Mortgage Advice Bureau (Holdings) PLC (AIM:MAB1, OTC:MABHF) has set out a quartet of medium-term growth targets and a new capital allocation framework, while also revealing that it is considering a move from AIM to London’s main market.
Ahead of a ‘capital markets day’ event for investors and analysts at the London Stock Exchange, the mortgage broker said the four new targets are: doubling the level of revenue made in 2024, doubling market share, maintaining an adjusted pre-tax profit margin of at least 15% and cash conversion of at least 100%.
A new capital allocation framework has been approved by the board, which MAB said will support these growth objectives.
This will see a progressive dividend policy with no specific payout ratio target replace the current payout-based dividend policy.
“This new approach reflects our desire to optimise the mechanism by which capital is returned to shareholders and ensure sufficient capital is available to fund growth opportunities,” the company said.
Under this new framework, an annual review of capital will result in special dividends or share buybacks if there is deemed any surplus capital not required to fund organic business investment, ordinary dividends, or potential inorganic investment opportunities.
Marking just over a decade on the stock market for the company he founded, CEO Peter Brodnicki said: “2025 sees the start of the next stage of our journey with today's commitments to grow the business significantly over the medium term for the benefit of our shareholders and other stakeholders.”
For 2024, MAB said a final dividend will be proposed at the time of final results scheduled for 18 March, with the payout expected to be at or above the amount paid a year ago.
For 2025, the board currently expects to pay out approximately 50% of adjusted post-tax and minority interest profits, with roughly a third of the expected full-year amount paid as an interim dividend.
The company said these targets will be examined in more detail at the event, for which there is a live webcast for those who cannot attend.