DYOR
...It's nice when Directors have faith in their products and they buy shares, but we're less keen when they sell them. However, as long as it's a few here and there, and there is a strong order-book and profits, dividends etc...who can blame them?
However, here we appear to have an instance of profiteering for no better reason than a profit is a profit, etc.
Just recently as others will have noticed CTT directors bought shares, OK, it was at a very low...but that's not all...Oh No!
Just yesterday we read that two Directors have sold shares - and in one instance it looks like a good profit was taken, in about a month - yet the reason the sp rose was not due to Good News..(which is in short supply, from where I sit)...it was entirely FTSE movement and tha fact these few Directors had bought...giving some comfort for CTT investors (-that all was OK.)
These sales make (the future) look less certain and with interest-rates so low....
-is there any room for a new expensive Money-lender/Bank...?
Maybe that is the reason for the selling - Directors are concerned the future is far from rosy...?
Oh deary.

Talking of new Banks.. but not sure about expensive, one could be on the way.

http://www.birminghammail.net/2008/12/04/plans-to-open-a-bank-of-birmingham-97319-22403208/

Not sure if I would be comfortable with a Council run one mind.. but.

On Radio4 today, similar proposition for Bank of Essex. I presume it would be operated by Bankers, not some nerks from the Council.
The idea has some merit - rather than put surplus money into an Icelandic high-interest A/c they invest locally - subject to understanding the business - and such local businesses are encouraged to bid for Council work ( there is room for collusion, here - oops!). . . . . . but this is probably what money should be doing - helping the community, jobs and services. After all we invest in or children and schools, locally.. . .
Of course some may wonder why Councils have surplus cash, yet are still raising Council-Tax year-on-year?
That aside, I think "County-Banking" has some Merit, if local people can become involved, maybe retired financial/business operators, rather than civil servant mentality, FWIW.
((The only snag: Money will flow to the centre, rather than the outer reaches/borders of county boundaries.)).
Ifthis was to happen in CTT-heartland then their business-model would fall flat on its face - unless they (somehow) managed to become the underlying Operators . . . but recent Dir-sell tells me they aren't....+not good for [CTT], IMHO.

Re I don't like it-
Well, just a few days (after Dir Sells), we learn that there is to be a delay in their Bank Approval. - oh really? And with that News the sp falls 18% - maybe overdone, but without that Approval, what is this - a Loan Co without Funds....or something like it.
What surprises me is that this was so highly rated only last year - several pounds...yikes.
SEEMS to me that Directors should know their business - so should have been aware there was Band News to ann. hence this would be a "closed period" - so how can Dirs sell just prior to any Ann...? . . . . . . ( sp 30p ).
-DYOR-

4p is my target.

mitzy, that's very harsh;
-yet today's fall - is surely overdone?
( mirrors more-or-less, HBOS fall = a reminder that most Banks are "rubbish"?)
Do you hold this?

Never held hangon its just a chart thing..plus the Director selling before the last rns.

I used to regularly trade this around the 300p level. How times have changed & I remember them being 'immune to the credit crunch' as they always had the sub prime customers who would still continue to want loans. Of course if CTT can't borrow the money at favourable rates in the first place, then that theory soon went down the pan. Shame 'cos fundamentaly the company was providing a good service to borrowers who otherwise could not have got credit.

Never believe directors they are the last people to tell you.

Harrycat - do you get their Annual Reports?
-My reading (DYOR) indicates they have little security for most of these loans and if a repayment is missed, they extend the period -so it seems to me that anyone with (say) another loan will repay that first and let CTT wait! - Time will tell if their "good old days" will return, but many of their customers were "probably" on let's call it "sub-prime employment" ( and "benefits"?), so much of their "bunce" has gone as Folks don't need their ceiling painted, or shelves put-up etc....so I wonder if the Market hasn't got this Co. bang to rights.....only a further Accounting Report will prove otherwise...

