Earnings call transcript: Mortgage Advice Bureau cuts guidance in H1 2026

Mortgage Advice Bureau PLC reported a rise in first-half 2026 revenue to £161 million, marking an 8.6% increase year over year. However, adjusted diluted earnings per share grew by just 1.1% to 18.4p, reflecting challenges in maintaining profitability. The company revised its full-year profit guidance to approximately £38 million before tax.

Shares experienced a decline in premarket trading, dropping 4.05% to £354.45, which is near the bottom of its 52-week range. Despite the price drop, the stock may still be undervalued at current levels, with shares trading 1% above their 52-week low. The dividend yield stands at 6.2%, offering some compensation for patient investors.

In the first half of 2026, total mortgage lending grew by 16% to £16.5 billion, a positive indicator of business growth. However, adjusted profit before tax only rose by 2.1% to £14.8 million. Administrative expenses increased significantly by 21.6% to £32.5 million, driven by acquisitions and investment spending. The company's focus shifted towards refinancing and product transfers, which accounted for 86% of refinancing activity and reduced revenue per transaction.

Management attributed the disappointing results to a mix of weaker product offerings and higher costs, despite a resilience in loan volumes and strong gross profit growth.