Acquisition of Additional 60% Shareholding in BLX

RNS Number : 5556O

Manx Financial Group PLC

11 October 2021

 

FOR IMMEDIATE RELEASE        11 October 2021

Manx Financial Group PLC (the "Group")

Acquisition of an Additional 60% Shareholding in The Business Lending Exchange Limited

Manx Financial Group PLC announces that Bradburn Limited ("Bradburn"), a wholly owned subsidiary, has exercised its option to acquire the remaining issued share capital of The Business Lending Exchange Limited ("BLX") from its existing shareholders ("Sellers").

As announced in February 2018, the Group acquired 40% of the issued share capital of BLX. As part of that transaction, the Group negotiated an option to acquire the remaining 60% on the basis of four times the business's normalised EBITDA over the last three years. As a result, Bradburn has agreed the exercise payment to the Sellers to be partially settled in cash on completion of £920,503, together with a commitment for deferred cash payments of up to an aggregate amount of £483,663, subject to certain performance milestones.

This acquisition furthers the Group's strategy of acquiring niche lenders within the UK, to both provide direct access to specialist markets, and to reduce commissions paid.

BLX, formed in 2006, is based in Cambridgeshire. Regulated by the Financial Conduct Authority under Consumer Credit Authorisations, BLX primarily lends to start-up companies and small businesses which require asset backed finance. For the 12 months ended August 2021, BLX reported an unaudited profit on ordinary activities excluding Group interest charges of £364,000 and had, as at that date, net assets of £650,000.

Chris Allan, Managing Director of BLX, commented: "We have had a successful relationship with the Group over the last three years and we look forward to growing our business with them."

Douglas Grant, Finance Director of the Group, commented: "BLX's niche competitive position in the micro-SME market provides the Group with direct access to a sector in which it currently has minimal exposure. Chris and his team have excelled, despite the adverse economic environment over the last two years, to create a customer focused business which we will nurture and grow within the Group."

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.

For further information, please contact:

Manx Financial Group PLC Denham Eke, Chief Executive Tel [phone]

Beaumont Cornish Limited Roland Cornish/James Biddle Tel [phone]

Greentarget Limited Dafina Grapci-Penney Tel [phone]

 

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