Unaudited Interim Results

RNS Number : 1617W
Manx Financial Group PLC
17 August 2015
 

 

 

FOR IMMEDIATE RELEASE                                                                                           17th August 2015

Manx Financial Group PLC

 

Unaudited Interim Results for the 6 months ended 30 June 2015

Manx Financial Group PLC (LSE: MFX), the financial services Group which includes Conister Bank Limited, Conister Card Services Limited, and Edgewater Associates Limited, presents its interim results for the six months ended 30 June 2015. Copies of the Interim Report will shortly be available on our website www.mfg.im.

 

 

Financial Highlights

 

 

Profit before tax:

£1.01 million - up 33% (2014: £0.76 million)

 

 

Net interest income:

£6.87 million - up 36% (2014: £5.05 million)

 

 

Operating income:

£4.53 million - up 19% (2014: £3.8 million)

 

 

Total assets:

£126.17 million - up 24% (2014: £101.68 million)

 

 

Loans:

£92.53 million - up 11% (2014: £83.07 million)

 

 

Customer accounts:

£105.67 million - up 25% (2014: £84.51 million)

 

 

Total equity:

£10.89 million - up 18% (2014: £9.25 million)

 

 

Contacts:

 

Manx Financial Group PLC

 

Denham Eke, Chief Executive

Tel: +44 (0)1624 694694

 

Britton Financial PR

Tim Blackstone

Tel: +44 (0)7957 140416

 

Beaumont Cornish Limited

Roland Cornish/Felicity Geidt

Tel: +44 (0)20 7628 3396 

 

 

The financial information set out below comprises non-statutory accounts. The financial information has been extracted from published accounts for the six months ended 30 June 2015.

 

Dear Shareholders,

 

2015 Group Interim Results

I am pleased to announce that 2015 produced another record interim profit before income tax of £1.01 million (2014:  £0.76 million), a growth of 33%.  After taxation, the profit for the period was £0.89 million (2014:  £0.72 million), a growth of 23%.  As a result, our basic earnings per share were 0.87 pence (2014:  0.71 pence) and 0.54 pence on a fully diluted basis (2014:  0.47 pence).  Our total assets stand at £126.17 million (2014: £101.68 million) and shareholder equity stands at £10.89 million (2014:  £9.25 million), a growth of 24% and 18% respectively.  On an annualised basis, our return on equity at 16.3% shows a continued improvement (2014 full year: 15.6%). 

 

Manx Financial Group PLC

Our main operating subsidiaries, Conister Bank Limited and Edgewater Associates Limited, continue to show excellent growth.  In the last twelve months the Group has also been incubating new business streams to extend and diversify our product range.  In particular, we have formed Manx FX Limited to provide commercial foreign exchange broking solutions; Manx Financial Solutions PCC plc to provide retail and commercial loan broking services; Manx Incahoot Limited to provide alternative payment solutions for both the public and private sectors; and Manx Financial Limited, a partnership to provide asset finance backed by our own capital.  All these initiatives are still in their infancy and we believe they will make a positive contribution to the Group's performance in the coming years.  The set-up costs for each of these operations have already been expensed within the first half.  Our strategy, however, is not only driven by a reliance on organic growth as we continue to look for suitable acquisitions and partnerships to provide an incremental business fit.

 

In the UK, consumer finance industry regulation changed from 1 April 2014 and the Financial Conduct Authority replaced the Office of Fair Trading as the new regulator of consumer credit related undertakings. The Group has Interim Permissions for all subsidiaries engaged in this activity.  We submitted our initial application for Full Authorisation on behalf of Conister Bank in May 2015, which will be followed by applications for the remaining subsidiaries in the second half of 2015.  All our applications will be dealt with under a six month authorisation process.

