The group’s interim results to June 2015 showed revenue up 28% to £31.2m, alongside a before tax profit rise of 28% to £3.9m. The firm also retains a cash balance of £11.5m, up from £9.3m to 31 December 2014, of which the unrestricted cash balance is £6.9m.
The firm said despite a slowdown in mortgage lending activity in the second half of last year following a pre-MMR spike in volumes, but despite the election lull it expects a strong end to the year.
It said: “These positive trends give us confidence that the Council of Mortgage Lenders’ revised estimates for gross mortgage lending in 2016 of £230bn are realistic, being an increase of approximately 10% on their latest £209bn forecast for 2015.”
MAB’s Registered Individual adviser numbers have risen from 529 in June 2014 to 779 in 18 September this year, driven by the recruitment of large, quality, customer-centric firms, said CEO Peter Brodnicki (pictured).
On recruitment, Brodnicki said: “We do back new start entrepreneurs, those ready to take their business to another level, as well as some very well established firms maybe looking to grow and diversify or increase efficiency further and who may also wish to plan an exit in five to ten years. We also attract some very high quality firms that are doing well but have no real desire to grow but want a partner that will help improve the customer and adviser experience.”
MAB expanding into Northern Ireland last year where it said the mortgage market is starting to show good signs of recovery.
The mortgage advice group floated on the Alternative Investment Market on 11 November 2015 achieving a market cap of £80.8m, with shares priced at 160p per ordinary share. This morning the share price listing opened at 287.50p.
MAB has exchanged contracts to acquire the freehold of its head office building in Derby from Cedar House Investments Limited for £2.4m which it said would eliminate rent costs of around £0.2m a year.
The firm will continue to specialise in estate agency, including online agents, new-build mortgage shops and telephone-based advice and has plans to extend its specialisms to buy to let.
The firm said: “In a post-MMR world we see brand becoming increasingly important as, more than ever before, consumers seek out mortgage intermediaries that provide high quality, customer-focussed expert independent mortgage advice. Continuing to leverage the strength of our brand is an ongoing area of focus as we plan for 2016 and beyond.”
Council of Mortgage Lender figures show mortgage advisers placed roughly 69% of UK mortgage transactions in H1 2015, up from 60% in H1 2014 with commentators expecting further growth.
