RNS Number : 1454A
Manx Financial Group PLC
22 September 2025
FOR IMMEDIATE RELEASE
22 September 2025
Manx Financial Group PLC (the 'Company' or the 'Group')
Unaudited Interim Results for the 6 months to 30 June 2025
Manx Financial Group PLC (LSE: MFX), the financial services group which includes Conister Bank Limited, Conister Finance & Leasing Ltd, MFX Limited, Payment Assist Limited, Blue Star Business Solutions Limited, Edgewater Associates Limited, Ninkasi Rentals & Finance Limited and The Business Lending Exchange Limited, presents its Interim results for the six months ended 30 June 2025.
Jim Mellon, Executive Chair, commented: "I am pleased to report a commendable Interim financial performance amidst challenging economic conditions. We have realised a 16% increase in Profit Before Tax, amounting to £4.1 million."
Copies of the Interim Report will shortly be available on our website www.mfg.im.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU No. 596/2014) AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA 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
Tavistock Communications Limited
Greentarget Limited
Denham Eke
Roland Cornish/ James Biddle
Simon Hudson/ Adam Baynes
Jamie Brownlee
Tel: +44 (0) 1624 694694
Tel: +44 (0) 20 7628 3396
Tel: +44 207 920 3150 mfg@tavistock.co.uk
Tel: +44 (0) 20 3307 5726
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.
Dear Shareholders
I am pleased to report a commendable Interim financial performance amidst challenging economic conditions. We have realised a 16% increase in Profit Before Tax, amounting to £4.1 million (30 June 2024: £3.5 million), and a significant improvement in earnings per share.
Our strategic initiatives have been centered on growth, simplification, and technological enhancement, resulting in record profits and loan book growth while maintaining robust liquidity and capital positions. Despite persistent high inflation and interest rates, the outlook for the economies of the Isle of Man and UK remain more favorable compared to other jurisdictions.
Financial results include a 0.5% rise in Net Interest Income margin to 62.4% (30 June 2024: 61.9%), net loan book growth of £19.8 million to £392.6 million since the year-end (31 December 2024: £372.8 million), and an improved net yield of 7.6% (30 June 2024: 7.3%). Operating income has increased by £0.8 million to £18.4 million (30 June 2024: £17.6 million), and profit attributable to owners has risen by 54.6% to £3.7 million (30 June 2024: £2.4 million).
The balance sheet reflects an increase in the loan book of £19.8 million to £392.6 million (31 December 2024: £372.8 million), supported by deposits of £406.5 million (31 December 2024: £405.2 million), improving the loan deposit efficiency ratio to 96.6% (31 December 2024: 91.9%). We hold £82.4 million (31 December 2024: £95.3 million) in liquidity via cash and short dated gilts and have increased total equity by £3.9 million to £41.2 million since the year-end (31 December 2024: £37.3 million).
Our market valuation has improved from a substantial discount to a slight premium over Net Asset Value, although it remains undervalued with an earnings-to-market capitalisation ratio of 6.0. Efforts to enhance investor engagement are ongoing.
We continue to make satisfactory progress against our strategic priorities by taking decisive action to grow and simplify our business and to manage our liquidity, capital, and costs more efficiently in compliance with our regulatory and ESG requirements. In this regard, we will continue to:
• Optimise our cost of liquidity through our two deposit-taking licences, providing liquidity to our lending businesses to maximize their profitability.
• Increase our shareholder engagement, including the provision of a new website for the Group.
• Simplify the Group's structure to deliver cost efficiencies through supplier reviews and technological enhancements.
• Enhance our customers' experience through the deployment of technology where it adds value, including
• introducing self-service functionality for our lending and deposit customers.
· Expand our product offering in resilient markets and seek to increase our market share through accretive acquisitions.
· Constantly review the markets in which we operate.
· Deploy our capital in the most sustainable markets and products that produce the best outcomes for our customers.
· Develop and use technology to reduce our carbon footprint and encourage the Group and its stakeholders to better understand the consequences of their actions or inactions.
It is the Board's view that no additional provision is required at this time beyond £0.2 million for potential liabilities related to the FCA review of discretionary commission arrangements in motor finance.