 

Providing the utmost quality of service and treating customers fairly has been the Group's continuing cornerstone since we started out in 1935.  Over time, we have developed and implemented formal policies and procedures to ensure that the highest standards of regulatory compliance are maintained.  To further strengthen our prudential governance and risk management, we have invested in additional headcount to train and monitor the performance of all staff in these essential areas.  We are also in the process of reviewing our existing IT platforms throughout to keep abreast of the new functionality that is available to both enhance customer experience and provide back-office efficiencies.  Further investment in this area will also allow us to differentiate our overall product range and promote scalability, thus helping minimise any pressure on our cost-base as we grow.

 

For a long time we have believed our VAT recovery rate at Conister Bank to be neither fair nor reasonable.  As a result, we continue to carry a VAT debtor of £589,000 in relation to ongoing negotiations with the Isle of Man Customs & Excise Division ('C&E').  In parallel, Volkswagen Financial Services Limited ('VWFS') have taken HM Revenue & Customs ('HMRC') to Court on a substantially similar matter and we have agreed with C&E that we will await the outcome of this case before proceeding with our own.  On 31 July 2015, the Court of Appeal overturned the Upper Tribunal's decision and ruled in favour of VWFS.  At this time it is uncertain if HMRC will apply for permission to appeal, and if so, whether their request will be granted. This recent judgement, however, can only be seen as a positive outcome for us.

 

Conister Bank Limited

Interest income for our banking subsidiary grew by 31% to £8.37 million (2014:  £6.42 million) with operating income increasing by 17% to £4.03 million (2014:  £3.45 million) on a loan book of £92.53 million (2014: £83.07 million).  Overheads increased by £0.31 million reflecting the increase in headcount in our risk, compliance and internal audit teams' staffing to ensure our anticipated growth is suitably controlled and prudently managed.  Our Integrated Wholesale Funding Arrangements continue to prove popular with the market and underpinned our loan book growth of 11% to £92.45 million (2014:  £82.99 million).  Whilst we increased provisions by £0.14 million, our total provisioning as a percentage of our loan book has decreased by 0.2% to 2.3% (2014:  2.5%).  We match the maturity periods of our loan and deposit books to the greatest extent possible which will help provide insulation to the anticipated increase in interest rates expected in 2016.  Our depositors remain granular and loyal and this aspect of our business will not restrict our growth ambitions.  Our loan book is based on strong collateral without large single exposures.  We continue to maintain our regulatory capital obligation in sufficient surplus to support our projected growth.

 

The conclusion of the first half also saw the retirement of Don McCrickard as Chairman of Conister Bank and independent non-executive director of the Group board, a position he has held since 2007.  I would like to take this opportunity of thanking him for his unstinting support as we restored profitability, wish him well for the future and to also formally welcome Neil Duggan as the Bank's new Chairman, joining the Group board as independent non-executive director.

 

Edgewater Associates Limited

Our recent restructuring of Edgewater Associates continues to bear fruit with the company generating record profits during the period.  Assets under management increased by 24% to £165.73 million (2014: £132.79 million).  This formed the basis of a 23% increase in commission income to £0.69 million (2014: £0.57 million).  We have reduced operational costs to £0.51 million (2014: £0.62 million), a decrease of 17%.  As a result, profitability increased 621% to £0.20 million (2014:  loss of £0.04 million).  Edgewater Associates' balance sheet continues to strengthen with total equity increasing by 62% to £1.00 million (2014: £0.62 million), an increase in shareholder equity of 377% since we acquired this business in 2010. 

 

Our strategy of focusing on renewable commission income to reduce earnings volatility and to drive growth has proved successful.  Our new business pipeline remains strong and we are in the process of enhancing our IT platform to provide comprehensive and customised reporting to customers.  We continue to recruit qualified and experienced Independent Financial Advisors ('IFA') to ensure that the very best advice is given, a common thread that links all of our operations.  We intend to supplement this growth by our continuous review of other profitable IFA businesses on the Isle of Man as we wish to act as a consolidator in this market.