The Banking Licence is another worry, because the Co had pinned investors' hopes on it...rather foolish in the circumstances...for you'd expect them to be very aware of their cash-source drying-up.
(However, having said that, CTT has cash from repayments; so maybe they can keep the business at earlier-levels,) - - yet I suspect CTT's "borrowings" need repaying...something like mid-09...and this is a "big-amount"...so I'm only watching for now.....
EDIT,(16Dec08) - 19p to buy, makes their Fundraising at 1.25 - oops.
EDIT,(24Dec08) - two opposite thoughts:-
1)- The Government doesn't need another "Bank" to fail and CTT has no experience as a Bank, if they foul-up it could cause problems amongst Labour voters where CTT is most-active.
2)- If the Government want to get the low-end of the Market moving (small traders etc), then CTT-Bank might be a lot quicker than giving a small amount to the National Banks (-who want to keep it!). -& see Harrycat's recent comments -
Is their Ch Exec really "that" wrong, though? . . . . (recent share buy prior to this blood-letting-....).
Sorry, folks; I guess Mittzy is right enough, the sp fall is a wholesale dash for the Exit, as D4E looms (mentioned in yesterday's Times.)....IF that happens then buying now is like paying 1, IMHO. - pse DYOR - this could be a twenty-bagger . . . .er.

I dont think they can recover they continue to fall daily.

Well, we know why the sp picked-up after the 10p low looked like the beginning of the end.
Three days after the upturn it seems BARC has invested 5m by way of shares, probably to av dn from earlier buys well over 1. ( so they are still losing) - and so more punters are chancing their arm on this, despite no licence news and even IF that comes, there is no g'tee folks will be interested in putting their money into this new Kid ( =Bank ) on the Block. Oh dear.
Today at 35p to buy, it is a far-call from 10p and this potential investor can see no improvement in value . . . . high street shops closing, UK Banks appear to need more Gov Money, US Bonds, Derrivitaves . . . the War in the Middle East ( Two, now!).... the list of Bad News reaches as far as I can see . . . so why is this dog perking-up?
Could it be the realisation that D4E is off the books - er, so that's alright, then, if true....but who says so?
Surely, BARC is ensuring it gets a seat at any D4E conference, rather than having to stand in-line...? Already this deal has shown BARC a notional profit....let's hope they don't sell, eh?

Incredible now up 40% wish I had bought @10p.

"sub-prime lender Cattles continues to advance strongly on hopes that its application for a banking licence will be granted. Yesterday, Barclays announced it had increased its stake in Cattles to 5%."
Watch out for a double bounce. That could be the sign to pile in, imo.

HARRYCAT, yes er, maybe. I heard that (again) it is now possible to "short" financials - so even if CTT gets their Licence they still have to prove the business model, while their target-customer are likely to be losing their jobs.
Not that I short, but some may . . .
-or- does BARC have wind that the licence is in the bag? - - - *(wash my mouth)

MoneyAM
Sub-prime lender Cattles this morning announced plans to reduce costs, preserve liquidity and significantly reshape the group. Cattles said there will be a reduction in the volume of business it will write and a thousand jobs will be cut.

The lender said discussions are ongoing with its bank syndicate regarding the refinancing of facilities due for repayment in July 2009 and also with the FSA regarding its banking licence application.

The reduction in new business volumes will have a negative impact on profitability in 2009.

Cattles will continue to write new business in 2009 but it is expected that new business volumes in Welcome Finance will be reduced by some 75% on 2008, which itself saw a reduction from 2007.

Collective consultation with employees has begun over a reduction of around 1,000 jobs within the group. This includes a proposal to close the operation in Hull which currently employs 400 people. In addition to job reductions and the suspension of dividend payments announced in the pre-close trading statement, a range of other cost saving measures will be adopted to conserve further cash over the coming months. "

Back down 23% today on cost cutting measures.

