The report and financial statements for year ending April 30 2003 show Interlink Premier Network turned a pretax loss of £210,086 in 2002 into a pre-tax profit of £401,375, less than a year before going into liquidation on March 19 2004.
The report filed at Companies House also discloses that despite heading into financial difficulty, dividends on shares in the IFA network rose from £30,993 to £114,619 between 2002 and 2003. It shows that Interlink directors Roy and Ian Tomkinson were also shareholders of a software development company, Linden House Solutions, listed at the same Cardiff address as the network.
The April 2003 report stated that Interlink was owed a total of £56,764 by Linden House Solutions as a result of cash advances and that Roy Tomkinson had sold software to a value of £600,000 to Interlink.
Tomkinson says: “There are several reasons for going into administration including PI and other costs. Grant Thornton, our receiver, will be issuing a statement.”
He will not say what the next step will be or whether Interlink would be sold, saying he has never been in this situation before and it is being handled by Grant Thornton. He adds that he thinks some commission payments are still outstanding to members but will not confirm figures.
The situation at Interlink is being seen by many in the mortgage market as a warning to smaller networks which may not have the capital adequacy to deliver what they have promised to members over the longer term.
Interlink had around 200 members but never got involved in the mortgage market, sticking to recruiting IFAs exclusively.