Mortgage Advice Bureau sets new targets, mulls Main Market move
By Josh White
Date: Tuesday 04 Feb 2025
(Sharecast News) - Mortgage Advice Bureau outlined new medium-term targets, a revised capital allocation framework, and a progressive dividend policy on Tuesday, ahead of its capital markets day on 5 February.
The AIM-traded company said it was also considering a move to the London Stock Exchange's Main Market, with the aim of qualifying for inclusion in the FTSE 250 index.
It said it was aiming to double its revenue from 2024 levels, achieve an adjusted pre-tax profit margin above 15%, exceed 100% cash conversion, and double its market share.
To support those objectives, the board had approved a new capital allocation framework that would move away from a fixed payout ratio to a progressive dividend policy.
Capital would be allocated based on explicit return criteria, with surplus funds returned to shareholders through share buybacks or special dividends.
The board said it expected to propose a final dividend for 2024 at or above the prior year's level, with a 2025 payout set at approximately 50% of adjusted post-tax and minority interest profits.
Dividend payments would be split into two distributions, with one-third paid following interim results in November and the remainder, subject to approval, after the 2026 annual general meeting.
The potential move to the Main Market was meanwhile being considered to broaden the investor base and enhance the company's profile.
MAB said the timing would depend on continued strong performance, with further updates to be provided as appropriate.
"MAB has been listed on the London Stock Exchange for just over a decade," said founder and chief executive officer Peter Brodnicki.
"In that time, we have grown a market-leading, specialist network for mortgage advisers whilst delivering positive returns for our shareholders.
"2025 sees the start of the next stage of our journey with today's commitments to grow the business significantly over the medium term for the benefit of our shareholders and other stakeholders."
At 1031 GMT, shares in Mortgage Advice Bureau were up 4.74% at 752p.
Reporting by Josh White for Sharecast.com.
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