Belvoir Lettings PLC (LON:BLV) has strengthened its mortgage broking operation Brook Financial with the acquisition of MAB (Gloucester) Limited for £3.6mln net in cash.
MAB Glos is the largest appointed representative firm of AIM-listed Mortgage Advice Bureau PLC (LON:MAB1), one of the UK's leading networks for mortgage intermediaries.
WATCH: Belvoir Lettings acquisition of MAB Gloucester is a 'win-win' says CEO Gonsalves
Belvoir intends to use MAB Glos to extend its mortgage advice business across the country using its existing lettings office network to boost penetration of financial services into Belvoir's client base.
Dorian Gonsalves, chief executive, said following the acquisition the group will total 364 offices, including Brook, operating under the Belvoir Group.
“MAB Glos will provide the basis for developing a network of financial advisers to support our franchisees at a local level, in addition to the existing mortgage advice services delivered centrally by Brook.
Michelle Brook, the head of Brook Financial, will run the enlarged mortgage arm with all four of MAB Glos's business development managers staying on.
MAB Glos has a network of 63 Business Partners, who operate on a self-employed basis licensed with Mortgage Advice Bureau providing support, a website and marketing.
Its network is currently based primarily in the Midlands, the South West and Wales and in the 12 months to August generated revenue of £3.87mln and a profit before tax of £575,000.
Over the past three years, the number of mortgage advisers within the MAB Glos network has grown from 32 to 88, of which 22 have joined in 2018.
These additional advisers are expected to boost business further in 2019 and 2019.
Belvoir added that trading has continued well and is in line with market expectations.
“This will give our existing property franchisees the ability to 'build a business within a business' by either utilising an existing MAB Glos mortgage adviser or taking on their own new adviser on-site.”