,765
414,460
Allowance for impairment
(1,805)
(137)
(22,172)
(24,114)
(1,183)
(620)
(20,099)
(21,902)
Carrying value
375,340
6,283
41,258
422,881
344,396
24,496
23,666
392,558
2025
2024
31 December
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
(audited)
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
Grade A
366,957
-
-
366,957
327,561
3,968
-
331,529
Grade B
-
9,094
-
9,094
-
19,836
5,932
25,768
Grade C
-
-
54,713
54,713
-
5
35,268
35,273
Gross value
366,957
9,094
54,713
430,764
327,561
23,809
41,200
392,570
Allowance for impairment
(2,216)
(213)
(20,463)
(22,892)
(688)
(36)
(19,488)
(20,212)
Carrying value
364,741
8,881
34,250
407,872
326,873
23,773
21,712
372,358
Loans are graded A to C depending on the level of risk. Grade C relates to agreements with the highest of risk, Grade B with medium risk and Grade A relates to agreements with the lowest risk.
B. Summary of overdue status of loans and advances to customers
2026
2025
30 June
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
(unaudited)
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
Current
375,111
-
-
375,111
345,579
-
-
345,579
Overdue < 30 days
2,034
-
-
2,034
-
25,116
-
25,116
Overdue > 30 days
-
6,420
63,430
69,850
-
-
43,765
43,765
377,145
6,420
63,430
446,995
345,579
25,116
43,765
414,460
2025
2024
31 December
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
(audited)
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
Current
348,383
-
-
348,383
314,542
-
-
314,542
Overdue < 30 days
18,574
-
-
18,574
13,019
-
-
13,019
Overdue > 30 days
-
9,094
54,713
63,807
-
23,809
41,200
65,009
366,957
9,094
54,713
430,764
327,561
23,809
41,200
392,570
6. Interest revenue and other interest income
Interest revenue and other interest income represents charges and interest on finance and leasing agreements attributable to the period or year after adjusting for early settlements and interest on bank balances.
Segmental information is presented in respect of the Group’s business segments. The Directors consider that the Group currently operates in one geographic segment comprising of the Isle of Man, UK and Channel Islands. The primary format for business segments is based on the Group’s management and internal reporting structure. The Directors consider that the Group operates in three (2025: three) product orientated segments in addition to its financial activities to allocate the Group’s capital (investing activities): (i) Asset and Personal Finance (including provision of HP contracts, finance leases, personal loans, commercial loans, block discounting, vehicle stocking plans and wholesale funding agreements); (ii) Edgewater Associates Limited (provision of financial advice), and (iii) MFX Limited (provision of foreign currency transaction services).
Asset and
Personal
Edgewater
MFX
Investing
For the 6 months ended 30 June 2026
Finance
Associates
Limited
Activities
Total
(unaudited)
£’000
£’000
£’000
£’000
£’000
Interest revenue calculated using the effective interest method
30,259
-
-
-
30,259
Interest expense
(11,427)
-
-
-
(11,427)
Net interest income
18,832
-
-
-
18,832
Components of Net Trading Income
(2,476)
1,105
410
-
(961)
Net trading income
16,356
1,105
410
-
17,871
Components of Operating Income
1,290
4
2
520
1,816
Operating Income
17,646
1,109
412
520
19,687
Depreciation
(328)
(8)
-
(49)
(385)
Amortisation and impairment of intangibles
(138)
(38)
-
