After a year during which it has lost two chief executives and gone through a capital reconstruction, mortgage manager Firstfolio was not able to make any progress in the operational side of its business.Firstfolio's net profit for the year to June was A$1.3 million - unchanged from the previous year. Revenue was up 2.2 per cent, to $82.2 million.Its loan book declined by $1 billion, to $18.9 billion.Over the past couple of years, the company has struggled to integrate a number of acquisitions. It doubled its asset size over a three-year period but then, in 2010/11, and in 2011/12, cost blow-outs cut into its earnings.In the year to June, the company focused on reducing expenses, which fell 13 per cent, to $19.6 million.In September, shareholders will be asked to vote on a re-capitalisation plan. Australian Capital Enterprise has committed up to $50 million and, if the plan proceeds, will take up to 75 per cent of the equity in Firstfolio.