• Focus on UK lending businesses valued at between GBP 1m and GBP 20m
• Management preference for majority stake acquisitions over whole-company deals
• Financial services provider recorded FY25 cash and cash equivalents of GBP 24.3m

Manx Financial Group, a London-listed financial services provider, is focusing M&A efforts on the non-bank short-term lending markets, CEO Douglas Grant said.

The UK houses more than 3,000 non-bank short-term lending providers for individuals and the GBP 15.7bn small to medium-sized enterprise (SME) space, giving the group “a large list” of potential acquisition opportunities, Grant said. Its attention centres on lending providers valued at between GBP 1m and GBP 20m, he added.

While there are no current plans to seek businesses outside of the UK, Manx Financial Group is comfortable acquiring a UK-located lending provider with international operations, the CEO said. Any transaction would need either the principal shareholders or the management team to remain on board post-deal, he explained.

Most targets under review stem from internal research, although the company has received information dossiers from deal brokers and other sources, Grant said. He was unable to specify when a deal could be announced, noting that any transaction needed a willing buyer and seller.

Manx Financial Group is willing to acquire either a majority interest in a company or a full stake. The former is the preferred option, as this incentivises the principal shareholders or management team, Grant added.

Acquiring non-bank lending providers would diversify the group’s operations, he said, noting that the company had made 11 investments in the same number of years across various sectors where it could gain greater market share.

The purchase of Payment Assist, a UK-based automotive finance company, was cited as an example. Manx Financial Group initially acquired a 50.1% interest in Payment Assist in September 2022 for GBP 4.2m before purchasing the remaining interest for GBP 5m in September 2024.

Manx Financial Group’s portfolio of subsidiaries operates across banking, asset finance, point-of-sale lending, wealth management, foreign exchange, and leasing, according to its FY25 earnings release statement on 18 May.

The Isle of Man-headquartered group is a diversified UK banking and financial services player holding Isle of Man and UK banking licences. It recorded pre-tax profit of GBP 7.3m in FY25, a decline from GBP 9.9m in 2024. Cash and cash equivalents totalled GBP 24.3m.

Manx Financial Group has a market cap of GBP 31.35m. The company was listed on London’s Alternative Investment Market in January 2008.