Trading Statement

RNS Number : 6402G

Mortgage Advice Bureau(Holdings)PLC

25 July 2019

 

25 July 2019

Mortgage Advice Bureau (Holdings) plc 

("MAB" or the "Group")

Trading Update 

Mortgage Advice Bureau (Holdings) plc (AIM:MAB1), one of the UK's leading consumer intermediary brands and specialist Appointed Representative Networks, today issues a trading update for the six months ended 30 June 2019, ahead of publishing its interim results announcement on Tuesday 24 September 2019 ⁽¹⁾.

Revenue for the six months ended 30 June 2019 increased by 5% (8% on an underlying basis) to £61m driven primarily by a 13% increase in the average number of Advisers to 1,242 over the period (six months ended 30 June 2018: 1,103).  The total number of Advisers had increased to 1,293⁽²⁾ at 30 June 2019, an increase of 80 or 7% since last year end (1,213 at 31 December 2018). As previously reported earlier this year, although some of our existing ARs with direct links to the estate agency sector continue to pause their expansion plans and delay filling vacancies as a result of reduced confidence amid political uncertainty, encouragingly the majority of our ARs continue to hold strong growth plans for 2019 and 2020.

Against the backdrop of continuing uncertainty we have seen housing transactions taking longer to complete in this financial year to date, impacting the timing of our banked revenue. In the second quarter of the year we have seen some improvement in banked conversion and continue to see these trends in July.   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. At 30 June 2019, the Group had a strong balance sheet with a cash position of over £24m, including over £11m of unrestricted cash balances ⁽³⁾. 

(1)  The interim dividend in respect of the six months ended 30 June 2019 will be paid on 25 October 2019 and the record date is 4 October 2019.

(2)  This figure excludes the c. 90 advisers within First Mortgage Direct Limited that joined the Group on 2^nd July 2019 when the acquisition completed.

(3)  On completion of its acquisition of First Mortgage Direct Limited, MAB funded £10m of the purchase price of £16.5m from the enlarged Group's cash balances.

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

"Despite continued political uncertainty it has been a very positive six months for MAB. After a slow first quarter we are seeing strong growth in adviser numbers, putting us firmly on track to achieve our full year objective.

"In addition, adviser numbers will be further increased in H2 by the acquisition of one of the very best performing and highly respected UK brokers, First Mortgage Direct. This has been a tremendous addition to the MAB Group, adding to the growing number of exceptional firms choosing to partner with MAB, that will play a major role in our plans to grow market share through increasing adviser numbers and productivity.

"These objectives will be supported by a programme of technology developments that will be released to our distribution in H2 and throughout 2020, as well as our plans to broaden our addressable market and customer offering.

"Against this backdrop, I remain confident of delivering our growth plans in line with our strategy."

 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:

Mortgage Advice Bureau (Holdings) plc                            [phone]

Peter Brodnicki, Chief Executive Officer Ben Thompson, Deputy Chief Executive Officer Lucy Tilley, Chief Financial Officer Nominated Adviser and Broker:

Numis Securities Limited                                                              Tel:  [phone] Stephen Westgate / Hugo Rubinstein (Corporate Finance) Michael Burke (Corporate Broking) Media Enquiries:  [e-mail]

 

END

 

 

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