By Elena Vardon
Mortgage Advice Bureau (Holdings) has adopted a more cautious stance regarding its outlook for 2023, citing worsening market conditions. However, the company, excluding its Fluent business, still expects to meet or exceed its expectations.
The leading property-letting company in the U.K. announced on Tuesday that it anticipates reporting an adjusted pretax profit of at least £22 million ($26.9 million). The company believes there is potential for additional upside if market conditions normalize. In 2022, it recorded a profit of £27.2 million.
Following a recovery in market conditions during the second quarter, there was a subsequent decline in the third quarter. This decline negatively impacted the company’s purchase and refinancing activity, as well as its expected activity levels for the fourth quarter.
During the first half of the year, the London-listed group’s pretax profit stood at £7.6 million, compared with £10.1 million the previous year. The decrease was primarily due to higher administrative expenses. Adjusted pretax profit also saw a decline from £11.5 million to £8.8 million.
The company’s revenue climbed to £117.5 million from £96.5 million, mainly driven by higher fees, as previously reported.
Despite current challenges, the board has declared an interim dividend of 13.4 pence per share, which remains unchanged from the previous period.
“The underlying level of demand for home ownership and home moves remains strong, and we are confident that once inflation is under control and the Bank of England base rate has peaked or started to fall back, we will see demand and activity strengthen again,” stated the company.
