£5M more pumped into John Charcol
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The funding, revealed in the firm's latest accounts, comes on top of the £1.5m that directors John Garfield, Jon Moulton and Charles Wishart pumped into the brokerage at the end of 2007.
The accounts reveal overall debts of more than £7m, owed to the three directors, accumulated in a "significant refinancing" to shore up the brokerage.
John Charcol made a loss of £1.2m for the year ended December 31, 2007 compared with a loss of £40,042 in 2006.
The firm says the refinancing provided necessary working capital and covered FSA capital adequacy requirements.
John Charcol admits poor performance in face-to-face business due to a significant deterioration in life and protection sales in 2007. It has since entered into a single-tie agreement with Legal & General, and predicts this move will return them to 2006 profits.
Marketing director Drew Wotherspoon says: "These figures are as we expected and it is business as usual."
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