Mortgage Advice Bureau (Holdings) (MAB1)

Sector:

Financials

Index:

FTSE AIM 50

624.00p
   
  • Change Today:
      11.00p
  • 52 Week High: 637.40p
  • 52 Week Low: 490.00p
  • Currency: UK Pounds
  • Shares Issued: 51.11m
  • Volume: 43,356
  • Market Cap: £318.90m
  • Beta: 0.64

Mortgage Advice Bureau reports successful first half despite Brexit shock

By Bianca Boorer

Date: Wednesday 28 Sep 2016

LONDON (ShareCast) - (ShareCast News) - Mortgage Advice Bureau (MAB), a UK-based mortgage broker, has reported a rise in both profits and market share in the first half despite uncertainty surrounding Britain deciding to leave the EU.
Chief executive Peter Brodnicki said adviser productivity slowed in the lead up to the EU referendum after a strong start to the year, which was then followed by the usual quiet summer period.

"Since the referendum, overall written business volumes have held up well, with industry data indicating that the housing market remains relatively stable. House prices continue to grow and a slight softening in the number of house purchases has been partly offset by increased activity in both residential and buy-to-let remortgaging" said Brodnicki.

The group's market share rose 20% to 4% and revenue rose 38% to £43.1m during the six month period. The firm's gross margins however suffered, falling to 23.1% from 24.3%, as the profits before tax margin fell to 12.3% from 12.6%.

Looking forward, Brodnicki said: "it is too early to determine how quickly adviser productivity will pick back up. The Board expects the growth in revenue per Adviser to be slightly lower than originally anticipated for the year, whilst Adviser numbers are expected to be ahead of expectations for the year end."

The company's advisers, who arrange approximately £10bn worth of mortgages per annum across the UK, grew in number by 13% to 891 by the end of the period and continued to grow post period to reach 921 as of 23 September 2016.

The firm completed two investments during the period, taking a 20% stake in specialist telephone protection advice firm Vita for £150,000 and a 25% interest in Clear Mortgage Solutions Limited for £50,000 plus contingent consideration of up to £50,000 payable after three years depending on results. After the period, the firm invested in Freedom 365 to gain access to its scalable telephony model.

"While these investments may be small, we feel they are indicative of MAB's ability to innovate and adopt new technology early," Cannacord Genuity said in a research note sent to clients.

The firm sold its 49% stake in Capital private finance limited for £2.7m and distributed the post-tax profit to shareholders through a special dividend of 4.25p. The interim dividend rose 59% to 7.8p and earnings per share rose 32% to 8.6p.

The group's cash balance rose to £16.3m from £14m at 31 December 2015.

Canaccord Genuity maintain a 420p target price and a buy recommendation based on the company's "high degree of strategic and operational momentum and its potential to garner further market share."

The share price rose 3.49% to 305.30p at 1230 BST on Wednesday.







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MAB1 Market Data

Currency UK Pounds
Share Price 624.00p
Change Today 11.00p
% Change 1.79 %
52 Week High 637.40p
52 Week Low 490.00p
Volume 43,356
Shares Issued 51.11m
Market Cap £318.90m
Beta 0.64

MAB1 Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
86.38% below the market average86.38% below the market average86.38% below the market average86.38% below the market average86.38% below the market average
92.81% below the sector average92.81% below the sector average92.81% below the sector average92.81% below the sector average92.81% below the sector average
Price Trend
71.93% above the market average71.93% above the market average71.93% above the market average71.93% above the market average71.93% above the market average
72.79% above the sector average72.79% above the sector average72.79% above the sector average72.79% above the sector average72.79% above the sector average
Income
24.36% above the market average24.36% above the market average24.36% above the market average24.36% above the market average24.36% above the market average
25.3% below the sector average25.3% below the sector average25.3% below the sector average25.3% below the sector average25.3% below the sector average
Growth
23.31% above the market average23.31% above the market average23.31% above the market average23.31% above the market average23.31% above the market average
11.48% below the sector average11.48% below the sector average11.48% below the sector average11.48% below the sector average11.48% below the sector average

What The Brokers Say

Strong Buy 2
Buy 0
Neutral 1
Sell 0
Strong Sell 0
Total 3
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

MAB1 Dividends

  Latest Previous
  Interim Final
Ex-Div 03-Oct-19 25-Apr-19
Paid 25-Oct-19 24-May-19
Amount 11.10p 12.70p

Trades for 12-Nov-2019

Time Volume / Share Price
15:55 2 @ 636.20p
15:42 1,568 @ 637.40p
15:40 1,500 @ 637.40p
15:05 200 @ 626.00p
13:04 668 @ 636.20p

MAB1 Key Personnel

CEO Peter Brodnicki
CFO Lucy Tilley

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