Cattles issues a further profit warning and suspends key executives
Troubled finance group Cattles has today issued a new profit warning, it's second in less than a fortnight, amid suggestions that internal controls within the group may not have been adhered to. The company has also suspended three key executives at one of its more prominent trading arms while accountant Deloitte continues to review the company and its balance sheet.
This second profits warning is a serious blow to the prospects of recovery in the short to medium term as the group also has a £500 million funding program which needs to be refinanced in the short term. This is only part of a larger debt pile which needs to be reviewed and managed going forward, hence the introduction of Deloitte to rule on the state of the business and prospects for the future.
While Cattles is best known for its door step lending operations, something which many had expected to prosper in the ongoing recession, the last 12 months have been very difficult and appear to be getting worse. The value of Cattles shares has fallen by 98% this year due in main to the enormous debt pile and the company's inability to negotiate a banking licence with the authorities earlier this year. The future looks very difficult for the company at this moment in time but we await publication of the Deloitte review in due course.
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