Our key profit drivers include Conister Bank Limited, Payment Assist Limited, and Manx Ventures Limited:
• Conister Bank Limited's net loan book grew by £16.7 million to £382.9 million (31 December 2024: £366.1 million) supported by deposits increasing to £406.5 million (31 December 2024: £405.2 million) with the Bank's Loan to Deposit ratio improving to 94.2%. We remain in an excellent liquidity position with a surplus of £74.0 million (31 December 2024: £91.1 million). In terms of regulatory capital, the Bank continues to enjoy a robust CET1 of 12.2% (31 December 2024: 12.5%) leaving us well positioned to meet our partners' borrowing requirements.
• Payment Assist Limited, one of the UK's leading automotive repair point-of-sale finance providers, increased advances by £3.3 million to £97.6 million (30 June 2024: £94.3 million) and now has in excess of 1,000,000 unique customers and serves over 7,000 garages. This customer base will function as a starting point from which to grow our recently acquired insurance and wealth management business, CAM Wealth Limited.
• Manx Ventures Limited holds shareholdings and options in 13 companies and is the acquisition vehicle for businesses which fall outside the banking licence regime. Many of its shareholdings are in companies that our structured finance division lend to on an arms-length basis. This mix of debt and equity allows the Group as a whole to maximise its return as business opportunities arise. Manx Ventures balance sheet grew by £0.4 million to £16.1 million (31 December 2024: £15.7 million) and generated dividends to Group of £0.7 million (30 June 2024: £0.7 million).
• Other subsidiaries include MFX Limited, our successful FX advisory, and our Isle of Man based wealth management business, Edgewater Associates Limited, both of which continue to perform well.
Looking ahead, we plan cautious expansion into the EU via an Irish consumer credit licence without compromising financial discipline, while focusing on the Isle of Man and UK markets.
New fintech offerings including, subject to regulatory approval, the adoption of Fiinu's overdraft product which we have just announced. Other accretive acquisitions are planned and are expected to support resilience amid economic headwinds.
We are well-positioned to capitalise on growth opportunities in short-term lending sectors including Buy Now Pay Later.
Despite not being able to replicate the one-off £1.8 million of Group impairment reversal in 2024, I remain confident regarding the outlook for the Group for the remainder of the year. I would also like to thank all our customers, staff and the Board for their continued support, and it would be remiss of me not to mention that our longest serving Non-Executive Director, Alan Clarke, who has been a steadfast supporter and friend to both me and the Group, decided to retire after this year's Annual General Meeting, and I am sure you will join me in thanking Alan for his many years of service.
Jim Mellon
Executive Chair
19 September 2025
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Notes
For the six months ended 30 June 2025 £'000 (unaudited)
For the six months ended 30 June 2024 £'000 (unaudited)
For the year ended 31 December 2024 £'000 (audited)
Interest revenue calculated using the effective interest method
6
28,388
28,009
55,930
Interest expense
(10,687)
(10,684)
(23,139)
Net interest income
17,701
17,325
32,791
Fee and commission income
2,224
2,178
3,923
Fee and commission expense
(3,081)
(3,851)
(7,181)
Net trading income
16,844
15,652
29,533
Other operating income
170
275
585
Gain on financial instruments
-
-
18
Realised gain on debt securities
9
1,398
1,671
4,266
Operating income
18,412
17,598
34,402
Personnel expenses
(6,463)
(6,211)
(12,495)
Other expenses
(4,684)
(3,938)
(9,053)
Provision for impairment on loans and advances to customers
(2,474)
(3,304)
(1,752)
Depreciation
(463)
(444)
(949)
Amortisation and impairment of intangibles
(299)
(217)
(340)
Share of profit of equity accounted investees, net of tax
51
37
119
Profit before tax payable
4,080
3,521
9,932
Income tax expense
(352)
(739)
(1,384)
Profit for the period / year
3,728
2,782
8,548
Notes
For the six months ended 30 June 20245 £'000 (unaudited)
For the six months ended 30 June 2024 £'000 (unaudited)
For the year ended 31 December 2024 £'000 (audited)
Profit for the period / year
3,728
2,782
8,548
