Mortgage Advice Bureau (MAB) has announced big plans for its future growth over the medium term – starting with a doubling of the revenue achieved in 2024.
The UK mortgage and protection network and broker, also announced that it is considering moving to the main FTSE market on the London Stock Exchange.
In September the firm’s first half-year results for 2024 showed overall revenue of £123.9m, up 5.4% from the same period in 2023 when it earned £117.5m – however profit dropped by 40% largely as a result of a £1.1m protection commission clawback.
The medium-term targets for MAB include:
- Doubling revenue from that achieved in 2024
- Adjusting the profit before tax (PBT) margin of more than 15%
- Cash conversion of more than 100%
- Doubling market share
The announcement comes ahead of the company’s Capital Markets Day which it will hold at the London Stock Exchange tomorrow.
The agenda of the event includes the launch of MAB 2.0 vision and strategic priorities, mortgage innovation opportunities, regulation and Consumer Duty, and customer acquisition and lifetime value.
Growth objectives
MAB said: “To support these growth objectives, the board has approved a new capital allocation framework that will replace our current pay out-based dividend policy with a progressive dividend policy that has no specific pay out ratio target.
“This new approach reflects our desire to optimise the mechanism by which capital is returned to shareholders and ensure sufficient capital is available to fund growth opportunities.
“Under the new framework, we will formally review our capital position on an annual basis.
“Capital will be allocated according to explicit return criteria.”
Consideration of move to main market
MAB said it is assessing the potential to move to the Equity Shares (Commercial Companies) segment of the Official List, with the ambition of meeting the criteria for inclusion in the FTSE 250 index.
MAB said: “This move should facilitate access to a broader group of investors and further enhance the group’s profile.
“The board is committed to ensuring that any move is a responsible step, with the timing contingent on a continued strong performance. Further updates will be provided as appropriate.”
New dividend policy
The company also outlined a new dividend policy, which could result in shareholders earning greater dividends than previously.
“Surplus capital that is not required to fund organic business investment, ordinary dividends, or potential inorganic investment opportunities to support our strategy will be returned to shareholders as additional returns over and above ordinary dividends,“ it said.
“Such distributions are expected to be made via share buybacks or special dividends.”
Meanwhile, the board expects to announce a proposed final dividend for 2024 in the group’s final results release on 18 March 2025, which is expected to be at or above the amount paid in 2024.
MAB said: “In respect of 2025, the board currently expects to pay out approximately 50% of adjusted post-tax and minority interest profits, with approximately one-third of the expected full-year dividend being paid following the announcement of the group’s interim results (November 2025) with the remaining two-thirds to be paid, if approved, following MAB’s annual general meeting (AGM) (May 2026).
“The board is committed to a progressive dividend policy thereafter.”
Next stage of journey
Peter Brodnicki, founder and CEO of MAB, said: “MAB has been listed on the London Stock Exchange for just over a decade.
“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.“