Manx Financial Share Discussion Threads

[smithie6] 02/10/2024 10:43

Tiger
you previously posted that you could not understand the para in the H1 accounts about PA Ltd

of which this text is a major part

"As anticipated, PAL has had a difficult start to this year, despite recording a profit of £1.9 million (30 June 2023: £1.5 million), but we have every confidence that our remedial actions will be successful...."

Do we all agree that MFX made no prior mention ever to shareholders of "an anticipated difficult start to the year for PA Ltd " ?

Was this section of text all explained in yesterday's webinar ?

If the profit has increased from £1.5m to £1.9m, a notable % increase, then why is remedial action needed ?!

What remedial action is being taken ?

======

Or as shareholders we should just sit in the dark & not expect the company to tell us roughly what is going on at the company (which is using our money, & where we are risking our money) ?

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And in return for terrible accounts with different subsidiary profit numbers given on different pages & claims that a falling interest rate will benefit MFX (lies, the truth is the opposite)....the bloated bod doubles its cost in 2023 from 2019 to £973k, ouch !!
£1 million pounds !!!!!

----
There are pros & cons to any share and MFX has chances to increase its profit, but as shareholders we are in the dark as to what is going on inside the group & whether Conister Bank might start increasing its % margin when in H1 its margin number got worse (probably yet again). And what is going on at PA Ltd, again, us shareholders are in the dark, uninformed...& 'completely confused'. Undefined "Remedial actions" !!
It all makes it difficult to have faith or confidence in the bod & the operation of the group. Producing accounts with different profit numbers for PA Ltd on different pages, with no explanation, makes it very difficult to have confidence in the bod.

[smithie6] 02/10/2024 10:29

btw

if one goes to the MFX web site
& you click on
"presentation for interim 2024 results"

this is what you get :-

"Page not found
You've come to a page of the website that doesn't currently exist."

...well, no surprise for long term MFX shareholders.

MFX & communication, water & oil, they don't go together.

:-(

[smithie6] 02/10/2024 10:24

Tiger
..has Island Farms have any connection at all to farming or is it just an investment vehicle as mikeep wrote ?

..I guess you probably know.

[mikeep] 02/10/2024 09:50

And Island Farms is the big buyer it seems. An IOM investment vehicle I think and again I'm sure the BoD knows the person concerned.
It does worry that there's discord on here between fellow shareholders because of non transparency and lack of basic information and accounts understanding.

[castleford tiger] 01/10/2024 20:24

They know for sure

[smithie6] 01/10/2024 20:23

no hint of who the big seller might be ?

[castleford tiger] 01/10/2024 17:18

the conversations were.

we are making progress in everything but the share price

tiger

[smithie6] 01/10/2024 16:44

Was the webcast 'good' ?

[smithie6] 01/10/2024 16:43

...down another 1/2p. :-(

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Mr Seller was back today, another 250k sold. On the plus side, clearly other ppl are buying the large volume the seller has sold over recent X days.

[castleford tiger] 01/10/2024 14:15

hopefully we are all a little clearer now.

The choice of words is not good and the context.

I do fully understand things now howeveer

tiger

[smithie6] 01/10/2024 09:08

....the H1 accounts text says that PA ltd made ~£1.9m pbt
= £1.425m after UK tax.

(but in the accounts part it uses 2x £372k, !!)

Treasuries pulled in > ~£2m imo (interest + any capital gain), £~100m at 4-4.5%.
with 10% IoM tax that is £1.8m
in 2022 the income from treasuries was I think 0.

Subsidiaries made £1.7m pbt, say £1.3m pat

summation
= £1.425+ £1.8m + £1.3m

= £4.5m

yet reported PAT for H1 was £2.3m....£2.2m lower

clearly the main part of MFX (Conister bank (including Conister UK) + HQ + bod costs) is currently notably loss making imo

Can that be changed & how long will it take ?
Conister uk is clearly quite a drag on the group, & yet after 1 year is still not taking deposits !. :-(

The nett % margin got worse again in H1. :-(
is the bod unable to charge interest fees & pay deposit rates & get clients ?!

If real % rates were charged (that would pay the cost of branches & staff) would all the clients leave ?! And if the answer is "no" then why has it not been done ?

[lookagain] 30/9/2024 17:25

Thanks Lennonsalive
L A

[smithie6] 30/9/2024 15:52

...be interesting to see how well the webcast goes tomorrow

& what the share price does over the coming months.

But I do notice that with the price to buy at <15.0p not 1 share buy from any director has been reported. :-(

And with non-execs getting paid £50k-110k just from MFX, & they surely have other income, they clearly could afford to buy some MFX shares, but they aren't.

