View more on these topics

Hard-hit Loanmakers in £1.86m share issue

Stock market-listed master broker Loanmakers is calling on shareholders to help it raise £1.86m of funding to safeguard its future.

The broker was hit hard by the withdrawal from the market of secured loan lender Firstplus in August and has since struggled in the wake of the credit crunch.

It is offering existing shareholders up to 745,715,976 ordinary shares at 0.25p per share.

For every share owned, shareholders will be entitled to 24 shares at the special sale price. For example, a shareholder with eight shares in the firm would be entitled to eight x 24 shares at 0.25p.

The £1.86m will be underwritten by the company’s chief executive, Ges Ratcliffe, who will also take up his full entitlement under the open offer to existing investors.

The funds will provide the company with sufficient resources to reduce its debt and provide general working capital for the firm’s plans.

Its preliminary results for the year ended March 31 2008 showed the period was extremely challenging for the group, leading to pre-tax losses of £8.4m compared with a £7.8m profit in 2007. Revenues fell to £23.5m compared with £29.8m last year.

Steve Walker, managing director of Promise Solutions, says the departure of Firstplus has left a big hole in the secured loan market and firms must adapt to the new circumstances.

He says: “A number of brokers have suffered with Firstplus pulling out of the market. The question now is what will replace it.

“Businesses are starting to consolidate and cut costs. If a firm is looking for extra funding it will need a strong business model to ensure its survival in the prevailing conditions.”

He adds: “If I was a shareholder in Loanmakers I would want to know what its plan is.”


Lloyds TSB is no St Bernard

Lloyds TSB, which is sponsoring the London Olympics to the tune of £80m, is set to take over HBOS, the UK’s largest mortgage lender for £12.2bn and the move has been spun by all those involved as a rescue.Well, I can understand the meaning of the word rescue in the context of Northern Rock where […]

IMLA hits out at extension of SLS

Peter Williams, executive director of IMLA, says the Bank of England’s decision to extend the term of its Special Liquidity Scheme is madness as it will exclude a lot of broker lenders.

Rates on the rise again is predicting a lender U-turn on the recent rate cuts in the coming weeks.

Landlords are in it for the long term

Capital growth has always been seen as a key motivation for investing in buy-to-let properties, prompting some commentators to ask what today’s decreasing HPI environment means for the future of buy-to-let.

Certification guide

Guide: how to… certify your pension scheme

Certification is highly complex and surrounded by a minefield of information and auto-enrolment jargon, which can make it very difficult to understand. However, for many employers it is a necessary process that must be executed successfully.


News and expert analysis straight to your inbox

Sign up