 

Edgewater Associates will move its offices to join the Group's headquarters in September 2015.  Apart from a rental saving, having all our Isle of Man operations under one roof will ensure a conformity of standards and simplify administration, providing an enhanced customer experience.

 

Outlook

The Group has delivered excellent profitability for the first half of 2015 and I have every confidence that the full year will see this momentum maintained.  Our new business opportunities remain strong and we will continue to manage our operational costs as prudently as possible.

 

We welcome the enhanced regulatory framework in which we operate, emphasising as it does the necessity to treat the customers fairly, already a fundamental tenet of our business.  Thus we are well positioned to more than meet these regulatory requirements and they will not dampen our expectations for further sustainable growth.

 

Our clear vision for the Group's future combines organic growth with the development of complementary business lines.  Notwithstanding, we are always on the lookout for meaningful and affordable acquisitions as we continue our diversification into an integrated banking and financial services group.

 

 

Jim Mellon

Executive Chairman

13 August 2015

 

 


Notes


For the 6

months ended

30 June 2015

£000

(unaudited)  


For the 6

months ended

30 June 2014

£000

(unaudited)  


For the

year ended

31 Dec 2014

£000

(audited)  









Interest income

2


8,374


6,416


13,634

Interest expense



(1,504)


(1,370)


(2,809)

















Net interest income



6,870


5,046


10,825





Fee and commission income

770

576

1,276

Profit / (loss) on joint venture

5

-

(2)

Fee and commission expense

(550)

(491)

(1,102)

Commission share schemes

 



(2,601)


(1,424)


(3,749)

















Net trading income

4,494

3,707

7,248

Other operating income

40

90

97

















Operating income



4,534


3,797


7,345









Personnel expenses



         (1,751)


         (1,427)


         (2,931)

Other expenses



(1,110)


(1,016)


(1,950)

Provision for impairment on loan assets



(634)


(493)


(550)

Depositors' Compensation Scheme recovery



-


-


11

Depreciation



(89)


(130)


(228)

Amortisation

11


(17)


-


-

Realised gains on available-for-sale financial assets



40


-


32

Unrealised gain / (loss) on financial assets carried at fair value



34


24


(1)

















Profit before income tax expense



         1,007


         755


         1,728









Income tax expense



(118) 


(35)    


(139)    

















Profit for the period / year



         889


         720


         1,589









Basic earnings per share (pence)

4


                0.87


                0.71


                1.56

Diluted earnings per share (pence)

4


                0.54


                0.47


                0.98







 

 

  Condensed Consolidated Statement of Other Comprehensive Income

 


Notes


For the 6

months ended

30 June 2015

£000

(unaudited)    


For the 6 months ended

30 June 2014

£000

(unaudited)   


For the

year ended

31 Dec 2014

£000

(audited)  

















Profit for the period / year



889


720


1,589









Other comprehensive income:
















Items that will be reclassified to profit or loss








Available for sale gains taken to equity



-


-


6









Items that will never be reclassified to profit or loss








Actuarial losses on defined benefit pension scheme taken to equity



-


-


(173)









Total comprehensive income for the period / year attributable to Shareholders



889


720


1,422









Basic earnings per share (pence)

4


0.87


0.71


                1.39

Diluted earnings per share (pence)

4


0.54


0.47


0.89









 

 

  Condensed Consolidated Statement of Financial Position

 

 

 

 

 

As at

 

Notes


30 June

2015

£000

(unaudited)


30 June

2014

£000

(unaudited)


31 Dec

2014

£000

(audited)

