Average revenue per adviser has also increased 3%, which the firm said showed a “return to growth in productivity as anticipated following the lull in activity in the housing and mortgage markets surrounding the EU referendum in 2016.”
The Alternative Investment Market (AIM) appointed representative (AR) network and advice firm reports revenue to 31 December in line with expectations up by 17% to £109m driven by adviser recruitment over the last 12 months.
The firm had 950 advisers at 31 December 2016.
At 31 December 2017, the group had a balance sheet with a cash position of more than £22m, including more than £13m of unrestricted cash balances.
UK Finance recently published revised increased estimates for gross mortgage lending for 2017 and 2018 of £255bn and £260bn respectively, as well as publishing its first estimate for 2019 of £271bn. MAB said lending growth is expected to be relatively flat for 2018 and show a modest increase for 2019.
MAB said: “We are confident that our strategy, driven by our customers’ future direction of travel, will continue to drive growth in MAB’s market share year on year and deliver attractive returns to investors.”
Peter Brodnicki, CEO of Mortgage Advice Bureau, (pictured) said: “MAB has delivered yet another strong performance, while also continuing to invest in accordance with our very clear strategy that will ensure continued and sustainable market share growth.”
He noted that flat activity levels are expected over the next few years, but a rise in first-time buyers will “counter” a flat home mover and buy-to-let market. Remortgaging and product switch activity remain on the increase, said the firm.
“We have a strong pipeline of potential new ARs, and we remain confident about delivering our growth plans, both organically and from new recruits,” he added.
“MAB’s strategy combined with the strength of our market stance, puts us in a strong position to capitalise on a digitally enabled intermediary sector in terms of market share, as well as further enhancing customer choice and the overall customer experience.”
Mortgage Advice Bureau became the first mortgage advice firm to list on AIM on 11 November 2014 achieving 160p per ordinary share.
The MAB share price has been on a growth streak since 18 December, rising from 520p to 626p yesterday due to increased retail investor interest. Dividends will be paid to shareholders on 22 May.