MAB1 Mortgage Advice Bureau (holdings) Plc

TIDMMAB1

RNS Number : 5169M

Mortgage Advice Bureau(Holdings)PLC

21 January 2016

21 January 2016

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 2015, ahead of publishing its final results announcement on Tuesday, 22 March 2016.

Activity levels have continued to be high, with Group revenue continuing its upward trend. In the year ended 31 December 2015, MAB generated revenue of GBP75m, representing a 33% increase over 2014. Following a particularly strong end to the year in terms of both commission banked and performance from our associated businesses, the Company's underlying trading performance for the year ended 31 December 2015 is ahead of the Board's expectations. At 31 December 2015, the Company had a balance sheet cash position of GBP14m, including over GBP8m of unrestricted cash balances.

MAB has continued its ongoing recruitment of Advisers and Appointed Representative firms. The average number of Advisers is a key driver of revenue. The number of Advisers had increased to 790 at 31 December 2015, an increase of 156 or 25% since last year end (634 at 31 December 2014). The average number of Advisers in the 12 months to 31 December 2015 was 720, an increase of 139 or 24% on the average number of Advisers in the 12 months to 31 December 2014 of 581.

The Council of Mortgage Lenders ("CML") recently published their revised estimates for gross mortgage lending for 2015 and 2016. Going into 2015, the CML estimate for gross lending was GBP222bn, which they revised down to GBP209bn in July 2015. The CML now estimates that gross mortgage lending was GBP214bn in 2015, and have increased their estimate to GBP237bn (was GBP230bn) for 2016. These figures suggest that modest growth of circa 5% in mortgage lending was achieved in 2015, which was lower than their original expectation of circa 7%. The CML has also estimated gross mortgage lending of GBP261bn for 2017, and are therefore now projecting that gross lending growth will be sustained at circa 10% for each of 2016 and 2017.

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

"I am delighted with our performance in our first full year post IPO. This is our seventh consecutive year of strong profit growth, demonstrating our understanding of the market in which we operate and our focus on building a high quality business with sustainable profitability."

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 
  Nicholas How 
  Pippa Underwood 
 
  Joint Broker: 
  Canaccord Genuity +44 (0)20 7523 8350 
  Roger Lambert 
 
  Media Enquiries: 
  Instinctif Partners +44 (0)20 7866 7904 
  Mike Davies 
  Giles Stewart 
  Louis Supple 
 
  Mortgage Advice Bureau Overview 
 
  Mortgage Advice Bureau is one of the UK's leading 
  consumer mortgage brands and networks for mortgage 
  intermediaries with over 120 Appointed Representatives 
  ("ARs") and over 790 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. 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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