Manx Financial Group PLC Acquisition of Blue Star Business Solutions Ltd (1538J)
March 28 2018 - 2:00AM
UK Regulatory
TIDMMFX
RNS Number : 1538J
Manx Financial Group PLC
28 March 2018
FOR IMMEDIATE RELEASE 7.00am 28 March 2018
Manx Financial Group PLC (the 'Group')
Acquisition of the entire issued share capital of Blue Star
Business Solutions Limited
Manx Financial Group PLC announces that Bradburn Limited, its
wholly owned subsidiary, has entered into a binding agreement to
acquire the entire issued share capital of Blue Star Business
Solutions Limited ("BBSL") subject only to Financial Conduct
Authority ("FCA") approval of the proposed change of control. An
application to the FCA has been submitted and completion is
expected to occur within 30 days.
BBSL was formed in 2004 and is based in Hampshire and regulated
by the FCA and holds Credit Broking Authorisations. The two
co-founders of BBSL, Marcus Gregory and Mark Hayman, have developed
a niche brokerage which focuses on delivering excellent customer
service to small and medium sized businesses in the UK that require
funding for IT equipment amongst other assets. For its financial
year to the end of March 2018, BBSL will fund in excess of GBP9
million of loan proposals and as at 31 March 2017 reported an
unaudited profit of GBP101,252 after tax. Post-acquisition the
Group will invest in BBSL to allow it to grow profitably by gaining
market share and through its banking subsidiary, Conister Bank
Limited, write the majority of its funding requests.
The board of directors of BBSL will be strengthened by the
appointment of Douglas Grant, the Group's Finance Director, and
Denham Eke, the Group's Chief Executive Officer.
The main terms of the transaction are as follows:
-- An initial payment of GBP1,500,000 in cash at completion;
-- 50% of the enlarged earnings before interest, tax,
depreciation and amortisation ("EBITDA") in BBSL for 3 years post
completion arising from ongoing trading of the BBSL following
completion of the acquisition; together with
-- 50% of the incremental net profit that the Bank realises as a
result of it taking up BBSL loan proposals post completion until
the third anniversary of the transaction. This will be paid
annually with a final payment in year 4 for the unrealised
discounted tail of the portion;
-- The maximum aggregate consideration payable by Bradburn
(including earn-out consideration) is capped at GBP4,000,000.
* net profit is defined as the amount of income earned (less
costs) realised by the Bank arising from new lending which has been
originated by BBSL
This acquisition is part of the Group's strategy to increase its
distribution in the UK broker market.
Douglas Grant, Group Finance Director, commented: "The asset
backed finance market in the UK recorded its seventh year of
successive growth last year, led by the broker finance market which
grew 14% year on year. This is a market Conister Bank is active
within and indeed wrote more than GBP16 million of business last
year. This acquisition will bolster our presence in this attractive
market sector and act as a catalyst for future growth. Both Marcus
and Mark have great experience in the UK broker market and are keen
to grow the business with our assistance and I am equally keen to
work with them to achieve this goal."
For further information: -
Manx Financial Group - http://www.mfg.im/
Blue Star Business Solutions Limited -
http://www.bluestarleasing.com/
Contacts:
Manx Financial Group PLC
Denham Eke, Chief Executive
Tel: +44 (0) 1624 694694
Beaumont Cornish Limited
Roland Cornish/James Biddle
Tel: +44 (0) 20 7628 3396
Britton Financial PR
Tim Blackstone
Tel +44 (0) 7957 140416
This information is provided by RNS
The company news service from the London Stock Exchange
END
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