This announcement contains inside information for
the purposes of Article 7 of Regulation (EU) No 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018. The person responsible for this announcement
is Emilie McCarthy, CFO.
23 January 2025
Mortgage Advice Bureau
(Holdings) plc
("MAB" or
the "Group")
Trading
Update
Board
Changes
Mortgage Advice Bureau (Holdings) plc
(AIM: MAB1) today issues a trading update for the year ended 31
December 2024, ahead of publishing its final results on Tuesday, 18
March 2025.
Year
ended 31 December 2024
Group revenue for year ended 31
December 2024 increased by 11% to c.£266m (2023: £239.5m), which is
significantly higher than the estimated 4% growth
(1) in UK gross lending
for the same period. The Board expects to report growth in Adjusted
PBT for the year of c. 31% to c. £30.5m (2023: £23.2m) which is c.
4% ahead of consensus (2), excluding the £1.5m positive
impact of the capitalisation of Midas platform internal development
costs in 2024.
MAB's number of mainstream advisers
grew modestly in the second half, increasing to 1,941 at the
year-end (2023: 1918). However, lower than expected growth in
adviser numbers was more than offset by a significant rise in
productivity. The average revenue per mainstream adviser grew c.12%
to c. £138k (2023: £123.5k). Improving operational efficiency is a
key area of focus across the Group, supported by technology
enhancements and lead-generation initiatives.
Current trading and outlook
Clear signs of pent-up demand were
evidenced by the increase in mortgage applications in Q4 2024 (+15%
compared to Q4 2023) and we expect this positive momentum to be
maintained. UK Finance forecasts (1) gross new lending to rise 11% in
2025 in £235bn, which we believe is a realistic
estimate.
In addition, the delivery of new
technology enhancements and lead generation initiatives are
expected to drive further growth this year, with many AR firms
expecting to see adviser numbers increase, alongside a continued
focus on increasing profitability through rising
productivity.
Board changes
MAB is pleased to announce that
subject to regulatory approval, Paul Gill, Chief Risk Officer, will
be joining the Board as an Executive Director.
David Preece, Non-Executive
Director, has decided not to seek re-election at the next AGM. The
Board would like to thank David for his enormous contribution to
MAB, as an Executive Director from 2004 to 2019, and as a
Non-Executive Director since 2019.
The Board intends to add two
additional Independent Non-Executive Directors.
Capital Markets Day
As previously announced, MAB will
host a Capital Markets Day in London from 14:00 to 17:00 on 5
February 2025. The event will be held at the London Stock Exchange
and will be webcast live for those who cannot attend in
person.
The event will include updates on
strategy, growth plans, technology and lead generation initiatives
from our Executive Directors and members of our senior management
team. We will also discuss medium-term targets and a proposed new
capital allocation policy, further details of which will be
pre-released via RNS on 4 February 2025.
If you would like to register your
interest in the event, please contact Camarco:
mab@camarco.co.uk.
Peter Brodnicki, CEO of MAB, commented:
"Despite two challenging years in
terms of UK mortgage volumes, I am very pleased with how MAB has
performed. We have increased strategic spend over this period and
are starting to see the benefits of this come through in the
positive momentum we're building.
We expect purchase transactions to
steadily increase over the next year, whilst several years of
strong refinancing transactions will provide additional
opportunities for growth.
We are seeing increased optimism
among many of our ARs, and as a result, expect to see organic
growth in adviser numbers start to return in a more meaningful way.
Following a slower period in terms of new AR recruitment, we plan
to onboard more firms this year while continuing to explore
value-accretive acquisitions.
The step up in productivity in 2024
has been very pleasing, so our focus for this year is on
maintaining that momentum, supported by development in technology
and AI, and our continued focus on lead generation."
(1) - UK Finance Mortgage Market
Forecasts published in December 2024
(2) - Consensus estimate 2024
adjusted PBT - £29.2m.
Enquiries:
|
Mortgage Advice Bureau (Holdings) plc
|
Via
Camarco
|
|
Peter Brodnicki, Chief Executive
Officer
Ben Thompson, Deputy Chief Executive
Officer
Emilie McCarthy, Chief Financial
Officer
|
|
|
Nominated Adviser and Joint Broker
Keefe, Bruyette & Woods, a Stifel
Company
Erik Anderson / Nick Harland /
Francis North / Harry Billen
|
+44 (0)20 7710
7600
|
|
Joint Broker
Peel
Hunt LLP
Andrew Buchanan / Oliver
Jackson
|
+44 (0) 20
7418 8900
|
|
Financial PR
Camarco
Tom Huddart / Louise Dolan / Letaba
Rimell
|
mab@camarco.co.uk
+44 (0)
203 757 4980
|
|
Investor Relations
|
Investor.relations@mab.org.uk
|
About Mortgage Advice Bureau:
MAB is one of the UK's leading
consumer intermediary brands and specialist networks for mortgage
advisers.
Through its partner firms known as
Appointed Representatives ("ARs"), MAB has approximately 2,000
advisers providing expert advice to customers on a range of
mortgage, specialist lending, protection, and general insurance
products. MAB supports its AR firms with proprietary technology and
services, including adviser recruitment and lead generation,
learning and development, compliance auditing and supervision, and
digital marketing and website solutions.
For more information,
visit www.mortgageadvicebureau.com
