Manx Financial Group PLC (LON:MFX), the financial services group which includes Conister Bank Limited, Conister Finance & Leasing Ltd, Payment Assist Limited, Blue Star Business Solutions Limited, Edgewater Associates Limited and MFX Limited, has presented its audited final results for the year ended 31 December 2025.
Jim Mellon, Executive Chair, commented: “Net interest income increased by 14.3% to £37.5 million (2024: £32.8 million), reflecting both balance sheet growth and an improved funding mix”.
Financial highlights
· net assets increased by 16.7% to £43.6 million (2024: £37.3 million). These increases reflect the continuing strength of the Group’s financial position.
· reported profit before tax decreased to £7.3 million (2024: £9.9 million) reflecting a weaker contribution from The Business Lending Exchange Limited together with the impact of non-recurring provisions
· normalised profit before tax increased to £8.6 million (2024: £8.3 million)
· basic earnings per share was 5.33 pence (2024: 6.87 pence) and normalised basic earnings per share increased by 10% to 6.28 pence (2024: 5.70 pence)
· net assets per share rose to 35.4p (2024:31.1p) and tangible net assets per share increased to 22.2p (2024: 17.9p)
· return on equity was 15.8% (2024: 22.4%) and normalised return on equity was maintained at 18.6% (2024: 18.6%)
· normalised return on tangible equity remained high at 30.9% (2024: 32.4%)
· total capital ratio of 15.8% (2024: 17.0%), safely above its regulatory minimum, reflecting growth in risk weighted assets
Strategic highlights
· the Board remains focused on disciplined execution and remains well placed to capture attractive opportunities while continuing to manage the business prudently and efficiently
· the Conister Overdraft remains in user acceptance testing ahead of an anticipated launch later in 2026
· the Group submitted an Irish consumer credit licence application. A decision from the Central Bank of Ireland is anticipated by late summer 2026
The 2025 Audited Annual Report and Accounts will be posted to Shareholders and will be available from the Company’s website www.mfg.im shortly. Details concerning the 2026 Annual General Meeting will be announced in due course.
Chair’s Statement
Introduction
2025 was yet another year of steady strategic and operational progress for the Group, notwithstanding a still challenging external environment. Whilst our reported results in the current and prior year reflect the effect of certain non-recuring and accounting items, the Board remains encouraged by the Group’s underlying performance and prospects. Our principal subsidiaries continued to perform well, our robust balance sheet strengthened still further, and we maintained positive momentum in the development of the business.
The Isle of Man and UK economies have remained more resilient than many anticipated, despite continued inflationary pressures and wider geopolitical and macroeconomic uncertainty. Against this backdrop, demand for short-term funding solutions from both consumers and SMEs, our core markets, has remained robust. We also continue to see evidence that these segments are underserved following the retreat of a number of UK banks from short-term lending, creating a meaningful opportunity for the Group which we are well placed to address.
Results
Reported profit before tax for 2025 decreased to £7.3 million (2024: £9.9 million). This primarily reflected a weaker contribution from The Business Lending Exchange Limited (“BLX”), together with two non-recurring items: a £1.3 million provision in connection with the Financial Conduct Authority’s Discretionary Commission Arrangement review concerning the sale of legacy UK car loans (bringing the total provision to £1.5 million), and a £1.8 million provision release in 2024 relating to Payment Assist Limited following an enhancement to expected credit loss modelling and arrears management actions, which benefited the prior year comparator. Excluding these two latter items, but including the weaker BLX performance, normalised profit before tax increased to £8.6 million (2024: £8.3 million), representing like-for-like growth of approximately 3.6% and demonstrating the Group’s underlying resilience.
Total assets at the year-end increased by 12.8% to £561.3 million (2024: £497.8 million), while the Group’s well-diversified, largely secured net loan book grew by 9.5% to £407.9 million (2024: £372.4 million). Net assets increased by 16.7% to £43.6 million (2024: £37.3 million). These increases reflect the continuing strength of the Group’s financial position. Further detail on financial performance is set out in the CEO’s Review below.
Dividend
The Group’s dividend policy is to pay an annual dividend equivalent to 10% of profit attributable to the shareholders of the Company and, in respect of 2025 (payable in 2026), the Board has maintained that policy. Accordingly, the Board is proposing a basic dividend for 2025 of £639,000 (2024: £810,000), representing 0.5197 pence per share. This reflects the Board’s confidence in the Group’s cash generation, capital position and long-term earnings outlook. Shareholders will again have the option to receive their entitlement in cash or in scrip. In addition, following consultation with shareholders, we are proposing an additional bonus distribution of 5% on the same qualifying basis, payable in shares only. Taken together, this represents a total dividend of 15% of profit attributable to shareholders at 0.7796 pence per share. The dividend will be payable on 20 August 2026 to shareholders on the register at the close of business on 10 July 2026.
