Business
Acquisition of Blue Star Business Solutions Ltd
Acquisition of Blue Star Business Solutions Ltd.
About this update from Manx Financial Group Plc
[{"type":"text","content":"\n \nRNS Number : 1538J Manx Financial Group PLC 28 March 2018 \n\nFOR IMMEDIATE RELEASE 7.00am 28 March 2018\n \n \nManx Financial Group PLC (the 'Group')\n \nAcquisition of the entire issued share capital of Blue Star Business Solutions Limited \n \nManx 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. \n \nBBSL 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 £9 million of loan proposals and as at 31 March 2017 reported an unaudited profit of £101,252 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.\n \nThe 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.\n \nThe main terms of the transaction are as follows:\n \n· An initial payment of £1,500,000 in cash at completion;\n· 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\n· 50% of the incremental net profit that the Bank realises as a result of it taking up...