Mortgage Advice Bureau grows profits by 28%

Peter Brodnicki

Mortgage Advice Bureau reported a 28 per cent increase in pre-tax profit in the six months to the end of June.

The AIM-listed broker made a £3.9m profit in the first six months of the year, up from £3m in the same period of 2014.

Revenue increased 28 per cent year-on-year from £24.5m to £31.2m.

The firm had cash balances of £11.5m at the end of June, up from £9.3m at the end of December 2014.

Adviser numbers increased by 88 to 722 in the six months to 30 June.

Chief executive Peter Brodnicki says: “I am pleased to report another strong set of results reflecting the robust momentum in our business and this is reflected in our maiden interim dividend.

“The general election outcome has been viewed positively across the intermediary, housing and mortgage sectors, with planning for growth high on the agenda for many market participants.

“Intermediary market share has continued to rise and in the six months to 30 June 2015 stood at 69 per cent. New lenders continue to enter the market with highly intermediary-focussed business models. Recent speculation that a base rate rise may be on the horizon has triggered the first signs of increased activity in the remortgage market as borrowers look to secure mortgage deals at the record low rates of interest currently available.”

MAB floated on the Alternative Investment Market in October last year, with an initial valuation of £80m based on a share price of 160p. As at 25 September, its share price stood at 289p.