(132)
(308)
Provision for impairment on loans and advances
(2,537)
-
-
-
(2,537)
All other expenses
(11,543)
(751)
(98)
(673)
(13,065)
Share of profit of equity accounted investees, net of tax
46
-
-
-
46
Profit before tax payable
3,146
312
314
(334)
3,438
Capital expenditure
565
5
-
-
570
Total assets
491,068
2,019
353
56,663
550,103
Total liabilities
466,259
346
6
37,978
504,589
Asset and
For the 6 months ended 30 June 2025
Personal
Edgewater
MFX
Investing
Finance
Associates
Limited
Activities
Total
(unaudited)
£’000
£’000
£’000
£’000
£’000
Interest revenue calculated using the effective interest method
28,388
-
-
-
28,388
Interest expense
(10,687)
-
-
-
(10,687)
Net interest income
17,701
-
-
-
17,701
Components of Net Trading Income
(2,541)
1,035
649
-
(857)
Net trading income
15,160
1,035
649
-
16,844
Components of Operating Income
1,030
4
4
530
1,568
Operating Income
16,190
1,039
653
530
18,412
Depreciation
(381)
(9)
-
(73)
(463)
Amortisation and impairment of intangibles
(149)
(37)
(2)
(111)
(299)
Provision for impairment on loans and advances
(2,474)
-
-
-
(2,474)
All other expenses
(9,986)
(791)
(114)
(256)
(11,147)
Share of profit of equity accounted investees, net of tax
51
-
-
-
51
Profit / (loss) before tax payable
3,251
202
537
90
4,080
Capital expenditure
287
1
-
-
288
Total assets
441,454
1,759
377
63,725
507,315
Total liabilities
420,429
322
39
45,322
466,112
Asset and
For the year ended 31 December 2025
Personal
Edgewater
MFX
Investing
Finance
Associates
Limited
Activities
Total
(audited)
£’000
£’000
£’000
£’000
£’000
Interest revenue calculated using the effective interest method
58,906
-
-
-
58,906
Interest expense
(21,264)
-
-
(147)
(21,411)
Net interest income
37,642
-
-
(147)
37,495
Components of Net Trading Income
(5,721)
2,049
879
-
(2,793)
Net trading income
31,921
2,049
879
(147)
34,702
Components of Operating Income
3,183
9
6
(561)
2,637
Operating Income
35,104
2,058
885
(708)
37,339
Depreciation
(667)
(16)
(1)
(195)
(879)
Amortisation and impairment of intangibles
(306)
(75)
(2)
(264)
(647)
Provision for impairment on loans and advances
(3,318)
(17)
-
-
(3,335)
All other expenses
(22,577)
(1,640)
(249)
(763)
(25,229)
Share of profit of equity accounted investees, net of tax
87
-
-
-
87
Profit / (loss) before tax payable
8,323
310
633
(1,930)
7,336
Capital expenditure
657
-
1
596
1,254
Total assets
469,773
1,539
166
89,842
561,320
Total liabilities
447,135
123
33
70,474
517,765
8. Earnings per share
For the
For the
For the
6 months ended
6 months ended
year ended
30 June 2026
30 June 2025
31 Dec 2025
(unaudited)
(unaudited)
(audited)
Profit for the period / year attributable to owners of the Company
£2,745,000
£3,727,000
£6,390,000
Weighted average number of ordinary shares in issue (basic)
124,981,767
121,693,359
121,872,269
Basic earnings per share (pence)
2.20
3.06
5.24
Diluted earnings per share (pence)
1.78
2.40
4.20
Total comprehensive income for the period / year attributable to owners of the Company
£2,606,000
£3,775,000
£6,594,000
Weighted average number of ordinary shares in issue (basic)
124,981,767
121,693,359
121,872,269
Basic earnings per share (pence)
2.09
3.10
5.41
Diluted earnings per share (pence)
1.70
2.43
4.33
The basic earnings per share calculation is based upon the profit for the period / year after taxation and the weighted average of the number of shares in issue throughout the period / year.
