Pre-close Trading Update

RNS Number : 9489L

Mortgage Advice Bureau(Holdings)PLC

25 July 2017

 

25 July 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 consumer intermediary brands and specialist Appointed Representative Networks, today issues a pre-close trading update for the six months ended 30 June 2017, ahead of publishing its interim results announcement on Tuesday, 26 September 2017⁽¹⁾.

Revenue for the six months ended 30 June 2017 increased by 15% to £49 million driven by a 14% increase in the average number of Advisers to 974 over the period⁽²⁾.  The total number of Advisers had increased to 1,008 at 30 June 2017, an increase of 58 or 6% since last year end (950 at 31 December 2016).   As previously reported on 24 May 2017, organic recruitment has been in line with the Board's expectations and we expect new business recruitment to be weighted to the second half of the year. At 30 June 2017, the Group had a strong balance sheet with a cash position of £19 million, including £11 million of unrestricted cash balances. 

In H1 2016 average revenue per Adviser increased by 9% compared to H1 2015 due to the spike in Buy-To-Let applications resulting from the impending stamp duty changes in April 2016.  Against this backdrop we have seen modest growth in productivity in the six months ended 30 June 2017 and we expect this to continue.  Current trading is in line with the Board's expectations and the Board looks forward to delivering further growth in the remainder of this financial year.

(1)  The interim dividend in respect of the six months ended 30 June 2017 will be paid on 27 October 2017 and the record date is 6 October 2017.

(2)  The average number of Advisers in the twelve months ended 30 June 2017 was 950 (2016: 811).

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

"Activity overall in the housing market has remained steady and was not unduly affected by the election in early June.  There are some signs of softening home mover activity. However, for most of those moving home currently, it is not a discretionary decision, with lifestyle factors causing them to need to move.  The remortgaging market both for residential and buy-to-let remains steady.

"We continue to enjoy a strong financial position and are focussed on our market share growth. Our technology developments are progressing well and will help drive our future market share growth and further strengthen MAB's overall market position in 2018 and beyond."

Enquiries:

Mortgage Advice Bureau (Holdings) plc                            [phone]

Peter Brodnicki, Chief Executive Officer

David Preece, Chief Operating Officer

Lucy Tilley, Finance Director

Nominated Adviser and Joint Broker:

Zeus Capital                                                                         [phone] Martin Green Nicholas How Pippa Underwood Joint Broker: Canaccord Genuity                                                              [phone] Andrew Buchanan Richard Andrews Media Enquiries:  [e-mail]

 

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