KPMG red flags John Charcol

Backers at Britain’s largest independent mortgage broker John Charcol have
forked out £1.5m as KPMG warned of a material uncertainty that it can continue
as a going concern.

The company,
which is considering a sell-off after being approached by two potential buyers,
said that the injection of cash was always intended and not linked to KPMG’s
assessment.

KPMG added: ‘The group incurred a net loss of £41,000 during the year ended
31 December 2006 and at that date the parent company’s current liabilities
exceeded its current assets by £150,000.’

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