As at
30 June 2026
30 June 2025
31 Dec 2025
(unaudited)
(unaudited)
(audited)
Reconciliation of weighted average number of ordinary shares in
issue between basic and diluted
Weighted average number of ordinary shares (basic)
124,981,767
121,693,359
121,872,269
Number of shares issued if all convertible loan notes were exchanged for equity
35,138,889
35,138,889
35,138,889
Dilutive element of RSUs if exercised
-
2,466,470
400,000
Weighted average number of ordinary shares (diluted)
160,120,656
159,298,718
157,411,158
Reconciliation of profit for the period / year between basic and diluted
Profit for the period / year (basic)
£2,745,000
£3,727,000
£6,390,000
Interest expense saved if all convertible loan notes were exchanged for equity
£110,625
£97,500
£221,250
Profit for the period / year (diluted)
£2,855,625
£3,824,500
£6,611,250
On 18 June 2026, shareholders approved a dividend to be satisfied in part by a bonus issue of new ordinary shares (see Note 15), allotted on 20 August 2026. As this occurred before these financial statements were authorised for issue, in accordance with IAS 33 ‘Earnings per Share’ the weighted average number of ordinary shares used in the calculation of basic and diluted earnings per share for all periods presented has been adjusted retrospectively, as if the bonus issue and the share-settled element of the scrip dividend occurred at the beginning of the earliest period presented. This adjustment does not affect profit attributable to owners for any period.
The bonus issue adjustment factor applied was 1.0165, reflecting 2,031,041 new shares issued against 122,950,726 shares in issue immediately before the combined scrip and bonus share issue.
The diluted earnings per share calculation assumes that all convertible loan notes have been converted / exercised at the beginning of the period in which they are dilutive.
As at
30 June 2026
30 June 2025
31 Dec 2025
(unaudited)
(unaudited)
(audited)
Reconciliation of total comprehensive income attributable to owners of the Company for the period / year between basic and diluted
Total comprehensive income for the period / year (basic)
£2,606,000
£3,775,000
£6,594,000
Interest expense saved if all convertible loan notes were exchanged for equity
£110,625
£97,500
£221,250
Total comprehensive income for the period / year (diluted)
£2,716,625
£3,872,500
£6,815,250
9. Debt securities
30 June 2026
30 June 2025
31 Dec 2025
As at
£’000
£’000
£’000
(unaudited)
(unaudited)
(audited)
Financial assets at fair value through other comprehensive income:
UK Government treasury bills
67,536
58,115
84,912
67,536
58,115
84,912
UK Government Treasury Bills are stated at fair value and unrealised changes in the fair value are reflected in other comprehensive income. There were realised gains of £1,550,000 (30 June 2025: £1,398,000 and 31 December 2025: £2,561,000) and an unrealised loss of £155,000 (unrealised gains 30 June 2025: £53,000 and 31 December 2025: £171,000) for the period.
10. Loans and advances to customers
30 June 2026
30 June 2025
31 Dec 2025
Gross
Impairment
Carrying Value
Carrying Value
Carrying Value
Amount
Allowance
£’000
£’000
£’000
As at
£’000
£’000
(unaudited)
(unaudited)
(audited)
HP balances
91,573
(3,630)
87,943
102,040
93,487
Finance lease balances
21,938
(4,748)
17,190
16,199
13,470
Unsecured personal loans
193,480
(12,888)
180,592
134,479
144,432
Vehicle stocking plans
1,518
-
1,518
1,663
1,472
Wholesale funding arrangements
9,525
-
9,525
14,312
19,297
Block discounting
55,440
-
55,440
40,654
49,408
Secured commercial loans
16,270
(625)
15,645
29,109
30,867
Unsecured commercial loans
1,844
-
1,844
-
-
Secured personal loans
40,139
-
40,139
34,229
39,677
Government backed loans
11,880
(2,202)
9,678
18,953
14,302
Property secured
3,388
(21)
3,367
920
1,460
446,995
(24,114)
422,881
392,558
407,872
11. Trade and other receivables
30 June 2026
30 June 2025
31 Dec 2025
As at
£’000
£’000
£’000
(unaudited)
(unaudited)
