Half-year Results

Manx Financial Group PLC (LSE: MFX), the financial services group which includes Conister Bank Limited, Conister Finance & Leasing Ltd, Payment Assist Limited, Edgewater Associates Limited and MFX Limited, presents its interim results for the six months ended 30 June 2026.

Jim Mellon, Executive Chair, commented: “I am pleased to report continued, resilient performance in the first half of 2026. The economic backdrop remains challenging, but we are beginning to see the benefits of our investment in artificial intelligence and automation that will benefit our customer service, the productivity of our employees and, ultimately, our shareholders.”

A copy of the Interim Report will shortly be available on our website: www.mfg.im.

Interim Results Presentation

Douglas Grant, Group Chief Executive Officer, and James Smeed, Group Finance Director, will host a live presentation relating to the interim results for the six months to 30 June 2026 via Investor Meet Company on Tuesday 29 September 2026 at 2.30 p.m. UK time.

The presentation is open to all existing and potential shareholders. Questions can be submitted before the event via your Investor Meet Company dashboard until 9.00 a.m. UK time on Monday 28 September 2026, or at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and register for the Manx Financial Group PLC presentation via:

Investors who already follow Manx Financial Group PLC on the Investor Meet Company platform will automatically be invited.

596/2014, which forms part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended. Upon publication of this announcement through a Regulatory Information Service, this inside information is now considered to be in the public domain.

Nominated Adviser

Chair’s Statement

Introduction

The first half of 2026 saw continued uncertainty across many economies, including the UK. Inflationary pressure, while less strong than some previous years, has proved persistent. The macroeconomic outlook is similar to last year’s: government finances remain stretched, economic growth is subdued and businesses and consumers alike continue to contend with higher costs.

For Manx Financial Group (“MFG”), the picture is somewhat different. On our home turf, the Isle of Man’s economy continues to demonstrate resilience. The Island benefits from political stability, comparatively strong public finances and a pragmatic approach to economic management. While no jurisdiction is immune from external influences, the Isle of Man remains one of the more attractive places globally in which to conduct business and deploy capital. Its continued economic strength supports the Group’s activities and reinforces our confidence in the long-term prospects of our home market.

Results

I am pleased to report another solid performance for the six months ended 30 June 2026. Profit before tax was £3.4 million, compared to £4.1 million in the corresponding period last year. While this represents a year-on-year reduction, it reflects the normalisation of profitability following the absence of some one-off benefits we enjoyed in prior periods. Together with our continued investment in technology, people and future growth opportunities, the Board believes we are in a strong position to build on this foundation in future years.

Operating income increased to £19.7 million (2025: £18.4 million) and the Group’s loan book grew to a record £422.9 million (2025: £392.6 million). Overall, the Group remains profitable, strongly capitalised and continues to enjoy great access to liquidity through its two deposit-taking licences.

Manx Financial Group is proud of the strength of our balance sheet. Total equity increased to £45.5 million during the period (2025: £41.2 million), while our lending activities continue to be supported by a substantial deposit base here on the Isle of Man where deep pools of liquidity exist. These resources mean we have the flexibility to navigate uncertainty, deploy liquidity efficiently and pursue strategic opportunities as they arise.

The disconnect between the Group’s market valuation and its underlying performance remains stark. Although our shares have recovered significantly over the past two years and now trade closer to their intrinsic value, we continue to believe that the market does not fully recognise either the earnings power of the business or the value of the assets we have assembled. Communicating the value and strategy of the Group to the wider investment market therefore remains an important priority for management and the Board.

Strategy

Our strategy remains unchanged. We are focused on growing the core portfolio of business where our Group cash reserves and liquidity confer genuine competitive advantages. We are constantly innovating, simplifying the Group’s structure, improving operational efficiency through technology and deploying our capital reserves where returns are most attractive.

In practical terms, we have made significant commitments to adopting AI. We originally designed automated processes to deal with our legacy motor Discretionary Commission Arrangements claims, and the results have been so encouraging that we are expanding the pilot to other areas of the business. Management and the Board expect that this will lead to improved outcomes and efficiencies across the Group, consistent with the technology programme discussed during the AGM.

