MAB1 Mortgage Advice Bureau (holdings) Plc

TIDMMAB1

RNS Number : 4607F

Mortgage Advice Bureau(Holdings)PLC

28 July 2016

28 July 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 consumer intermediary brands and specialist Appointed Representative Networks, today issues a pre-close trading update for the six months ended 30 June 2016, ahead of publishing its interim results announcement on Wednesday, 28 September 2016(1) .

The average number of Advisers is a key driver of revenue. Following strong Appointed Representative recruitment in the first few months of the year, our total Adviser numbers at 30 June 2016 were up 13% to 891, with 101 new Advisers joining during the period. The average number of Advisers in the 12 months ended 30 June 2016 increased by 173 to 811, up 27% on the equivalent period last year(2) .

In the six months ended 30 June 2016, MAB generated revenue of GBP43 million, up 38% on the comparative period in 2015. At 30 June 2016, the Company had a strong balance sheet, with cash of over GBP16 million, including over GBP9.5 million of unrestricted cash balances.

MAB expects to complete the sale of its 49% stake in Capital Private Finance Limited shortly, after which MAB's exposure to the London market will reduce to c.6% in terms of revenue.

It is still early days following the UK referendum vote to leave the EU, however recent Rightmove data(3) concluded that "based on two weeks of post-Brexit-vote statistics...the housing market remains steady, underpinned by the same fundamentals that have led to its recovery since the last downturn". This is reflected in the feedback we are receiving from our estate agency business partners that activity from both buyers and new instructions are holding up better than anticipated.

MAB's Appointed Representative and Adviser recruitment shows no signs of slowing post the referendum outcome and our Advisers continue to focus on maximising the opportunities arising from their mortgage and protection leads. We continue to support our established Appointed Representatives with their plans to grow their local market share; there has been little or no impact on their organic growth plans post the referendum outcome. Overall, current trading is in line with the Board's expectations.

(1) The interim dividend in respect of the six months ended 30 June 2016 will be paid on 28 October 2016 and the record date is 7 October 2016.

(2) The average number of Advisers in the six months ended 30 June 2016 was 851 (2015: 671).

(3) The Rightmove House Price Index, Monday 18 July 2016.

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

"Despite early concerns in the business community post the UK referendum, there is plenty of business to be done and at MAB we are just getting on with it. Whilst Brexit might have created some headwinds for the UK economy, we remain focused on continuing to grow MAB's market share and strengthening our position as one of the UK's leading consumer intermediary brands and specialist Appointed Representative Networks."

Enquiries:

 
Mortgage Advice Bureau (Holdings) plc +44 (0)1332 525007 
Peter Brodnicki, Chief Executive Officer 
David Preece, Chief Operating Officer 
Lucy Tilley, Finance Director 
 
 Zeus Capital +44 (0)20 3829 5000 
  Martin Green 
  Nicholas How 
  Pippa Underwood 
  Canaccord Genuity +44 (0)20 7523 8350 
  Roger Lambert 
  Kit Stephenson 
  Richard Andrews 
  Media Enquiries: 
  investorrelations@mab.org.uk 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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