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MAB to pay back staff who took wage cut after strong H1 performance

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  • 30/09/2020
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MAB to pay back staff who took wage cut after strong H1 performance
Mortgage Advice Bureau (MAB) says after its strong H1 performance it will refund staff who took a pay cut during the peak of the pandemic and will give back £500,000 in government subsidies .

 

MAB saw revenue and mortgage completions rise year-on-year, with £6.4bn of new lending completed in the first half of 2020, a two per cent rise on the same period last year, according to the firm’s H1 results.

This helped boost MAB’s market share of new mortgage lending to 5.9 per cent from five per cent in H1 2019.

Including product transfers, the value of the distributor’s completed lending rose year-on-year by eight per cent to £7.5bn.

Revenue grew by four per cent to £63.5m up from £60.9m in H1 2019, including £6.1m of revenue generated by First Mortgage acquired in July 2019.

To reduce the negative impact of the reduction in mortgage completions on the firm’s revenue, the MAB board and non-furloughed employees took a 20 per cent pay cut in Q2.

MAB will reimburse staff in the second half of the year and plans to pay back government subsidies of £500,000 should no further restrictions be placed on the housing market and its strong performance continue.

 

Continued adviser growth

Adviser numbers have crept up over the last six months from 1,457 in December to 1,470 at the end of June, which included 101 advisers who were furloughed at the time.

However, all advisers are now back at work and as of 25 September 2020, adviser numbers were 1,523.

Revenue per adviser, discounting furloughed brokers, fell by seven per cent year on year.

Adjusted profit before tax rose by six per cent to £7.9m from £7.4m in H1 2019.

This week, MAB and Australian Finance Group became joint venture partners as the firm begins rolling out its distribution model in Australia.

MAB also confirmed it had agreed to acquire a 40 per cent stake in Meridian, a national new build mortgage broker, earlier this month.

Peter Brodnicki (pictured), chief executive, said: “These results illustrate the resilience of our operating model and the quality and dedication of our management team and staff throughout the Covid-19 pandemic.

“By reacting quickly and redeploying our resources to capture all possible opportunities during the pandemic, we ensured that our H1 performance remained strong.

“I am very pleased with the progress we have achieved during the period and as a result of our strong trading since the period end, the board has approved the reimbursement of these pay cuts, which will increase staff costs by a total of £800,000 in the second half.

“Subject to this strong performance continuing throughout the remainder of the second half, and in the absence of any new restrictions being imposed that significantly adversely impact the housing market in the remainder of this year, we also intend to repay the £500,000 of government grant income the group has received.”

 

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