Mortgage Advice Bureau (MAB1) H2 2024 TU earnings summary

Financial performance and trading update

• Group revenue rose 11% to approximately £266m for 2024, outpacing the 4% UK gross lending growth.

• Adjusted profit before tax is expected to grow 31% to about £30.5m, around 4% ahead of consensus, excluding a £1.5m benefit from capitalised development costs.

• Adviser numbers increased modestly to 1,941, but a 12% rise in average revenue per adviser drove overall productivity gains.

• Q4 2024 saw a 15% year-on-year increase in mortgage applications, with positive momentum expected to continue.

• Technology enhancements and lead generation initiatives are set to support further growth and profitability.

Strategic and operational developments

• Focus remains on operational efficiency, leveraging technology and lead generation to boost productivity.

• Plans to onboard more Appointed Representative (AR) firms and pursue value-accretive acquisitions in 2025.

• Increased optimism among ARs is expected to drive organic adviser growth.

• Capital Markets Day scheduled for 5 February 2025 will provide updates on strategy, growth plans, and a new capital allocation policy.

Board and governance updates

• Chief Risk Officer Paul Gill will join the Board as Executive Director, pending regulatory approval.

• David Preece, Non-Executive Director, will not seek re-election at the next AGM.

• The Board plans to appoint two additional Independent Non-Executive Directors.