Other comprehensive income:
Items that will be reclassified to profit or loss
Unrealised gain / (loss) on debt securities
53
-
(395)
Related tax
(5)
-
40
Items that will never be reclassified to profit or loss
Actuarial gain on defined benefit pension scheme taken to equity
-
-
67
Related tax
-
-
(7)
Other comprehensive income, net of tax
48
-
(295)
Total comprehensive income for the period / year
3,776
2,782
8,253
Profit attributable to:
Owners of the Company
3,727
2,410
8,102
Non-controlling interest
1
372
446
3,728
2,782
8,548
Total comprehensive income attributable to:
Owners of the Company
3,775
2,410
7,807
Non-controlling interest
1
372
446
3,776
2,782
8,253
Earnings per share - profit for the period / year
Basic earnings per share (pence)
8
3.11
2.07
6.87
Diluted earnings per share (pence)
8
2.43
1.59
5.39
Earnings per share - total comprehensive income for the period / year
Basic earnings per share (pence)
8
3.15
2.07
6.62
Diluted earnings per share (pence)
8
2.46
1.59
5.20
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at
Notes
30 June 2025 £'000 (unaudited)
30 June 2024 £'000 (unaudited)
31 December 2024 £'000 (audited)
Assets
Cash and cash equivalents
24,275
18,651
16,199
Debt securities
9
58,115
77,257
79,140
Equity held at Fair Value Through Profit or Loss
154
185
154
Loans and advances to customers
5,10
392,558
372,775
372,358
Trade and other receivables
11
10,015
11,623
7,312
Property, plant and equipment
5,513
6,072
6,433
Intangible assets
5,175
4,905
5,301
Investment in associates
366
186
317
Goodwill
12
11,144
10,576
10,576
Total assets
507,315
502,230
497,790
Liabilities
Deposits from customers
406,504
409,284
405,166
Creditors and accrued charges
13
13,408
14,357
9,679
Contingent consideration
16
568
5
-
Loan notes
14
45,295
41,407
45,292
Pension liability
43
105
46
Deferred tax liability
294
377
294
Total liabilities
466,112
465,535
460,477
Equity
Called up share capital
15
19,626
19,626
19,626
Profit and loss account
21,548
17,425
17,632
Revaluation reserve
-
15
-
Non-controlling interest
29
(371)
55
Total equity
41,203
36,695
37,313
Total liabilities and equity
507,315
502,230
497,790
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to owners of the Company
For the six months ended 30 June 2024
Share capital £'000
Profit and loss account £'000
Revaluation reserve £'000
Total £'000
Non-controlling interest £'000
Total equity £'000
Balance at 1 January 2024
19,384
15,544
15
34,943
1,041
35,984
Total comprehensive income for the period:
Profit for the period
-
2,410
-
2,410
372
2,782
Other comprehensive income
-
-
-
-
-
-
-
Total comprehensive income for the period
-
2,410
-
2,410
372
2,782
Changes in ownership interests:
Dividend declared
-
(336)
-
(336)
(1,784)
(2,120)
Scrip dividend shares
193
(193)
-
-
-
-
Share issue
49
-
-
49
-
49
Total changes in ownership interests
242
(529)
-
(287)
(1,784)
(2,071)
Balance at 30 June 2024
19,626
17,425
15
37,066
(371)
36,695
Balance at 1 July 2024
19,626
17,425
15
37,066
(371)
36,695
Total comprehensive income for the period:
Profit for the period
-
5,691
-
5,691
41
5,732
Other comprehensive income
-
(295)
-
(295)
-
(295)
Total comprehensive income for the period
-
5,396
-
5,396
41
5,437
Changes in ownership interests:
Share-based payment expense
-
196
-
196
-
196
Revaluation loss
-
-
(15)
(15)
-
(15)
Acquisition of NCI net without change of control
-
(5,385)
-
(5,385)
385
(5,000)
Total changes in ownership interests
-
(5,189)
-
(5,204)
385
(4,819)
Balance at 31 December 2024
19,626
17,632
-
37,258
55
37,313
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:
Acquisition of NCI net without change of control (see Note 18)
-
(177)
-
(177)
(27)
(204)
Share-based payment expense
-
318
-
318
-
318
Total changes in ownership interests
-
141
-
141
(27)
(114)
Balance at 30 June 2025
19,626
21,548
-
41,174
29
41,203
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Notes
For the six months ended 30 June 2025 £'000 (unaudited)
For the six months ended 30 June 2024 £'000 (unaudited)
For the year ended 31 December 2024 £'000 (audited)
RECONCILIATION OF PROFIT BEFORE TAXATION TO OPERATING CASH FLOWS
Profit before tax
4,080
3,521
9,932
Adjustments for:
Depreciation
463
444
949
Amortisation of intangibles
299
217
340
Impairment of loans and advances to customers
2,474
3,304
1,752
Net interest income
(19,028)
(18,646)
(35,614)
Realised gains on debt securities
(1,398)
(1,671)
