24th Sep 2024 11:59
(Alliance News) - Mortgage Advice Bureau Holdings PLC on Tuesday posted an optimistic outlook for the rest of the year, as mortgage activity picks up after the UK election lull.
For the six months ended June 30, the Derby, England-based mortgage broker reported pretax profit of GBP6.2 million, down 18% from GBP7.6 million a year prior.
Adjusted pretax profit, however, rose 40% to GBP12.3 million from GBP8.8 million.
Revenue was up 5.4% to GBP123.9 million from GBP117.5 million the previous year.
"The first few months of 2024 started well as mortgage rates edged down ahead of expected base rate cuts and a more stable political outlook. When it became clear those cuts were not imminent, lenders adjusted their mortgage rates back up and the increased activity we saw started to tail off towards the end of Q1," said Chief Executive Peter Brodnicki.
"We expect to see record years in terms of re-financing activity in 2025/2026 and it is very encouraging to have a new government that is so focused on housebuilding and other initiatives that will bring a tail wind to MAB and our market."
"A significant amount of mortgage re-financing has been delayed for several months and we expect August's Bank of England rate cut - and the prospect of further cuts - to foster a more active refinancing market, as well as a gradual recovery in the number and make-up of housing transactions."
Looking ahead, Mortgage Advice Bureau said that it continues to trade "in line with expectations", particularly given an 11% pick-up in written new case numbers in July and August compared to last year.
This increased activity is expected to continue in the final quarter of this year.
The firm declared an interim dividend of 13.4 pence, unchanged from a year prior.
Shares in Mortgage Advice Bureau Holdings were trading 8.1% higher at 588.00 pence each in London on Tuesday just before noon.
By Holly Beveridge, Alliance News senior reporter
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