That property prices are continuing to rise shouldn't be news to anyone. It was this, rather than an increase in the numbers of properties bought and sold, that accounted for the 8 per cent rise in UK lending last year, according to industry figures. Mortgage broker Mortgage Advice Bureau (MAB1) was a continued beneficiary of buoyant pricing during its first full year as a publicly traded company, posting a rise of a third in gross profit to £18.3m.
Intermediaries are taking an increasing share of the mortgage broking market from banks and building societies, accounting for 70 per cent of the market last year from less than half in 2012. MAB operates via a network of adviser businesses, which take on the MAB brand. The group grew its adviser base by a quarter to 844 last year, while the average revenue per adviser grew 8 per cent.
MAB will complete the sale of its 49 per cent stake in its Capital Private Finance joint venture with Countrywide during the second half of this year. This follows Countrywide exercising its call option for the group's stake for £2.7m. Management has pledged to pay a special dividend of 4.25p a share following the sale.
Analysts at Canaccord Genuity expect adjusted pre-tax profit of £12.5m, giving adjusted EPS of 18.8p this year. This is up from £10.4m and 16.7p, respectively, in 2015.
MORTGAGE ADVICE BUREAU (MAB1) | ||||
|---|---|---|---|---|
| ORD PRICE: | 343p | MARKET VALUE: | £173m | |
| TOUCH: | 335-350p | 12-MONTH HIGH: | 390p | LOW: 171p |
| DIVIDEND YIELD: | 4.2% | PE RATIO: | 20 | |
| NET ASSET VALUE: | 26p** | NET CASH: | £14m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011* | 18.2 | 1.81 | 25.4 | na |
| 2012* | 26.8 | 2.47 | 31.2 | na |
| 2013* | 40.1 | 5.24 | 59.2 | na |
| 2014 | 56.6 | 6.88 | 9.63 | 2 |
| 2015 | 75.5 | 10.4 | 17.2 | 14.4 |
| % change | +33 | +51 | +78 | +620 |
Ex-div: 5 May Payment: 1 Jun *Prior to flotation **Includes intangible assets of £4.1m, or 8p a share | ||||
