LONDON (ShareCast) - (Sharecast News) - Mortgage Advice Bureau said in a trading update on Thursday that its first-half revenue increased 3% to £95m, from a comparative period in which mortgage completions were "considerably boosted" by the stamp duty holiday changes in early 2021.
The AIM-traded firm said the average number of mainstream advisers during the six months ended 30 June increased 19% to 1,890, with total adviser numbers at period end up 8% on the end of 2021 at 2,034.

During the first half, the time taken to complete a property purchase increased by about one month compared to the first half of last year.

MAB said a number of factors were delaying transactions, including conveyancing and local authority capacity constraints, down-valuations, and expiring mortgage offers that needed to be reconsidered and reissued by lenders due to the frequency of UK base rate increases in the period.

Despite the rising cost of living for households and further national and geopolitical uncertainty, the board said the level of consumer demand for housing remained "strong".

The resilience of demand from people moving house was supported by near-full employment in the UK, high levels of household savings and, for those who were subsequent movers, rising housing equity levels over recent years.

Lenders also had "strong" liquidity levels, meaning mortgage availability was now close to pre-pandemic highs, helping market activity to remain healthy.

Although interest rates had risen and would most likely continue to rise over the next 12 months, MAB noted that current interest rates remained near historical lows.

As expected, increases in interest rates have stimulated more refinancing activity, with mortgage borrowers now said to be "more motivated than ever" to secure the best possible rate to help household budgeting.

The group said it started the second half with a larger-than-usual pipeline of written business, due to the extended timeframe for completions, while refinancing activity continued strongly.

While it expected consumer demand to cool somewhat in the coming months, transaction levels were expected to remain "healthy".

The board noted the completion of the Fluent Money Group acquisition earlier in July, which it said would allow the enlarged group to benefit from national lead generation across its entire business sooner than previously expected - reinforcing its confidence in its outlook for 2023 and beyond.

Following the end of the first half, the group also increased its stake in Vita Financial - a protection and general insurance advice firm - to 75% from 49%.

The directors described it as a "strategically important step" for the group as it looked to achieve an "even stronger market presence" in the area.

MAB said its adjusted profit before tax for the year ending 31 December was expected to be in line with market expectations.

"Despite the obvious frustrations with the pace of completion of housing purchase transactions, our growth plans have been further boosted this year by the acquisition of Fluent Money," said chief executive officer Peter Brodnicki.

"The expected performance of this strong business, and the leverage it will provide to drive new and significant lead flow into MAB, added to continued strong adviser growth and ongoing enhancements in our technology platform, further supports our plan for accelerated growth into 2023 and beyond regardless of market conditions."

Mortgage Advice Bureau said it would report its interim results for the six months ended 30 June on 27 September.

At 1316 BST, shares in Mortgage Advice Bureau Holdings were up 1.5% at 950p.

Reporting by Josh White at Sharecast.com.

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