TIPPED13 Jan 2017 16:07
From Growth Company Investor
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
MANX FINANCIAL Ticker MFX Sector Financial Services Market cap £9m Share price 9p BUY