Interim results due in 4/5 weeks. Market re-rating uplift to follow these results? to mirror the recent trading update from Manx predicting " a marked uplift in profit" - Manx will soon have nearly half it's market capitalisation as cash up it's sleeve and possibly making £2million a year as well - barely 6 times earnings at current market capitalisation of Manx - market rivals like 1PM are valued at 27 times earnings and they're not as cash rich or growing as fast as Manx!?!
Re last weeks trading update and Manxs statement " we expect to report a marked uplift in profit " how marked an uplift is the question? I'm thinking in 6 weeks time they'll report a 6 month month profit margin of circa £1m - what they made in the whole of 2013!
Can only see positives ; 1. ) Manx has £4.1 million of it's own cash in the bank end of 2013 - market cap £13.5m 2.) Increasing rates of asset growth. Assets grew 20% last year to £93.4million - an average of £1.3million a month. Assets reported at the end of Apr 2014 now in excess of £100 million - an average increase of £1.5million a month ; a nice upward curve. 3.) Manx reported " all remaining liabilities in connection with the Litigation Funding debtor have been fully collected....we have been able to reduce the provisions against these loans" The Litigation Funding debtor figure was £1.5m - now that they have closed this position a big chunk of this £1.5m ( the provisions that can now be released ) will become profit. 4.) Great new partnerships / wholesale funding agreements keep being agreed. 5.) Manx business model very similar to Aldermore Bank - a bank that has no branches (is online / works through intermediaries like Manx ) but one that has grown assets to £2billion within 10 years....
MFX is seriously undervalued but won't be for long!
I can only comment on number 3, if they continue on this trajectory,keep making shrewd decisions this could become a major player, as a " Challenger Bank " they are highly regarded,I know it's a vague response but look at the RNS'S to date,all positive GLA
Hello all, I have a few questions in regards to the future of the company.
1- Do we see the company paying a dividend in the future? Perhaps in the next 3-5 years they will be in a position to start them? All thoughts welcome! 2 - Do we think the company will set up an Investment Trust in order to increase growth? 3- Where do we see this share price being in 5 years?
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