Mortgage Advice Bureau H1 profit before tax up 34 per cent

Mortgage Advice Bureau’s profit before tax rose 34 per cent year-on-year to £5.3m at the end of H1 2016, according to the firm’s interim half-year results.

MAB’s revenue at the end of the first half was £43.1m, compared to £31.2m at the end of the same period the year before.

The number of advisers at MAB rose by 27 per cent in the first half of 2016, to 851. The firm had 671 in the same period of 2015.

H1 2016 also saw MAB complete its £2.7m sale of a 49 per cent stake in Capital Private Finance. The post-tax profit from the sale was returned to shareholders by a special dividend of 4.25p.

MAB also invested in telephony company Freedom 365 and telephone protection advice firm Vita.

MAB chief executive Peter Brodnicki says: “After a strong start to the year, adviser productivity eased slightly in the run up to the EU referendum.  From that point, we saw the usual quieter period in the housing market over the peak summer holiday months.  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.
“Our focus remains to continue to grow our market share in all market conditions. ”
The firm’s results say that post-Referendum business volumes are “encouraging” but that it is too early to say when adviser productivity will increase.
Earnings per share were up 32 per cent at the end of H1 2016 when compared to the same period the year before.