Ifonline Group, owner of mortgage sourcing system Trigold, has rebuffed industry criticism of the low profits and continued losses revealed in its 2002 results.
The company made just £685,000 over the year against a loss of £5m. Auditor Moore Stephens reveals that the company was reliant on “additional funds” provided by principal shareholders to bring the group up to break-even point.
While the results are better than the £58,942 made and £10m lost in 2001, some in the industry are shocked by the figures with one describing them as “quite an eye opener”.
Trigold says the company's turnover reflects a number of “significant” one-off costs in re-sizing the business following the FSA's decision to defer regulation of mortgages in 2001.
Continued heavy investment in sourcing, compliance and electronic trading tools has also taken its toll.
But the company adds that with a string of major corporate accounts won over the past 12 months, subscriber numbers doubling and Compliance Shield in widespread use by mortgage networks it expects to break even soon.
Martin Colyer, joint managing director, says: “In the past month alone Trigold has taken on nine corporate accounts and now has over 40 versions of its software in operation.”