Assets








Cash and cash equivalents



5,603


2,982


6,123

Financial assets at a fair value through profit or loss

5


81


72


47

Available for sale financial instruments

6


22,771


10,974


18,775

Loans and advances to customers

7


92,532


83,071


89,338

Commissions receivable



322


288


326

Property, plant and equipment



654


644


605

Intangible assets

11


83


-


-

Trade and other receivables

8


1,005


944


1,166

Investment in joint venture



505


-


499

Deferred tax asset



167


359


284

Goodwill

11


2,444


2,344


2,344

















Total assets



126,167


101,678


119,507

















Liabilities








Customer accounts



105,671


84,509


100,259

Creditors and accrued charges

9


2,050


1,297


1,715

Loan notes

10


7,115


6,415


7,165

Deferred consideration

11


100


-


-

Pension liability



339


203


388

















Total liabilities



115,275


92,424


109,527

















Equity








Called up share capital

12


18,933


18,933


18,933

Profit and loss account



(8,041)


(9,679)


(8,953)

















Total equity



10,892


9,254


9,980

















Total liabilities and equity



126,167


101,678


119,507









 

 

 


 

 


For the 6 months ended

30 June 2015

£000

(unaudited)


For the 6 months ended 30 June 2014

£000

(unaudited)


For the

year ended

31 Dec 2014

£000

(audited)

RECONCILIATION OF PROFIT BEFORE

TAXATION TO OPERATING CASH FLOWS








Profit before tax on continuing activities



1,007


755


1,728

Unrealised (gain) / loss on financial assets carried at fair value



(34)


(24)


1

Gain on disposal of property, plant and equipment



-


(6)


(5)

(Profit) / loss on joint venture



(5)


-


2

Depreciation charge



89


130


228

Amortisation charge



17


-


-

Realised gains on available for sale investments



(40)


-


(32)

Actuarial loss on defined benefit pension scheme taken to equity



-


-


(173)

(Reduction) / increase in pension liability



(49)


(49)


136

Share-based payment expense



23


-


24

Decrease / (increase) in trade and other receivables



161


70


(152)

Increase in creditor and accrued charges



335


543


934

Decrease / (increase) in commission debtors



4


1


(37)

















Net cash inflow from trading activities



1,508


1,420


2,654









Increase in loans and advances to customers



(3,194)


(7,252)


(13,519)

Increase in deposit accounts



5,412


6,394


22,144

















Cash inflow from operating activities



3,726


562


11,279

















 

 

 

 

 


For the 6 months ended

30 June 2015

£000

(unaudited)


For the 6 months ended 30 June 2014

£000

(unaudited)


For the

year ended

31 Dec 2014

£000

(audited)

 

CASH FLOW STATEMENT








Cash flows from operating activities








Cash inflow from operating activities



3,726


562


11,279

Taxation paid



-


-


-

















Net cash inflow from operating activities



3,726


562


11,279









Cash flows from investing activities








Purchase of property, plant and equipment



(138)


(147)


(208)

Purchase of available for sale financial instruments



(3,957)


(1,974)


(9,737)

Acquisition of Manx Incahoot business



(101)


-


-

Sale of property, plant and equipment



-


8


7

Investment in joint venture



-


-


(501)

















Net cash outflow from investing activities



(4,196)


(2,113)


(10,439)









Cash flows from financing activities








Issue of loan notes



150


350


1,100

Repayment of loan notes



(200)


-


-

















Net cash (outflow) / inflow from financing activities



(50)


350


1,100









(Decrease) / increase in cash and cash equivalents



(520)


(1,201)


1,940









Included in cash flows are:








Interest received - cash amounts



8,267


6,251


13,360

Interest paid - cash amounts



(1,499)


(1,369)


(2,802)









 

 

 


Share capital

£000

 


Retained

earnings

and other reserves

£000

 


Total

30 June 2015

£000

(unaudited)


Total

30 June

2014

£000

(unaudited)


Total

31 Dec

2014

£000

(audited)

 

 

 










 

Balance brought forward

18,933


(8,953)


9,980


8,534


8,534

 

Profit for the period / year

-


889


889


720


1,589

 

Other comprehensive income

-


-


-


-


(167)

 











 

Transactions with Shareholders:










 

Share-based payment expense

-


23


23


-


24

 









 











 

Balance carried forward

18,933


(8,041)


10,892


9,254


9,980

 


 

 

 


 

1.       Preparation of the interim statements

 

The financial information included in this interim financial report for the six months ended 30 June 2015 is unaudited.

