10:11am Thursday 21st May 2009
Troubled consumer finance group Cattles has issued an update on its financial performance in the three months to March 31.
The Birstall group, headed by chief executive David Postings, employs 300 staff in Cleckheaton.
It confirmed that some parts of the business continued to trade but at a lower level.
Discussions with its bankers, bondholders and holders of its US Private Placement Notes have continued to try to stabilise the firm’s financial position.
The Lewis Group, one of the leading players in the UK purchased-debt market, increased collections by 5.6 per cent to £23 million.
Receivables were 2.5 per cent higher at £179.8 million but like-for-like debt purchases fell from £16 million to £13.5 million.
Cattles Invoice Finance maintained client numbers at 722 but saw a 10.6 per cent fall in net receivables to £77.4 million. The group is still considering a possible disposal of the invoice finance business as one of its options going forward.
Last month Cattles announced its decision to close its distribution car retailer Welcome Car Finance.
The group said it would have to declare £700 million in impairment provisions. That amount would be additional to £400 million identified and confirmed the group’s earlier fears of a “significant” pre-tax profit loss for last year.
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