Strategic objectives
The Group’s strategic objectives remain unchanged. In an environment shaped by continuing inflationary pressures, a more prolonged higher interest-rate backdrop and broader economic uncertainty, the Board remains focused on disciplined execution. We will continue to:
· provide the highest quality of service throughout our operations to all customers, ensuring that their treatment is both fair and appropriate;
· adopt a pro-active strategy to managing risk, including credit and climate risk, within a structured and compliant manner;
· concentrate on developing our core business by considered acquisitions, increasing prudential lending, and augmenting the range of financial services we offer;
· prudently progress the implementation of our IT infrastructure to better service the operational requirements of a growing Group without the requirement for a disproportionate increase in headcount and other associated operational costs;
· continue to develop our treasury management to improve the return on the liability side of our balance sheet; and
· manage our balance sheet to exceed the regulatory requirements for capital adequacy.
The Board believes that delivery against these objectives will support further growth in shareholder value, strengthen cash generation for reinvestment in new products and services and underpin returns to shareholders. Further details are set out in the Corporate Governance Report, together with our approach to the Quoted Companies Alliance (“QCA) Corporate Governance Code.
Environmental, Social and Governance
The Board believes that ESG considerations are integral to the delivery of sustainable long-term value, effective risk management and the resilience of the Group. Our approach is proportionate to our scale as an AIM-listed financial services business and is focused on clear governance, responsible business practices and positive outcomes for customers, colleagues and the communities in which we operate.
The Board retains ultimate responsibility for ESG and climate-related matters, supported by the Group Audit, Risk and Compliance Committee within the Group’s established risk management framework. This approach is aligned with the Quoted Companies Alliance (“QCA”) Corporate Governance Code and applies across the Group’s lending, wealth management and leasing operations. Further details are provided in the Environmental, Social and Governance Report.
Board changes
In March this year, I was pleased to welcome Jennifer Quirke to the Group Board as a non-executive director. Jennifer is currently Chair of the Audit Committee of Vernon Building Society, a role from which she will retire later this year and also serves as Chair and non-executive director of the Mersey Gateway Crossings Board. She is a Fellow of the Chartered Institute of Management Accountants (“CIMA”) and will chair the Group Audit, Risk and Compliance Committee. Jennifer succeeds Alan Clarke, who retired last year after 18 years of service. I am also pleased to welcome Tanya Beckett and Bill Shimmins to the board of Conister Bank Limited.
Outlook
The economic backdrop in the Isle of Man and the UK remains uncertain, with inflationary pressures and the prospect of interest rates remaining higher for longer continuing to affect household and business budgets. At the same time, these conditions are creating opportunities for the Group to support customers through both our existing and new short-term financing products. The wider business environment will also continue to be influenced by government policy and the pace at which announced measures are implemented.
Against this backdrop, the Group remains well placed to capture attractive opportunities while continuing to manage the business prudently and efficiently. My executive colleagues and I look forward to continued engagement with existing and prospective shareholders as we further raise the profile of the Group.
In closing, I would like to thank my colleagues on the Board and all our staff in the Isle of Man and the UK for their continued hard work and commitment. Their contribution has been central to the Group’s progress during the year.
Jim Mellon
Executive Chair
15 May 2026
Chief Executive Officer’s review
As noted in the Chair’s statement, cost of living pressures remained evident throughout 2025 and continued to influence demand across both retail and corporate markets. At the same time, the availability of short-term finance from traditional banking providers remained constrained. More recently, geopolitical developments in the Middle East have contributed to renewed inflationary pressure and increased the prospect of interest rates remaining elevated for longer. Despite this, our operating income continued to grow.
Against this backdrop, the Group continued to operate in a relatively challenging environment while benefiting from sustained demand for short-term credit solutions from individuals and small and medium-sized enterprises (“SMEs”).
The Group operates a diversified portfolio of subsidiaries across banking, asset finance, point-of-sale lending, wealth management, foreign exchange and leasing. This breadth of activity reduces concentration risk and provides multiple drivers of income and medium-term growth.
The following sections review the Group’s performance in 2025, and the contribution made by its principal businesses in supporting SMEs and individual customers through the provision of finance for everyday purchases, insurance premiums and broader cash flow requirements.
