Mortgage Advice Bureau Share News (MAB1)

(Sharecast News) - Mortgage Advice Bureau said in a trading update on Thursday that it achieved revenue of about £91m for the six months ended 30 June, representing a 43% increase over the first half of 2020, which was "heavily affected" by the Covid-19 pandemic, and a 49% increase compared to the first six months of 2019.
The AIM-traded firm said the increase in revenue since 2019 was driven by the combination of a 28% increase in the average number of mainstream advisers to 1,584 over the two-year period, and a 17% increase in revenue per mainstream adviser.

At the period end on 30 June, total adviser numbers had grown to 1,694, which was an increase of 114, or 7%, year-on-year/

The group's lead generation capability continued to build strongly, the board said, with "significant" new lead sources, including most recently a long-term agreement with one of the UK's leading price comparison websites, secured during the period.

Mortgage Advice Bureau also secured a long-term agreement with the Nottingham Building Society, which included servicing a fast-growing customer base of over 50,000 lifetime ISA online savers through the 'Beehive Money' app.

Helping such future first-time buyers to secure their first homes would increase the company's market share in that core sector, following the recently-launched commercial relationship with Moneybox.

The board said that would further strengthen the company's leading position in the mortgage intermediary market, especially with first-time buyers and home movers.

Since the end of the half-year, the group acquired a 49% stake in Evolve FS - a new-build telephone advice firm based in Ipswich - which adds 35 mainstream advisers to the group.

That was another "strategically-important" addition to the firm's new homes proposition, as it looked to achieve an "even stronger" market presence in the specialist sector.

As at 30 June, the group maintained a strong balance sheet with total cash balances of more than £33m, and over £18m of unrestricted cash balances.

Current trading was in line with the board's expectations for the 2021 financial year, with the company saying that based on the current pace of growth and momentum, derived from maturing and new growth drivers, the group was "well-positioned" to exceed its expectations for 2022 and beyond.

"Despite the UK lockdown and restrictions for much of the first half, activity levels have remained strong and continue to do so, as have the underlying fundamentals driving sustained consumer demand for housing and mortgages," said chief executive officer Peter Brodnicki.

"With restrictions starting to slowly lift from mid-April, we have now completed most of the recruitment discussions that were put on hold and therefore expect to see a significant increase in mainstream adviser numbers in the second half and moving into 2022, including the additional mainstream advisers required to service the new lead sources MAB continues to secure.

"I am confident the recent developments in lead generation and continued enhancements to our technology platform put Mortgage Advice Bureau in an ever-stronger position to accelerate its pace of growth."

At 1244 BST, shares in Mortgage Advice Bureau Holdings were up 3.22% at 1,316p.