 

The interim financial statements have been prepared in accordance with IAS 34 "Interim Financial Reporting". The accounting policies have been applied consistently with those presented in the Annual Report for the year ended 31 December 2014 and comply with IFRSs and IFRIC interpretations applicable to companies reporting under IFRS.

 

2.       Interest income

 

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.

 

3.       Segmental analysis

 

Segment information is presented in respect of the Group's business segments. The Directors consider that the Group currently operates in one geographic segment, the British Isles (United Kingdom and Isle of Man). The primary business segments are based on the Group's management and internal reporting structure. The Directors consider that the Group operates in four product orientated segments in addition to its investing activities: Asset and Personal Finance (including provision of HP contracts, finance leases, personal loans, commercial loans, block discounting and other specialised secured credit facilities); a Prepaid Card division, Conister Card Services Limited and Incahoot Limited; a Wealth Management division, Edgewater Associates Limited; and Foreign Exchange, Manx FX Limited. 

 

 

 

For the 6 months ended 30 June 2015

Asset and

Personal

Finance

£000


Prepaid

Card

Division

£000

Wealth

Management

Division

£000


 

Foreign

Exchange

£000


 

Investing

Activities

£000


Total

30 June 2015

£000

(unaudited)

















Net interest income / (expense)

7,085


-


-


-


(215)


6,870

Operating income / (loss)

4,034


(10)


699


26


(215)


4,534


Profit / (loss) before income tax

expense

1,166


(82)


198


(94)


(181)


1,007

























Capital expenditure

124


102


-


-


13


239

























Total assets

125,001


312


758


27


69


126,167













 

 

 

 

For the 6 months ended 30 June 2014

Asset and

Personal

Finance

£000


Prepaid

Card

Division

£000

Wealth

Management

Division

£000


 

Foreign

Exchange

£000


 

Investing

Activities

£000


Total

30 June 2014

£000

(unaudited)

















Net interest income / (expense)

5,258


-


-


-


(215)


5,046

Operating income / (loss)

3,482


(53)


576


-


(208)


3,797


Profit / (loss) before income tax

recovery / (expense)

1,562


(76)


(38)


-


(693)


755

























Capital expenditure

132


-


15


-


-


147

























Total assets

100,596


106


902


-


12


101,616













 

 

 

 

For the year ended 31 December 2014

Asset and

Personal

Finance

£000

Prepaid

Card

Division

£000


Wealth

Management

Division

£000


 

Litigation

Finance

£000


 

Investing

Activities

£000


Total

31 Dec 2014

£000

(audited)



















Net interest income

10,825


-


-


-


-


10,825

Operating income

6,198


(108)


1,255


-


-


7,345


Profit / (loss) before income tax

(expense) / recovery

1,733


(150)


146


45


(46)


1,728

























Capital expenditure

183


-


25


-


-


208

























Total assets

118,515


106


824


-


62


119,507













 

4.       Earnings per share

 


For the 6 months ended

30 June 2015

£000

(unaudited)


For the 6 months ended 30 June 2014

£000

(unaudited)

For the

year ended

31 Dec 2014

£000

(audited)








Profit for the period / year



Weighted average number of ordinary shares in issue

Basic earnings per share

Diluted earnings per share








Total comprehensive income for the period / year



Weighted average number of ordinary shares in issue

Basic earnings per share

Diluted earnings per share








 

 

 

5.       Financial assets at fair value through profit or loss

 

The investment represents shares in a UK quoted company which was elected to be classified as a financial asset at fair value through profit or loss. The investment is stated at market value and is classified as a level 1 investment in the IFRS 13 fair value hierarchy. The cost of the shares was £471,000. The unrealised difference between cost and market value has been taken to the income statement. Dividend income of £350,000 has been received from this investment since it was made.

