Peter Brodnicki, CEO of Mortgage Advice Bureau (Holdings) plc, said:
“I am delighted to report another strong performance in the first half of 2018. Housing transactions have reduced slightly compared to the equivalent period last year, but overall activity in the mortgage market has increased due to product switch activity, remortgaging and first time buyers. Although product switches carry the lowest overall margin, it is in this area we have seen the most significant level of growth.
“Against this backdrop, I remain confident of delivering our growth plans in line with our strategy.”
Mortgage Advice Bureau (Holdings) plc (LON:MAB1), one of the UK’s leading consumer intermediary brands and specialist Appointed Representative Networks, today issued a pre-close trading update for the six months ended 30 June 2018, ahead of publishing its interim results announcement on Tuesday, 25 September 2018 (1).
Revenue for the six months ended 30 June 2018 increased by 16% to £57m driven primarily by a 13% increase in the average number of Advisers to 1,103 over the period (six months ended 30 June 2017: 974). The total number of Advisers had increased to 1,138 at 30 June 2018, an increase of 60 or 6% since last year end (1,078 at 31 December 2017). As previously reported on 16 May 2018, organic recruitment has been in line with the Board’s expectations and we expect new business recruitment to be weighted again to the second half of the year.
Current trading is in line with the Board’s expectations and the Board looks forward to delivering further growth in the remainder of this financial year. At 30 June 2018, the Group had a strong balance sheet with a cash position of over £22m, including over £12m of unrestricted cash balances.
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.
(1) The interim dividend in respect of the six months ended 30 June 2018 will be paid on 26 October 2018 and the record date is 5 October 2018.
(2) The average number of Advisers in the twelve months ended 30 June 2018 was 1,072 (2017: 950).