Proactive Investors - Belvoir Group PLC (LON:BLVB) has announced its second financial services acquisition of the summer, in a move it anticipates will immediately boost earnings.
MAB (South West) Ltd has been acquired for £1 million, Belvoir said on Tuesday, following the £1.1 million takeover of BMA Bristol Limited in June.
Both are representative firms of the Mortgage Advice Bureau and made pre-tax profits of £0.1 million and £0.3 million last year, respectively.
“The acquisitions have been secured during a more challenging phase of the property sector cycle which has been reflected in the price paid,” chief executive Dorian Gonsalves said.
“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.”
Having acquired the entire issued share capital of each company, Belvoir tipped the takeovers should immediately boost earnings by around £0.6 million per year before tax.
BMA and MAB represent a network of 41 mortgage and financial advisors, allowing Belvoir to extend its reach across the southwest of England, the AIM-listed firm added.
Shares climbed 1.2% to 217.49p on the news.