(Alliance News) - Mortgage Advice Bureau Holdings PLC on Monday reported an annual performance strong enough to beat its pre-virus levels through an increase in advisers and higher client fees as well as mortgage completions.
Also on Monday, the Derby, England-based mortgage advice provider announced the acquisition of The Fluent Money Group, a telephone advice mortgage broking platform for an enterprise value of GBP95 million on a cash free, debt free basis.
Specifically, MAB will purchase a 75% equity stake in Fluent Money, as well as a put and call option to pick up the remaining 25% interest after six years subject to performance criteria.
The acquisition will be funded from existing cash resources, increased debt facilities, and a placing of shares to raise GBP40 million, for which Numis Securities Ltd will act as sole bookrunner.
Shares in Mortgage Advice Bureau dropped 0.3% at 1,126.93 pence on Monday in London.
The deal is subject to approval from the UK Financial Conduct Authority, with completion expected to occur before the second half of 2022.
"MAB has targeted the fast-growing sector of national lead generation by using technology to link together its key Appointed Representatives and invested firms seamlessly. Combined, we expect that Fluent and MAB will be able to grow this new market share opportunity quickly and effectively, complementing the local/regional strategy delivered by the rest of MAB's growing distribution," said Chief Executive Officer Peter Brodnicki.
For 2021, Mortgage Advice Bureau posted pretax profit at GBP23.2 million, up 56% from GBP14.9 million in 2020, and marking a 31% rise from GBP17.7 million in 2019.
This was on revenue which grew 27% year-on-year to GBP188.7 million from GBP148.3 million, and 31% from GBP143.7 million in 2019, due to an increase in advisers by 19% to 1,885, as well as a 33% rise in gross mortgage completions to GBP22.8 billion from GBP17.1 billion.
MAB declared a total dividend of 28.1 pence per share, up 46% from 19.2p the year before.
"Our mortgage completions increased by 33%, with growth fuelled by strong consumer demand for housing and mortgage products as well as the stamp duty holiday," Brodnicki said.
"We have started 2022 with a pronounced increase in adviser numbers and a strong and growing pipeline of new business, ARs, advisers and customer lead sources supporting our plans to secure further profitable growth," he continued.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Mortgage Advice Bureau (MAB1)