"We are seeing increased optimism among many of our ARs, and as a result, expect to see organic growth in adviser numbers start to return in a more meaningful way."
- Peter Brodnicki, CEO of MAB
Mortgage Advice Bureau (MAB) has announced that Group revenue increased by 11% to £266m in 2024, significantly higher than the estimated 4% growth in UK gross lending for the same period.
In a trading update, MAB says its board expects to report growth in adjusted PBT for the year of 31% to £30.5m, which is around 4% ahead of consensus.
MAB’s number of mainstream advisers grew modestly in the second half, increasing to 1,941 at the year-end. However, lower than expected growth in adviser numbers was offset by a significant rise in productivity. The average revenue per mainstream adviser grew by 12% to c.£138,000.
MAB says clear signs of pent-up demand were evidenced by the increase in mortgage applications in Q4 2024 (+15% compared to Q4 2023) and it expects this "positive momentum to be maintained". UK Finance forecasts gross new lending to rise 11% in 2025 in £235bn, which MAB "believe(s) is a realistic estimate".
In addition, the delivery of new technology enhancements and lead generation initiatives are predicted to drive further growth this year, with many AR firms expecting to see adviser numbers increase, alongside a continued focus on increasing profitability through rising productivity.
Board changes
MAB has also announced that, subject to regulatory approval, its chief risk officer, Paul Gill, will be joining the board as an executive director.
In addition, David Preece, non-executive director, has decided not to seek re-election at the next AGM and the board intends to add two additional independent non-executive directors.
Peter Brodnicki (pictured), CEO of MAB, commented: “Despite two challenging years in terms of UK mortgage volumes, I am very pleased with how MAB has performed. We have increased strategic spend over this period and are starting to see the benefits of this come through in the positive momentum we’re building.
"We expect purchase transactions to steadily increase over the next year, whilst several years of strong refinancing transactions will provide additional opportunities for growth.
"We are seeing increased optimism among many of our ARs, and as a result, expect to see organic growth in adviser numbers start to return in a more meaningful way. Following a slower period in terms of new AR recruitment, we plan to onboard more firms this year while continuing to explore value-accretive acquisitions.
"The step up in productivity in 2024 has been very pleasing, so our focus for this year is on maintaining that momentum, supported by development in technology and AI, and our continued focus on lead generation.”