Within our investment arm, we remain disciplined acquirers and will only pursue transactions that meet our financial and strategic criteria. We also continue to review the markets in which our subsidiaries operate, ensuring that Group capital is deployed towards those products and sectors where we can deliver sustainable long-term returns. In addition, we explore all opportunities to divest, or otherwise monetise, our investments when the timing is right.

Business review

Conister Bank continues to be the principal engine of the Group. During the period, the Bank increased its net loan book to £410.3 million while maintaining strong capital and liquidity positions. Deposits stood at £440.8 million at the half year, supporting continued lending growth and improved deployment of capital while preserving a substantial liquidity surplus. The Bank’s solvency and liquidity ratios remain robust, enabling further growth while maintaining prudent risk management standards. The Board currently expects that the provision established at the end of last year remains appropriate for the FCA’s motor finance redress scheme and does not currently anticipate any further provision.

Particularly encouraging has been the continued growth across several of our core lending activities. Unsecured personal lending increased significantly during the period, while our block discounting and specialist finance operations also performed well. At the same time, arrears and impairment trends remain well within the Board’s expectations despite the challenges facing consumers and smaller businesses across the UK. We continue to take a cautious approach to our underwriting operations, and credit quality remains a central focus across the Group.

Of our other subsidiaries, Payment Assist remains one of the Group’s most strategically important assets. The business now serves more than one million unique customers through a network of partners across the United Kingdom, primarily in the automotive repair space.

Advances increased during the period and the business continues to benefit from a strong market position in an area of lending that provides customers with access to finance for essential rather than discretionary expenditure. This resilience has been demonstrated repeatedly during periods of economic uncertainty.

The Board believes the scale of PAL’s customer base presents opportunities to introduce complementary financial and insurance products over time, supporting the Group’s broader portfolio of investee companies.

Our wealth management businesses also continue to thrive. Edgewater Associates remains one of the leading independent financial advisory firms on the Isle of Man, while CAM Wealth is expanding in the UK in line with expectations. MFX, our foreign exchange and international payments business, is a consistent performer, benefitting from the elevated levels of volatility that have characterised global currency and financial markets in recent years. Together, these businesses are helping us build a broader and more diversified financial services group.

Outlook

Looking ahead, I remain cautious about the macroeconomic picture but optimistic about the outlook for MFG. Inflation will continue to exert pressure on consumers and businesses, while weaker growth in the UK and beyond is going to have a negative impact on investment and confidence for some time. Nevertheless, periods like these often create opportunities for well-capitalised and well‑managed financial institutions like MFG.

The Group enters the second half of the year in a position of strength. We have robust capital reserves, substantial liquidity, a growing customer base and a diversified portfolio of financial services businesses operating in markets where the need for our products is clear. We will continue to explore opportunities to expand our product offering, including new fintech-led initiatives and selective geographic expansion where the regulatory and commercial environment is attractive.

We believe there are significant opportunities emerging in specialist lending and payment solutions and I will report further on our initiatives in these areas in due course. As always, we will pursue growth prudently and with a focus on long-term value creation rather than short-term expansion for its own sake.

I am personally confident in the Group’s long-term prospects and in our ability to create value for shareholders.

Finally, I would like to thank our customers, colleagues and fellow Board members for their continued commitment and support.

Jim Mellon

Executive Chair

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income

Items that will never be reclassified to profit or loss

Earnings per share – profit for the period / year

Earnings per share – total comprehensive income for the period / year

Notes to the Condensed Consolidated Interim Financial Statements

For the six months ended 30 June 2026

Reporting entity

Manx Financial Group PLC (the “Company” or “MFG”) is a company incorporated in the Isle of Man. These condensed consolidated interim financial statements (“interim financial statements”) are as at and for the six months ended 30 June 2026 and comprise the Company and its subsidiaries (“Group”).

Basis of accounting

These interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with the last annual consolidated financial statements as at and for the year ended 31 December 2025 (“Annual Financial Statements 2025”). They do not include all of the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group’s financial position and performance since the last annual financial statements.

