Acquisition of ECF Asset Finance PLC (5663W)
22 11월 2010 - 5:32PM
UK Regulatory
TIDMMFX
RNS Number : 5663W
Manx Financial Group PLC
22 November 2010
FOR IMMEDIATE RELEASE 22 November 2010
Manx Financial Group PLC
(the 'Group')
Acquisition of ECF Asset Finance PLC Manx Financial Group PLC
announces that it has acquired the entire share capital of ECF
Asset Finance PLC (http://www.ecfgroup/assetfinance.co.uk), an
asset finance house formed over 19 years ago to provide asset
backed finance to UK based Small and Medium sized Entities
("SME's"). The acquisition has been made by Bradburn Limited, a
wholly owned subsidiary registered in Isle of Man. The Group's
directors believe that the SME market sector has been neglected in
the current climate by many UK high street banks. There are
however, many dynamic businesses that believe investing in their
key assets will deliver efficiencies in the current economic
climate. In ECF Asset Finance PLC ('ECF'), the Group has acquired a
company with close relationships to the commercial market. Equally
importantly, ECF possess the underwriting skills to help
effectively manage our risk at this key point in the economic
cycle. ECF offers a diverse portfolio of finance products to UK
based companies including but not limited to: sale and leaseback
agreements; finance leases; hire purchase agreements and commercial
loans. ECF employs 16 members of staff from its office in
Manchester. The Group, through its wholly owned banking subsidiary
Conister Bank Limited, already lends in the UK and the customer
overlap between the two target markets has been assessed and is not
material. ECF will not only become a new lending catalyst for the
Group but will also bolster the Group's existing UK based sales and
collection teams. This acquisition offers opportunities for
earnings growth, both initially, and through the ongoing servicing
of the corporate market as the Group has acquired ECF's current
loan book with a healthy pipeline of committed proposals. For the
year ended 31 December 2009, ECF reported an audited consolidated
loss on ordinary activities before exceptional provisions of
GBP84,458 on a turnover of GBP3,242,827 and had net current assets
of GBP15,704,466 as at that date. The Group has calculated that, by
applying the Group's lower cost of funds, this loss on ordinary
activities before exceptional provisions would have been
transformed into a recorded profit of approximately GBP500,000 for
that period. The consideration for the entire share capital of ECF
was GBP1. The Group's banking subsidiary, Conister Bank Limited,
acquired the ECF loan book for GBP12,177,000. The ECF loan book has
GBP14,300,000 of gross receivables. In addition, ECF had cash of
approximately GBP1,090,000 at completion of the transaction which
will be available to the Group. The Group has calculated that its
net loan book, as reported in the interim accounts at 30 June 2010,
will, as a result of this acquisition, increase from GBP32,968,000
to GBP49,796,000 at completion and has sufficient liquidity to fund
further growth between now and the year end. Denham Eke, CEO of
Manx Financial Group commented: "The acquisition of ECF is a very
positive move for both MFG and Conister Bank as it will not only
increase the value of our current loan book by over a quarter, but
also will significantly increase interest income. The ECF team
supplements our existing skills in sales, underwriting and
collections, especially for commercial lending. The Group board
continues to look for similar acquisition opportunities for growth
and to enhance value for shareholders.".
Contacts
Manx Financial Group PLC
Denham Eke, Chief Executive
Tel: 01624 694694
Beaumont Cornish Limited
Roland Cornish
Tel: 0207 628 3396
Britton Financial PR
Tim Blackstone
Tel 07957 140416
This information is provided by RNS
The company news service from the London Stock Exchange
END
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