Do you eat steak? Invasive regulation-driven questions are driving homebuyers to mortgage brokers as they try to avoid repeating a personal interrogation in every bank branch on the high street. The growing market share of intermediaries helped newly Aim-listed broker network Mortgage Advice Bureau (MAB1) grow its advisers by a fifth to 638 over the reported period, sending adjusted profits up 16 per cent to £3.9m.
Many broker firms are 'appointed representatives' of networks like MAB, avoiding the compliance, commercial and technological burden of being an independently authorised company. MAB has grown its adviser base both by recruiting appointed representatives and fostering growth in those already in the network, 70 per cent of which trade under its brand. It charges its representatives a proportion of their turnover for the services it provides. Overall adviser numbers had reached 779 by 18 September.
MAB is already well established in the estate agency market, and has grown its new-build mortgage business. The strength of the overall mortgage market is reflected in its revenues: mortgage-related products generated £18.1m, from £13.7m in the first half last year. Life insurance, house insurance and protection revenues increased more modestly, from £10.3m to £12.6m.
Canaccord Genuity expects adjusted EPS of 14.3p for the full year, up from 12.7p in 2014.
| MORTGAGE ADVICE BUREAU (MAB1) | ||||
|---|---|---|---|---|
| ORD PRICE: | 297p | MARKET VALUE: | £150m | |
| TOUCH: | 285-302p | 12-MONTH HIGH: | 307p | LOW: 160p |
| DIVIDEND YIELD: | 2.3% | PE RATIO: | 24 | |
| NET ASSET VALUE: | 20p* | NET CASH: | £6.9m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 24.5 | 3.04 | 3.90 | nil |
| 2015 | 31.2 | 3.94 | 6.54 | 4.9 |
| % change | +28 | +29 | +68 | - |
Ex-div: 1 Oct Payment: 30 Oct Company floated in November 2014. *Includes intangibles of £4.2m or 8p per share | ||||
