Last checked at 23 Jul 2015 07:00
23 July 2015
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 consumer mortgage brands and networks for mortgage intermediaries, today issues a pre-close trading update for the six months ended 30 June 2015, ahead of publishing its interim results announcement on Thursday, 24 September 2015.
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 722 at 30 June 2015, an increase of 88 since the year end (634 at 31 December 2014). The average number of Advisers in the 12 months to 30 June 2015 was 638, an increase of 109 or 20% on the average number of Advisers in the 12 months to 30 June 2014 of 529.
The Council of Mortgage Lenders recently published their revised estimates for gross mortgage lending of £209 billion for 2015 (previously £222 billion) and £230 billion for 2016 (previously £240 billion). MAB welcomes these more realistic figures which show a small increase for 2015 on 2014 gross mortgage lending of £203 billion and is encouraged by the estimate for 2016 which reflects the positive trends in the mortgage market.
Activity levels have continued to be high, with Group revenue continuing its upward trend. In the six months to 30 June 2015, MAB generated revenue of £31 million, representing a 27% increase over the comparative period in 2014. This strong revenue growth has allowed MAB to absorb ongoing listing costs and increased FSCS levies in the six month period to 30 June 2015. Current trading is in line with the Board's expectations. At 30 June 2015, the Company had a balance sheet cash position of over £11.5 million, including over £6.9 million of unrestricted cash balances.
Peter Brodnicki, CEO of Mortgage Advice Bureau (Holdings) plc, said:
"I am delighted with the progress we have made post our IPO in November 2014. MAB continues to be an attractive home for ambitious, forward thinking and growing Appointed Representative firms. It is also pleasing to see positive trends in terms of the mortgage and housing markets, new lenders coming to market, and intermediary market share, all contributing to MAB's great deal of optimism for the future."
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 Broker: | |
Canaccord Genuity Martin Green Sunil Duggal Pippa Underwood
| +44 (0)20 7523 8350 |
Media Enquiries: Instinctif Partners Nick Woods
| +44 (0)20 7866 7904 |
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 700 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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