Independent auditors of The Mortgage Times Group have raised concerns about the group’s future after it posted an operating loss of £1.3m for 2008.
In the group’s accounts filed to Companies House, the auditors Kingston Smith says: “The global economic and financial downturn has impacted significantly on the group’s activities and it has made an operating loss of £1,335,705 for 2008 and has net current liabilities of £1,509,470 at December 31, 2008.
“This indicates the existence of a material uncertainty which may cast significant doubt about the group’s ability to continue as a going concern.”
But Kingston Smith goes on to say the company directors expect “substantial additional income” to the group in the rest of 2009 and in future years, from the launch of a “new advanced mortgage portal”.
The auditors say the group has continued to operate within its bank overdraft facilities which, although repayable on demand, are available until at least March 2010 and that directors have taken measure to substantially reduce costs, while long-term finance has been provided by shareholders.