Mortgage Advice Bureau Regulatory News (MAB1)

22 January 2018

Mortgage Advice Bureau (Holdings) plc ("MAB" or the "Group")

Pre-close Trading Update 

Mortgage Advice Bureau (Holdings) plc (AIM:MAB1), one of the UK's leading consumer intermediary brands and specialist Appointed Representative Networks, today issues a pre-close trading update for the year ended 31 December 2017, ahead of publishing its final results announcement on Tuesday, 20 March 2018(1).

Revenue for the year ended 31 December 2017 was in line with the Board's expectations and increased by 17% to £109m driven by a 14% increase in the average number of Advisers to 1,008 in the 12 months to 31 December 2017 (2016: 888). The total number of Advisers had increased to 1,078 at 31 December 2017, an increase of 128 or 13% since last year end (950 at 31 December 2016). For 2017 as a whole, we have seen an increase in average revenue per adviser of 3%, demonstrating a return to growth in productivity as anticipated following the lull in activity in the housing and mortgage markets surrounding the EU referendum in 2016.

The Group's profit before tax for the year ended 31 December 2017 is in line with the Board's expectations. At 31 December 2017, the Group had a strong balance sheet with a cash position of over £22m, including over £13m of unrestricted cash balances. 

UK Finance recently published revised increased estimates for gross mortgage lending for 2017 and 2018 of £255bn and £260bn respectively, as well as publishing their first estimate for 2019 of £271bn; gross mortgage lending growth is therefore expected to be relatively flat for 2018 and show a modest increase for 2019. 

We are confident that our strategy, driven by our customers' future direction of travel, will continue to drive growth in MAB's market share year on year and deliver attractive returns to investors.

(1) It is expected that a proposed final dividend in respect of the year ended 31 December 2017 will be paid on 22 May 2018 to shareholders on the register at close of business on 27 April 2018.

Peter Brodnicki, CEO of Mortgage Advice Bureau (Holdings) plc, said:

"MAB has delivered yet another strong performance, whilst also continuing to invest in accordance with our very clear strategy that will ensure continued and sustainable market share growth. Activity levels remain relatively flat in the housing and mortgage markets and are forecast to remain so over the next few years, with an increase in first time buyers countering a flat home mover market and a weaker buy-to-let purchase market. Remortgaging and product switch activity remain on the increase.

"We have a strong pipeline of potential new ARs, and we remain confident about delivering our growth plans, both organically and from new ARs.

"MAB's strategy combined with the strength of our market position, puts us in a strong position to capitalise on a digitally enabled intermediary sector in terms of market share, as well as further enhancing customer choice and the overall customer experience."

Concert Party membership

As announced on 27 April 2016, Peter Brodnicki, David Preece and Paul Robinson (the former Finance Director and Company Secretary) (together with their respective connected persons) were to be treated as persons acting in concert for the purposes of the City Code (the "Concert Party") following the removal of a former employee from the Concert Party. It has now been accepted by the Takeover Panel that Paul Robinson, who ceased to be a Director of MAB on 5 May 2015 and ceased to be Company Secretary of MAB on 31 May 2016, should no longer be treated as acting in concert with Peter Brodnicki and David Preece. Accordingly, he no longer forms part of the Concert Party and, as of today, the Concert Party is comprised of Peter Brodnicki and David Preece.

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Enquiries:

Mortgage Advice Bureau (Holdings) plc +44 (0)1332 525007

Peter Brodnicki, Chief Executive Officer

David Preece, Chief Operating Officer

Lucy Tilley, Finance Director