MBO looming at Mortgageforce

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Mortgageforce is weeks away from completing a management buyout of the company – amid suffering a £239,000 loss in profits for the 2009/2010 financial year.

In an email sent to brokers this week, which BestAdvice.net has seen, Kevin Duffy, managing director of broker franchise Mortgageforce, revealed details of the company’s 2009/20010 accounts.

It shows profits fell from £8,000 in the previous year to a loss of £239,000 – the first year in a decade that the company has not turned a profit.

Revenues fell by 19%, although Duffy stated this is against an industry average of minus 48%. The email also states the business remains well capitalised at over £1 million.

West Bromwich Building Society, which currently owns Mortgageforce, announced last summer that it had agreed in principle to sell the broker franchise to the existing management team for a nominal consideration.

Mortgageforce is around three weeks away from completing the management buyout, according to the email sent to brokers. Duffy states in the email: “I will notify you of the changes which this will incur soon afterwards

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