(4,266)
Share of profit of equity accounted investees
(51)
(37)
(119)
Lease interest
-
-
132
Pension charge included in personnel expenses
(3)
-
8
Gain on asset disposal
(33)
-
-
Gain on financial instruments
-
-
(18)
(13,197)
(12,868)
(26,904)
Changes in:
Trade and other receivables
(2,703)
(3,396)
915
Creditors and accrued charges
5,658
(379)
(5,432)
Net cash used in trading activities
(10,242)
(16,643)
(31,421)
Changes in:
Loans and advances to customers
(22,674)
(13,748)
(13,691)
Deposits from customers
1,338
19,838
16,818
Pension contribution
-
(57)
(57)
Cash used in operating activities
(31,578)
(10,610)
(28,351)
Notes
For the six months ended 30 June 2025 £'000 (unaudited)
For the six months ended 30 June 2024 £'000 (unaudited)
For the year ended 31 December 2024 £'000 (audited)
CASH FLOW STATEMENT
Cash from operating activities
Cash outflow from operating activities
(31,578)
(10,610)
(28,351)
Interest received
28,388
28,331
58,164
Interest paid
(11,164)
(10,338)
(22,389)
Income taxes paid
-
(91)
(1,095)
Net cash (used in) / from operating activities
(14,354)
7,292
6,329
Cash flows from investing activities
Purchase of property, plant and equipment
(114)
(106)
(228)
Purchase of intangible assets
(173)
(853)
(1,373)
Sale of property, plant and equipment
571
-
-
Net sale of debt securities
9
22,476
543
(860)
Acquisition of non-controlling interest
18
(204)
-
(5,000)
Acquisition of CAM Wealth Limited, net of cash acquired
16
(129)
-
-
Contingent consideration
-
(15)
(20)
Net cash from / (used in) investing activities
22,427
(431)
(7,481)
Cash flows from financing activities
Receipt of loan notes
14
3
2,090
5,975
Payment of lease liabilities (capital)
-
(336)
(443)
Dividend paid
-
(2,120)
(337)
Share issue
-
49
49
Net cash from / (used in) financing activities
3
(317)
5,244
Net increase in cash and cash equivalents
8,076
6,544
4,092
Cash and cash equivalents - opening
16,199
12,107
12,107
Cash and cash equivalents - closing
24,275
18,651
16,199
NOTES
FOR THE SIX MONTHS ENDED 30 JUNE 2025
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 2025 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 2024 ("Annual Financial Statements 2024"). 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.
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 67 and 99 respectively of the Annual Financial Statements 2024.
An explanation of the terms Stage 1, Stage 2 and Stage 3 is included in Note 45 (G)(vi) on page 108 of the Annual Financial Statements 2024.
A. Summary of credit risk on loans and advances to customers
2025
2024
30 June (unaudited)
Stage 1 £'000
Stage 2 £'000
Stage 3 £'000
Total £'000
Stage 1 £'000
Stage 2 £'000
Stage 3 £'000
Total £'000
Grade A
345,579
-
-
345,579
352,431
-
-
352,431
Grade B
-
25,116
-
25,116
-
9,251
4,538
13,789
Grade C
-
-
43,765
43,765
-
5
28,732
28,737
Gross value
345,579
25,116
43,765
414,460
352,431
9,256
33,270
394,957
Allowance for impairment
(1,183)
(620)
(20,099)
(21,902)
(279)
(8)
(21,895)
(22,182)
Carrying value
344,396
24,496
23,666
392,558
352,152
9,248
11,375
372,775
2024
2023
31 December (audited)
Stage 1 £'000
Stage 2 £'000
Stage 3 £'000
Total £'000
Stage 1 £'000
Stage 2 £'000
Stage 3 £'000
Total £'000
Grade A
327,561
3,968
-
331,529
341,953
-
-
341,953
Grade B
-
19,836
5,932
25,768
-
7,822
3,700
11,522
Grade C
-
5
35,268
35,273
-
2
28,791
28,793
Gross value
327,561
23,809
41,200
392,570
341,953
7,824
32,491
382,268
Allowance for impairment
(688)
(36)
(19,488)
(20,212)
(184)
(6)
(19,425)
(19,615)
Carrying value
326,873
23,773
21,712
372,358
341,769
7,818
13,066
362,653
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
2025
2024
31 December (unaudited)
Stage 1 £'000
Stage 2 £'000
Stage 3 £'000
Total £'000
Stage 1 £'000
Stage 2 £'000
Stage 3 £'000
Total £'000
Current
345,579
-
-
345,579
340,658
-
-
340,658
Overdue < 30 days
-
25,116
-
25,116
11,773
-
-
11,773
Overdue > 30 days
-
-
43,765
43,765
-
9,256
33,270
42,526
345,579
25,116
43,765
414,460
352,431
9,256
33,270
394,957
2024
2023
31 December (audited)
Stage 1 £'000
Stage 2 £'000
Stage 3 £'000
Total £'000
Stage 1 £'000
Stage 2 £'000
Stage 3 £'000
Total £'000
Current
314,542
-
-
314,542
333,740
-
-
333,740
Overdue < 30 days
13,019
-
-
13,019
8,213
-
-
8,213
Overdue > 30 days
-
19,851
45,158
65,009
-
7,825
32,490
40,315
327,561
19,851
45,158
392,570
341,953
7,825
32,490
382,268
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.