(audited)
Prepayments
5,408
675
5,136
Other debtors
9,199
9,340
16,390
14,607
10,015
21,526
12. Goodwill
30 June 2026
30 June 2025
31 Dec 2025
As at
£’000
£’000
£’000
(unaudited)
(unaudited)
(audited)
PAL
4,456
4,456
4,456
EAL
1,649
1,649
1,649
BLX
1,908
1,908
1,908
BBSL
1,390
1,390
1,390
CAM
568
568
568
NRFL
678
678
678
Manx Collections Limited (“MCL”)
454
454
454
Three Spires Insurance Services Limited (“Three Spires”)
41
41
41
11,144
11,144
11,144
13. Creditors and accrued charges
30 June 2026
30 June 2025
31 Dec 2025
As at
£’000
£’000
£’000
(unaudited)
(unaudited)
(audited)
Commission creditors
599
436
479
Other creditors and accruals
11,439
10,795
8,019
Lease liability
2,078
1,622
2,203
Taxation creditors
1,049
555
810
15,165
13,408
11,511
14. Loan notes
30 June 2026
30 June 2025
31 Dec 2025
As at
Notes
£’000
£’000
£’000
(unaudited)
(unaudited)
(audited)
Related parties
J Mellon
JM
2,750
1,750
2,750
Burnbrae Limited
BL
5,200
3,200
5,200
Culminant Reinsurance Ltd
CR
1,000
1,000
1,000
John Spellman
JS
400
400
400
Ian Morley
IM
-
250
250
Alan Clarke
AC
100
150
150
9,450
6,750
9,750
Unrelated parties
UP
38,330
38,545
43,145
47,780
45,295
52,895
JM - Three loans, one of £1,250,000 maturing on 26 February 2030, with interest payable of 7.5% per annum, convertible to ordinary shares of the Company at a rate of 9.0 pence, one of £500,000 maturing on 31 July 2027, paying interest of 7.5% per annum and convertible to ordinary shares of the Company at a rate of 8.0 pence and one loan of £1,000,000 maturing on 31 December 2028, paying interest of 8% per annum.
BL - Five loans, one of £1,000,000 maturing on 1 July 2026, paying interest of 7.5% per annum one of £1,000,000 maturing on 25 February 2030, paying interest of 7.5% per annum one of £1,200,000 maturing on 31 July 2027, paying interest of 7.5% per annum, convertible to ordinary shares of the Company at a rate of 8.0 pence, one of £1,000,000 maturing 28 September 2030 paying interest of 8% per annum and one of £1,000,000 maturing on 20 November 2028, paying interest of 8.0% per annum. Jim Mellon is the beneficial owner of BL and Denham Eke is also a director.
CR - One loan consisting of £1,000,000 maturing on 12 October 2030, paying interest of 8.0% per annum. Greg Bailey, a Director, is the beneficial owner of CR.
JS - One loan consisting of £400,000 maturing on 3 May 2029, paying interest of 8.5% per annum. John Spellman is a Director of the Group.
AC - One loan consisting of £100,000 maturing on 6 May 2027, paying interest of 5.75% per annum. Alan Clarke was a Non‑Executive Director of PAL during the period.
UP - Sixty-five loans (2025: Fifty-six), the earliest maturity date was 3 July 2026, and the latest maturity is 31 March 2031. The average interest payable is 6.77% (30 June 2025: 6.79%).
With respect to the convertible loans, the interest rate applied was deemed by the Directors to be equivalent to the market rate at the time with no conversion option.
15. Called up share capital
Ordinary Shares of no-par value available for issue
Number
At 30 June 2026, 30 June 2025, 31 December 2025
200,200,000
Issued and fully paid ordinary Shares of no par value
Number
£’000
Balance at 30 June 2026
122,950,726
19,932
Balance at 30 June 2025
119,715,757
19,626
Balance at 31 December 2025
122,950,726
19,932
A. Dividend and bonus issue
At the Annual General Meeting held on 18 June 2026, shareholders approved a dividend for the year ended 31 December 2025, to be satisfied by way of a capitalisation of retained profits, comprising:
(a) a scrip dividend of 0.5197 pence per ordinary share, in respect of which shareholders may elect to receive cash or new fully paid ordinary shares; and
(b) a bonus issue of 0.2599 pence per ordinary share, satisfied entirely by the allotment of new fully paid ordinary shares, with no cash alternative.
Both elements are payable/allotted on 20 August 2026, to shareholders on the register at close of business on 10 July 2026.