Mitzy, can you put any sense on the 25% rise today? - Late trade of 32k-worth appears to be part of this frenzy for action, with almost as many Sells as Buys, despite the rise.
I agree that cost-cutting measures are an indication of lewer activity (and profits), so I'm guessing the Directors have accepted that with the Lunatic International Financial excesses over - CTT is fit only as a small regional-lender serving a small market they know - in effect a return to their roots, now the Party is over.
+Just a shame (for investors, although I never was) CTT didn't understand the International Market before the 2000's - by 2005 it was already over.
( er, although many small punters like me hadn't seen its slide-effects).

Perhaps I should have bought at 12p, for I see this settling about 50p in a couple of years.. . . .

Alternative views. . . ?

From Digitallook:
"Sub-prime lender Cattles tops the FTSE 250 risers after being rated a speculative buy by broker Evolution Securities, which is e xpecting good news on the companys refinancing efforts."

Cattles are for the cows...5p now.


Cattles delays results - MoneyAM


Sub-prime lender Cattles said today it is delaying the release of its preliminary results.

The company has warned that profits will be substantially below expectations.

The group said the preliminary results were being delayed pending the completion of a review of the adequacy of its impairment provisions.

Cattles said that while it was not possible to determine the outcome of the review at this stage, it was expected to result in profit before tax being substantially lower than current market expectations.

A new date for the results will be released in due course.

Delay in producing accounts..!

The directors selling was a clue before Xmas.

Doesn't bode well for refinancing - a board that has no idea of the correct level of provisioning.

One suspects they are arguing with the auditors to spring this one out of the blue, as surely regualr provision review is an inherent necessity in this business ?

Cattles delays results - MoneyAM


Sub-prime lender Cattles said today it is delaying the release of its preliminary results.

The company has warned that profits will be substantially below expectations.

The group said the preliminary results were being delayed pending the completion of a review of the adequacy of its impairment provisions.

Cattles said that while it was not possible to determine the outcome of the review at this stage, it was expected to result in profit before tax being substantially lower than current market expectations.

A new date for the results will be released in due course.

Well I got my 4p eventually.

This last flurry of Bad News has driven the sp down - and posters (here) may be right the Director action is under question - except in fairness it is "never that easy" to determine if a borrower will default - and CTT doesn't appear to take any colateral ( DYOR), for the moderately small sums.
. . . . . These are dire times and like Governments very few study wuch times, OR have the opportunity to become "experts" - since it is better to work on the assumption it won't happen. . . . .

For the brave this looks (soon) to be a buying op - but I'm holding off for now, maybe until their results are clearer . . . um, er, there is no rush.
(I don't hold).

Wow I've just seen the final price down 75% this is bust no point in buying and lose your money .

December 2008

Cattles has strong demand for its products. The Group is on course to deliver trading results in line with expectations in 2008 despite having deliberately reduced volumes in all businesses since February. Although affected by the current economic situation, our operating model is proving robust and arrears and impairment are within reasonable tolerances.

Jan 2009

20% workforce slash

Feb 09

Delayed results - profits warning etc

Don't mention the interim update (positive), the intended 2009 actions (leading models, and other management babble spouted), the annual report extolling the virtues of their credit lending assessment capabilities (so good that this justifies taking on fewer customers of the highest quality etc etc)

An out and out management failure - one which again the FSA will ignore, and one the auditors should eqaully be ashamed of

I never thought it would be 5p again..!

Gone up quite a bit on trades of 26m and 28m - hardly a stong comment IMHO. But gave MM's a chance to push the price up. I was thinking of buying this morning but only a few so even this 20% increase wouldn't show a profit (after charges, etc.)....and frankly this is a broken business - despite Poster's assertion this is needed - I suspect sensible folk will avoid borrowing, just as lenders would be wise to avoid lending....since jobs are "at risk" so no-one knows if they can repay in 6-months, say.
That CTT needs to borrow on the wholesale market is dire news - since lenders require colateral - which CTT cannot supply, IMHO. It matters nothing what customers "want", if the Wholesale Money markets won't lend - this is CTT's weakness, although they may be able to "recycle" their cash reserves, that's my guess, but they have to repay ots in June/Jy09 and lenders will want to grab any cash they can.

