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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Mortgage Advice Bureau - Advisor numbers soar 27%

December 2016

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • MAB1
  • Price:
  • 316p
There are no signs of Brexit uncertainty affecting Mortgage Advice Bureau (MAB), which produced impeccable interims for the six months ended 30 June, showing revenues up 38% to £43.1m while pretax profit increased 34% to £5.3m. Strong cash conversion meant net cash rose from £14m to £16.3m, allowing a generous 59% jump in the interim dividend to 7.8p and 90% payout ratio!MAB is a leading compliance network for mortgage brokers and in return for providing the regulatory umbrella, IT and training it receives a fixed percentage on any commission the brokers generate from the sale of mortgage and insurance products. A good proxy for its growth is therefore the increase in fee earning advisers, which in H1 rose 2 ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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