TIDMMAB1
RNS Number : 9812T
Mortgage Advice Bureau (Hldgs) PLC
28 July 2022
28 July 2022
Mortgage Advice Bureau (Holdings) plc
("MAB" or the "Group")
Trading Update
Mortgage Advice Bureau (Holdings) plc (AIM: MAB1) today issues a
trading update for the six months ended 30 June 2022, ahead of
publishing its interim results on 27 September 2022.
Group revenue for the six months ended 30 June 2022 increased to
circa GBP95m (H1 2021: GBP92m), up 3% on a comparative period in
which mortgage completions had been considerably boosted by the
stamp duty holiday changes at the end of March and June 2021.
The average number of mainstream(1) advisers during the period
increased by 19% to 1,890 (H1 2021: 1,584) with total adviser
numbers as at 30 June 2022 up 8% to 2,034(2) (31 December 2021:
1,885).
During the first half, the time taken to complete a property
purchase increased by approximately one month compared to H1 2021.
A number of factors have been delaying transactions, including
conveyancing and local authority capacity constraints,
down-valuations and expiring mortgage offers that need to be
reconsidered and reissued by lenders due to the frequency of UK
base rate increases in the period.
Despite the rising cost of living for UK households and further
national and geopolitical uncertainty, the level of consumer demand
for housing remains strong.
The resilience of demand from people moving home is supported by
UK full employment, high levels of household savings and, for those
who are subsequent movers, rising housing equity levels over recent
years. Lenders also have strong liquidity levels, meaning mortgage
availability is now close to pre-pandemic highs, thereby helping
market activity to remain healthy.
Although interest rates have risen and will most likely continue
to rise over the next 12 months, current interest rates remain near
historical lows. As anticipated, increases in interest rates have
stimulated more refinancing activity, with mortgage borrowers now
more motivated than ever to secure the best possible rate to help
their household budgeting.
1 Excludes directly authorised advisers, later life advisers,
and advisers from associates in the process of being onboarded
under MAB's AR arrangements.
2 Includes a total of 67 advisers at 30 June 2022 who are either
directly authorised or later life advisers. The directly authorised
advisers are employees of a firm previously authorised under an
Appointed Representative agreement with MAB until 7 December 2020.
MAB will continue to provide services to this firm, which is now
directly authorised by the FCA. For both later life and directly
authorised advisers the fees received by MAB represent the net
income received by MAB as there are no commission payouts made by
MAB. Also includes 14 advisers from associates, who are in the
process of being onboarded under MAB's AR arrangements. These
advisers will shortly become mainstream advisers. Until these 14
advisers become onboarded fully as mainstream advisers, MAB
currently only recognises its share of profit after tax from these
associates.
Current trading
The Group has started H2 2022 with a larger than usual pipeline
of written business, due to the extended timeframe for completion
of housing purchase transactions, and refinancing activity
continues to be strong. Whilst we expect consumer demand to cool a
little over the coming months, transaction levels are expected to
remain healthy.
We were delighted to complete the acquisition of The Fluent
Money Group earlier this month, which will allow the enlarged Group
to benefit from national lead generation across our entire business
sooner than initially anticipated. This reinforces our confidence
in the outlook for 2023 and beyond.
Following the period end, the Group increased its stake from 49%
to 75% in Vita Financial Limited, a leading protection and general
insurance advice firm. This is a strategically important step for
the Group as we look to achieve an even stronger market presence in
this area.
The Group's adjusted profit before tax for the year ending 31
December 2022 is expected to be in line with market
expectations.
Peter Brodnicki, CEO of MAB, commented:
"Despite the obvious frustrations with the pace of completion of
housing purchase transactions, our growth plans have been further
boosted this year by the acquisition of Fluent Money.
"The expected performance of this strong business, and the
leverage it will provide to drive new and significant lead flow
into MAB, added to continued strong adviser growth and ongoing
enhancements in our technology platform, further supports our plan
for accelerated growth into 2023 and beyond regardless of market
conditions."
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 / Giles Rolls
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK Domestic Law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").
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END
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