Update on impairment provision review

"On 20 February 2009, the Board of Cattles announced that it would delay the release of its preliminary results announcement for the year ended 31 December 2008 pending completion of a review of the adequacy of the Group's impairment provisions. At that time, the Board stated that, although it was not possible to determine the outcome of the review, it was expected to result in profit before tax for the year ended 31 December 2008 being substantially lower than the prevailing market expectations.

The review of the Group's impairment provisions, which is being conducted by Deloitte, the Group's internal auditors, continues. Based on work carried out to date, the Board believes that there has been a breakdown in internal controls which has resulted in the Group's impairment policies having been applied incorrectly. Although it is still not possible to quantify the effect on the Group's financial statements, the Board believes that profit before tax for the year ended 31 December, 2008 is likely to be substantially lower than its expectations as at 20 February 2009.

The Board anticipates that it will be required to enter into discussions with its banks and the holders of its outstanding Eurobonds and US Private Placement Notes."

Cattles results even lower than forecast -MoneyAM


Sub-prime lender Cattles warns that the fall in pre-tax profits will be even greater than it previously forecast.

It says a breakdown in internal controls meant the group's impairment policies had been applied incorrectly.

And three directors of Welcome Financial Services, its principal operating entity, have been suspended pending an inquiry by Deloitte.

Although it was still not possible to quantify the effect on the group's financial statements, the board believes that profit before tax for the year ended 31 December is likely to be substantially lower than its expectations as at 20 February.

The board anticipates that it will be required to enter into discussions with its banks and the holders of its outstanding Eurobonds and US private placement notes.

Cattles chief executive David Postings has taken direct management control of Welcome Financial Services.

Managing Director John Blake, Finance Director Peter Miller and Operations Director Mick Belcher have been suspended.

Basket case - how the board of this Gp can justify their existance, god only knows.

Little good acting after the event (after the auditors presumably discovered this) - when really this is the fundamentals of stewardship. May as well resign and let others more capable do the job.

I don't hold as each time I've wanted to, there has been a reason to hold-back.

This last fiasco could be somewhat dangerous, since the repayment/negotiations of the loan ( 600m in June09, was it?), is likely to be "difficult" to say the least . . . if the businiess was in trouble before this (potential fraud) could wreck all future hopes.
It hardly beggers belief they wanted to become a Bank - mindyou UK Banks are nowt so bright, maybe they'd have fitted-in quite well . . . . . . but CTT may never find out......
(this was 4 early 2007, -now, under 3.pence . . . DYOR)
- - Bad news for shareholders and something that should have been forseen, esp. by the well-paid Directors themselves . . . . . I agree it does put a question mark over their Management . . . and the Board should resign. . . . . after they sack the Auditors, naturally.
+Recall, two Directors sold early Dec08, (abt. 45p I guess), so a tidy "profit" on today's sp....Arrgh!
EDIT: IC suggests there is a strong possibility of D4E - maybe wiping out retail shareholders !

That was the clue the Directors selling before Xmas.

Cattles Plc

Update on impairment provision review

On 20 February, 2009 the Board of Cattles announced a delay in the release of the Group's preliminary results announcement for the year ended 31 December, 2008. Since then, an independent forensic review, established by the Audit Committee, with the assistance of Freshfields Bruckhaus Deringer LLP, Cattles' legal advisers, and Deloitte LLP, the Group's internal auditors, has made significant progress.

Based on information received to date and subject to completion of its external audit, the Board believes that the Group will incur a significant loss before tax for the year ended 31 December, 2008 and that it will be necessary to restate the Group's financial statements for the year ended 31 December, 2007.

