Mortgage Advice Bureau (MAB1) investor relations material

Executive summary

• Revenue grew 8.6% year-over-year to £161.0m, driven by strong refinancing activity and increased adviser numbers, despite a challenging market backdrop.

• Adjusted profit before tax (PBT) rose 2.1% to £14.8m, with diluted adjusted EPS up 1.1% to 18.4p; statutory PBT fell 35.7% to £6.2m due to higher acquisition and listing costs.

• Interim dividend increased 10% to 7.9p per share (£4.5m cash return), reflecting a progressive dividend policy.

• Mortgage lending rose 16% to £16.5bn, led by refinancing and product transfers; market share in new mortgage lending stable at 8.2%.

• Adviser headcount and productivity remained stable, with adviser numbers up 8.7% to 2,194 and average revenue per adviser at £74.4k.

Financial highlights

• Gross profit increased 15.6% to £47.4m, with gross margin up 1.7pp to 29.4%.

• Adjusted admin expenses rose 21.6% to £32.5m, mainly due to acquisitions and investment in growth.

• Net debt at £15.1m (0.4x leverage); free cash flow £11.8m, down from £14.6m due to one-off payments.

• Cash conversion strong at 98%, though lower than previous periods.

• Mortgage procuration fees grew 12% to £67.2m; protection & GI commission up 7.8% to £60.1m.

Outlook and guidance

• Adjusted PBT for FY 2026 expected at £38.0m, with refinancing to remain the primary market driver and no near-term recovery in purchase activity anticipated.

• Fixed-rate mortgage maturities in 2027 expected to be 30% higher year-over-year, supporting future refinancing.

• New group operating model launches January 2027, aiming for improved efficiency and productivity.

• Conservative guidance for Fluent's 2027 contribution; cautious budgeting after delays in digital lead flow.

• Growth in 2026-27 expected to be led by refinancing, with stronger contributions from digital partnerships anticipated in 2027.