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Mortgage Advice Bureau revenue rises to £75.5m; RIs hit 844 – results

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  • 22/03/2016
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Mortgage Advice Bureau revenue rises to £75.5m; RIs hit 844 – results
Mortgage Advice Bureau Holdings' results exceeded expectations as revenue rose 33% to £75.5m, driven by adviser recruitment and a commitment to both brand and technology, according to results.

MAB’s first full year results post-float in November 2014 confirmed adviser numbers rose to 790 by 31 December and again to 844 by March 2016, with average adviser numbers up 24% over 2015.

The group reported total cash balances of £14m up from £9.3m in December 2014 in its seventh consecutive year of profit growth.

The group has also agreed to sell its 49% stake in high-end mortgage advice firm Capital Private Finance to property giant Countrywide for £2.7m. Shareholders will see a £2.2m pay-out of 100% of post-tax proceeds at 4.25p a share in H2 2016.

Peter Brodnicki, MAB chief executive (pictured), said: “Our share of UK new mortgage lending grew by 18% to 3.6% in 2015. We are confident that our strategy is on track to continue to deliver strong revenue growth and attractive returns to investors.”

In the last 12 months, MAB’s ambitions have pushed into newer areas of specialism including online estate agency and buy to let and the group plans to continue to widen its distribution model through selected joint venture partnerships.

Brodnicki said: “The intermediary proposition is hugely compelling for the consumer, with advances in technology only likely to strengthen this position. Our focus on technology and our in-house platform MIDAS Pro has never been greater than it is today. We see technology playing an ever-increasing part in our lead generation by taking control of and managing data, improving business and adviser efficiency/capacity to deliver a continuously improving customer, adviser and lender experience.”

He continued: “MAB will always seek to be an early adopter of new and emerging technologies. This will ensure that our AR firms and their advisers are able to compete at the highest level by providing our customers with the technological solutions they expect today, making research and mortgage applications simpler, faster, and more convenient. By doing so, we expect MAB to become a natural choice for the more technology-led intermediary models entering the market.”

He said trusted national brands and a choice of ways in which to receive advice are becoming increasingly important to consumers.

“Our new ARs are typically forward-thinking and ambitious; they too will contribute to MAB’s organic growth in the years to come,” said Brodnicki.

“Technology is transforming everything we do and this is led by our customers who are using technology every day to make life simpler, faster and more convenient. MAB intends to continue to compete at the highest level and, by embracing technology in the same way as an increasing number of our customers do, this will make our ARs more efficient and profitable,” he added.

MAB chose to develop its own technology in-house to avoid ‘inflexible, one-size-fits-all third party systems’ leading to greater lead generation, a more efficient mortgage application process and more engagement and control for the consumer.

In the last 12 months, MAB has strengthened its management team with a new finance director, Lucy Tilley, a compliance director, Sharon Trinder, who is on the AMI consultancy board, and a head of brand and marketing Gemma Bacon, who is tasked with driving on MAB’s brand ambitions.

A total of £4.8m will be paid out to shareholders, or 90% of the group’s post-tax profits in H2 2015, reflecting the group’s plans to distribute excess capital going forward.

Following the sale of the stake in Capital Private finance, MAB will declare a special dividend of 4.25p per ordinary share after completion on 5 May. The main shareholder dividends will be payable on 1 June 2016.

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