Member Info for Diversified

Some strong buying came in after 16:00 which left little stock before the book flipped back positively.

Very happy with my purchase earlier this week with massive upside from the Nasdaq IPO. In the interview Harald stated internal expectations of a listing before the end of the year and that brokers and funds were keen to participate, and that even before the roadshow. Expecting very positive momentum running into the listing and what better place for people to attain early exposure to the IPO during the roadshow than by buying stock here. Professionals will recognise this and the fun is about to begin.

Due by the end of the month.

Good volume today and I believe the sellers are out which was evident by the afternoons strengthening of the book.

Completely undervalued given the upside potential, and nearly zero value attributed to this week’s RNS. Crazy.

Both posters were first time posters and potentially not investors.

Now we know why someone was keen to investment nearly a million pounds at 20p per share.

Likely future trajectory

Putting it all together, here’s how I see Manx Financial’s growth path over the next few years:

Metric Likely Range / Trend

Profit Before Tax Growth Assuming current trends continue and macro-conditions are stable, growth of ~20-40% annually in the near term (1-2 years), though tapering off somewhat after that. PAL, UK expansion and more lending are big contributors.

Loan book growth Modest to strong growth, especially through UK/Irish expansion and PAL. Reaching perhaps £500-£600m+ in 2-3 years if they continue at current pace and successfully attract UK deposits.

My overall view

Manx Financial appears to be in a healthy growth phase, with strong recent results, clear levers for further expansion, and a diversified model that helps mitigate some risks. If they execute well, the company seems likely to produce material growth over the next 3-5 years, though not without risk from margins, competition, and macro conditions.

Key highlights for the year ended 31 December 2024, and recent periods:

• Profit before tax jumped ~41% year-on-year to about £9.9 million from £7.0 million.

• Earnings per share rose ~49.7% to ~6.87 pence per share.

• The loan book increased modestly, from ~£362.6m to ~£372.4m.

• Total assets rose from ~£480.7m to ~£497.8m.

• Return on equity improved from ~20.6% to ~23.8%.

• Liquidity remains strong; cash and cash equivalents also increased.

• The group has made strategic acquisitions/expansions – notably Payment Assist Limited (PAL) – and has accelerated its growth in niche lending and finance services. PAL in particular is contributing significantly.

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Strengths & growth drivers

From recent disclosures and analysis, the key levers for future growth seem to include:

1. Diversified business model: Manx isn’t just a bank; its portfolio includes specialist lending, “buy now, pay later”, finance/leasing, etc. This helps reduce dependence on a single revenue stream.

2. Acquisitions and inorganic growth: The acquisition of PAL (initially 50.1%, recently moving toward full ownership) is proving very profitable. Further targeted acquisitions seem part of the strategy.

3. Expansion into the UK and potentially the EU / Ireland: They’ve secured a UK branch bank licence, are starting UK deposit taking (which provides cheaper & deeper sources of funds) and are planning to expand into Ireland via a consumer credit license.

4. Strong capital & liquidity base: Robust balance sheet metrics, improved ROE, and adequate liquidity suggest they have capacity to grow (lending/investing) without undue financial risk.

5. Dividend policy: They’ve committed to returning ~10% of profits to shareholders; that can help sustain investor confidence while retaining capital for growth.

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Risks and headwinds

No growth story is without its challenges. Here are what I see as the main risks:

• Margin pressure: As in many banks/finance firms, rising funding costs (especially if interest rates remain high), competition for deposits, and regulatory constraints can squeeze margins. Some evidence that Conister Bank’s margins are under pressure.

• Credit risk / impairment: While credit quality seems okay currently, there are “emerging pockets of credit quality deterioration” at PAL noted in recent reporting, and the Group has increased loss reserves accordingly.

• Macroeconomic & regulatory environment: General UK / Isle of Man economic activity, inflation, interest rates, consumer spending, regulatory changes or tighter financial regulations could weigh on growth. The Isle of Man is doing okay, but the UK is a much larger exposure for loans.

• Competition: In markets like “buy now pay later” (BNPL), specialist lending, mortgages, etc., competition is intense. Also, technology/agility matters in fintech/lending niches. If Manx falls behind on tech or co

We are witnessing a material transfer of stock, in addition to new equity which is seeing the shareholder register rebalance. In the near term I would expect to see a holding RNS that confirms the completion of this, as a transfer of this size cannot last forever.

