Mortgage Advice Bureau (MAB1) H1 2026 earnings summary

Executive summary

• Revenue grew 8.6% year-over-year to £161.0m, driven by strong refinancing activity and increased adviser numbers, despite volatile mortgage pricing and market uncertainty.

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

• Interim dividend increased 10% to 7.9p per share, reflecting a progressive dividend policy.

• Strategic focus on digital lead generation, AI integration, and operational restructuring to enhance efficiency and future growth.

• Market share in new mortgage lending held steady at 8.2%, with Product Transfers market share rising to 3.2%.

Financial highlights

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

• Mortgage lending rose 16% to £16.5bn, led by 29% growth in remortgages and 44% in product transfers.

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

• Free cash flow was £11.8m, down from £14.6m, with cash conversion at 98%.

• Net debt at £15.1m (leverage 0.4x), providing financial flexibility.

Outlook and guidance

• Adjusted PBT for FY 2026 expected at £38.0m, up 5% from 2025, with refinancing to remain the primary market driver.

• 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.

• Cautious budgeting for Fluent's contribution in 2027, targeting £2m–£2.5m incremental PBT.

• Short-term outlook remains cautious due to delayed housing market recovery and ongoing macroeconomic uncertainty.