Mortgage advisory giant upbeat despite battle on ‘numerous fronts’

Mortgage Advice Bureau has revealed its financial results following what its CEO has described as “a challenging year for mortgage intermediaries on numerous fronts.”

Revenue at the Derby firm increased by 22% to a record £230.8m last year, while gross profits were up by 24% to £62.9m. MAB’s adjusted profits before tax increased to £27.2m, but the company’s statutory profits before tax slumped from £23.2m in 2021 to £17.4m – a troubling drop of 25%.

In a statement, the company said 2022 had been a year of “significantly delayed transactions and product withdrawals and repricing.”

Although “unexpected and extreme market conditions” adversely impacted MAB’s short-term growth objectives over the last 12 months, the firm said it had made “major strides” in strengthening its customer, adviser and AR propositions.

The number of advisers on MAB’s books increased by 20% to 2,254 during the period.

Peter Brodnicki, CEO at Mortgage Advice Bureau, said: “Prior to the mini-budget in September, the Group was on track for 2023 to be a record year of growth, despite an expected softening in housing transactions due to inflationary pressures. Although mortgage transaction levels have improved since the collapse post mini-budget, they remain circa 35% down year to date compared to the same period in 2022.

“MAB is performing considerably better than wider transaction numbers reflect and our market share is continuing to grow strongly. Current trading is in line with our expectations and we expect a second-half weighted financial performance. This is a strong performance considering the fall in gross mortgage approvals since October 2022 is of a similar scale to the fall seen during the Global Financial Crisis rather than the normal and more easily managed peaks and troughs we see during fluctuating housing cycles.”

Brodnicki added: “We expect the housing and mortgage markets to recover as they always do, and in the meantime, MAB continues to strengthen its proposition and use the more challenging market to onboard more high-quality firms and grow market share.”

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