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MFX Manx Financial Group Plc

24.00
0.00 (0.00%)
Last Updated: 08:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Manx Financial Group Plc LSE:MFX London Ordinary Share IM00B28ZPX83 ORD NPV
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.00% 24.00 68,611 08:00:00
Bid Price Offer Price High Price Low Price Open Price
23.00 25.00 24.00 24.00 24.00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Personal Credit Institutions 36.05M 4.67M 0.0405 5.93 27.72M
Last Trade Time Trade Type Trade Size Trade Price Currency
14:12:59 O 10,000 23.20 GBX

Manx Financial (MFX) Latest News

Manx Financial (MFX) Discussions and Chat

Manx Financial (MFX) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
14:13:0023.2010,0002,320.00O
14:01:1323.205,5451,286.44O
13:50:2323.2520,0004,650.00O
13:10:2423.2510,0002,325.00O
13:05:2524.0011,0002,640.00O

Manx Financial (MFX) Top Chat Posts

Top Posts
Posted at 28/3/2024 08:20 by Manx Financial Daily Update
Manx Financial Group Plc is listed in the Personal Credit Institutions sector of the London Stock Exchange with ticker MFX. The last closing price for Manx Financial was 24p.
Manx Financial currently has 115,491,936 shares in issue. The market capitalisation of Manx Financial is £27,718,065.
Manx Financial has a price to earnings ratio (PE ratio) of 5.93.
This morning MFX shares opened at 24p
Posted at 26/3/2024 13:47 by smithie6
"Shame we are not getting 100% of PAL until early 2027 :( "

That can change at any moment.
;-)

An RNS is possible at any moment before 2027 saying that MFX has made an agreement with PA ltd & bought the remaining 49.9% of PA Ltd.
At a price that the 2 sides agree, at that moment.

But, there is some logic in letting it run as it is & collect 50.1% of the PAT as a divi, to pay down the ~£4.2m (in the years to 2027) that MFX paid for the 50.1%.

But imo if MFX has surplus nett cash one year & can't find a good use for it, MFX could imo decide to buy the remaining 49.9% of PA Ltd, at a price acceptable to both sides at that moment.
Posted at 26/3/2024 10:39 by smithie6
Interesting
MFX has lent £10m to Lesley Stephen & Co Limited to help that co. fund it's growth in , I assume, lending. MFX was given a 10% stake in LSC in return, with also 2 warrants to buy 5% of LSC for each warrant to increase the % held above 10%.
LSC must have an attractive proposition since MFX only received a tiny 10% of LSC in return for a big amount of funding, £10m. (At PIML , MFX received a 30% shareholding for much lower funding)

Be interesting to find out what LSC does....& turnover & profit etc.

----

The funding to Pay It Monthly Ltd has increased from ~£1.5m to ~£2.5m. So one assumes that trade is up at PIML. (Their website to sign up new borrowers is quite pleasant imo, with a nice style & drawn human characters). MFX owns 30% of PIML if my memory is correct.
Posted at 22/3/2024 15:46 by smithie6
...banks are all different....but if the sector rises...then that is good for MFX.

One of the key factors for the banking sector, & the resulting p/e given to the sector, is 'bad debts'.
The markets view on the banking sector & bad debts has improved & continues to improve.

---
"with large sums of dead money sitting in accounts that pay no interest or next to nothing Smithie6."

....banks make a % margin between the interest % paid to depositors & the interest % received from borrower's. Nett % margin

The nett % margin for PA Ltd is understood to be notably higher than for the rest of the business of MFX subsidiaries/associates. And higher than at the big banks that you refer to. The loan book & profit at PA Ltd hace also shown high growth. The PA Ltd loan book is material WRT the MFX loan book. And the directors wrote at the time of the acquisition that it would hopefully be transformational for MFX.

If you prefer to invest in big banks, rather than in MFX here are some ticker codes, BARC, NWG, LLOY, HSBC, TBC.....
(I bought some NatWest at 180-185p, perfect timing, now ~260p. I have sold, .....I put some of the money in to Intercede, since up 25% :-)

My biggest holding is in MFX, I doubled my holding during the price fall in Dec./Jan. I haven't sold any recently. Fingers crossed it could do really well over coming months & years. The growth in turnover, loan book & profit in the last 10 years is very visible in the records.
Posted at 03/3/2024 13:56 by smithie6
...not that anyone believes what Hedgehog posts

But let me point out that

- UK banks (& USA banks, & Spanish banks (including BBVA, Santander)...&...!) have reported good results, most with profits up from last year

- share prices for UK banks have been rising in the last few months.
NatWest is up from 180p to 240p for example, an increase of 33% in a few months. (I bought some at 183p).

