Delivering, Growing, Innovating
Investor and Analyst presentation
Mortgage Advice Bureau (Holdings) Plc
Interim results for the six months ended 30 June 2022
Contents
Highlights | 3 |
Market backdrop | 6 |
Financial review | 9 |
Strategy | 14 |
Summary and outlook | 17 |
Appendices | 18 |
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Highlights
3
Financial Highlights
Strong performance against an exceptional H1 2021 when the Stamp Duty holiday accelerated purchase completions, and despite delays to pipeline completions
R e v e n u e | G r o s s P r o f i t | A d j . P B T 1 | ||
£96.5m | +4% | £25.4m | +3% | £11.5m | - | ||
A d j . E P S 1 | I n t e r i m D i v i d e n d | C a s h C o n v e r s i o n 2 | ||
16.4p | -8% | 13.4p | - | 124% | +4pp3 |
-
H1 2022 adjusted for £1.5m (H1 2021: £nil) of costs relating to the acquisition of The Fluent Money Group, £0.4m (H1 2021: £0.6m) of costs relating to the First Mortgage option, £0.2m (H1 2021: £0.2m) of amortisation of acquired intangibles,
£0.7m of net fair value gains on deferred considerations (H1 2021: £nil), and £0.03m (H1 2021: £nil) of net fair value losses on derivative financial instruments. Adjusted EPS is also shown on the same basis, net of any associated tax effects - Adjusted cash conversion is cash generated from operating activities adjusted for movements in non-trading items, including loans to AR firms and associates totalling £(0.3)m in H1 2022 (H1 2021: £(0.9)m), and increases in restricted cash
balances of £0.5m in H1 2022 (H1 2021: £1.2m), as a percentage of adjusted operating profit.
3. | Percentage points. | 4 |
Operational Highlights
M o r t g a g e | M a r k e t S h a r e 2 | |
C o m p l e t i o n s 1 | ||
S t r a t e g i c p r o g r e s s
£12.2bn | +11%
(UK gross lending for H1 2022 was down 10%)
A d v i s e r N u m b e r s 3
6.8% | +13%
R e v e n u e P e r
M a i n s t r e a m a d v i s e r 4
The Fluent Money Group ("Fluent")
- Completion of acquisition of 75.4% of Fluent on 12 July 2022
- Transformational for the Group's lead generation strategy
- Faster than expected lead growth in mortgage division since Q2 2022
- Integration progressing very well
Vita Financial Ltd ("Vita")
2,034 | +20% | £51.0k | -13% | |
- Increased stake in Vita to 75%
- MAB's gross mortgage completions, including product transfers. Based on information received from the Legal & General Mortgage Club.
- Market share of gross new mortgage lending (excluding product transfers). 2021 market share for the seven months ended 31 July 2021 due to the distortion effect around 30 June 2021 with the tapering of the stamp duty holiday thereafter.
- Includes a total of 67 advisers at 30 June 2022 who are either directly authorised or later life advisers. Total also includes 14 advisers from associates, who are in the process of being onboarded under MAB's AR arrangement
- Based on average number of mainstream advisers for the period. Mainstream advisers exclude directly authorised advisers, later life advisers, and advisers from associates in the process of being onboarded.
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