Mortgage Advice Bureau (MAB1) H1 2024 earnings summary

Executive summary

• Achieved 11% revenue growth to £267m in 2024, outpacing UK gross mortgage lending growth.

• Adjusted PBT rose 38% to £32.0m, with adjusted fully diluted EPS up 32% to 39.2p.

• Gross profit margin improved by 1.4pp to 30.7%, driven by cost rightsizing and higher-margin subsidiaries.

• Market share of new mortgage lending increased to 8.4%.

• Strategic investments in technology, AI, and lead generation are driving operational resilience and future growth.

Financial highlights

• Revenue: £267m (+11% year-over-year); gross profit: £81.9m (+16.7%).

• Adjusted EBITDA: £35.1m (+31.3%); adjusted PBT: £32.0m (+38%).

• Proposed dividend: 28.2p (2023: 28.1p); adjusted cash conversion: 120%.

• Net debt reduced to £9.7m (0.3x leverage), down from £15.2m (0.6x) in 2023.

• Regulatory capital surplus increased to £24.3m.

Outlook and guidance

• UK Finance forecasts 11% growth in gross new lending for 2025, with £320bn of mortgages needing refinancing.

• Medium-term targets: >15% adjusted PBT margin, >100% adjusted cash conversion, and continued market share growth.

• Ongoing investment in technology and digital marketing to drive future growth.

• Written new case numbers were up 11% in July and August year-over-year, with activity expected to continue rising in Q4.

• Anticipates record refinancing activity in 2025/26, supported by expected further base rate cuts and government housing initiatives.