Mortgage Advice Bureau Regulatory News (MAB1)

29 July 2021

Mortgage Advice Bureau (Holdings) plc 

("MAB" or the "Group")

Trading Update

Mortgage Advice Bureau (Holdings) plc (AIM:MAB1) today issues a trading update for the six months ended 30 June 2021, ahead of publishing its interim results on 28 September 2021(1).

The Group achieved revenue of circa £91m for the six months ended 30 June 2021. This represents a 43% increase on H1 2020 (£63m), which was heavily affected by the Covid-19 pandemic, and a 49% increase compared to H1 2019.

The increase in revenue since H1 2019 is driven by the combination of a 28% increase in the average number of mainstream (2) Advisers to 1,584 over the two-year period (H1 2019: 1,242) and a 17% increase in revenue per mainstream Adviser. At 30 June 2021, total Adviser numbers had grown to 1,694(3), an increase of 114 (or 7%) in the first half (31 December 2020: 1,580).

The Group's lead generation capability continues to build strongly. Significant new lead sources, including most recently a long-term agreement with one of the UK's leading price comparison websites, were secured during the period.

MAB also secured a long-term agreement with The Nottingham Building Society, which includes servicing a fast-growing customer base of over 50,000 Lifetime ISA online savers through the Beehive Money app. Helping these future first-time buyers to secure their first homes will increase MAB's market share in this core sector. This follows the recently launched commercial relationship with Moneybox, another example of MAB's early customer capture strategy and proven ability to integrate with an increasing number of digital platforms.

This will further strengthen our leading position in the mortgage intermediary market, especially with first-time buyers and home movers.

Since the end of the half year, the Group has acquired a 49% stake in Evolve FS Limited, a leading new build telephone advice firm based in Ipswich, which adds 35 mainstream Advisers to the Group. This is another strategically important addition to the MAB New Homes proposition as the Group looks to achieve an even stronger market presence in this specialist sector.

At 30 June 2021, the Group maintained a strong balance sheet with total cash balances of over £33m (31 December 2020: £33m), and over £18m (31 December 2020: £18m) of unrestricted cash balances.

Current trading is in line with the Board's expectations for the 2021 financial year. Based on the current pace of growth and momentum in the business, derived from maturing and new growth drivers, the Group is well-positioned to exceed the Board's expectations for 2022 and beyond.

Commenting on the half year, current trading and developments, Peter Brodnicki, Chief Executive Officer, said:

"Despite the UK lockdown and restrictions for much of H1, activity levels have remained strong and continue to do so, as have the underlying fundamentals driving sustained consumer demand for housing and mortgages.

"With restrictions starting to slowly lift from mid-April, we have now completed most of the recruitment discussions that were put on hold and therefore expect to see a significant increase in mainstream Adviser numbers in H2 and moving into 2022, including the additional mainstream Advisers required to service the new lead sources MAB continues to secure.

"I am confident the recent developments in lead generation and continued enhancements to our technology platform put MAB in an ever-stronger position to accelerate its pace of growth."

(1) The interim dividend in respect of the six months ended 30 June 2021 will be paid on 29 October 2021 and the record date will be 1 October 2021.

(2) Excludes directly authorised Advisers and Later Life Advisers.

(3) This includes a total of 52 Advisers who are either directly authorised Advisers or Later Life Advisers. The directly authorised Advisers are employees of a firm previously authorised under an Appointed Representative agreement with MAB until 7 December 2020. MAB continues to provide services to this firm, which is now directly authorised by the FCA. For both Later Life Advisers and directly authorised Advisers the fees received by MAB represent the net income received by MAB as there are no commission payouts.

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: