Mortgage Advice Bureau (MAB1) H2 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.

• Continued investment in technology and digital marketing to support future growth.

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

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.

• Return on Capital Employed (ROCE) increased to 31.0%.

Outlook and guidance

• Organic adviser growth expected to resume, with focus on profitability and productivity.

• Ongoing investment in technology and digital marketing to drive growth in 2025.

• UK Finance forecasts 11% rise in gross new lending and £320bn of mortgages needing refinancing in 2025.

• Government focus on homeownership and regulatory changes expected to support market growth.

• Medium-term targets set for scaling and delivering shareholder value.