25
July 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 six months
ended 30 June 2024, ahead of publishing interim results on 24
September 2024.
Group revenue for the six months
ended 30 June 2024 increased by 5% to £123.5m (H1 2023: £117.5m),
despite a difficult market backdrop, with UK Finance forecasting
there would be a 5% reduction in gross lending in 2024 to £215 bn
(2023 gross lending was £226 bn).
MAB also increased its value of
gross mortgage completions by 5% and our market share gains were
maintained throughout the five months ended 31 May 2024 (the latest
available data period), with MAB's share of new lending increasing
to 8.2% versus 8.0% for the equivalent timeframe last
year.
The average number of mainstream
advisers in the first half fell 3% to 1,898 (H1 2023: 1,966), with
our adviser numbers having increased following the period end to
1,944 (2023:1,918).
As expected, we saw a slight dip in
the organic number of advisers in H1. Although forecast interest
rate reductions have not yet materialised, we are now starting to
see that trend reverse. In addition, new advisers from
Appointed Representative ("AR") recruitment have started to come
through in a more meaningful way since the period end.
We expect to deliver further growth
in the remainder of this year as new ARs are recruited into MAB,
and our ARs start growing adviser numbers again after more than 20
months of consolidation that reflected market
conditions.
Current Trading and
Outlook
The Group is trading in line with
expectations, with a modest pick-up in activity expected in the
second half.
There is a significant amount of
re-financing that has been delayed for several months, pending
possible rate reductions in the summer. Whilst the market may no
longer expect a rate cut in August, at some stage we expect these
borrowers will want to switch to a better mortgage rate, rather
than sitting on expensive floating rates. The current market
expectation is that the Bank of England will cut rates by c. 0.5%
by the end of the year.
2024 was always going to be about
stability, following an extremely challenging 2023, with momentum
building in the latter part of the year and into 2025. We expect
base rate reductions to be the trigger for a recovery in housing
transactions and a gradual release of pent-up demand.
Peter Brodnicki, CEO of MAB,
commented:
"2024 started well, following a
difficult 2023. However, most experts have been proved wrong in
terms of the pace and scale of any rate reductions this year, and
that has consequently delayed many re-finance transactions in H1
and any sustainable pick up in purchase activity.
"Against this challenging backdrop,
I am very pleased with how MAB continues to grow its market share.
As we did last year, to ensure we are in the best possible shape
when market conditions improve, we have continued to invest in
technology to drive lead flow and adviser productivity across the
Group. The progress we are making will further increase our
resilience in more challenging market conditions, whilst supporting
accelerated growth when market conditions normalise.
"We look forward to a downward trend
in the base rate, which will lead to a more active refinancing
market and a build-up to more normal levels of housing
transactions. It is very encouraging to now have a new
government so focused on housebuilding and other initiatives that
will give our market and MAB a tailwind, added to which we expect
to see record years in terms of re-financing in 2025/26.
We therefore expect to see activity
pick up in the second half of the year and into 2025, when we
anticipate our investment in lead generation and retention will
contribute more significantly to our ambitious growth
plans."
Enquiries:
Mortgage Advice Bureau (Holdings)
plc
+44 (0)1332 525007
Peter Brodnicki, Chief Executive
Officer
Ben Thompson, Deputy Chief Executive
Officer
Emilie McCarthy, Chief Financial
Officer
Nominated Adviser and Joint Broker
+44 (0)20 7260 1000
Deutsche Numis
Daniel Werchola / Giles
Rolls
Joint Broker
+44 (0) 20 7418 8900
Peel Hunt LLP
Andrew Buchanan
Media Enquiries:
investorrelations@mab.org.uk