Loanmakers rights issue fails

LOANMAKERS has failed to pass a rights issue at its AGM that would have raised £1.7m.

The Bolton-based company said it now has to look for alternative sources of funding.

“The proposed additional capital injection would have ensured that the company was able to protect its infrastructure, remain in a position to increase volumes when conditions allowed and to give the company time to indentify new loan providers for its loanbroking business, to replace First Plus, Barclay’s Bank’s main secured loan brand, which withdrew from the market for new business in August this year,” said the AIM-listed company in a statement.

Loanmakers results for the year ended March 31 2008 showed pre-tax losses of £8.4m compared with a £7.8m profit in 2007. Revenues fell to £23.5m compared with £29.8m last year.