Belvoir snaps up MAB mortgage broker for £1 million

Belvoir Group is continuing its push into mortgage brokering after buying MAB South West for £1 million.

The deal comes shortly after the June acquisition of BMA Bristol for £1.1 million cash – both from Mortgage Advice Bureau.

APPOINTED REPRESENTATIVES

BMA and MAB South West both trade as and are appointed representatives of Mortgage Advice Bureau one of the UK’s leading networks for mortgage intermediaries.

Both acquisitions provide mortgage and related financial services to clients through a combined network of 41 self-employed advisers with MAB providing training, support, compliance, website and national marketing via the wider MAB brand.

With BMA based in Bristol and MAB SW based in Plymouth, the Group has extended its reach across the South-West.

Belvoir made both acquisitions through its subsidiary Brook Financial Services for a total net consideration of £2.1m, settled in cash from existing cash reserves.

Tim Wood, Brook’s Financial Services Director, will manage both businesses, overseen by Michelle Brook, Managing Director of Brook and Executive Director of the Belvoir Group PLC Board.

EXPERIENCED

Dorian Gonsalves (main picture), Chief Executive Officer, Belvoir, says: “We are delighted to announce the acquisitions of BMA Bristol and MAB (South West), which extend our network of experienced financial advisers across the South-West, supporting both our franchisees at a local level, as well as servicing leads from independent agents.

The acquisitions have been secured during a more challenging phase of the property sector cycle which has been reflected in the price paid.”

“The acquisitions have been secured during a more challenging phase of the property sector cycle which has been reflected in the price paid.

“However, the Board is confident that given the strong client banks within these businesses, they can be developed further and be positioned to take advantage of future upsides in the new purchase and remortgage markets.”

PRE-TAX PROFITS

In the year to 30 September 2022 MAB SW had revenue of £1.5 million, pre-tax profits of £0.1 million and net assets of £0.2 million. In the year to 31 December 2022 BMA had revenue of £1.8 million, pre-tax profits of £0.3 million and net assets of £0.1 million. The acquisitions are expected to be immediately earnings accretive adding around £0.6 million p.a. to Group profit before tax.

The acquisitions bring Belvoir’s financial services network up to 321 advisers, which the Board believes will enhance growth through accelerating the nationwide coverage of advisers who can support growth of the mortgage and remortgage business within its property franchise offices.

BMA also operates a lead-generating website,www.pebblemortgages.co.uk, which can be utilised to generate leads across the wider financial services network.