- UK bank shares are at a low p/e, that is a good part of the reason for them rising in price. Still cheap. (The mkt also sees a reduced risk of an increase in bad debts). I'm hoping that the MFX share price will 'join the party'.
Posted at 15/1/2024 15:09 by smithie6
Davidosh
You posted some data from Stockopedia comparing TIME with MFX & I posted that the data for MFX did not look correct. (You gave the MFX EV as £43.3m, when the cap value was ~£18m inferring a NTAV of negative £25m).

For the debt & NTAV value for MFX do you agree that it is actually as follows, taken from the AR for 2022 ?

Shareholder Assets. £30m
Goodwill + intangibles £13m
So the MFX NTAV was ~£17m at end of Dec '22. (Quite close to the cap. value).
(The shareholder assets should now be ~£4m higher due to adding the profit for 2023, £4.4m spent on buying 1/2 of PA Ltd so the NTAV will be about the same since negligible tangible assets were acquired with the purchase of 1/2 of PA ltd).

That imo results in an EV for MFX of 20-17= £3m very different than the EV value you say that Stockopedia gives, £43million !
Posted at 15/1/2024 13:00 by smithie6
In the past I have done some comparisons of valuations between MF & TIME. Both are lenders including to SMEs in the UK. Both are in the same sector for mkt cap. (£20-31million)

Here are some valuation ratios.
CONCLUSION:- that MFX is too cheap versus TIME.

------

MFX has a loan book double the size that TIME has, yet TIME is valued at ~£31m vs only £20m for MFX ?

Looks illogical imo.

And MFX surely/phps has a bigger nett interest margin because it pays out a lower % because most of its money comes from depositors at the bank which is part of MFX.

...does anyone agree with me that MFX is under priced wrt TIME ?

TIME. p/e. ~7-8, if my memory is correct
MFX. p/e. 4.5
(If the p/e for MFX went from 4.5 to just 6 that would be an increase of 33% wrt the current share price)

Loanbook
Time £170 million (May '23)
MFX. £343 million (@ end June '23)

Loanbook per £ of cap. value
TIME. 170/31= 5.5
MFX. 343 m/ 20m = 17.2
MFX wins that ratio by X3 !!!!!!
------

PAT per £ of cap. value
TIME. £3.4m /£31m= 0.11
MFX. £3.8m (2 X H1)/20= 0.19

MFX is much cheaper. For £1 of shares at MFX one gets ~50% more PAT than at TIME.

----

Revenue
TIME. 27.6m
MFX 42.8m (2 X H1)

Revenue per £ of Cap. Value
TIME . 27.6/31= 0.89
MFX. 42.8/20= 2.14

MFX wins this ratio by miles, by >X2 !

---
Cost of funds
TIME
MFX. 3.4%

(A low cost of funds is of course good since it has a major impact on profit)
Posted at 29/9/2023 16:03 by smithie6
"
So you could say that the estimated 1.5m for the full year 23/24/25 and 300k last year we have paid an additional 4.8 million for the business on top of the initial cash"

Not sure I agree exactly with your numbers....but I agree with the point you are making.

PAT attributable to the owners of the other half of PA ltd in H1 2023 was 612k. =£1.2m/yr. Which I assume is paid out to them as a divi.
For '23 + '24 + '25 that = 3x £1.2m
= £3.6 m

You argue it is an extra cost for MFX. Not sure if I agree or not. The money comes from PA's profits not from MFX.
But yes, if MFX bought all of PA earlier eg. start of fin. yr 2023, then by the end of '25, MFX would have received £3.6m more income/profit from PA ltd. So, if MFX had paid another £4m then by the end of '25 it would have received £3.6m more & hence most of the extra cost of £4m would have been paid off, ie. an excellent rate of return.

But
I think the idea is/was to motivate the founders of PA ltd to grow PA ltd in the years 23,24,25 until MFX buys the other 1/2 of it.
If MFX bt the other half now the price would be 2 X profits. (profit of 100% of PA or of 49.9% of PA ??)
If PAT is ~£2.4m/yr for PA ltd then would the purchase price for the other half now be
2 X £2.4m = £4.8m or 2 X £1.2m= £2.4m ??

If the PAT can be grown to say £3.6m then
2x £3.6m = £7.2m or 2 X £1.8m= £3.6m.

In the first case (2 X PAT of all of PA) then 50% increase in PAT would increase the payout from £4.8m to £7.2m.
= 7.2-4.8m more
= £2.4m more.

