Investors pump £1.5m into John Charcol

Directors at John Charcol have pumped around £1.5m into the company as a temporary measure before a sale or new investment.

The move followed a KPMG audit that warned of material uncertainty which may cast “significant doubt” on the company’s ability to continue as a business.

The audit states that the John Charcol Group incurred a net loss of £519,000 during the year ended December 31 2006.

A director’s report, signed on February 8 by director Ian Kennedy, says three of the company’s key directors – John Garfield, Jon Moulton and Charles Wishart – put in additional loan funding of £1.5m as an interim measure before either a sale or refinancing involving existing investors.

Each investor provided £500,000, with the funds being received and the stock issued between December 31, 2007 and January 2, 2008.

The directors’ report is included with the John Charcol Group accounts for the year ended December 31, 2006.

It shows that £820,000 of loans due to have been repaid in June 2007 have been deferred to April 2008 at the latest.