Mortgageforce stays in the black

9 November 2009 | By Natalie Thomas

The brokerage’s 2008/2009 accounts show overall profitability reduced by 96% during the year, reflective of the 39% fall in total revenue and 36% fall in gross profit.

It saw an operating loss of £8,274, down from a £242,350 operating profit the previous year, with gross profit down to £1.28m, from £2m the previous year.

The company now employs 27 staff, down from 39 the previous year, with the salary of the highest paid director £47,326, compared to £103,226 a year earlier.

Mortgageforce’s debt to its parent company West Bromwich Building Society also slightly increased in 2009 and is now £2.3m, up from £2.2m in 2008.

Its accounts say: “The company continued to successfully build its brand profile during the year. However, given the significant downturn in the market in which the franchises operate, the business has taken decisions to downsize the scale of operations and re-focus certain business activities to ensure that the business remains on a sound financial footing. This has resulted in a fall in the number of franchises during the year and a reduction in staff numbers.”

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