27 November 2018 – acquisition and trading update
The company has acquired MAB (Gloucester) Limited for net consideration of £3.6m through its subsidiary Brook Financial Services Ltd. The consideration will be satisfied in cash from a drawdown of existing bank facilities. The acquisition is expected to be immediately earnings enhancing. MAB (Gloucester) trades as Mortgage Advice Bureau and is the largest appointed representative firm of Mortgage Advice Bureau, which is AIM-listed and one of the UK’s leading networks for mortgage intermediaries. Belvoir Lettings has also provided an update that trading is in line with expectations and a detailed pre-close trading update for the year ended 31 December 2018 will be provided at the end of January. The shares are inexpensive and we feel that a BUY rating is deserved.