The accounting policies and methods of computation applied by the Group in these interim financial statements are consistent with those applied in the Annual Financial Statements 2025, and there have been no changes to the Group’s significant accounting policies during the period.

Functional and presentation currency

These financial statements are presented in pounds sterling, which is the Company’s functional currency. All amounts have been rounded to the nearest thousand, unless otherwise indicated. All subsidiaries of the Group have pounds sterling as their functional currency.

Use of judgements and estimates

In preparing these interim financial statements, management make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

The significant judgements made by management in applying the Group’s accounting policies and key sources of estimation uncertainty are the same as those described in the last annual financial statements.

Credit risk

A summary of the Group’s current policies and practices for the management of credit risk is set out in Note 7 – Financial risk review and Note 43 – Financial risk management on pages 61 and 94 respectively of the Annual Financial Statements 2025.

An explanation of the terms Stage 1, Stage 2 and Stage 3 is included in Note 45 (G)(vi) on page 103 of the Annual Financial Statements 2025.

Summary of credit risk on loans and advances to customers

Loans are graded A to C depending on the level of risk. Grade C relates to agreements with the highest of risk, Grade B with medium risk and Grade A relates to agreements with the lowest risk.

• Summary of overdue status of loans and advances to customers

Interest revenue and other interest income

Interest revenue and other interest income represents charges and interest on finance and leasing agreements attributable to the period or year after adjusting for early settlements and interest on bank balances.

Operating segments

Segmental information is presented in respect of the Group’s business segments. The Directors consider that the Group currently operates in one geographic segment comprising of the Isle of Man, UK and Channel Islands. The primary format for business segments is based on the Group’s management and internal reporting structure. The Directors consider that the Group operates in three (2025: three) product orientated segments in addition to its financial activities to allocate the Group’s capital (investing activities): (i) Asset and Personal Finance (including provision of HP contracts, finance leases, personal loans, commercial loans, block discounting, vehicle stocking plans and wholesale funding agreements); (ii) Edgewater Associates Limited (provision of financial advice), and (iii) MFX Limited (provision of foreign currency transaction services).

Asset and

The basic earnings per share calculation is based upon the profit for the period / year after taxation and the weighted average of the number of shares in issue throughout the period / year.

Reconciliation of profit for the period / year between basic and diluted

On 18 June 2026, shareholders approved a dividend to be satisfied in part by a bonus issue of new ordinary shares (see Note 15), allotted on 20 August 2026. As this occurred before these financial statements were authorised for issue, in accordance with IAS 33 ‘Earnings per Share’ the weighted average number of ordinary shares used in the calculation of basic and diluted earnings per share for all periods presented has been adjusted retrospectively, as if the bonus issue and the share-settled element of the scrip dividend occurred at the beginning of the earliest period presented. This adjustment does not affect profit attributable to owners for any period.

The bonus issue adjustment factor applied was 1.0165, reflecting 2,031,041 new shares issued against 122,950,726 shares in issue immediately before the combined scrip and bonus share issue.

The diluted earnings per share calculation assumes that all convertible loan notes have been converted / exercised at the beginning of the period in which they are dilutive.

Reconciliation of total comprehensive income attributable to owners of the Company for the period / year between basic and diluted

UK Government Treasury Bills are stated at fair value and unrealised changes in the fair value are reflected in other comprehensive income. There were realised gains of £1,550,000 (30 June 2025: £1,398,000 and 31 December 2025: £2,561,000) and an unrealised loss of £155,000 (unrealised gains 30 June 2025: £53,000 and 31 December 2025: £171,000) for the period.

Loans and advances to customers

JM - Three loans, one of £1,250,000 maturing on 26 February 2030, with interest payable of 7.5% per annum, convertible to ordinary shares of the Company at a rate of 9.0 pence, one of £500,000 maturing on 31 July 2027, paying interest of 7.5% per annum and convertible to ordinary shares of the Company at a rate of 8.0 pence and one loan of £1,000,000 maturing on 31 December 2028, paying interest of 8% per annum.

