Profits fall sharply at mortgage advisory firm amid ‘challenging’ year

Profits have fallen at Derby-based brokerage Mortgage Advice Bureau (MAB) in what its boss has desribed as an “exceptionally challenging” period.

For the six months to June 30, MAB posted profits of £7.6m – down 25% on 2022. Revenue increased by 22% over the same period to £117.5m.

Peter Brodnicki, chief executive, said: “It has been an exceptionally challenging year with interest rates continuing to rise. This has clearly impacted consumer confidence, resulting in many people deciding to delay their house purchase, whilst for others there is understandably a reduced level of urgency. This has created a toughening market for mortgage brokers as the year has progressed, compounding the damaging impact of the mini-budget last September.

“However, against this difficult backdrop I am pleased with how MAB has significantly outperformed the market, with the organic business performing above expectations. To ensure we are in the best possible shape when market conditions improve we have continued to carefully invest across the entire group to deliver optimal business and adviser efficiency. This has also been a priority with Fluent, where the short-term impact of such a significant downturn has been more strongly felt, and indeed magnified due to the business having been in such a strong growth phase at the point it was acquired by MAB.

“MAB has an exceptionally strong track record of outperformance, and the progress made this year in the development of new lead opportunities for Fluent and the rest of the group will underpin our plans to deliver continued market share growth in 2024, even if difficult market conditions continue to prevail.

“There is a great deal to be positive about and our lead initiatives, including the addition of Fluent to the Group, will continue to strengthen our addressable market and growth plans, whilst offsetting the potential impact of any downward cycles in the future.”