Mortgage Advice Bureau(Holdings)PLC Trading Update (0771B)
28 Janvier 2020 - 8:00AM
UK Regulatory
TIDMMAB1
RNS Number : 0771B
Mortgage Advice Bureau(Holdings)PLC
28 January 2020
28 January 2020
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 year
ended 31 December 2019, ahead of publishing its final results on
Tuesday, 24 March 2020(1) .
Revenue for the year increased by 16% to GBP143m, with strong
organic revenue growth of 10% (11% on an underlying basis(2) ) to
GBP135m for the core MAB business driven by a 14% increase in the
average number of core MAB Advisers for the year to 1,293 (2018:
1,130). First Mortgage Direct Limited ("First Mortgage"), which was
acquired on 2 July 2019, contributed an additional GBP8m of
revenue.
We increased the total number of Advisers at the year end by 20%
to 1,457 (2018:1,213), with organic growth in adviser numbers of
13% or 162 to 1,375, supplemented by the 82 Advisers brought into
the Group with First Mortgage.
Activity in the housing market was impacted by the continuing
political and economic uncertainties associated with Brexit,
particularly in the earlier part of 2019, and we saw a drop in
underlying average annual revenue per Adviser for the core MAB
business of 3%. However, we have seen improving productivity
through H2 2019, relative to H1 2019, and we expect the UK General
Election result along with the many focused initiatives that MAB
has in place, including process efficiencies and lead generation,
supported by our technology developments, to generate growth in
revenue per Adviser in 2020, irrespective of the level of activity
in the broader market.
UK Finance(3) estimates that gross new mortgage lending for 2019
was GBP266bn, a 1% reduction on 2018. The Intermediary Mortgage
Lenders Association's current estimates (published post the general
election) are GBP268bn for gross new mortgage lending in 2020 and
GBP275bn in 2021.
The Group's profit before tax for the year ended 31 December
2019 is in line with the Board's expectations. At 31 December 2019,
the Group had a strong balance sheet with a cash position of
GBP21m, including GBP7m of unrestricted cash balances. At the year
end the Group had no borrowings drawn down on its revolving credit
facility (which was put in place at the time of the First Mortgage
acquisition), demonstrating the strong cash generation of MAB's
business model.
(1) It is expected that a proposed final dividend in respect of
the year ended 31 December 2019 will be paid on 29 May 2020 to
shareholders on the register at close of business on 1 May
2020.
(2) Underlying basis excludes a one-off adjustment in H1 2018 of
GBP1.7m for procuration fees awaiting processing
(3) UK Finance estimates for gross new mortgage lending for 2020
and 2021 were published before the general election in December
2019
Peter Brodnicki, CEO of MAB, said:
"MAB has delivered another strong performance despite the
prolonged political and economic uncertainties throughout 2019. We
continue to deliver on our strategy to grow our market share in all
conditions by investing to ensure sustainable growth whilst
maintaining a strong financial position.
"We are capitalising upon our protection and lead generation
initiatives to further improve performance and continue to pilot
our new technology platform, with rollout to a number of our ARs in
the first half of 2020. These initiatives are important recruitment
drivers for ARs, Advisers and lead sources."
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 +44 (0)1332 525007
Peter Brodnicki, Chief Executive Officer
Ben Thompson, Deputy Chief Executive Officer
Lucy Tilley, Chief Financial Officer
Nominated Adviser and Broker: +44 (0)20 7260 1000
Numis Securities Limited
Stephen Westgate / Hugo Rubinstein (Corporate Finance)
Michael Burke (Corporate Broking)
Media Enquiries:
investorrelations@mab.org.uk
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END
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