7. Operating segments
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 (2023: 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).
For the 6 months ended 30 June 2025 (unaudited)
Asset and Personal Finance £'000
Edgewater Associates £'000
MFX Limited £'000
Investing Activities £'000
Total £'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)
All other expenses
(12,460)
(791)
(114)
(256)
(13,621)
Share of profit of equity accounted investees, net of tax
51
-
-
-
51
Profit before tax payable
3,251
202
537
90
4,080
Capital expenditure
287
-
-
-
287
Total assets
441,357
1,759
377
63,725
507,218
Total liabilities
420,332
322
39
45,322
466,015
For the 6 months ended 30 June 2024 (unaudited)
Asset and Personal Finance £'000
Edgewater Associates £'000
MFX Limited £'000
Investing Activities £'000
Total £'000
Interest revenue calculated using the effective interest method
28,009
-
-
-
28,009
Interest expense
(10,684)
-
-
-
(10,684)
Net interest income
17,325
-
-
-
17,325
Components of Net Trading Income
(3,405)
1,077
655
-
(1,673)
Net trading income
13,920
1,077
655
-
15,652
Components of Operating Income
1,927
-
1
18
1,946
Operating Income
15,847
1,077
656
18
17,598
Depreciation
(371)
(12)
(1)
(60)
(444)
Amortisation and impairment of intangibles
(89)
(39)
(2)
(87)
(217)
All other expenses
(12,435)
(732)
(148)
(138)
(13,453)
Share of profit of equity accounted investees, net of tax
37
-
-
-
37
Profit / (loss) before tax payable
2,989
294
505
(267)
3,521
Capital expenditure
959
-
-
-
959
Total assets
457,023
1,890
419
42,898
502,230
Total liabilities
437,350
297
7
27,881
465,535
For the year ended 31 December 2024 (audited)
Asset and Personal Finance £'000
Edgewater Associates £'000
MFX Limited £'000
Investing Activities £'000
Total £'000
Interest revenue calculated using the effective interest method
55,930
-
-
-
55,930
Interest expense
(23,044)
-
-
(95)
(23,139)
Net interest income
32,886
-
-
(95)
32,791
Components of Net Trading Income
(6,341)
2,048
1,035
-
(3,258)
Net trading income
26,545
2,048
1,035
(95)
29,533
Components of Operating Income
4,818
11
5
35
4,869
Operating Income
31,363
2,059
1,040
(60)
34,402
Depreciation
(715)
(23)
(1)
(210)
(949)
Amortisation and impairment of intangibles
(256)
(78)
(4)
(2)
(340)
All other expenses
(20,586)
(1,570)
(1,020)
(124)
(23,300)
Share of profit of equity accounted investees, net of tax
119
-
-
-
119
Profit / (loss) before tax payable
9,925
388
15
(396)
9,932
Capital expenditure
401
1
-
1,199
1,601
Total assets
446,771
1,614
310
49,095
497,790
Total liabilities
428,540
377
9
31,551
460,477
8. Earnings per share
For the 6 months ended 30 June 2025 (unaudited)
For the 6 months ended 30 June 2024 (unaudited)
For the year ended 31 Dec 2024 (audited)
Profit for the period / year attributable to owners of the Company
£3,727,000
£2,410,000
£8,101,700
Weighted average number of ordinary shares in issue (basic)
119,715,757
116,378,211
117,923,558
Basic earnings per share (pence)
3.11
2.07
6.87
Diluted earnings per share (pence)
2.43
1.59
5.39
Total comprehensive income for the period / year attributable to owners of the Company
£3,775,000
£2,410,000
£7,807,000
Weighted average number of ordinary shares in issue (basic)
119,715,757
116,378,211
117,923,558
Basic earnings per share (pence)
3.15
2.07
6.62
Diluted earnings per share (pence)
2.46
1.59
5.20
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 2025 (unaudited)
30 June 2024 (unaudited)
31 Dec 2024 (audited)
Reconciliation of weighted average number of ordinary shares in issue between basic and diluted
Weighted average number of ordinary shares (basic)
119,715,757
116,378,211
117,923,558