Financial review
Key metrics
| Metric | 2025 Actual£’m | 2024 Actual£’m |
| Net interest income | £37.5 | £32.8 |
| Profit before tax payable | £7.3 | £9.9 |
| Total comprehensive income attributable to owners | £6.6 | £7.8 |
| Basic earnings per share | 5.33 pence | 6.87 pence |
| Tangible net assets per share | 22.2 pence | 17.9 pence |
| Return on equity | 15.8% | 22.4% |
| Normalised return on tangible equity | 30.9% | 32.4% |
| Net loan book | £407.9 | £372.4 |
| Total capital ratio | 15.8% | 17.0% |
| Liquidity ratio | 27.0% | 24.0% |
| Dividend per share | 0.7796 pence | 0.6768 pence |
In addition to reported results, management also reviews performance on a normalised trading basis. For 2025, this includes adjusting for the £1.3 million exceptional provision relating to certain UK vehicle commissions paid between 2007 and 2024, which is discussed further later in this report. In 2024, the Group benefited from a £1.8 million release of Payment Assist Limited provisions following an enhancement to expected credit loss modelling and arrears management actions.
On a reported basis, the Group delivered the largest balance sheet in its history, record net interest income, an improved funding cost profile and a strong liquidity position. As noted in the Chair’s statement, the Board has proposed an increased dividend. The reduction in reported profit before tax principally reflected two non-recurring items. Excluding these items, underlying performance remained in line with the Group’s strategic priorities.
In addition to reported results, management reviews performance on a normalised trading basis. For 2025, this includes adjusting for the £1.3 million (2024: £0.2 million) exceptional provision relating to certain UK vehicle commissions paid between 2007 and 2024, which is discussed further later in this report. In 2024, the Group benefited from a £1.8 million release of Payment Assist Limited provisions following an enhancement to expected credit loss modelling and arrears management actions. At present, we do not expect further UK Discretionary Commission Arrangement motor related provisioning.
Operating income increased by £2.9 million to £37.3 million (2024: £34.4 million). Profit before tax, excluding the impact of non-recurring provisions in 2024 and 2025, was £8.6 million (2024: £8.3 million). On the same basis, earnings per share increased by 10% to 6.28 pence and return on equity remained at 18.6%. The return on tangible equity on this basis was 30.9%. The Group’s total capital ratio and liquidity ratio remained within management’s risk appetite at 15.8% and 27.0% respectively.
Total assets increased by 12.8% to £561.3 million (2024: £497.8 million), reflecting disciplined growth across the Group’s core lending categories. The net loan book increased by 9.5% to £407.9 million (2024: £372.4 million), driven principally by growth in unsecured personal lending and block discounting, while remaining well diversified and predominantly secured. Customer deposits increased by 11.7% to £452.5 million (2024: £405.2 million), reflecting the continued strength of the Group’s retail funding franchise in both the Isle of Man and the UK.
Net interest income increased by 14.3% to £37.5 million (2024: £32.8 million), reflecting both balance sheet growth and an improved funding mix. Despite an increase of £47.3 million in customer deposits, total interest expense decreased by £1.7 million, from £23.1 million to £21.4 million, as the average cost of retail deposits reduced from 5.0% in 2024 to 4.1% in 2025. Asset yields were maintained and net interest margin increased to 9.6% (2024: 8.9%).
The cumulative UK Discretionary Commission Arrangements provision at the year-end was £1.5 million. Based on management’s assessment, and having regard to the FCA’s announced redress scheme, the provision is considered appropriate. The incremental charge recognised in 2025 was £1.3 million (2024: £0.2 million) and management currently expects 2025 to represent the peak year of provisioning.
Conister Bank Limited
Gross loans, net of deferred income and before the provisions referred to above, increased by 11.7% to £420.3 million (2024: £376.4 million). Customer deposits increased by 11.7% to £452.5 million (2024: £405.2 million). These movements further strengthened liquidity and the loan-to-deposit ratio remained broadly stable at 90.1%.
As announced in February 2026, following the FCA’s overdraft reforms introduced in 2020, an estimated 16.5 million individuals have lost access to unarranged overdrafts, with a further 6 to 8 million losing arranged facilities since 2022. These reforms, which introduced a single interest rate and prohibited fixed fees, have reduced overdraft availability across a number of banks for both consumers and SMEs. The Group continues to respond to this market need through a range of products, including the Conister Overdraft being developed in partnership with Fiinu plc.
The Conister Overdraft is intended to allow customers to access the facility without switching banks. Following regulatory approval in December 2025, the product remains in user acceptance testing ahead of an anticipated launch later in 2026. The initial launch is expected to target Payment Assist Limited’s customer base of more than 1.3 million customers.
