CTT Cattles

 

TIDMCTT 
 
RNS Number : 1898M 
Cattles PLC 
19 May 2010 
 

19 May 2010 
                                  CATTLES plc 
 
                          INTERIM MANAGEMENT STATEMENT 
 
 
INTRODUCTION 
 
Cattles plc ("Cattles") today provides its Interim Management Statement covering 
the period since 31 December 2009. 
 
Cattles announced its audited results for 2008 on 12 May 2010 and intends to 
announce its results for 2009 in the near future.  Shareholders should be aware 
that again Cattles will be reporting a significant loss for the year ended 31 
December 2009 and a negative value for shareholders' funds. As stated on 16 
December 2009, the shares are likely to have little or no value. 
 
The cash collection performance of the Welcome Finance ("Welcome") loan book has 
been as forecast for the first quarter of 2010. Shopacheck and The Lewis Group 
have made satisfactory starts to 2010. 
 
CURRENT TRADING 
 
A summary of the performance in 2010 by each of the Group's businesses is set 
out below. All numbers are unaudited. 
 
Welcome 
 
Welcome has historically provided direct repayment loans to over 500,000 
customers from a nationwide branch network.  On 16 December 2009, the Cattles 
Board announced to shareholders its recommendation that there should be no 
further lending in Welcome and that instead the book should be collected out. 
 
On 5 February 2010, Cattles announced the closure of circa 70 Local Management 
Branches and Local Collections Units nationwide. Welcome entered into a 
consultation process from that date with staff affected by the proposals, of 
whom approximately 450 received notice that they were at risk of redundancy and 
subsequently 382 will leave the business. 
 
On 7 May 2010, Cattles announced a proposal to close 18 branches nationwide and 
a contraction in the current operations management and their support staff in 
line with the smaller number of branches. Welcome entered into a consultation 
process from that date, with staff affected by the proposals, of whom 
approximately 155 received notice that they were at risk of redundancy. 
 
Welcome's cash collections in the first three months of 2010 were GBP145 
million. Cash collections since this date are in line with management's 
expectations.  Net loans and receivables at 31 March 2010 amounted to GBP1.1 
billion (31 December 2008: GBP2.2 billion). The reduction reflects cash 
collected in the 15 month period with no significant further lending, and 
further impairment of the book. 
 
Shopacheck 
 
Shopacheck provides short-term home collected loans through a nationwide branch 
network and at 31 March 2010 had 222,000 customers (31 December 2008: 235,000 
customers). 
 
Shopacheck continues to lend to new customers.  Shopacheck has made a good start 
to 2010 and its cash collections for the three months ended 31 March 2010 were 
GBP38.5 million.  Net loans and receivables at 31 March 2010 were GBP58 million 
(31 December 2008: GBP80 million). The reduction in net loans and receivables 
reflects the seasonality of the lending and a tightening of credit criteria. 
 
The Lewis Group 
 
The Lewis Group, a UK leader in debt recovery and investigation services, 
provides these services to external clients and both Welcome and Shopacheck. In 
2010, The Lewis Group has refocused its strategy on contingent debt collection 
and by the end of 2010 its commitments to acquire further debt will have been 
completed.  Debt purchases in the three months ended 31 March 2010 were GBP5.5 
million. 
 
Cash collections in the three months to 31 March 2010 were GBP26.2 million. 
Purchased debt balances at 31 March 2010 were GBP144 million (31 December 2008: 
GBP154 million). 
 
RESTRUCTURING 
 
Cattles is currently engaged in ongoing discussions with representatives of its 
key financial creditors in order to progress proposals for a consensual 
restructuring. Those discussions have been constructive and demonstrate 
continuing progress towards a consensual restructuring. 
 
On 12 May 2010, the Court of Appeal heard the appeal of Party A and the 
subsequent cross-appeal of the Royal Bank of Scotland Plc of the decision of the 
High Court on the application of Cattles to seek a determination in relation to 
whether the terms contained within certain cross-guarantee documentation operate 
to subordinate the Company's claims against its subsidiaries, including Welcome 
Financial Services Limited, to the claims of certain bank creditors. This appeal 
and a cross-appeal were brought as part of consensual discussions between all 
parties. 
On 13 May 2010, the Court of Appeal unanimously handed down a decision that 
upheld the decision of the High Court which is explained in the Company's 
announcement dated 14 December 2009.  The cross-appeal in relation to the Cherry 
v Boultbee issues was stayed. 
After judgment was handed down, Party A sought permission from the Court of 
Appeal to appeal this decision to the Supreme Court.  The Court of Appeal did 
not give such permission and Party A has 28 days from 13 May 2010 to appeal to 
the Supreme Court for permission to appeal the Court of Appeal's decision. 
 
 
 
 
 
 
ENQUIRIES 
 
Margaret Young, Executive Chairman, Cattles plc                         Tel: 
  020 7269 7252 
Jamie Drummond-Smith, Finance Director, Cattles plc 
Paul Marriott, Financial Dynamics 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 IMSEAESNFAAEEFF 
 

Cattles (LSE:CTT)
Graphique Historique de l'Action
De Fév 2025 à Mar 2025

Cattles (LSE:CTT)
Graphique Historique de l'Action
De Mar 2024 à Mar 2025