Number of shares issued if all convertible loan notes were exchanged for equity
35,138,889
37,916,667
35,138,889
Dilutive element of RSUs if exercised
2,466,470
2,922,088
399,352
Weighted average number of ordinary shares (diluted)
160,098,894
157,216,966
153,461,799
Reconciliation of profit for the period / year between basic and diluted
Profit for the period / year (basic)
£3,727,000
£2,410,000
£8,101,700
Interest expense saved if all convertible loan notes were exchanged for equity
£97,500
£97,500
£171,415
Profit for the period / year (diluted)
£3,824,500
£2,507,500
£8,273,115
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 2025 (unaudited)
30 June 2024 (unaudited)
31 Dec 2024 (audited)
Reconciliation of total comprehensive income for the period / year between basic and diluted
Total comprehensive income for the period / year (basic)
£3,775,000
£2,410,000
£7,807,000
Interest expense saved if all convertible loan notes were exchanged for equity
£97,500
£97,500
£171,415
Total comprehensive income for the period / year (diluted)
£3,872,500
£2,507,500
£7,978,415
9. Debt securities
As at
30 June 2025 £'000 (unaudited)
30 June 2024 £'000 (unaudited)
31 Dec 2024 £'000 (audited)
Financial assets at fair value through other comprehensive income:
UK Government treasury bills
58,115
77,257
79,140
58,115
77,257
79,140
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 £1,398,000 (30 June 2024: £1,671,000 and 31 December 2024: £4,266,000) and unrealised gains of £53,000 (30 June 2024: £nil and 31 December 2024: £395,000 loss) for the period.
10. Loans and advances to customers
As at
Gross Amount £'000
Impairment Allowance £'000
30 June 2025 Carrying Value £'000 (unaudited)
30 June 2024 Carrying Value £'000 (unaudited)
31 Dec 2024 Carrying Value £'000 (audited)
HP balances
106,772
(4,732)
102,040
117,189
110,900
Finance lease balances
18,962
(2,763)
16,199
23,290
20,130
Unsecured personal loans
146,591
(12,112)
134,479
108,734
108,273
Vehicle stocking plans
1,663
-
1,663
1,537
1,714
Wholesale funding arrangements
14,312
-
14,312
11,812
23,851
Block discounting
40,654
-
40,654
37,823
40,845
Secured commercial loans
29,665
(556)
29,109
31,035
30,365
Secured personal loans
34,229
-
34,229
905
901
Government backed loans
20,692
(1,739)
18,953
30,869
24,595
Property secured
920
-
920
9,581
10,784
414,460
(21,902)
392,558
372,775
372,358
11. Trade and other receivables
As at
30 June 2025 £'000 (unaudited)
30 June 2024 £'000 (unaudited)
31 Dec 2024 £'000 (audited)
Prepayments
675
613
663
Other debtors
9,340
11,010
6,649
10,015
11,623
7,312
12. Goodwill
As at
30 June 2025 £'000 (unaudited)
30 June 2024 £'000 (unaudited)
31 Dec 2024 £'000 (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 Wealth
568
-
-
NRFL
678
678
678
Manx Collections Limited ("MCL")
454
454
454
Three Spires Insurance Services Limited ("Three Spires")
41
41
41
11,144
10,576
10,576
13. Creditors and accrued charges
As at
30 June 2025 £'000 (unaudited)
30 June 2024 £'000 (unaudited)
31 Dec 2024 £'000 (audited)
Commission creditors
436
171
333
Other creditors and accruals
10,795
11,809
7,032
Lease liability
1,622
1,022
1,792
Taxation creditors
555
1,355
522
13,408
14,357
9,679
14. Loan notes
As at
Notes
30 June 2025 £'000 (unaudited)
30 June 2024 £'000 (unaudited)
31 Dec 2024 £'000 (audited)
Related parties
J Mellon
JM
1,750
1,750
1,750
Burnbrae Limited
BL
3,200
3,200
3,200
Culminant Reinsurance Ltd
CR
1,000
1,000
1,000
John Spellman
JS
400
400
400
Ian Morley
IM
250
250
250
Alan Clarke
AC
150
100
100
6,750
6,700
6,700
Unrelated parties
UP
38,545
34,707
38,592
45,295
41,407
45,292
JM - Two 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.
