Mortgage Advice Bureau Holdings

Website: Mortgage Advice Bureau Holdings
Index: AIM
EPIC: MAB1
Supersector: Financial Services
Sector: Financial Services
Subsector: Mortgage Finance
Market Cap: £304.98M
Payout Frequency: Semi-Annual

Mortgage Advice Bureau Holdings Dividend Analysis and Summary

Key Dividend Details

Dividend type: Proposed final dividend
Amount: 15.3p per share (FY total 22.5p; interim 7.2p)
Ex-dividend date: 23/04/2026
Record date: 24/04/2026
Payment date: 26/05/2026
Cash outlay: Final c.£8.9m; FY dividends c.£13.1m
Policy: Ordinary dividend set at 50% of adjusted post-tax profit; Board intends a progressive policy going forward
Coverage: Adjusted EPS 44.5p; FY dividend cover c.2.0x

Financial Backing for the Dividend

Adjusted PBT up 13.3% to £36.3m; adjusted diluted EPS up 13.5% to 44.5p
Free cash flow £35.5m; adjusted cash conversion 121%
Net debt £3.3m; leverage 0.1x; surplus regulatory capital headroom £56.7m

Dividend Sustainability and Growth Outlook

Sustainability: The dividend is well-covered by earnings (c.2.0x) and free cash flow (FCF cover c.2.7x vs £13.1m FY dividend), supported by strong cash conversion and very low leverage. This points to good resilience.
Growth trajectory: The final dividend rises +3.4% year on year (15.3p vs 14.8p), but the FY dividend falls to 22.5p (from 28.2p) due to a lower interim as the payout is explicitly aligned to 50% of adjusted post-tax profit. With adjusted EPS growing double-digit and a stated progressive policy, future dividend growth should broadly track adjusted earnings.
Profitability mix: Adjusted PBT margin dipped (11.4% vs 12.0%) on mix (more Product Transfers, integration timing). Near-term integration benefits and adviser productivity gains are expected to support margins over time, which would underpin dividend growth.
Capital allocation fit: Management continues to balance ordinary dividends with organic tech investment (c.£11.9m) and selective M&A (cash c.£9.6m in 2025), while maintaining strong FCF and low gearing—supportive for a sustainable ordinary dividend.

Structural/Strategic Developments Relevant to Dividends

Main Market move: Intends to transfer to the LSE Main Market (ESCC) in Q2 2026, aiming to broaden the investor base—potentially positive for dividend policy discipline and access to capital.
M&A and integration: Multiple acquisitions in 2025 (Heron, M&R FM, Evolve, Meridian, UK Moneyman, Dashly, KFS, Lucra) with a stated pivot to integration and synergy realisation in 2026+. Successful delivery should enhance cash generation supporting the dividend.
Policy framework: Ordinary dividend fixed at 50% adjusted post-tax profit with a progressive intent—dividends should move in line with adjusted earnings rather than statutory results.
Refinancing: Bank facilities are classified current at year-end pending extension; management is progressing a refinancing for a further three-year term.

Risks and Flags to Dividend Stability

Policy reset effect: FY dividend reduced year on year (22.5p vs 28.2p) reflecting the 50% payout framework—future distributions tied to adjusted profits.
Refinancing timing: All borrowings shown as current until the new facility is executed; while leverage is low and covenants are comfortable, timing remains a watchpoint.
Integration/Mix risk: Execution risk from multiple acquisitions and a shift toward Product Transfers (typically lower protection attachment) weighed on margins; delays in synergy capture could temper earnings growth.
Contingent obligations: Redemption liabilities rose to £8.9m; clawback liability increased to £15.1m—these are manageable but require ongoing cash discipline.
Market/macro sensitivity: Mortgage market volumes and rate volatility, plus geopolitical uncertainty, can move activity between periods; however, MAB’s refinance exposure and diversified lead sources provide some cushioning.
Adjusted vs statutory gap: Material non-cash acquisition-related charges depress statutory EPS; dividend is anchored to adjusted profit, so investors should focus on adjusted metrics.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
24/04/2025	27/05/2025	Final	14.80p	GBX
02/10/2025	31/10/2025	Interim	7.20p	GBX

Total (Annual Dividends Per Share): 22.00p

Dividend Yield = Annual Dividends Per Share (22.00p) ÷ Share Price (532p) = 4.14%

Ex Dividend Date	Payment Date	Type	Amount	Currency
23/04/2026	26/05/2026	Final	15.3000p	GBX
02/10/2025	31/10/2025	Interim	7.20p	GBX
24/04/2025	27/05/2025	Final	14.80p	GBX
03/10/2024	01/11/2024	Interim	13.40p	GBX
25/04/2024	29/05/2024	Final	14.70p	GBX
05/10/2023	03/11/2023	Interim	13.40p	GBX
27/04/2023	31/05/2023	Final	14.70p	GBX
06/10/2022	04/11/2022	Interim	13.40p	GBX
28/04/2022	30/05/2022	Final	14.70p	GBX
30/09/2021	29/10/2021	Interim	13.40p	GBX
29/04/2021	28/05/2021	Final	19.20p	GBX
26/11/2020	18/12/2020	Interim	6.40p	GBX
30/04/2020	29/05/2020	Final	6.40p	GBX
03/10/2019	25/10/2019	Interim	11.10p	GBX
25/04/2019	24/05/2019	Final	12.70p	GBX
04/10/2018	26/10/2018	Interim	10.60p	GBX
26/04/2018	22/05/2018	Final	11.90p	GBX
05/10/2017	27/10/2017	Interim	9.50p	GBX
04/05/2017	31/05/2017	Final	10.50p	GBX
06/10/2016	28/10/2016	Interim	7.80p	GBX
05/05/2016	01/06/2016	Final	9.50p	GBX
01/10/2015	30/10/2015	Interim	4.90p	GBX
07/05/2015	29/05/2015	Final	2.00p	GBX

Year	Interim	Final	Currency	Total	Change
2024	13.400	14.700	GBX	28.100	0.000
2023	13.400	14.700	GBX	28.100	0.000
2022	13.400	14.700	GBX	28.100	-13.800
2021	13.400	19.200	GBX	32.600	154.680
2020	6.400	6.400	GBX	12.800	-46.210
2019	11.100	12.700	GBX	23.800	5.770
2018	10.600	11.900	GBX	22.500	12.500
2017	9.500	10.500	GBX	20.000	15.600
2016	7.800	9.500	GBX	17.300	150.720
2015	4.900	2.000	GBX	6.900

Number of Shares:

Payment	Paid	Amount
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