'Cattles well placed'

5:10pm Thursday 13th September 2007

Personal finance company Cattles is well placed to continue the strong rises in profits it has enjoyed in recent years.

This was the view of outgoing chief executive Sean Mahon as the Bistall firm's interim profit results were published.

Cattles boosted its pre-tax profits by 28.4 per cent to £60.1 million during the first six months of 2007.

The company added 49,000 direct repayment customers and earnings per share increased by 21 per cent.

Mr Mahon, who steps down from his role this month, said there was no danger to the company's financial picture despite the continued turbulence in sub-prime lending markets and the tightening of mainstream lending behaviour.

He said: "Ninety per cent of our facilities are placed in fixed interest rates and so any rises are not something that will have an effect. We will continue to grow and I so not see any need for increased borrowings well into 2008. Management of risk and operational control over underwriting and regulated activities remain our primary focus.

"I am pleased to report that trading to date is in line with current expectations, with continuing strong demand for the group's products and stable credit quality."

Mr Mahon said acquisitions remained a viable option for the future of Cattles, but he added that there were none in immediate pipeline.

The results were the last of his tenure at the helm of Cattles, with former Lloyds TSB Business managing director, David Postings, taking over.

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