BL - Three loans, 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 25 February 2030, paying interest of 7.5% per annum, and one of £1,000,000 maturing 28 September 2025 paying interest of 6% 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 2025, paying interest of 6.0% 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.
IM - One loan consisting of £250,000 maturing on 3 June 2026, paying interest of 8.0% per annum. Ian Morley is a Director of the Conister Bank Limited, a subsidiary of the Group.
AC - Two loans, one of £50,000 and one of £100,000, both maturing on 6 May 2026, paying interest of 7.80% per annum. Alan Clarke was a Director of the Group.
UP - Fifty-six loans (2024: Forty-six), the earliest maturity date is 18 July 2025, and the latest maturity is 30 April 2030. The average interest payable is 6.79% (2023: 6.36%). The cause for the increase is due to the rising interest environment increasing the cost of loan notes seen particularly in the first six months. 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 2025, 30 June 2024, 31 December 2024*
200,200,000
Issued and fully paid ordinary Shares of no par value
Number
£'000
Balance at 30 June 2025
119,715,757
19,626
Balance at 30 June 2024
117,555,757
19,626
Balance at 31 December 2024
119,715,757
19,626
* Authorised share capital of the Group was identified as being 233,388,000 shares in the annual financial statements for the year ended 31 December 2024. This disclosure has therefore been restated in these interim financial statements to correct the authorised share capital stated as that date. This adjustment relates exclusively to this disclosure and does not impact any financial statement captions or other disclosures.
Convertible loans
There are three convertible loans totalling £2,950,000 (30 June and 31 December 2024: three convertible loans totalling £2,950,000).
Restricted Stock Units
i. Issued during the financial year ended 31 December 2022 and 2023
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 issued, in total, RSUs over 5,087,500 ordinary shares representing 4.2% of the issued share capital of the Group, including 2,400,000 to certain Directors and 2,687,500 to certain employees. The RSUs have a 2-year or 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.
The Group directors who received RSUs are as follows:
§ Douglas Grant, Group Chief Executive Officer, was issued 1,925,000 RSUs. On 14 November 2024, he transferred 1,631,138 Ordinary Shares of no par value in the Company held in his own name to the Doonhamer Personal Pension Scheme at 15.0p per share. The Doonhamer Personal Pension Scheme is a Self-Invested Personal Pension of which Douglas Grant is the sole member and beneficiary. Following this transfer, the total number of Ordinary Shares held by Mr Grant remains at 2,347,904, representing 1.96% of the issued ordinary share capital of the Company; and
§ James Smeed, Group Finance Director, was issued 475,000 RSUs.
On 16 July 2024, Douglas Grant and James Smeed exercised their RSUs and were issued with 925,000 and 175,000 New Ordinary Shares of no par value respectively at nil cost.
The terms and conditions of the grants are as follows: and will be settled by the physical delivery of shares.
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
(425,000)
Exercised
(2,160,000)
Remaining
2,502,500
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 assumptions
Grant at 16 December 2024
Grant at 29 November 2023
Grant at 27 October 2022
Grant at 5 July 2022
Share price at grant date
14.75 pence
17.5 pence
14.0 pence
8.5 pence
Exercise price
nil
nil
nil
nil
Expected volatility *^
638.12%
638.12%
107.71%
55.14%
Expected life (weighted average)
2 years
2 years
2 years
2 years
Risk-free interest rate (based on government bonds)*^
4.43%
4.43%
3.15%
1.65%
Fair value at grant date
14.75 pence
17.5 pence
14.0 pence
8.5 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 charge for the period for the RSUs granted was £42,000 (30 June 2024: £153,000 and 31 December 2024: £163,000) which is included in personnel expenses.
16. Acquisition of subsidiary
On 22 January 2025, the Group announced the acquisition of the UK FCA licenced Wealth Management business, CAM Wealth Group Holdings and its subsidiary CAM Wealth Group Limited, (together "Cam Wealth" trading as CAM Wealth).
