REG - Mortgage Adv. Bureau - Trading Update

Mortgage Advice Bureau (Holdings)Announcement

25/01/2024 07:00

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RNS Number : 8188A  Mortgage Advice Bureau (Hldgs) PLC  25 January 2024

25 January 2024

Mortgage Advice Bureau (Holdings) plc

("MAB" or the "Group")

Trading Update

Mortgage Advice Bureau (Holdings) plc (AIM: MAB1) today issues a trading
update for the year ended 31 December 2023, ahead of publishing its final
results on Tuesday, 19 March 2024.

In September 2023 the Board took a cautious view on expected activity levels
for Q4 2023 and hence the outlook for the full year.  Actual trading was
better than anticipated in Q4 2023 and the Board now expects the Group to
report an adjusted profit before tax that is slightly ahead of the current
market consensus.

UK Finance's latest estimate of gross new mortgage lending for 2023 is
£226bn 1  (#_ftn1) , representing a 28% reduction on 2022.  Despite this
difficult market, the Group increased its revenue for the year by 4% to circa
£239m.

As expected, the total number of advisers at the year-end was down 4% to
2,158 2  (#_ftn2) (2022: 2,254), including 117 advisers at Fluent, with the
average number of mainstream 3  (#_ftn3) advisers during the year down 2% to
1,940 (2022: 1,988).  The number of mainstream advisers at the year-end was
down 8% to 1,918 (2022: 2,074).

Current Trading and Outlook

The underlying level of demand for home ownership and home moves remains
strong. As the cost of fixed rate mortgages started to reduce at the end of
last year, we saw early signs of increased purchase activity as well as
re-financing.  This pick-up in mortgage volumes has continued into January,
with written volumes substantially higher than in January 2023 in the
aftermath of the mini-budget. Whilst uncertainty remains in the wider
political and geopolitical environment, current trading is encouraging.

MAB remains in a very strong position to capitalise on any market recovery and
the inevitable catch-up in house purchase transactions that will follow.

Whilst no organic adviser growth has been assumed for this year, we expect
some of our Appointed Representative (AR) firms to resume recruitment earlier
than planned if the current momentum continues, with the Group returning to
previously achieved levels of adviser growth in 2025. In terms of the addition
of new AR firms, activity levels built strongly in H2 2023, and continue to do
so. Our delivery of technology, lead generation and retention initiatives are
proving compelling, and we expect that to be reflected in our recruitment of
new firms this year.

We continued to invest in our proposition throughout 2023, to ensure the
strongest possible recovery and continued market share growth in 2024 and
beyond. Current trading is encouraging and in line with expectations.

Peter Brodnicki, CEO of MAB, commented:

"2023 was an exceptionally challenging year with consumer confidence heavily
impacted, resulting in many customers deciding to delay their house purchase
or re-financing.

"Against this difficult backdrop I am very pleased with how MAB has
significantly outperformed the market.  To ensure we are in the best possible
shape when market conditions improve, we have continued to invest across the
entire Group to drive lead flow and deliver optimal business and adviser
efficiency. There is a great deal to be positive about, and our technology
developments and lead initiatives, including the addition of Fluent, have
broadened our addressable market and strengthened our growth plans."

Enquiries:

Mortgage Advice Bureau (Holdings)
plc
+44 (0)1332 525007

Peter Brodnicki, Chief Executive Officer

Ben Thompson, Deputy Chief Executive Officer

Lucy Tilley, Chief Financial Officer

Nominated Adviser and Joint Broker
 
+44 (0)20 7260 1000

Deutsche Numis

Stephen Westgate / Giles Rolls

Joint Broker
 
+44 (0) 20 7418 8900

Peel Hunt LLP

Andrew Buchanan / Mike Burke

 

Media Enquiries:

investorrelations@mab.org.uk

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of
the European Union (Withdrawal) Act 2018 ("UK MAR").

 1  (#_ftnref1) UK Finance's previous estimate of gross new mortgage lending
for 2023, published in December 2022, was £275bn.

 2  (#_ftnref2) Includes a total of 240 advisers at 31 December 2023 who are
later life advisers or advisers in directly authorised firms that use MAB's
subsidiary, Auxilium, a specialist protection service provider, for
protection. For both later life and directly authorised advisers the fees
received by MAB represent the net income received by MAB as there are no
commission payouts made by MAB.

 3  (#_ftnref3) Excludes directly authorised advisers, later life advisers and
advisers from associates in the process of being onboarded under MAB's AR
arrangements.

 

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