Manx buys out remaining 60pc share of BLX

Manx Financial Group announced on Monday that its wholly-owned subsidiary Bradburn has exercised its option to acquire the remaining issued share capital of the Business Lending Exchange (BLX) from its existing shareholders.

The AIM acquired 40% of BLX in February 2018, and as part of that transaction, it negotiated an option to acquire the remaining 60% on the basis of 4x the business' normalised EBITDA over the last three years.

As a result, Bradburn agreed the exercise payment to be partially settled in cash on completion of £0.92m, together with a commitment for deferred cash payments of up to a total of £0.48m, subject to certain performance milestones.

“We have had a successful relationship with the group over the last three years and we look forward to growing our business with them,” said BLX managing director Chris Allan.

Manx said the acquisition would further its strategy of acquiring niche lenders within the UK, to provide direct access to specialist markets and reduce commissions paid.

BLX, formed in 2006 and based in Cambridgeshire, is regulated by the Financial Conduct Authority under Consumer Credit Authorisations, and primarily lends to start-up companies and small businesses which require asset-backed finance.

For the 12 months ended August, BLX reported an unaudited profit on ordinary activities excluding group interest charges of £0.36m, and had net assets of £0.65m.

“BLX's niche competitive position in the micro-SME market provides the Group with direct access to a sector in which it currently has minimal exposure,” said Manx finance director Douglas Grant.

“Chris and his team have excelled, despite the adverse economic environment over the last two years, to create a customer focused business which we will nurture and grow within the group.”

At 0830 BST, shares in Manx Financial Group were flat at 8.5p.