This acquisition links to the Group's growth strategy of accretive acquisition to continue developing a robust and diversified financial services group to support the ongoing objective of continuously enhancing shareholder value.
In the five months to 30 June 2025, CAM Wealth contributed revenue of £12,838 and loss of £102,767 to the Group's results. If the acquisition had happened on 01 January 2025, management estimates that the impact on the consolidated income would have been £15,402 and the impact on the consolidated profit for the period would have been a loss of £123,318.
A. Consideration transferred
The following table summarises the acquisition date fair value of each major class of consideration transferred:
£'000
Cash
135
Contingent consideration (Note 17)
568
703
B. Identifiable assets acquired, and liabilities assumed
The following table summarises the recognised amounts of assets acquired, and liabilities assumed at the date of acquisition:
£'000
Intangible asset acquired
100
Cash and cash equivalents
6
Trade and other receivables
35
Creditors and accrued charges
(6)
Total identifiable net assets acquired
135
The trade and other receivables comprise gross contractual amounts due of £35,000, of which £nil was expected to be uncollectable at the date of acquisition.
Fair values measured on a provisional basis
The following fair vales have been determined on a provisional basis pending completion of the valuation of the assumptions used:
· The fair value of the intangible asset acquired (FCA licence)
· The fair values of the contingent consideration (Note 17)
C. Goodwill
The goodwill arising from the acquisition has been recognised as follows:
£'000
Total consideration transferred
703
Fair value of identifiable net assets
(135)
Goodwill
568
17. Contingent consideration
On 21 January 2025, CAM Wealth was acquired for a total cash consideration of £135,000. In the third year, the Group has 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 £568,000 as contingent consideration related to the additional consideration, which represents its fair value at the date of acquisition determined through a discounted cash flow valuation technique.
As at
30 June 2024 £'000 (unaudited)
30 June 2024 £'000 (unaudited)
31 Dec 2024 £'000 (audited)
CAM Wealth
568
-
-
568
-
-
18. Acquisition of Non-Controlling Interest ("NCI")
On 28 March 2025, the Group acquired an additional 5% interest in Ninkasi Rentals & Finance Limited ("NRFL"), increasing its ownership from 90% to 95%. The carrying amount of NRFL's net assts in the Group's consolidated financial statements on the date of acquisition was £580,049.
The following table summarises the effect of changes in the Company's ownership interest in NRFL.
£'000
Carrying amount of NCI acquired (£580,409 * 5%)
27
Consideration paid to NCI in cash
(204)
A decrease in equity attributable to owners of the Company
(177)
The decrease in equity attributable to owners of the Company includes a decrease in retained earnings of £177,255.
19. 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.
20. Contingent liabilities
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.
The possibility of an outflow of resources embodying economic benefits for all other contingent liabilities of the Group are considered remote and thus do not require separate disclosure.
21. Provisions for Discretionary Commission Arrangements
Following the Financial Conduct Authority's (FCA) Motor Market review in 2019 which resulted in a change in rules in January 2021, the Group received a small number of complaints in respect of motor finance. On 1 August 2025, the UK Supreme Court ruled reversing various aspects the decision made by the Court of Appeal on the same matter. The Supreme Court ruling has therefore reduced the scope for the claims but there will still be some compensation to be awarded. The FCA will be consulting on an industry wide compensation scheme with a launch date expected to be in 2026. 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 FCA through its industry review. However, the Group recognises that there will be costs to be incurred or compensation awarded to car buyers affected and has therefore continued to carry a provision of £202,920 as best estimate of the expenditure required as at 30 June 2025. In establishing the provision estimate, the Group made various considerations to address uncertainties around a number of key assumptions. The assumptions include commission models, potential levels of complaints, validity of the complaints and uphold rate of similar cases by the Financial Ombudsman Service. The ultimate financial impact could be materially different as a result of uncertainty surrounding the assumptions and will therefore be monitored and updated as new information becomes available.
22. Subsequent events
On 1 July 2025, Burnbrae Limited issued a loan note to MFG of £1,000,000 paying interest at a rate of 7.50% per annum. The loan note maturity date is 1 July 2026. There were no other significant subsequent events identified after 30 June 2025.
23. Approval of interim financial statements
The interim financial statements were approved by the Board on 19 September 2025. The interim report will be available from that date 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 and broker is Beaumont Cornish Limited, 5-10 Bolton Street, London, W1J 8BA. 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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