Manx Financial Group PLC 40% holding in Business Lending Exchange Limited (5834F)
February 22 2018 - 1:00AM
UK Regulatory
TIDMMFX
RNS Number : 5834F
Manx Financial Group PLC
22 February 2018
FOR IMMEDIATE RELEASE 22(nd) February 2018
Manx Financial Group PLC (the 'Group')
Acquisition of 40% shareholding in The Business Lending Exchange
Limited and GBP4 million wholesale funding agreement
Manx Financial Group PLC announces that Conister Bank Limited, a
wholly owned subsidiary and the Isle of Man's only independent
bank, has entered into a GBP4 million wholesale funding agreement
on an "arms-length" basis with The Business Lending Exchange
Limited ("BLX"). Simultaneously, but as a separate transaction,
Conister Bank Limited has acquired a 40% shareholding in BLX at no
cost, together with an option to acquire the remaining issued share
capital, exercisable in 2021, on the basis of 60% of four times
EBITDA. Douglas Grant, Managing Director of Conister Bank Limited,
joins the BLX board with immediate effect.
This acquisition furthers Conister Bank's strategy of acquiring
and consolidating a niche broker platform within the UK, providing
a greater control over lending opportunities and associated
costs.
BLX, formed in 2006, based in Cambridgeshire and regulated by
the Financial Conduct Authority, holding Consumer Credit
Authorisations, primarily lends to start-up companies and small
businesses which require asset backed finance. Its systems and
underwriting capability allow lending decisions to be made within
one hour of application. For the year ended December 2017, after
all expenses, including one-off costs of GBP51,000, BLX reported an
unaudited profit on ordinary activities of GBP13,500 and had as at
that date net assets of GBP95,000. Accordingly, the 40%
shareholding will be consolidated in the Group's accounts at
GBP38,000.
Chris Allan, Managing Director of BLX, commented, "We are
delighted to enter into this business relationship with Conister
Bank who share in our belief that many good UK SMEs are still
incorrectly starved of credit by High Street banks."
Douglas Grant, Managing Director of Conister Bank Limited,
commented, "BLX's focus on providing finance to smaller businesses
is a market sector that has recently witnessed a reduction in
lenders. This, along with the company's commitment to customer
service and enhanced access to funding, will propel this business
to a meaningful size in the next few years. We are pleased to be
the debt provider and a major shareholder in this business and
believe it will be a significant addition to our lending
capability.'
For further information: -
Manx Financial Group - http://www.mfg.im/
Conister Bank Limited - http://www.conisterbank.co.im/
The Business Lending Exchange Limited -
http://www.theblx.com/site/
Contacts:
Manx Financial Group PLC
Denham Eke, Chief Executive
Tel: +44 (0) 1624 694694
Beaumont Cornish Limited
Roland Cornish/James Biddle
Tel: +44 (0) 20 7628 3396
Britton Financial PR
Tim Blackstone
Tel +44 (0) 7957 140416
This information is provided by RNS
The company news service from the London Stock Exchange
END
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