Mortgage Advice Bureau posts double‑digit growth and eyes Main Market move
Mortgage Advice Bureau (Holdings) plc (AIM: MAB1) has delivered a strong 2025, growing faster than the mortgage market and setting up for a Main Market listing in Q2 2026 (subject to FCA approval). Revenue rose 19.6% to £318.8m and adjusted diluted EPS increased 13.5% to 44.5p. Cash generation stayed excellent and leverage is negligible.
There is plenty to like here: adviser numbers and productivity are both up, refinancing momentum is strong, and the Group is leaning into data, digital and AI to keep customers engaged between mortgage events. Margins eased a touch due to mix and investment, and statutory profit dipped, but the strategic direction is clear.
Key numbers investors will care about
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Revenue | £318.8m | £266.5m | +19.6% |
| Adjusted PBT / margin | £36.3m / 11.4% | £32.0m / 12.0% | +13.3% / -0.6pp |
| Statutory PBT / margin | £22.1m / 6.9% | £22.9m / 8.6% | -3.4% / -1.7pp |
| Adjusted diluted EPS | 44.5p | 39.2p | +13.5% |
| Basic EPS | 26.0p | 27.6p | -5.8% |
| Adjusted cash conversion | 121% | 120% | +1pp |
| Net debt / leverage | £3.3m / 0.1x | £9.7m / 0.3x | Improved |
| Proposed final dividend | 15.3p | 14.8p | +3.4% |
| Market share – new lending | 8.4% | 8.4% | Stable |
| Market share – Product Transfers | 3.0% | 2.7% | +0.3pp |
Jargon buster: adjusted PBT excludes acquisition-related and other non-trading items; Product Transfers are rate switches with the same lender; leverage is net debt divided by adjusted EBITDA.
Outperforming in a bigger mortgage market
The UK mortgage market recovered in 2025, with total lending up 19% to £548.5bn. MAB’s completions rose 23% to £32.0bn, nudging total market share up to 5.8% (2024: 5.7%). Within that, new lending share held steady at 8.4%, while the important refinancing engine fired: Product Transfer share climbed to 3.0% and remortgage share to 8.6%.
This matters because roughly two‑thirds of UK mortgage transactions are refinancing. MAB is leaning into this with retention initiatives, data‑led nurturing and dedicated refinance advisers. It’s a resilient, repeatable revenue stream that helps smooth the cycle.
Where the growth came from
- Procuration fees (fees lenders pay to brokers) rose 27% to £133.9m, helped by a 21% increase in refinance cases and a 4% uptick in average loan size.
- Protection and general insurance commission grew 12% to £117.5m, with Pure Protection at £102.7m (+13%). Protection remains central to the consumer duty agenda and offers attractive margins over time.
- Client fees increased 20% to £61.3m, driven by early‑year purchase activity and specialist lending growth.
Importantly, adviser capacity and productivity moved up together – a good sign for operating leverage. Mainstream adviser numbers rose 10% to 2,135, and revenue per adviser increased 13% to £157k. Two‑thirds of the adviser growth was organic from within the network.
Margins, costs and cash: under the bonnet
Group gross profit rose 19% to £91.9m with gross margin broadly flat at 28.8% (-0.1pp). The AR Network’s margin fell to 24.8% from 26.1% due to mix (more remortgage and Product Transfers typically mean lower protection attachment), partly offset by a stronger margin in Invested Businesses (38.1%, up from 36.0%).
Administrative expenses increased to £56.2m (17.6% of revenue), reflecting platform build, people and professional services to support scale. Adjusted PBT margin slipped 0.6pp to 11.4%. That’s the trade‑off: invest now to drive adviser productivity, retention and digital lead flow later. With adjusted cash conversion at 121% and leverage at just 0.1x, MAB has room to keep investing.
M&A and technology: building the platform
2025 was busy for integration and selective acquisitions: Heron, Evolve, Meridian, UK Moneyman, Lucra and Kinleigh Financial Services were all brought into the fold, while the acquisition of Dashly (the tech and data engine behind Mortgage Monitoring) strengthens post‑completion engagement and refinance capture. Cash consideration for M&A was £9.6m (plus £2.8m for Dashly, treated as strategy spend). Strategic spend totalled £11.9m, largely technology, marketing and customer nurturing.
Why it matters: MAB’s pitch is a scaled, tech‑enabled intermediary platform that captures, nurtures and retains customers across purchase, refinance and protection. The deeper the data and the broader the lead sources, the more predictable the growth.
Dividend, balance sheet and Main Market listing
The Board proposes a final dividend of 15.3p (record date 24 April 2026; payment 26 May 2026), taking the full‑year dividend to 22.5p under the new policy of paying 50% of adjusted post‑tax profit. That’s lower than 2024’s 28.2p for the year, but aligned with a progressive, sustainable policy from here.
Net debt reduced to £3.3m and leverage to 0.1x. Borrowings are presented as current because facilities mature within 12 months; management has already begun the refinancing process and continues to meet covenants. Cash and cash equivalents ended at £26.6m; free cash flow was £35.5m.
The planned move to the Main Market’s ESCC category in Q2 2026 should broaden the investor base and raise the Group’s profile, which could support liquidity and valuation if execution stays on track.
Outlook: solid start to 2026 and a fatter refinance pipeline
Trading in 2026 has begun with momentum: mortgage applications in Q1 to date are up 13% year on year. MAB’s fixed‑rate maturities are 19% higher in 2026 than in 2025, setting up continued strength in refinancing. Forecasts for the market vary – UK Finance sees +3% total lending growth; IMLA is more upbeat at +8% – but either way MAB’s pipeline looks better than the market’s.
Risks remain. The RNS flags geopolitical uncertainty (including the Middle East) and the recent uptick in customers locking rates, which could pull some activity forward between quarters. Mix also matters: more Product Transfers help volumes and retention but can dilute protection take‑up and near‑term margins.
My take: why this update matters
- Positives: strong top‑line growth; rising adviser productivity; refinancing outperformance; cash conversion above 100%; low leverage; Product Transfer share up; and a credible tech/data story with Dashly now in‑house. The Main Market plan is a statement of intent.
- Watch‑outs: statutory PBT slipped, and adjusted margins eased as the Group invested and mix shifted. The full‑year dividend fell under the new policy (though the final is up). Borrowings are shown as current pending refinancing, which investors will want to see completed promptly.
What to watch in 2026
- Refinance execution: maturities are 19% higher – can MAB keep converting at elevated rates and grow Product Transfer share beyond 3.0%?
- Protection growth: the expanded protection‑only adviser team should support higher policy volumes and better attachment across remortgage and Product Transfers.
- Platform benefits: evidence that automation, AI‑enabled data capture and nurture materially reduce case handling time and lift conversion.
- Integration synergies: Invested Businesses margins already improved to 38.1%. Further gains as 2025 acquisitions annualise would support the >15% adjusted PBT margin target over time.
- Main Market move: execution and any change in index or shareholder mix once listed.
Bottom line
MAB is doing the right things: growing adviser capacity, owning more of its lead sources, and using data to keep customers close between mortgage events. 2025 shows the model working, particularly in refinancing, with strong cash generation to fund the next leg. Margins softened, but the ingredients are there to rebuild them as mix normalises and integration benefits flow.
If the Group sustains Q1 momentum, lands its refinancing, and delivers on the Main Market transition, the medium‑term targets – double 2024 revenue, >15% adjusted PBT margin, >100% cash conversion, and higher new‑lending share – look achievable. For patient investors, this remains a high‑quality, capital‑light compounder in a market where scale, data and retention increasingly win.
