Cattles shares suspended on accounting deadline breach

by Gill Montia

Story link: Cattles shares suspended on accounting deadline breach

Shares in Cattles were suspended yesterday when the doorstep lender announced that it would miss an end of April deadline for the publication of its accounts.

The firm, which has recently suspended six directors and announced plans to restate its 2007 figures, says it is currently in complex refinancing talks regarding £500 million in loans that become due in July.

Cattles therefore requested the suspension to avoid bringing disorder to the market by breaching the deadline and triggering action from the Financial Services Authority (FSA).

The sub-prime lender, which operates under the Welcome Finance and Shopacheck brands, has already admitted to a “breakdown in internal controls” that led to impairment policies being incorrectly applied.

Earlier this year, Cattles withdrew its application to the FSA to become a retail bank.

At this point, the future of the business was in doubt as the move was aimed at reducing its reliance on money market borrowing by taking retail deposits.

The company, which is based in Batley, Yorkshire, has already announced that around 1,000 jobs are at risk because of its recent failures.

Cattles shares were suspended at 6.875p, down from 300p a year ago.

Royal Bank of Scotland is reported to have a large exposure to the firm’s debt.