REG - Manx Financial Group - Acquisition of the remaining 49.9% interest of PAL

Manx FinancialAnnouncement

16/09/2024 07:00

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RNS Number : 1975E  Manx Financial Group PLC  16 September 2024

Manx Financial Group PLC

(the "Group")

Acquisition of the remaining 49.9% interest of Payment Assist Limited

Manx Financial Group PLC (AIM:MFX), the holding company providing a range of
diversified financial services to the Isle of Man and the United Kingdom,
announces it has brought forward the acquisition of the remaining 49.9%
interest in Payment Assist Limited ("Payment Assist"). The transaction was
completed on 13 September 2024. From this date, the Group will hold 100% of
Payment Assist and fully consolidate Payment Assist's trading results.

On 16 May 2022, the Group announced an Agreement to acquire a 50.1% interest
in Payment Assist by Manx Ventures Limited ("Manx Ventures"), a wholly owned
subsidiary of the Group. The Group also announced Manx Ventures had entered
into an Option to acquire the remaining shareholding in Payment Assist for £5
million  at any time for a period of two years after publication by Payment
Assist of its audited accounts for the period to 31 December 2024.

Following discussions between Manx Ventures and the other shareholders of
Payment Assist (being Neil Jeffrey, Colin Ellard, Spencer Wrench and Simon
Bevan - together the "Vendors"), the Vendors agreed to bring forward the sale
of their 49.9% holding for a consideration of £5 million on completion of an
Addendum to the Agreement ("Addendum").

All Vendors' interests in Payment Assist concluded on the signing of the
Addendum and they will receive no further dividend payments. On the basis of
internal forecasts, the Board anticipates that this transaction will reduce
the cost of acquiring the remaining shareholding under the original Option by
up to £4 million, principally derived by the savings in any future dividends
previously due to the Vendors. The consideration will be funded through the
Group's unutilised liquidity.

Pursuant to this acquisition, Neil Jeffery and Colin Ellard will resign as
directors of Payment Assist, whilst Group employees James Smeed and Marcus
Gregory will remain on the Board of Directors. Mr Jeffrey will remain employed
until 31 December 2024 as part of the Agreement and thereafter he will be
retained on a consultancy arrangement for a further three years.

Commenting on the acquisition, Douglas Grant, CEO of the Group stated:

"We have worked with Payment Assist for over nine years through our banking
subsidiary, Conister Bank Limited and held a majority stake in the business
for over two years. During this time, we have grown the business, and it now
makes sound financial sense for the Group to bring forward its opportunity to
acquire the remaining shareholding. Payment Assist's customer focused,
short-term lending products remain in great demand during these uncertain
economic times. This is a major acquisition for the Group, not only in terms
of deploying our liquidity safely, but also in continuing to progress our
growth strategy in niche markets."

Disclosures required under AIM Rule 12 include: The consideration will be
funded from the Group's existing cash resources. Payment Assist revenue as at
31 December 2023 was £10.822 million, Profit before Tax was £2.363 million
with a Net Asset Value at that date of £1.786 million.

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. UPON THE PUBLICATION OF
THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE
INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH PERSONS
SHALL THEREFORE CEASE TO BE IN POSSESSION OF INSIDE INFORMATION.

For further information, please contact:

 Manx Financial Group PLC   Beaumont Cornish Limited      Greentarget Limited

 Denham Eke,                Roland Cornish/James Biddle   Jamie Brownlee

 Executive Vice Chair       Tel: +44 (0) 20 7628 3396     Tel: +44 (0) 20 3307 5726

 Tel: +44 (0) 1624 694694

Nominated Adviser

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 

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