A strong incentive for the founders of PA ltd to grow the profit at PA Ltd.
=====

I previously posted the same conclusion as you have made, that the value of PA ltd can easily be shown to be higher than the current cap. value of all of MFX.
Posted at 28/9/2023 12:36 by indiagolf12
S6 Thank you for all your hard work. I have now had a chance to watch the Mello presentation and not being an accountant or a banker (just a humble 65 year old PI trying to make my SIPP fund my retirement), I didn’t understand all the jargon & found it hard to follow all the presentation, but my takeaway was this:

* The company is growing rapidly.
* Costs are increasing more than pro rata as the biz gears up for UK operations
* The banking licence is due in Q4 - possibly in October
* EPS are down due to ‘timing’ & investment in staff - see above.
* The Co recognises comms with PI’s have been poor - both Douglas & James are happy to take calls from PI’s - both published their email & DD phone numbers at the end of the presentation.

I agree that JM’s £3.0M profit before tax for H1 is misleading as only £2.5M is attributable to shareholders, due to the PA earn out, but to be fair it’s consistent with the Chairman’s Statement at the end of 2022 - £5.2 M profit, of which £4.8M attributable to shareholders.

I have listened to many of JM’s podcasts on Masterbuilder etc & he comes across very well IMO. MFX is small beer to him, but as a Manx resident I’m sure he’d want it to be viewed with the utmost integrity.

I have had a go at the table as follows - apologies the columns have gone awry when pasting from XL:



YEAR PBT (£M) LOAN BOOK (£M) % EPS (DILUTED)
2018 £2.71 £148.30 1.83% 1.54
2019 £3.02 £179.40 1.69% 1.66
2020 £2.02 £193.10 1.05% 1.37
2021 £3.03 £229.20 1.32% 1.97
2022 £4.87 £291.50 1.67% 2.93

H1 2023 £2.2 £349.00 0.63% 1.3


I have to admit the trader in me trimmed a chunk of my holding on Friday, but I’ve taken the opportunity to buy most back at a good discount now. As far as I can see the BOE have never declined a licence - just invited a withdrawal & fresh application, so this may prove a catalyst to the share price. But TBH I’m more interested in the share price in 5 years time. Like all PI’s find it hard to see my hard earned savings going down. But there’s always going to be a lot of noise - particularly in micro caps. In my view the rewards far outweigh the risks at a share price of 16.5p, with every prospect of baggability within the next 3 years. But that’s why a % of my SIPP is in here & not in a boring annuity!




IG12
Posted at 26/9/2023 15:37 by smithie6
Tiswas

Phps read the RNs about buying the shares from Mr Banks & cancelling those shares. At ~8p.
Well the share price is now ~17p.
And compare the size of the loan book & the PBT & the total income...
.....it is clear that the company is in a growth phase, quite high growth. For a growing co. the shares are under priced imo.

Shareholder assets are now ~£32m I think, versus a cap. value around £19m.

-------

The co. is effectively owned by a small number of people, many are directors. They don't really care what the share price is since they effectively own the co. & are growing it.....they have no intention to sell this year so the share price imo is irrelevant for them.
Posted at 21/9/2023 20:35 by smithie6
Annual EPS data. Diluted
(Data from Edison analysis)

2019 1.7p
2020 1.4p
2021 2.0p
2022 2.9p (from the AR, without one off pension fund gain)
2023 H1. 1.3p (1.5p in H1 in 2022)
2023 2.6-2.9p (my estimate based on H1)

The odds being imo that the annual EPs for 2023 will be lower than it was in 2022.
In 2022 the diluted EPS jumped from 2.0p to 2.9p, an increase of almost 50%. This caught the market's interest & the share price rose as a result (or was it after the H1 results ??).

If the 2023 annual result produces a flat EPS similar to 2022 or lower (in H1 the eps was lower) then it is unlikely to impress the market imo. The market likes to see rising profits & to feel that a trend is in place. Flat eps or a reduction in EPS is usually less popular with the market.

Although the loan book has grown a fair % & perhaps the mkt might give some value to that. Or phps it will only care about the bottom line & consider everything else to be noise.
I guess that the price given to the shares during H2 & until the annual results to 31 Dec '23 come out will also depend on whether a banking licence for the UK has been obtained or not. Personally I'm surprised it hasn't already been given, since the co. has a track record of doing banking & lending in the UK & has a pile of audited ARs.

=======

p/e for 2023 annual results

A) if diluted EPS is 2.6p (lower than 2.9p in 2022)
At 19.5p share price the p/e = 7.5


B) if diluted EPS is 2.9p, same as 2022
At 19.5p share price the p/e = 6.7
Manx Financial share price data is direct from the London Stock Exchange

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