Lincolnshire-headquartered Belvoir Group has acquired MAB (South West) Ltd (“MAB SW”), a financial services business for a cash consideration of £1.0m. This follows the earlier acquisition of BMA Bristol Limited (“BMA”) in June 2023 for £1.1m in cash.
BMA and MAB SW both trade as the Mortgage Advice Bureau and are appointed representative firms of Mortgage Advice Bureau, the wholly owned subsidiary of AIM-listed Mortgage Advice Bureau (Holdings) plc (“MAB”), one of the UK’s leading networks for mortgage intermediaries.
The Acquisitions provide mortgage and related financial services to clients through a combined network of 41 highly motivated advisers, all of whom are self-employed 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 acquired the entire issued share capital of then two companies, through its subsidiary Brook Financial Services Ltd , 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.
In the year to 30 September 2022 MAB SW had revenue of £1.5m, pre-tax profits of £0.1m and net assets of £0.2m. In the year to 31 December 2022 BMA had revenue of £1.8m, pre-tax profits of £0.3m and net assets of £0.1m. The Acquisitions are expected to be immediately earnings accretive adding around £0.6mp.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. In addition, BMA operates a lead-generating website, www.pebblemortgages.co.uk, which can be utilised to generate leads across the wider financial services network.
Dorian Gonsalves, Chief Executive Officer, Belvoir commented:“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. 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.”