[castleford tiger] 30/9/2024 14:57

But the site was down so today will be ok

[lennonsalive] 30/9/2024 14:47

Presentation and webcast for analysts and investorsA conference call with management, including an opportunity to ask questions, will commence at 2:00 pm (BST) on 1 October 2024. A copy of the presentation will be available in the Investor Relations section of www.mfg.im from 4:00 pm (BST) that day. To access the webcast, please register your interest by writing to [e-mail], together with any advanced questions you may have by 5:00 pm (BST) on 27 September 2024.

[lookagain] 30/9/2024 13:01

CT...can't find webinar details. Can you please help?

[clocktower] 30/9/2024 11:34

Seems to be a lot of frustrated shareholders and little wonder, in view of what I have read on this thread over around 12 months now.

[castleford tiger] 30/9/2024 08:22

there is a webinar tomorrow with the full board.

details in the results

tiger

[smithie6] 30/9/2024 07:55

Elsa7878

..someone called them

no person to talk to.

the admin. girls give every person/shareholde enquiring a tel. number to call.

it is the number for Computershare...which I assume is the share registrar
..& of course will not answer shareholder questions about MFX accounts.

=====

You are patronising me & becoming my mum...
....please give it a rest !!

----
...2 times you have posted insisting that I phone the company.

Before you repeat yourself for a third time may I politely suggest that you call the company !

[elsa7878] 30/9/2024 07:18

Smithie - you make so many good points and very forcefully and clearly with a lot of diligence and had work. Now put all of your questions / concerns direct to the Board by calling them. I hope your next post will be a summary of that call...for your sake as well as any else who looks in here regularly or very occasionally (like me).

[smithie6] 30/9/2024 07:14

2023 H1 accounts said
"Our Treasury management was able to obtain improved returns with income of GBP0.7 million (30 June 2022: GBPnil million)"

note
" 30 June 2022. GBP nil million"
..
because the % rate on treasuries was much lower.

in H1 2024 the income from treasuries was ~£2m, ~£100m @ 4-4.5%.

And despite these obvious numbers the chairman tells us that reducing interest rates will be beneficial for MFX (because of differences between how how quickly the deposit book & loan book change (with new interest rates). The only person that believes him is himself, if even he believes it.

[smithie6] 30/9/2024 07:08

btw

PA Ltd profit in H1 2023.
...MFX did not reveal that info in the 2023 H1 accounts.

[smithie6] 29/9/2024 17:13

cost of the bod

2019. ~£490k
2023. ~£973k

increase = 972k-490k= £ 482k
482/490 = ~98% increase

imo from 2019-20 to 2024 the cost of the bod has increased by 98%. doubled.

arguably this is a wildly excessive increase.

[smithie6] 29/9/2024 14:56

PBT for 2019 was £3m. call it A

when income from treasuries was close to 0, now it is ~£4m, call it B. (~£100m @4% interest)
And no part of PA Ltd had been bought/owned in 2019.

now -~£2m PBT, for PA Ltd call it C (using £372k pat for H1 for minority interests & ignoring the £1.9m pbt for H1 given by Jim Mellon, as not believed)

So, if in 2024 the profit was equal to 2019 & then added on B & C
= A + B + C
= 3 + 4 + 2
= £9m pbt.

& H1 PBT would 1/2, = £4.5m

whereas reported pbt for H1 including 100% of PA Ltd is £3.5m. £1m lower !

..despite the loan book being double 5 years later !

....5 years later on from 2019 it would be good to see margins & core profits increasing (look at lender lse:time they manage to do it !) , not reducing !

The total of deposits has roughly doubled from 2019 to 2024 (£210m to £409m) but imo the resulting nett profit (after HQ & bod costs) is lower in 2024 than 2019 !
That imo is bad business. (bad directors ??)

..there is some phrase about unprofitable growth in revenue being for idiots & that what matters is the cash/profit it produces.

How can the amount of deposits double yet it produces less profit (with HQ & bod costs included) ???!!!
It seems completely impossible to me but MFX has done it.

CONCLUSION
Profitability of MFX for the main core part of MFX is lower now in 2024 than it was in 2019 despite the loan book doubling in size.

If MFX adds profitable subsidiaries like PA Ltd the nett benefit to the group & shareholders is reduced if the profitability of the core of the business reduces (because of increased wages bill, doubling of the cost of the bod & reduction of margin on its lending). And if not careful the group runs on an oily surface but only goes forward as if it were walking. :-(

The H1 accounts reports a notable reduction in the interest margin.

Are the directors directing & supervising Conister Bank or is the core of MFX unsupervised....and the loan book doubles in size but produces less profit !!!

The bod is now 9 people, yes 9 !! & cost £973k for '23 !! And then the CEO also got ~1m share for free in '24.
While, since 2019 the loan book has doubled in size but imo it produces less profit !
Are these 9 directors doing their job ?
Is it a bunch of yes men ?

:-(