The Group has recognised a liability of £638,975 at 30 June 2026 in respect of the scrip dividend element, representing the full cash-equivalent value of the entitlement approved at the AGM. No liability has been recognised in respect of the bonus issue, as this is satisfied exclusively by the issue of new shares with no cash alternative.
2,031,041 new ordinary shares were issued on 20 August 2026 in settlement of the scrip dividend and bonus issue combined, comprising 591,740 shares issued in settlement of the scrip dividend element and 1,439,301 shares issued under the bonus issue. Shareholders who did not take shares under the scrip dividend received a cash dividend of £507,619, with the remaining £131,356 settled by the issue of new shares. The price of new shares was 22.1983 pence per share, determined in accordance with the pricing mechanism set out in the resolution approved at the AGM.
B. Convertible loans
There are three convertible loans totalling £2,950,000 (30 June and 31 December 2025: three convertible loans totalling £2,950,000).
C. Restricted Stock Units
On 5 July 2022, 27 October 2022, 29 November 2023, 16 December 2024 and 25 June 2025 MFG granted Restricted Stock Units (“RSUs”) under its 2022 RSU Plan. The Group has issued, in total, RSUs over 5,087,500 ordinary shares representing 4.14% of the issued share capital of the Group, including 2,400,000 to certain directors and 2,687,500 to certain employees. The RSUs issued before 2024 have a 2-year term while those issued post 2024 have a 3-year term and are subject to certain vesting conditions based upon an overall growth in profitability. Any RSUs granted will fall away should the recipient leave employment before the 2‑year or 3-year term expires. Should the individual vesting conditions be satisfied at the end of the term, the stock can be exercised at nil cost.
RSUs issued on 16 December 2024 and 25 June 2025 totaling 400,000 units lapsed in the six months to 30 June 2026. No director held, was granted, or exercised RSUs during the six months to 30 June 2026.
Grant date / employees entitled
Number of Units
Vesting period
RSUs grant to key employees at 5 July 2022
1,020,000
2 years
RSUs grant to Directors at 5 July 2022
1,100,000
2 years
RSUs grant to key employees at 27 October 2022
165,000
2 years
RSUs grant to Directors at 27 October 2022
150,000
2 years
RSUs grant to key employees at 29 November 2023
1,102,500
2 years
RSUs grant to Directors at 29 November 2023
1,150,000
2 years
RSUs grant to key employees at 16 December 2024
200,000
3 years
RSUs grant to key employees at 25 June 2025
200,000
3 years
Total RSUs
5,087,500
Lapsed
(855,000)
Exercised
(4,232,500)
Remaining
-
The fair value of employee services received in return for RSUs granted is based on the fair value of them measured using the Black-Scholes formula. Service related and non-market performance conditions were not taken into account in measuring fair value. The inputs used in measuring the fair values at the grant of the equity-settled restricted stock unit payment plans were as follows.
Fair value of restricted stock units and
Grant at
Grant at
Grant at
Grant at
Grant at
5 July
27 October
29 November
16 December
25 June
assumptions
2022
2022
2023
2024
2025
Share price at grant date
8.5 pence
14.0 pence
17.5 pence
14.5 pence
25.5 pence
Exercise price
nil
nil
nil
nil
nil
Expected volatility *^
55.14%
107.71%
638.12%
560.10%
611.26%
Expected life (weighted average)
2 years
2 years
2 years
3 years
3 years
Risk-free interest rate (based on government bonds) *^
1.65%
3.15%
4.43%
4.49%
4.46%
Forfeiture rate
0.00%
0.00%
0.00%
0.00%
0.00%
Fair value at grant date
8.5 pence
14.0 pence
17.5 pence
14.5 pence
25.6 pence
^ Based on past 3 years
* Annual rates
The expected volatility is based on both historical average share price volatility and implied volatility derived from traded options over the Group’s ordinary shares of maturity similar to those of the employees.
The fair value of the liability is remeasured at each reporting date and at settlement date.
The credit for the period on RSUs lapsed in the period was £10,000 (30 June 2025: £42,000 charge and 31 December 2025: £373,000 charge) which is included in personnel expenses.
