Mortgage Advice Bureau (MAB1) has a "market share business model", says chief executive Peter Brodnicki. For that reason, Mr Brodnicki says the mortgage broker should be able to continue to grow its customer numbers, even though the Council of Mortgage Lenders' expects mortgage lending to be relatively flat during the next two years.
The group increased its market share again last year, helping push mortgage procurement fees up by 27 per cent to £39m. Protection and general insurance commission, and client fees, both grew by about a fifth. Average adviser numbers in its intermediary network were up 23 per cent to 888 at the end of the year, rising to 976 post year-end.
With market share in mind, four investments were made in new companies last year. These included a 25 per cent stake in Clear Mortgage Solutions to help establish an intermediary network in Scotland. The group also added enhanced data management and telephone sales after taking a 35 per cent stake in Freedom 365. It also entered the Australian brokerage market via a joint venture and will decide at the end of the year whether to build a more bespoke brokerage network in the country.
Analysts at Canaccord Genuity expect adjusted pre-tax profits of £14.2m in 2017, giving EPS of 22.4p (up from £12.5m and 20p in 2016).
MORTGAGE ADVICE BUREAU (MAB1) | ||||
|---|---|---|---|---|
| ORD PRICE: | 378p | MARKET VALUE: | £191m | |
| TOUCH: | 360-389p | 12-MONTH HIGH: | 398p | LOW: 191p |
| DIVIDEND YIELD: | 4.8% | PE RATIO: | 15 | |
| NET ASSET VALUE: | 30p* | NET CASH: | £10.8m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012** | 26.8 | 2.47 | 31.2 | na |
| 2013** | 40.1 | 5.24 | 59.2 | na |
| 2014 | 56.6 | 6.88 | 9.6 | 2 |
| 2015 | 75.5 | 10.4 | 17.2 | 14.4 |
| 2016 | 92.8 | 15.2 | 25.6 | 18.3*** |
| % change | +23 | +46 | +49 | +27 |
Ex-div: 4 May Payment: 31 May *Includes intangible assets of £4.1m or 8p a share **Pre-IPO figures ***Excludes 5.35p a share special dividend | ||||
