(Alliance News) - Belvoir Group PLC on Tuesday said it has acquired MAB (South West) Ltd, a financial services business for GBP1.0 million in cash.
The Lincolnshire, England-based property franchise and financial services said this follows the earlier acquisition of BMA Bristol Ltd for GBP1.1 million in June.
BMA and MAB SW both trade as the Mortgage Advice Bureau.
"The acquisitions provide mortgage and related financial services to clients through a combined network of 41 highly motivated advisers, all of whom are self-employed with MAB providing training, support, compliance, website and national marketing via the wider MAB brand. With BMA based in Bristol and MAB SW based in Plymouth, the group has extended its reach across the South-West," Belvoir said.
In the year to 30 September, 2022, MAB SW generated revenue of GBP1.5 million and pretax profit of GBP100,000. In the year to December 31, BMA had revenue of GBP1.8 million and pretax profit of GBP300,000.
Belvoir expects the acquisitions to be immediately earnings accretive, adding around GBP600,000 per year to pretax profit.
Further, the acquisitions bring Belvoir's financial services network up to 321 advisers, which the company believes "will enhance growth through accelerating the nationwide coverage of advisers who can support growth of the mortgage and remortgage business within its property franchise offices."
Chief Executive Officer Dorian Gonsalves said: "The acquisitions have been secured during a more challenging phase of the property sector cycle which has been reflected in the price paid. However, the board is confident that given the strong client banks within these businesses, they can be developed further and be positioned to take advantage of future upsides in the new purchase and remortgage markets."
Shares in Belvoir were up 1.4% to 218.00 pence each in London on Tuesday around midday.
By Sophie Rose, Alliance News reporter
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