Despite its tiny size, Manx has two high-profile backers in Arron Banks, who owns 29 per cent, and chairman Jim Mellon, with 17 per cent, whom we might assume are interested in expanding the scale of the company.
The Isle of Man has never been in recession, making it an attractive place to do business. It’s also a good source of detail deposits for Manx’s Conister Bank, which has been operating since 1935 and is a strong local brand. Manx has also been building up its local IFA network, but the main growth potential lies on the mainland.
Manx accesses the UK market via brokers but is beginning to undertake direct lending. This could well lead to further expansion in the UK, possibly through acquisition if the right vehicle could be found. Most lending is secured, with over half the book consisting of hire purchase loans.
The market cap of £9 million stands at a 30 per cent discount to shareholders’ funds of £12.8 million, despite Manx earning a posttax return on equity of 17 per cent last year. Even allowing for dilution from outstanding convertibles and warrants, the shares would still trade on a discount to NAV and a historic p/e of 7. n
MFX WINS HANDS DOWN!!!! This share is a BUY - target price 20-40p
PQ Ratio 0.83 PE Ratio 5.69 Tobin's Q Ratio 0.08 Tobin's Q Ratio (excl. intangibles) 0.09 Dividend Yield - % Market-to-Book Ratio 0.91 Price-to-Pre-Tax Profit PS 5.24 Price-to-Retained Profit PS 5.70 Price-to-Cash Flow PS 0.80 Price-to-Sales PS - Price-to-Net Tangible Asset Value PS 1.19 Price-to-Cash PS 1.48 Net Working Capital PS - Price Pct to Working Capital PS - % Earnings Yield 17.58 % Average PE 10.88 Years in average 2 PE to PE average 52.30 %
LLOYDS PQ Ratio 2.76 PE Ratio 80.30 Tobin's Q Ratio 0.06 Tobin's Q Ratio (excl. intangibles) 0.06 Dividend Yield 4.28 % Market-to-Book Ratio 0.98 Price-to-Pre-Tax Profit PS 27.89 Price-to-Retained Profit PS -75.91 Price-to-Cash Flow PS 2.80 Price-to-Sales PS 1.98 Price-to-Net Tangible Asset Value PS 1.19 Price-to-Cash PS 0.78 Net Working Capital PS - Price Pct to Working Capital PS - % Earnings Yield 1.25 % Average PE 68.22 Years in average 2 PE to PE average 117.71 %
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