When the rebalancing has taken place, I expect to see the share price very quickly rerate to well over 30p in short order and beyond. It’s a matter of time only, and what an opportunity that presents itself to us in the interim at these prices.

You don’t happily participate in a raise at 20p to be nearly 25% underwater without knowing what is coming in the pipeline.

Closes the gap and moves forward from here imo

2 v 2

16p v 17p pre open. It’s going to move fast

For investors to be actively pursuing a position in this company at over a 40% premium to Fridays closing price, and people are still daft enough to be selling in the free market.

What is clear is that institutions are not adequately positioned in anticipation of what is unfolding here and market demand will easily surpass 20p and beyond. I truly believe a share price of over £1 in line with the directors ambitions is not far away.

Wait for others to come across this little known stock and hold your stock tightly because this is going to be one hell of a ride.

Should expect a holding rns soon at the very least.

I think Marx have been responsible for taking these large sales of stock over the course of the last several days which seems to of subsided just recently. This in turn has seen them flip positively on the book.

We have seen a heavy level of buying in terms of number of transactions into these large blocks of sold shares, but given the size of those blocks, I’m surprised that they flipped positively as quickly as they did. So there is certainly a background buyer of substantial stock.

I was also a little surprised that the interims were announced as quickly as they were in September with little reference, if any to the performance of the newly acquired company.

I would positively speculate that something is a foot, as strategically, the director has referenced further ambitions for 2025 and 2026, with 4th quarter launch upon us.

Marx have removed themselves from the book causing the drop and we have a reasonable demand for stock?

Marx have flipped pretty aggressively on the book to the positive, haven’t looked at their positioning on L2. I think they were responsible for taking a majority of the stock that was being unloaded, and it’s perhaps reasonable to suggest that a majority of that has been flipped. Again speculative on my part, but it’s how I see things.

To add, assuming below: 1 billion fx contracts generated pln9m, therefore I’m not if it’s as simple to suggest a doubling of revenue bring this figure to 2 billion fx contracts. Perhaps allowing for seasonal differences, I do believe it will be close.

You may well be right.

I was basing my expectations on the fact that for the 2024 financial year the purchased company had a turnover of Pln9.33m v Pln6.06m for first 4 months of 2025. Assuming this was based on fx contracts, for which the board have stated that this growth has continued at a similar trajectory into the transaction and expect to maintain this momentum into the end of the financial year, you would assume that the minimum level of revenue would be in the region of Pln18m.

You would also expect that there was some rational behind the targeted fx figure. What I do know, is if this figure is achieved, the share price will react extremely positively.

From completion of the transaction on the 27.08.25. They have 4 months to attain over €750,000,000 in foreign exchange contracts to qualify the seller to an additional £4m, or 20m shares at 20p. To put this into perspective they achieved €1 billion fx contracts during the entire period of 2024.

During their last financial year 01.01.24 to 31.12.24, they had seen significant growth in revenue compared to the previous financial year, achieving profitability assisted by an uplift in clients of circa. 2,300 clients to 2,500, attaining a phenomenal period of growth. Growth that has continued into 2025 with the first 4 months of this year having achieved 2/3rd’s of the revenue that has been achieved throughout 2024.

It therefore comes as no surprise that the sellers were happy to be paid in Fiinu shares and I strongly believe that the sellers are confident enough to have inserted the additional payment clause because the fx contract target is more than achievable.

I wanted to also discuss Panmure Gordon’s valuation on the overdraft plugin of £1.2b. Yes this was taken from an interview a few years ago and has probably risen in value since, however I wondered if anyone had access to this old report? We have little content from the company in terms of investor relations, interviews at this time and I am trying to piece together any gaps in my research.

Yes the raise is completed and the cash is in the bank.

Funny thing is, even if it wasn’t and the raise (5b shares), were cancelled, the share price of the company would be the same due to the reduced number of shares in circulation still valuing it below nav.

Quite simply, it’s too cheap at these levels and close to a significant breakout.

2v1 and in my opinion, the book is shaping up for a run

‘May’.

You’re talking nonsense. Please validate your misleading claims.