BL - Five loans, one of £1,000,000 maturing on 1 July 2026, paying interest of 7.5% per annum one of £1,000,000 maturing on 25 February 2030, paying interest of 7.5% per annum one of £1,200,000 maturing on 31 July 2027, paying interest of 7.5% per annum, convertible to ordinary shares of the Company at a rate of 8.0 pence, one of £1,000,000 maturing 28 September 2030 paying interest of 8% per annum and one of £1,000,000 maturing on 20 November 2028, paying interest of 8.0% per annum. Jim Mellon is the beneficial owner of BL and Denham Eke is also a director.

CR - One loan consisting of £1,000,000 maturing on 12 October 2030, paying interest of 8.0% per annum. Greg Bailey, a Director, is the beneficial owner of CR.

JS - One loan consisting of £400,000 maturing on 3 May 2029, paying interest of 8.5% per annum. John Spellman is a Director of the Group.

AC - One loan consisting of £100,000 maturing on 6 May 2027, paying interest of 5.75% per annum. Alan Clarke was a Non‑Executive Director of PAL during the period.

UP - Sixty-five loans (2025: Fifty-six), the earliest maturity date was 3 July 2026, and the latest maturity is 31 March 2031. The average interest payable is 6.77% (30 June 2025: 6.79%).

With respect to the convertible loans, the interest rate applied was deemed by the Directors to be equivalent to the market rate at the time with no conversion option.

Called up share capital

Dividend and bonus issue

At the Annual General Meeting held on 18 June 2026, shareholders approved a dividend for the year ended 31 December 2025, to be satisfied by way of a capitalisation of retained profits, comprising:

• a scrip dividend of 0.5197 pence per ordinary share, in respect of which shareholders may elect to receive cash or new fully paid ordinary shares; and
• a bonus issue of 0.2599 pence per ordinary share, satisfied entirely by the allotment of new fully paid ordinary shares, with no cash alternative.

Both elements are payable/allotted on 20 August 2026, to shareholders on the register at close of business on 10 July 2026.

The Group has recognised a liability of £638,975 at 30 June 2026 in respect of the scrip dividend element, representing the full cash-equivalent value of the entitlement approved at the AGM. No liability has been recognised in respect of the bonus issue, as this is satisfied exclusively by the issue of new shares with no cash alternative.

2,031,041 new ordinary shares were issued on 20 August 2026 in settlement of the scrip dividend and bonus issue combined, comprising 591,740 shares issued in settlement of the scrip dividend element and 1,439,301 shares issued under the bonus issue. Shareholders who did not take shares under the scrip dividend received a cash dividend of £507,619, with the remaining £131,356 settled by the issue of new shares. The price of new shares was 22.1983 pence per share, determined in accordance with the pricing mechanism set out in the resolution approved at the AGM.

Convertible loans

There are three convertible loans totalling £2,950,000 (30 June and 31 December 2025: three convertible loans totalling £2,950,000).

Restricted Stock Units

On 5 July 2022, 27 October 2022, 29 November 2023, 16 December 2024 and 25 June 2025 MFG granted Restricted Stock Units (“RSUs”) under its 2022 RSU Plan. The Group has issued, in total, RSUs over 5,087,500 ordinary shares representing 4.14% of the issued share capital of the Group, including 2,400,000 to certain directors and 2,687,500 to certain employees. The RSUs issued before 2024 have a 2-year term while those issued post 2024 have a 3-year term and are subject to certain vesting conditions based upon an overall growth in profitability. Any RSUs granted will fall away should the recipient leave employment before the 2‑year or 3-year term expires. Should the individual vesting conditions be satisfied at the end of the term, the stock can be exercised at nil cost.

RSUs issued on 16 December 2024 and 25 June 2025 totaling 400,000 units lapsed in the six months to 30 June 2026. No director held, was granted, or exercised RSUs during the six months to 30 June 2026.

The fair value of employee services received in return for RSUs granted is based on the fair value of them measured using the Black-Scholes formula. Service related and non-market performance conditions were not taken into account in measuring fair value. The inputs used in measuring the fair values at the grant of the equity-settled restricted stock unit payment plans were as follows.

^ Based on past 3 years

* Annual rates

The expected volatility is based on both historical average share price volatility and implied volatility derived from traded options over the Group’s ordinary shares of maturity similar to those of the employees.

