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(Alliance News) - Mortgage Advice Bureau (Holdings) PLC on Tuesday reported a fall in profit despite rising revenue as margins were squeezed after what it called a challenging year for mortgage intermediaries.
The London-based mortgage broker said adviser numbers at March 24 had decreased to 2,129 reflecting the sudden shock to the mortgage market post the September 2022 mini-budget. But the firm expects numbers to stabilise in the second quarter of 2023 and then build gradually as business volumes improve.
Current trading is in line with expectations and activity levels are better than in the fourth quarter of 2022 although new mortgage volumes reported in the market remain low, the company said.
In the year to December 31, the company posted revenue of GBP230.8 million, up 22% from GBP188.7 million in the previous year and statutory pretax profit of GBP17.4 million compared to GBP23.2 million in 2021. Pretax profit margins fell to 7.5% down from 12.3% the year before.
Basic earnings per share of 21.8 pence were down 38% from 35.2 pence in the previous year and the final dividend was unchanged at 14.7p.
Peter Brodnicki, Chief Executive said: "We expect the market to recover further as lenders reduce mortgage rates and gradually relax lending criteria."
Shares in Mortgage Advice Bureau closed 1.6% higher at 630 pence each in London on Tuesday.
By Jeremy Cutler, Alliance News reporter
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