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21 Jan 2016 07:00
21 January 2016
Mortgage Advice Bureau (Holdings) plc
Pre-close Trading Update
Mortgage Advice Bureau (Holdings) plc (the "Company" and together with its subsidiaries, "Mortgage Advice Bureau", "MAB" or the "Group"), one of the UK's leading networks for mortgage intermediaries, today issues a pre-close trading update for its financial year ended 31 December 2015, ahead of publishing its final results announcement on Tuesday, 22 March 2016.
Activity levels have continued to be high, with Group revenue continuing its upward trend. In the year ended 31 December 2015, MAB generated revenue of £75m, representing a 33% increase over 2014. Following a particularly strong end to the year in terms of both commission banked and performance from our associated businesses, the Company's underlying trading performance for the year ended 31 December 2015 is ahead of the Board's expectations. At 31 December 2015, the Company had a balance sheet cash position of £14m, including over £8m of unrestricted cash balances.
MAB has continued its ongoing recruitment of Advisers and Appointed Representative firms. The average number of Advisers is a key driver of revenue. The number of Advisers had increased to 790 at 31 December 2015, an increase of 156 or 25% since last year end (634 at 31 December 2014). The average number of Advisers in the 12 months to 31 December 2015 was 720, an increase of 139 or 24% on the average number of Advisers in the 12 months to 31 December 2014 of 581.
The Council of Mortgage Lenders ("CML") recently published their revised estimates for gross mortgage lending for 2015 and 2016. Going into 2015, the CML estimate for gross lending was £222bn, which they revised down to £209bn in July 2015. The CML now estimates that gross mortgage lending was £214bn in 2015, and have increased their estimate to £237bn (was £230bn) for 2016. These figures suggest that modest growth of circa 5% in mortgage lending was achieved in 2015, which was lower than their original expectation of circa 7%. The CML has also estimated gross mortgage lending of £261bn for 2017, and are therefore now projecting that gross lending growth will be sustained at circa 10% for each of 2016 and 2017.
Peter Brodnicki, CEO of Mortgage Advice Bureau (Holdings) plc, said:
"I am delighted with our performance in our first full year post IPO. This is our seventh consecutive year of strong profit growth, demonstrating our understanding of the market in which we operate and our focus on building a high quality business with sustainable profitability."
Enquiries:
Mortgage Advice Bureau (Holdings) plc +44 (0)1332 525007 |
Peter Brodnicki, Chief Executive Officer |
David Preece, Chief Operating Officer |
Lucy Tilley, Finance Director |
Nominated Adviser and Joint Broker: |
Zeus Capital +44 (0)20 3829 5000 Nicholas How Pippa Underwood
Joint Broker: Canaccord Genuity +44 (0)20 7523 8350 Roger Lambert
Media Enquiries: Instinctif Partners +44 (0)20 7866 7904 Mike Davies Giles Stewart Louis Supple
Mortgage Advice Bureau Overview
Mortgage Advice Bureau is one of the UK's leading consumer mortgage brands and networks for mortgage intermediaries with over 120 Appointed Representatives ("ARs") and over 790 Advisers. The vast majority of its Advisers are employed or engaged directly by the Appointed Representatives, although a small number are self-employed and engaged directly by MAB. Many of the ARs trade under the recognised and respected Mortgage Advice Bureau brand through a franchise model operated by the Group. MAB branded mortgage shops also form part of the franchise model. The Group's network specialises in providing independent mortgage advice to customers, as well as advice on protection and general insurance products. Mortgage Advice Bureau is particularly well known in the estate agency sector with circa 900 estate agency branches introducing their customers to the Group's ARs across the UK. The Group has also sought to diversify in other specialist sectors, including the new build market through its New Build Network. |
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