Business
Pre-Close Trading Update
Pre-Close Trading Update.
About this update from Mortgage Advice Bureau (holdings) Plc
[{"type":"text","content":"\n \nRNS Number : 5169M Mortgage Advice Bureau(Holdings)PLC 21 January 2016 \n\n21 January 2016\nMortgage Advice Bureau (Holdings) plc \nPre-close Trading Update \nMortgage Advice Bureau (Holdings) plc (the \"Company\" and together with its subsidiaries, \"Mortgage Advice Bureau\", \"MAB\" or the \"Group\"), one of the UK's leading networks for mortgage intermediaries, today issues a pre-close trading update for its financial year ended 31 December 2015, ahead of publishing its final results announcement on Tuesday, 22 March 2016.\nActivity levels have continued to be high, with Group revenue continuing its upward trend. In the year ended 31 December 2015, MAB generated revenue of £75m, representing a 33% increase over 2014. Following a particularly strong end to the year in terms of both commission banked and performance from our associated businesses, the Company's underlying trading performance for the year ended 31 December 2015 is ahead of the Board's expectations. At 31 December 2015, the Company had a balance sheet cash position of £14m, including over £8m of unrestricted cash balances. \nMAB has continued its ongoing recruitment of Advisers and Appointed Representative firms. The average number of Advisers is a key driver of revenue. The number of Advisers had increased to 790 at 31 December 2015, an increase of 156 or 25% since last year end (634 at 31 December 2014). The average number of Advisers in the 12 months to 31 December 2015 was 720, an increase of 139 or 24% on the average number of Advisers in the 12 months to 31 December 2014 of 581. \nThe Council of Mortgage Lenders (\"CML\") recently published their revised estimates for gross mortgage lending for 2015 and 2016. Going into 2015, the CML estimate for gross lending was £222bn, which they revised down to £209bn in July 2015. The CML now estimates that gross mortgage lending was £214bn in 2015, and have increased their estimate to £237bn (was £230bn) for 2016. These figures suggest that modest growth of circa 5% in mortgage lending was achieved in 2015, which was lower than their original expectation of circa 7%. The CML has also estimated gross mortgage lending of £261bn for 2017, and are therefore now projecting that gross lending growth will be sustained at circa 10% f...