Mortgage broker John Charcol faces uncertain future
Mortgage broker, John Charcol, has been warned by its auditor that it faces a “material uncertainty” about its ability to continue operating.
According to its auditors, John Charcol’s liabilities exceeded its total assets by £532,000.
The firm, which has deferred loans of £820,000, is insisting that it is not in trouble and will be deciding whether to accept a takeover offer or refinance its operations, in the near future.
The loan stock, which had been due for repayment in June 2007, has been deferred to April 2008.
Chief executive, Ian Kennedy, has declined to say whether the £820,000 will be repaid by next month’s deadline.
He has confirmed that takeover approaches have been received and that he is “was looking at a possible sale”.
Mr Kennedy reported that the credit squeeze has led to a rise in business because: “Customers are finding it more difficult to get the [mortgage] rates they want and turning to well-known brokers for advice.”