6.       Available for sale financial instruments

 

Available for sale financial instruments comprise UK Government Treasury Bills which are stated at fair value and unrealised changes in the fair value are reflected in equity.

 

7.       Loans and advances to customers

 

 

 

 

As at


30 June

2015

£000

(unaudited)


30 June

2014

£000

(unaudited)


31 Dec

2014

£000

(audited)








Hire purchase balances


54,932


48,306


51,178

Finance leases balances


11,615


8,825


10,708

Unsecured personal loans


3,966


2,557


3,366

Vehicle stocking plans


1,057


1,465


1,284

Block discounting


6,828


6,604


6,766

Secured commercial loans


6,497


8,922


7,285

Secured personal loans


7,637


6,392


8,751

















92,532


83,071


89,338








 

 

8.      

 

 

 

 

As at


30 June

2015

£000

(unaudited)


30 June

2014

£000

(unaudited)


31 Dec

2014

£000

(audited)






















Trade debtors


228


232


428

Prepayments and other debtors


311


246


272

VAT claim


466


466


466

















             1,005


944


1,166








Included in trade and other receivables is an amount of £466,000 (30 June & 31 December 2014: £466,000) relating to a reclaim of value added tax (VAT).

 

Conister Bank Limited (the Bank), as the Group VAT registered entity, has for some time considered the VAT recovery rate being obtained by the business as neither fair nor reasonable, specifically regarding the attribution of part of the residual input tax relating to the HP business not being considered as a taxable supply. Queries have been raised with the Isle of Man Government Customs & Excise Division ("C&E"), and several reviews of the mechanics of the recovery process were undertaken by the Company's professional advisors.

The decision of the First-Tier Tax Tribunal released 18 August 2011 in respect of Volkswagen Financial Services (UK) Limited v HM Revenue & Customs (TC01401) ("VWFS Decision") added significant weight to the case put by the Bank and a request for a revised Partial Exemption Special Method was submitted in December 2011. The proposal put forward by the Bank was that the revised method would allocate 50% of costs in respect of HP transactions to a taxable supply and 50% to an exempt supply. In addition at this time a Voluntary Disclosure was made as a retrospective claim for input VAT under-claimed in the last 4 years.

 

In November 2012, it was announced that the HMRC Upper Tribunal had overturned the First-Tier Tribunal in relation to the VWFS Decision. VWFS has subsequently been given leave to appeal and this was scheduled to be heard in October 2013. However, this was delayed by HMRC pending reference to a relevant European Court of judgement in the case of Banco Mais (C183/13). The judgement in this case was released on 10 July 2014 and ruled against the taxpayer; however the impact of the judgement on the VWFS case was unclear and VWFS continued to appeal to the Court of Appeal.  The case was heard by the court of appeal on 17 April 2015 who overturned the Upper Tribunal's decision ruling in favour of VWFS.  The Bank now awaits to see whether HMRC will appeal this decision.


The Bank's total exposure in relation to this matter is £589,000, comprising the debtor balance referred to above plus an additional £123,000 VAT reclaimed under the partial Exemption Special Method, in the period from Q4 2011 to Q3 2012 (from Q4 2012 the Bank reverted back to the previous method). On the basis of the discussions and correspondence which have taken place between the Bank and C&E, in addition to the VWFS appeal, the Directors are confident that the VAT claimed referred to above will be secured.

9.      

 

 

 

 

As at


30 June

2015

£000

(unaudited)


30 June

2014

£000

(unaudited)


31 Dec

2014

£000

(audited)






















Commission creditors


1,610


996


1,389

Other creditors and accruals


440


301


326

















2,050


1,297


1,715








 

 

10.    

