John Charcol remains on the prowl for a buyer or investment despite a £1.5m cash injection by the company’s directors.
John Garfield, Jon Moulton and Charles Wishart have pumped £500,000 each into the firm to fill a funding gap in the accounts while seeking either a sale or major refinancing by existing investors.
The directors’ cash was invested between December 31 2007 and January 2 2008, according to a report in John Charcol Group’s accounts statement for the year ending December 31 2006.
In the statement, the brokerage’s auditor KPMG warns of material un-certainty over the company’s ability to continue.
A John Charcol spokesman says a review of the firm’s ownership which began in January will result in either a sale or a refinancing deal.
He adds: “When John Charcol was bought back from Bradford & Bingley in a management buyout it was an un-derperforming company, making a loss of £4.7m in 2005. In 2006, that figure had fallen to just £41,000.”
The spokesman claims that John Charcol’s enquiry levels have grown by 75% every year since 2006.