TIDMMAB1
RNS Number : 2354M
Mortgage Advice Bureau(Holdings)PLC
20 January 2021
20 January 2021
Mortgage Advice Bureau (Holdings) plc
("MAB" or the "Group")
Trading Update and Non-Executive Director Appointment
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 2020, ahead of publishing its final results on
Tuesday, 23 March 2021.
Group revenue for the year is expected to be c.GBP148m,
representing an increase of 3% on 2019, achieved in a period when
the first Coronavirus lockdowns closed the housing market in
England for almost two months and the markets in Scotland, Wales
and Northern Ireland for three months. Excluding First Mortgage
Direct Limited ("First Mortgage"), acquired on 2 July 2019, MAB
generated revenue of c.GBP134m which was broadly flat compared to
2019. The total number of Advisers at year end had increased by 8%
to 1,580(1) (2019:1,457).
We saw a very sharp recovery in written business in Q3 2020
following the re-opening of the UK housing markets, and that trend
continued in Q4 2020. Despite severe lending restrictions in the
higher loan to value segment, written mortgage volumes in the
second half of the year significantly exceeded last year's
levels.
From a banked business perspective, Q3 2020 was impacted by
lower written purchase business in Q2 2020. However, Q4 2020
completions were very strong despite delays brought about by
surveyors, lenders and conveyancers having experienced a surge in
new business levels since the re-opening of the housing market,
whilst operating with pandemic-related processing constraints.
Revenue was particularly strong in December, exceeding our
expectations and driven by mortgage completions 20% higher than in
2019.
As a result of this strong trading performance in H2 2020, the
Group's profit before tax for the year ended 31 December 2020 is
expected to be materially ahead of current market expectations.
During the year, the Group maintained a strong balance sheet and
a robust cash generation profile. The furlough grants were repaid
in full prior to the payment of the interim dividend in December
2020. In March 2020 the Group drew down its GBP12m Revolving Credit
Facility: this was repaid in full in December 2020. As previously
announced, the board intends to propose a final dividend in respect
of the year ended 31 December 2020, to be paid on 28 May 2021 to
shareholders on the register at close of business on 30 April
2021.
Current trading
The Group has started 2021 with a very strong pipeline of both
written business and Adviser recruitment. The housing market has
remained open despite the new lockdown restrictions that took
effect on 5 January and, although we move into 2021 with
uncertainty over the economy and the continuing impact of the
Covid-19 pandemic, the factors that underpin strong house purchase
demand cause us to be optimistic about the outlook. The
Intermediary Mortgage Lenders Association's ("IMLA") recent
estimate of gross new mortgage lending for 2021 (published in
January 2021) is GBP283bn, representing a 17% increase compared to
2020 (GBP242bn) and a 6% increase compared to 2019 (GBP268bn).
We are very confident in our strategy to deliver continued
growth and productivity improvements through strong recruitment
performance, further developments of our technology platform and
our lead generation strategy. Current trading is in line with the
Board's expectations.
Non-Executive Director Appointment
MAB is pleased to announce the appointment of Mike Jones(2) as
an independent Non-Executive Director of the Group, with effect
from 1 March 2021. Mike will serve on the Audit, Remuneration,
Nomination, and Group Risk Committees.
Mike joined Lloyds Bank plc in 1985 and retired from Lloyds
Banking Group plc ("LBG") at the end of 2020. He worked in various
roles across LBG, most recently as Managing Director,
Intermediaries & Specialist Brands since 2010. His primary role
was leading the Halifax, BM Solutions and Scottish Widows Bank
business development teams working with mortgage intermediaries
across the UK. Mike chaired the LBG Housing Forum, the LBG
Intermediary Conduct Forum and was responsible in the UK for
Birmingham Midshires, Scottish Widows Bank and Intelligent Finance.
He was also responsible for LBG's European retail bank operating in
Germany and The Netherlands, a role that sees him continue into
2021 as Chair of the Supervisory Board of Lloyds Bank GmbH
following his appointment in March 2019.
Peter Brodnicki, CEO of MAB, said:
"I am very pleased with our 2020 performance which again
demonstrates the resilience of our operating model and our ability
to grow market share in all conditions. We responded quickly and
decisively to the challenges we faced, we delivered a strong
performance, our strategic objectives were achieved, and exciting
new growth opportunities were identified.
"We therefore enter 2021 in great shape, with a very strong
pipeline of business, ARs, Advisers and lead sources, as well as
having further strengthened our leading proposition and management
team. Despite continued uncertainties brought about by the
pandemic, I am extremely confident in our ability to perform
strongly and deliver our plans in order to achieve our market share
growth ambitions.
"I am also delighted to welcome Mike to the Board. His
leadership, vision, and strategic thinking at the UK's leading
lender has shaped the intermediary and lending markets that exist
today, and his appointment reflects the huge ambition of this
business."
(1) Includes 42 Advisers as part of a firm previously authorised
under an Appointed Representative agreement with MAB until 7
December 2020. MAB continues to provide services to this firm, now
Directly Authorised by the FCA.
(2) Subject to Regulatory approval.
Michael John Probert Jones, aged 57, currently holds or has held
the following directorships and partnerships in the last five
years:
Current directorships/partnerships Past directorships/partnerships
Lloyds Bank GmbH Western Trust & Savings Holdings
Ltd
Birmingham Midshires Mortgage
Services Ltd
C&G Property Holdings Ltd
Birmingham Midshires Financial
Services Ltd
Bavarian Mortgages No5 Ltd
Intelligent Finance Software
Ltd
Western Trust Holdings Ltd
Scottish Widows Bank Plc / SWB
(67 Morrison Street) Plc
There is no other information that is required to be disclosed
pursuant to Schedule 2 paragraph (g) or Rule 17 of the AIM Rules
for Companies.
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 / Laura White
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END
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