Mortgage Advice Bureau(Holdings)PLC Trading Statement (2622V)
January 27 2017 - 1:00AM
UK Regulatory
TIDMMAB1
RNS Number : 2622V
Mortgage Advice Bureau(Holdings)PLC
27 January 2017
27 January 2017
Mortgage Advice Bureau (Holdings) plc ("MAB" or the "Group")
Pre-close Trading Update
This announcement contains inside information.
Mortgage Advice Bureau (Holdings) plc (AIM:MAB1), one of the
UK's leading networks for mortgage intermediaries, today issues a
pre-close trading update for the year ended 31 December 2016, ahead
of publishing its final results announcement on Tuesday, 28 March
2017(1) .
Revenue for the year ended 31 December 2016 was in line with
market consensus and increased by 23% to GBP92m driven by a 23%
increase in the average number of Advisers to 888 in the 12 months
to 31 December 2016. The total number of Advisers had increased to
950 at 31 December 2016, an increase of 160 or 20% since last year
end (790 at 31 December 2015). Although average revenue per adviser
was flat in 2016 due to the impact of the lull in activity in the
housing and mortgage market surrounding the EU referendum, MAB
expects to see growth in the current year.
The Group's underlying profit before tax for the year ended 31
December 2016 was ahead of market consensus despite the impact of
this lull. Following absorption of GBP0.4m of FSCS supplementary
levies in the year ended 31 December 2016 which the FSCS recently
announced for life and pensions advisers, general insurers and
mortgage advisers, the Group's profit before tax was marginally
ahead of market consensus.
At 31 December 2016, the Group had a balance sheet cash position
of over GBP18m, including over GBP10m of unrestricted cash
balances.
Following confirmation that the Substantial Shareholding
Exemption applies to the capital gain arising on MAB's sale of its
49% stake in Capital Private Finance Limited, no corporation tax is
payable on the GBP2.7m capital gain. Accordingly, the GBP0.5m
balance of the gain not already distributed will be distributed in
full to shareholders by way of a special dividend of 1.1 pence per
share (2) .
The Council of Mortgage Lenders ("CML") recently published
revised estimates for gross mortgage lending for 2016 and 2017 of
GBP246bn and GBP248bn respectively, as well as publishing their
first estimate for 2018 of GBP252bn; gross mortgage lending growth
is therefore expected to be flat for each of 2017 and 2018. MAB
remains focused on continuing its long track record of growing
market share.
(1) It is expected that a proposed final dividend in respect of
the year ended 31 December 2016 will be paid on 31 May 2017 to
shareholders on the register at close of business on 5 May
2017.
(2) The special dividend will be paid on 3 March 2017 to
shareholders on the register at close of business on 10 February
2017.
Peter Brodnicki, CEO of Mortgage Advice Bureau (Holdings) plc,
said:
"Despite the uncertainty the EU referendum brought to the
housing and mortgage markets last summer, MAB has delivered yet
another strong performance. Activity levels picked up following the
expected summer lull, and from this position the housing and
mortgage markets are forecast to be flat over the next few
years.
"Our increase in adviser numbers was ahead of our expectations
last year and we remain confident about continued growth in 2017
and 2018, both organically and from new Appointed
Representatives.
"Regardless of the EU referendum and predictions of flat housing
and mortgage markets, MAB's future growth plans remain unchanged.
Our strategy is very clear both in the short and longer term, and
the investments made in 2016 form part of our longer term planning
to maintain year on year market share growth and further strengthen
MAB's overall market position."
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
Martin Green
Nicholas How
Pippa Underwood
Joint Broker:
Canaccord Genuity +44 (0)20 7523 8350
Andrew Buchanan
Kit Stephenson
Richard Andrews
Media Enquiries:
investorrelations@mab.org.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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