LONDON (Alliance News) - Manx Financial Group PLC on Tuesday reported an increased interim profit on the back of increased operating income, despite the banking and finance company's interest income decreasing.
In the six months ended June, the AIM-listed company increased its pretax profit 52% to GBP1.4 million from GBP922,000 the year before.
The company's operating income increased to GBP6.3 million from GBP5.4 million. However, net interest income fell to GBP7.4 million from GBP8.6 million.
Manx Financial said this reflected the company re-balancing its loan book to reduce reliance on business with a "disproportionate commission element".
At the end of the period, Manx Financial's total assets now stands at GBP202.7 million, up 16% from GBP174.3 million. The growth, according to the company, reflects the "success" of its risk management policies in approving loans.
The company's principle operating subsidiary, Conister Bank Ltd, increased its loan book 6.5% to GBP131.4 million from GBP123.4 million the year before, with a 78% increase in pretax profit to GBP1.6 million from GBP900,000.
Edgewater Associates Ltd, another principle operating subsidiary, pretax profit decreased to GBP200,000 from GBP400,000 following the final settlement from acquisition costs.
Looking ahead, the company warned of uncertainty surrounding Brexit and the potential changes in interest rates that could impact credit markets in the UK and the Isle of Man - where the company operates.
As a result, Manx Financial said it will continue to seek out acquisitions to aid it strategy of consolidation, particularly in the UK.
Executive Chairman Jim Mellon said: "I am pleased to report that the half year continues our progressive growth in profitability and puts us well on the road to the realisation of our strategic objectives. Furthermore, our post tax profit increased by 52% to GBP1.2 million . This outcome represents yet another milestone in the history of the group."
Shares in Manx Financial went untraded Tuesday but last closed at 11.85 pence each.
Manx Financial (MFX)