Problems persist for secured loan master broker

00:00 Monday 19th January 2009

On Friday it was announced that the secured loan master broker, Loanmakers, had asked for its shares to be suspended from the Alternative Investment Market (AIM) due to its failure so far to find funding.

Loanmakers has had a difficult time of late, with the exit of its main secured loan provider, First Plus, last August. The firm were forced to seek further funding when shareholders rejected an open offer of £1.86 million, a sum that would have raised much needed working capital and reduced debts.

Previously known as Debtmatters, the Bolton-based company sold its debt resolution business and stopped providing IVAs last February due to falling fees. At the time, Loanmakers stated that they wanted to focus on its profitable loan broking decision.

At the beginning of January, Loanmakers announced that trading was poor and that it would be reviewing its funding options. The company had lost £1.6 million before tax, compared with a profit of £346,000 in the six months to the end of September, on revenue of £4.07 million. This was down from £14.3 million the previous year.

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Problems persist for secured loan master broker

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