Revenue and profit are on the rise at Mortgage Advice Bureau, according to a summary of unaudited results for the year ended 31 December 2019.
Revenue is up 17% to £143.7m from £123m in 2018, while gross profit has grown 28% to £36.4m from £28.4m. Profit before tax and acquisition-related costs meanwhile is up 19% to £18.7m from £15.6m.
Adviser numbers increased by 20% in the year, including 82 Advisers from the acquisition of First Mortgage Direct.
In regards to the coronavirus pandemic Mortgage Advice Bureau said: “It is too early to predict what the impact of the Coronavirus pandemic will be on the Group’s results, but we do anticipate an inevitable disruption to trading in the coming months and an associated impact on our results for the full year.
“We are starting to see a decline in new appointment activity in the purchase market, and expect this trend to continue as the Government has imposed further restrictions on social activity.
“Consequently, despite the strong start to the year, we have factored into our planning and expectations a considerable reduction in purchase related activity, which we expect to have a consequential impact upon adviser numbers and productivity. We expect volumes to continue as anticipated in the re-mortgage and product transfer markets.”
Staff are now working remotely.
Peter Brodnicki, Chief Executive, said: “Over 20 years we have built a high-quality distribution network, a leading consumer brand, and an exceptional management team that continues to adapt quickly to our new ways of working. The Group has a strong balance sheet, is cash generative and enjoys a healthy surplus over its regulatory capital requirement.
“To give ourselves additional flexibility to capitalise on potential opportunities quickly, we drew down the full £12m limit on our Revolving Credit Facility on 20 March 2020. We are in a stronger position than many to deal with the challenges that lie ahead and are confident in our ability to continue growing our market share, with a specific additional short-term focus on re-mortgages and product transfers.
“MAB has a clear strategy and we continue to strengthen our proposition. During this pandemic our priority is to redeploy our resources where possible to focus on lead generation, telephone advice and remote working.
“We remain very optimistic about MAB’s growth prospects in the medium to long term and intend to be in a strong position to react quickly and take full advantage of the opportunities that will present themselves in the future.”