L&C heads for profit this year after fall in 2010 loss

DAVID HOLLINGWORTH - WE IMPROVED OUR PROCESSES
DAVID HOLLINGWORTH – WE IMPROVED OUR PROCESSES

London & Country Mortgages says it is on track to make a profit this year, after improving on its £3m loss in 2009 by over two-thirds in 2010.

The brokerage filed its 2010 accounts at Companies House last week, which revealed an £800,000 loss an improvement on the £3m loss in 2009.

It reported operating losses of £1m in 2010, compared with £2.5m in 2009, while its gross commission and fee income increased in the year to £10.9m, up from £10.2m in 2009.

David Hollingworth, mortgage specialist at L&C, says the business is not up for sale and is confident 2011 will be a better year. He says: “We expect to push into profit this year and continue that trend going forward.

“The market is healthier in terms of product selection and protection sales and we have improved efficiency and processes in the business.”

He says the brokerage has managed to cut administrative and marketing expenses, and increase income from life and protection polices by around 15%.

The accounts blame the low interest environment for the 2010 losses.

The accounts say: “The level of remortgage business continued to decline as a proportion of overall business as Bank of England base rate remained at historic lows of 0.5%.

“As and when the base rate increases it is anticipated that the level of remortgage business will increase and the group anticipates being able to grow its position in the market and increase revenues and profitability.”

Other brokerages including John Charcol and Alexander Hall are due to release their annual accounts in the coming weeks.