Cattles issues third profits warning in three weeks
Doorstep lender Cattles has seen its share price plunge even further today after issuing a third profits warning in three weeks. The company has also suspended three more directors as the ongoing investigation into the company's balance sheet and prospects for the future goes on. The shares now stand at 1.8 pence which is a dramatic fall from the £1.95 of just a year ago. The company has now issued a number of profit warnings, breached banking covenants and suspended a significant number of key staff.
The company also has substantial debts, of which £500 million is due for refinancing later this year, which appears to be dragging down the business. While initially Cattles was seen to benefit from the economic downturn the company has now seen a significant number of customers default on their loans which has placed pressure on the balance sheet.
Even in more traditional economic times it is difficult to see how the company can escape the clutches of its bankers, something which is magnified substantially in the current economic climate. We will continue to monitor the situation and bring updates as and when available although at this moment in time the future of the company is shrouded in some uncertainty.
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