Pre-close Trading Update

RNS Number : 9326C

Mortgage Advice Bureau(Holdings)PLC

23 January 2015

 

23 January 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 networks for mortgage intermediaries, today issues a pre-close trading update for its financial year ended 31 December 2014, ahead of publishing its final results announcement on Thursday, 26 March 2015.

Since admission of the Company to AIM, MAB has continued to drive growth through its ongoing recruitment of Advisers through both existing and new Appointed Representatives. In the twelve months to 31 December 2014, Adviser numbers increased by 113 from 521 to 634, representing an increase of 22%.  The average number of Advisers, a key driver of revenue, grew by 92 from 489 in 2013 to 581 in 2014, representing an increase of 19%.

As set out in the Company's Admission Document, MAB continues to have a strong pipeline of on-going discussions with potential new Appointed Representatives.

The Council of Mortgage Lenders yesterday published their latest estimate that gross mortgage lending in the UK increased in 2014 to £205.6bn from £176bn in 2013.  This growth, combined with the increase in the intermediary market share post-MMR, has benefitted MAB. 

Activity levels since the six months ended 30 June 2014 have been strong, with Group revenue continuing its upward trend as it further leverages the Group's scalable model. As a result, the Company's underlying trading performance is expected to be ahead of the Board's expectations at the time of the IPO. In the 12 months to 31 December 2014, MAB generated revenue of £57 million, representing a 42% increase over 2013.  At 31 December 2014, the Company had a balance sheet cash position of over £9 million.

Peter Brodnicki, CEO of Mortgage Advice Bureau (Holdings) plc, said:

"I believe that there has never been a better time to be a mortgage intermediary, and at MAB we are fortunate to work with some of the very best. A combination of increased lending, greater product choice and more banks entering the mortgage market has all been good news for both the consumer and the mortgage intermediary, whose market share has continued to increase."

Enquiries

Mortgage Advice Bureau (Holdings) plc	[phone]
Peter Brodnicki, Chief Executive Officer
David Preece, Chief Operating Officer
Paul Robinson, Finance Director
Nominated Adviser and Broker:
Canaccord Genuity	[phone]
Martin Green
Lucy Tilley
Peter Stewart (QE)
Pippa Underwood
Media Enquiries:
MHP Communications	[phone]
Katie Hunt
Jade Neal
Charlie Barker

Mortgage Advice Bureau Overview

Mortgage Advice Bureau is one of the UK's leading networks for mortgage intermediaries with over 110 Appointed Representatives ("ARs") and over 630 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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