 

 

 

 

As at

 

 

 

Notes


30 June

2015

£000

(unaudited)


30 June

2014

£000

(unaudited)


31 Dec

2014

£000

(audited)

















Related parties








J Mellon

JM


1,750


1,750


1,750

Burnbrae Limited

BL


1,200


1,200


1,200

Southern Rock Insurance Company Limited

SR


460


460


460

Copper Development Corporation

CDC


500


500


500




3,910


3,910


3,910

Unrelated parties

UP


3,205


2,505


3,255




















7,115


6,415


                7,165









 

JM

 

BL

 

SR

 

CDC

 

 

 

UP

 

With respect to the convertible loans, the interest rate applied was deemed by the Directors to be equivalent to the market rate at that time with no conversion option hence

 

11.    

 

 

 

Goodwill

As at


30 June

2015

£000

(unaudited)


30 June

2014

£000

(unaudited)


31 Dec

2014

£000

(audited)






















                Edgewater Associates Limited


1,849


1,849


1,849

                ECF Asset finance PLC


454


454


454

Manx Incahoot Limited


100


-


-

Three Spires Insurance Services Limited


41


41


41

















2,444


2,344


2,344








 

 

 

Intangible assets

As at


30 June

2015

£000

(unaudited)


30 June

2014

£000

(unaudited)


31 Dec

2014

£000

(audited)






















                Balance brought forward


-


-


-

                Acquired in period


100


-


-

Amortisation in period / year


(17)


-


-

















83


-


-








 

On 13 March 2015, a newly incorporated subsidiary of the Group acquired the business of Incahoot Limited, which is a company invested in prepaid debit cards, comparison and discount sites in England and Wales. These assets included intangibles of business intellectual property rights, valued at £24,000, and a customer contract assigned, valued at £76,000. The customer contract is amortised over the term of the agreement. Up to 30 June 2015, £17,000 has been amortised. Therefore the net book value of intangibles is £83,000.

 

In addition to the aforesaid purchases, further deferred contingent consideration, subject to a maximum of £100,000, is due to the vendor on any pipeline business being realised post acquisition within 2 years of the acquisition date. As at 30 June 2015, no pipeline business had been realised but the full deferred consideration is still estimated to be paid.

 

 

 

Acquisition of Manx Incahoot business

As at






30 June

2015

£000

(unaudited)






















Fair value of consideration:







-       Cash




101



-       Deferred consideration




100









201

Fair value of separable assets and liabilities acquired:







-       Customer contract




76



-       Intellectual property




24



-       Property, plant and equipment




1









(101)















Goodwill on acquisition






100








 

12.     Called up share capital

 

Authorised: ordinary shares of no par value

  Number


At 30 June 2014

150,000,000


At 31 December 2014

150,000,000


At 30 June 2015

150,000,000


 

Issued and fully paid: ordinary shares of no par value

  Number

£000

At 30 June 2014

102,070,252

18,933

At 31 December 2014

102,070,252

18,933

At 30 June 2015

102,070,252

18,933

 

There are a number of convertible loans at 30 June 2015 of £3.41 million (30 June and 31 December 2014: £3.41 million) including warrants of 28.3 million (30 June and 31 December 2014: 28.3 million) (see note 10 for further details). The total number of warrants in issue at 30 June 2015 is 36.6 million (30 June and 31 December 2014: 36.6 million) (see note 10 for further details).

 

On 23 June 2014, 1.75 million share options were issued to Executive Directors and senior management within the Group at an exercise price of 14 pence. The options vest over three years with a charge based on the fair value of 8 pence per option at the date of grant.

 

13.    

 

Conister Bank Limited is licensed to undertake banking activities and Edgewater Associates Limited is licensed to conduct investment business by the Isle of Man Financial Supervision Commission.

 

14.    

 

Conister Bank Limited is required to be a member of the Isle of Man Government Depositors' Compensation Scheme (the Scheme) which was introduced by the Isle of Man Government under the Banking Business (Compensation of Depositors) Regulations 1991. The Scheme creates a liability on the Company to participate in the compensation of depositors should it be activated.

 

15.    

 

The Interim Statements were approved by the Board on 13 August 2015. The interim report will be available from that date at the Group's website - www.mfg.im 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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