The mortgage broker has abandoned hopes of a housebuyer rebound this year, blaming a stalled market and hold-ups at its Fluent lending arm.
Mortgage Advice Bureau (AIM: MAB1) has slashed its full-year profit guidance, telling investors it now expects adjusted pre-tax profit of around £38m for 2026, well short of the £43.4m analysts had pencilled in, after the anticipated bounce in home-buying activity failed to show up.
The downgrade largely stems from Fluent, the group's specialist lending division, where a promised surge in new business leads has yet to materialise. That delay has left Fluent absorbing pilot costs without the matching revenue, cutting roughly £5m from its expected profit contribution and accounting for the bulk of the group-wide shortfall.
First-half profit came in at about £14.8m, marginally ahead of a recent trading update, but the broker warned that conditions had turned tougher over the summer as global economic uncertainty weighed on inflation and interest rate expectations. It said it no longer expects a meaningful recovery in purchase activity in the near term.
The update echoes recent warnings from UK housebuilders about sluggish market conditions. Official data cited alongside the announcement showed purchase transactions down 3% in the first seven months of the year, while mortgage approvals for house purchases fell 15% year-on-year in July, with the market increasingly dominated by lower-value remortgaging rather than fresh purchases.
With affordability pressures continuing to squeeze remortgaging activity and no clear catalyst for a purchase-market revival, investors will be watching for any signs that Fluent's delayed lead flows finally begin to convert into revenue, as well as further housing market data in the coming months.
This report is based on Mortgage Advice Bureau’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full results calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Richard Bell on Unsplash.
Small Cap News covers London’s junior market – AIM, small-cap and growth companies – with concise, sourced reporting on the results, deals and regulatory news that move share prices. We track the stories private investors actually need, from contract wins and drilling updates to fundraises and half-year figures, straight from the market’s own announcements.