LONDON (Alliance News) - Mortgage Advice Bureau (Holdings) PLC, which provides face to face financial and mortgage advice on the high street, on Tuesday said it plans to distribute GBP2.2 million to shareholders after selling its 49% stake in Capital Private Finance Ltd.
The sale of the stake was disclosed as Mortgage Advice Bureau reported that pretax profit rose by 51% to GBP10.4 million in 2015. Revenue rose 33% to GBP75.5 million as adviser numbers swelled by 25% to 790. Gross margins improved to 24.2% from 24.1% in 2014. The company had 844 advisers as of Friday last week, Chief Executive Peter Brodnicki said.
Administrative expenses were up 39% to GBP8.7 million.
Mortgage Advice Bureau, which listed on AIM in November 2014, declared a final dividend per share of 9.5 pence, taking the total payment for 2015 to 14.4p. This will be followed by a special dividend of about 4.25p per share in the second half of 2016, thanks to the sale of the Capital Private Finance stake.
Capital Private Finance is an appointed representative firm of Mortgage Advice Bureau, providing mortgage and protection advice to customers of Countrywide PLC's premium real estate brands. The venture was formed between the two companies in 2011 and included a put and call option for Mortage Advice Bureau's 49% stake. Countrywide has now exercised the call option, agreeing to acquire the stake for GBP2.7 million.
Shares in Mortgage Advice Bureau were up 1.8% at 342.50 pence on Tuesday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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