The fair value of the liability is remeasured at each reporting date and at settlement date.

The credit for the period on RSUs lapsed in the period was £10,000 (30 June 2025: £42,000 charge and 31 December 2025: £373,000 charge) which is included in personnel expenses.

Contingent consideration

Deferred consideration relates to contingent payments due to the sellers on the acquisition of CAM Wealth Group Holdings Limited and its subsidiary CAM Wealth Group Limited (together “CAM” trading as CAM Wealth).

On 21 January 2025, CAM was acquired for total cash consideration of £135,000. In the third year, the Group agreed to pay 5 times the relevant profits for the UK IFA business for the year ended 21 January 2028 should certain performance conditions be met.

Based on the forecasts when the Company was acquired, the Group estimates an additional contingent consideration of £640,000 payable in the final year. The Group has included £590,000 as contingent consideration related to the additional consideration, which represents its fair value as at 30 June 2026 determined through a discounted cash flow valuation technique.

Regulators

Certain Group subsidiaries are regulated by the Isle of Man Financial Services Authority (“FSA”) and the United Kingdom Financial Conduct Authority (“FCA”) as detailed below.

The Bank and EAL are regulated by the FSA under a Class 1(1) - Deposit Taking licence, and a Class 2 - Investment Business licence respectively. The Bank is also regulated by the UK’s Prudential Regulatory Authority (“PRA”) and the UK’s FCA.

Contingent liabilities

The Bank is required to be a member of the Isle of Man Government Depositors’ Compensation Scheme which was introduced by the Isle of Man Government under the Banking Business (Compensation of Depositors) Regulations 1991. This creates a liability on the Bank to participate in the compensation of depositors should it be activated.

Provisions for Discretionary Commission Arrangements

The Group holds a provision of £1,502,920 (30 June 2025: £202,920 and 31 December 2025: £1,502,920) in respect of historical motor finance commission complaints, following the FCA’s review of this market. This figure was calculated using the FCA’s final rules for its Motor Finance Redress Scheme, published in March 2026, includes commission models and calculations in line with the FCA’s published redress scheme, and the provision level has not changed since 31 December 2025.

Subsequent to publication of the scheme, it has been challenged in court by several lenders and a consumer group. In July 2026, parts of the scheme were put on hold while the challenge is heard, with a decision not expected before late 2026 or early 2027. The Directors do not believe this legal challenge changes how much the Group expects to pay, only when it might be paid, and have therefore not adjusted the provision.

The final cost remains uncertain and could differ from the amount provided, mainly because of the outcome of the ongoing legal challenge and the interest added to compensation payments, which continues to build up even though the scheme is currently paused. The Group will keep this estimate under review as matters progress.

The Group believes that its historical practices were compliant with the law and regulations in place at the time and is willing to cooperate with the FCA through its revised customer-engagement approach. No redress settlements were made as of 30 June 2026.

Subsequent events

On 1 July 2026, a loan note of £1,000,000 paying interest at 7.5% to Burnbrae Limited matured and was renewed under the same terms, with a new maturity date of 1 July 2027.

Following the approval of the dividend and bonus issue described in Note 15, on 20 August 2026 the Group issued 2,031,041 new ordinary shares, comprising 591,740 shares in settlement of the scrip dividend element and 1,439,301 shares under the bonus issue, and paid £507,619 in cash to shareholders who did not take shares under the scrip dividend. Called up share capital increased by £450,905 as a result.

There were no other significant subsequent events identified after 30 June 2026.

Approval of interim financial statements

The interim financial statements were approved by the Board on 17 September 2026. The interim report will be available at the Group’s website – www.mfg.im and at the Registered Office: Clarendon House, Victoria Street, Douglas, Isle of Man, IM1 2LN. The Group’s nominated adviser is Beaumont Cornish Limited, 5-10 Bolton Street, London, W1J 8BA and the broker is Shore Capital, Cassini House, 57 St James’s Street, London, SW1A 1LD. The interim and annual financial statements along with other supplementary information of interest to shareholders, are included on the Group’s website. The website includes investor relations information, including corporate governance observance and contact details.