16. Contingent consideration
Deferred consideration relates to contingent payments due to the sellers on the acquisition of CAM Wealth Group Holdings Limited and its subsidiary CAM Wealth Group Limited (together “CAM” trading as CAM Wealth).
On 21 January 2025, CAM was acquired for total cash consideration of £135,000. In the third year, the Group agreed to pay 5 times the relevant profits for the UK IFA business for the year ended 21 January 2028 should certain performance conditions be met.
Based on the forecasts when the Company was acquired, the Group estimates an additional contingent consideration of £640,000 payable in the final year. The Group has included £590,000 as contingent consideration related to the additional consideration, which represents its fair value as at 30 June 2026 determined through a discounted cash flow valuation technique.
30 June 2026
30 June 2025
31 Dec 2025
As at
£’000
£’000
£’000
(unaudited)
(unaudited)
(audited)
CAM
590
568
590
590
568
590
17. Regulators
Certain Group subsidiaries are regulated by the Isle of Man Financial Services Authority (“FSA”) and the United Kingdom Financial Conduct Authority (“FCA”) as detailed below.
The Bank and EAL are regulated by the FSA under a Class 1(1) - Deposit Taking licence, and a Class 2 - Investment Business licence respectively. The Bank is also regulated by the UK’s Prudential Regulatory Authority (“PRA”) and the UK’s FCA.
The Bank is required to be a member of the Isle of Man Government Depositors’ Compensation Scheme which was introduced by the Isle of Man Government under the Banking Business (Compensation of Depositors) Regulations 1991. This creates a liability on the Bank to participate in the compensation of depositors should it be activated.
19. Provisions for Discretionary Commission Arrangements
The Group holds a provision of £1,502,920 (30 June 2025: £202,920 and 31 December 2025: £1,502,920) in respect of historical motor finance commission complaints, following the FCA’s review of this market. This figure was calculated using the FCA’s final rules for its Motor Finance Redress Scheme, published in March 2026, includes commission models and calculations in line with the FCA’s published redress scheme, and the provision level has not changed since 31 December 2025.
Subsequent to publication of the scheme, it has been challenged in court by several lenders and a consumer group. In July 2026, parts of the scheme were put on hold while the challenge is heard, with a decision not expected before late 2026 or early 2027. The Directors do not believe this legal challenge changes how much the Group expects to pay, only when it might be paid, and have therefore not adjusted the provision.
The final cost remains uncertain and could differ from the amount provided, mainly because of the outcome of the ongoing legal challenge and the interest added to compensation payments, which continues to build up even though the scheme is currently paused. The Group will keep this estimate under review as matters progress.
The Group believes that its historical practices were compliant with the law and regulations in place at the time and is willing to cooperate with the FCA through its revised customer-engagement approach. No redress settlements were made as of 30 June 2026.
20. Subsequent events
On 1 July 2026, a loan note of £1,000,000 paying interest at 7.5% to Burnbrae Limited matured and was renewed under the same terms, with a new maturity date of 1 July 2027.
Following the approval of the dividend and bonus issue described in Note 15, on 20 August 2026 the Group issued 2,031,041 new ordinary shares, comprising 591,740 shares in settlement of the scrip dividend element and 1,439,301 shares under the bonus issue, and paid £507,619 in cash to shareholders who did not take shares under the scrip dividend. Called up share capital increased by £450,905 as a result.
There were no other significant subsequent events identified after 30 June 2026.
21. Approval of interim financial statements
The interim financial statements were approved by the Board on 17 September 2026. The interim report will be available at the Group’s website – www.mfg.im and at the Registered Office: Clarendon House, Victoria Street, Douglas, Isle of Man, IM1 2LN. The Group’s nominated adviser is Beaumont Cornish Limited, 5-10 Bolton Street, London, W1J 8BA and the broker is Shore Capital, Cassini House, 57 St James’s Street, London, SW1A 1LD. The interim and annual financial statements along with other supplementary information of interest to shareholders, are included on the Group’s website. The website includes investor relations information, including corporate governance observance and contact details.
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