At 31 December 2025, the Bank’s total capital ratio was 15.8% (2024: 17.0%), very safely above its regulatory minimum. The reduction reflected growth in risk-weighted assets arising from planned loan book expansion. The Tier 1 capital ratio was 11.7% against a minimum requirement of 8.5%. The Bank’s liquidity ratio decreased to 21.1% (2024: 22.5%) and remained comfortably above the regulatory minimum of 10%. Total liquidity reserves were £95.5 million (2024: £91.1 million).
Payment Assist Limited
Payment Assist Limited (“PAL”), the Group’s buy-now-pay-later subsidiary, delivered growth in 2025, with annual advances increasing by £49.2 million to £219.7 million (2024: £170.5 million). As previously announced in February 2026, PAL invested in new collections software, which became fully operational in April 2026. The Group continues to support PAL in arranging additional liquidity facilities and implementing further automation to improve efficiency, support profitability and enable future scale.
PAL notes the planned introduction of FCA regulation for the buy-now-pay-later (“BNPL”) sector, which is expected to commence in July 2026. The business has continued its readiness programme in anticipation of the enhanced regulatory framework.
The Group has submitted an Irish consumer credit licence application, initially focused on the automotive sector. A decision from the Central Bank of Ireland (“CBI”) is anticipated by late summer 2026. Subject to the outcome of the application and any further regulatory approvals that may be required, this may provide the Group with a route into additional EU markets without significant upfront balance sheet deployment.
Edgewater Associates Limited
The Group’s Isle of Man-based wealth management business performed resiliently during the year, with assets under advisement increasing by 3% to £334 million (2024: £325 million). The business remains an important component of the Group’s diversification strategy, complementing its deposit, lending, foreign exchange and general insurance activities on the Island.
The business remains sustainably profitable and continues to generate introductions across the wider Group.
Manx Ventures Limited
The Group’s other lending subsidiaries continued to deliver organic growth within their respective niche markets, with the exception of The Business Lending Exchange Limited, which reported a loss of £0.3 million compared with a profit of £0.6 million in 2024. This business operates in the non-standard SME credit market and, in response to performance, the Group has tightened credit criteria and strengthened collections processes.
The Group’s foreign exchange businesses delivered results in line with expectations in 2025. Management notes that volatility in the current economic environment has supported performance in the first quarter of 2026. CAM Wealth became a wholly owned subsidiary in January 2025, strengthening the Group’s wealth management proposition and enhancing cross-referral opportunities. During the year, CAM Wealth also extended its FCA permissions to offer general insurance products in the UK and has commenced offering these products to customers across the wider Group.
In addition to PAL, the Group holds a 30% shareholding in another Buy Now Pay Later business, PayitMonthly Limited. PayitMonthly provides a flexible finance platform to businesses ranging from independent operators to national brands, enabling them to offer customers the option to pay by instalments. The business has signed approximately 10,000 UK businesses to its platform.
The Board continues to evaluate strategic options in respect of the subsidiaries and investments held within Manx Ventures Limited, with the objective of realising value over time and enhancing shareholder returns. These options may include partial or full disposals, joint ventures and, for more mature businesses, potential initial public offerings, subject to market conditions. The Group will provide further updates as appropriate.
Investor relations
During the year, the Group continued to develop its investor relations activity and engaged with shareholders through a number of investor events. In April 2026, the Group attended a ShareSoc event in Leeds and also made its annual appearance at the Master Investor Show.
The Group is hosting an Investor Meet Company presentation in connection with the publication of these results. It intends to continue broadening engagement with existing and prospective shareholders, together with relevant wealth management and small-cap institutional investor audiences.
Outlook
The macroeconomic environment remains a little fragile, with inflationary pressures and interest rates expected to remain elevated for longer than previously anticipated as geopolitical developments continue to affect financial markets. Nonetheless, the Manx and UK economies seem pretty robust in the face of adverse international backdrops. Against this backdrop, the Group remains focused on providing flexible, short-term funding solutions in underserved markets across the UK and Isle of Man and on delivering those products efficiently in order to support margin progression.
The Group intends to broaden its portfolio of financing products through organic development and selective acquisitions. Management believes that current market conditions may present opportunities for value-accretive transactions. The Group also looks forward to entering the Irish consumer credit market subject to the outcome of its licence application.
MFG remains well positioned to deliver continued organic growth and to pursue further opportunities as they arise. I look forward to updating shareholders further on the Group’s progress during 2026.
Douglas Grant
Group CEO
15 May 2026
