Mortgage network records seventh year of profit growth

Mortgage network records seventh year of profit growth

During 2015 the Mortgage Advice Bureau generated revenue of £75m, up by a third on the 2014 total, according to its full year results.

The mortgage intermediary network’s pre-close trading update, published ahead of final results on 22 March, showed a particularly strong end to the year in terms of both commission banked and performance from associated businesses.

At 31 December, the company had a balance sheet cash position of £14m, including more than £8m of unrestricted cash balances.

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It continued ongoing recruitment of advisers and appointed representative firms, with the average number of advisers being a key driver of revenue.

This figure increased to 790 by the end of the year, up by a quarter, or 156 advisers, compared to the 634 recorded at last year end.

The average number of advisers in the last 12 months was 720, an increase of 139 or 24 per cent on the 581 average for the previous 12 months.

Chief executive Peter Brodnicki noted that this marks the group’s seventh consecutive year of profit growth, “demonstrating our understanding of the market in which we operate and our focus on building a high quality business with sustainable profitability”.

In September, the Mortgage Advice Bureau stated that its revenue was up by 28 per cent over the first six months of 2015 to £31.2m, driven by a 20 per cent rise in the average number of advisers in the year to the end of June, to 638.

This came from a combination of newly appointed representatives and the organic expansion of existing appointed representatives, while growth was also helped along by procuration and client fees both going up since the implementation of the Mortgage Market Review last April.