The Board believes that Cattles is in breach of covenants under its borrowing arrangements and Cattles will therefore be seeking appropriate waivers from its relevant debt providers.

The Board now announces that Mr. James Corr, Finance Director of Cattles, Mr. Ian Cummine, Chief Operating Officer of Cattles and Chairman of Welcome Financial Services, and Mr. Adrian Cummings, Compliance and Risk Director for Welcome Financial Services Lending Division, have been suspended pending the outcome of the review. These suspensions are in addition to the suspensions announced on 3 March, 2009.

As previously announced, David Postings, CEO of Cattles, has taken direct management control of Welcome Financial Services. Gary Edwards, Group IT and Business Services Director, has taken on operational responsibilities at Welcome Financial Services and Susan Puddephatt has assumed the role of Risk and Compliance Director for the Group.

1p.

Which makes it junk stock! Who would have thought such a thing could happen a year ago?

Incredible to think it was 500p..

I'm somewhat confused - I realise this wqs "lots" only 12 months ago and they've had a stalled brush with being a Bank.
However, they were profitable and I wonder if anyone has asked:- In the good times where did all the profits go? - Surely any prudent Board would put some cash "by", to reduce their borrowings for the time when the interest-rates rose, from what appeared to be all-time lows.
(It was this cheap money that enabled many business to survive thaty should have known better. Of course it also fueled the rise in house-prices as buyers chased prices, based on increasing "multipliers" that permitted Banks/BS to lend huge sums to folks...OK, this wasn't "quite" sub-prime ( where the Mortgage is calculated to never be repaid, prevalent in the US.)

Now that CTT is under strain, I wonder why they cannot recover many of their loans . . . and realise that is their issue. Whereas in good times repayment was within the household budget, now that no-longer applies and CTT has no colateral to cover the loans . . . so they have to wait.

The big Q, is:- will they survive without D4E . . . ?

will the other banks make sure CTT survives?, despite knowing it has crap directors, I really don't understand why Barclays is increasing it's stake recently

Dr G - don't think its Barclays - only PI's using their nominee accounts etc

Recent News is that RBS has about 500m in this - Ooer! This means we have nearly the same (as taxpayers), so whatever happens to CTT we shall be less well off. The recent bad-news was that more Directors have been sacked (or supsended - only a matter of Time, DYOR) - Oh deary, will it ever stop?
Today the sp went up 25% - but it's still a shadow of earlier times....remember the Rights Issue just a year ago (was it?) at 1.20-ish....Arrgh.
BARC has woes of its own, withouit directly investing in a loser like this - (for the time being), so I think Joe Say is right....must be Barc-Nominees...

i have sold all of my shares in this, but I somehow feel this will survive, I think wider feeling among financials is they need a firm like this to lend people with poor history, otherwise they have to!

oops, the con goes beyond 2007

when is this going down to less than penny a share

Its done a Woolworths..

well dont say I didnt warn you 6 months ago.

You did - and it's been pretty clear since, that the Directors were not entirely aware of the dire state of the finances. Some havwe gone but the huge gearing/debt is unsustainable as it stands.
D4E is a possibility; - otherwise, switch off the light when the last person leaves.

CATTLES PLC
Proposal to close Welcome Car Finance

"The Board of Cattles announces its proposal to close its direct distribution car retailer, Welcome Car Finance. This decision has been taken to further conserve cash and improve liquidity within the business.

Welcome Car Finance has traded successfully during 2009 selling the stocks of cars it had from the end of last year without the acquisition of any new vehicles. However, without additional funds to acquire new stock, the business model will become unviable and it is likely that Welcome Car Finance will start to absorb cash.


Consultation with employees has begun over a reduction of around 130 jobs within the Group. The costs of closure are estimated at 5 million.


The Board has previously reported that it believed Cattles was in breach of covenants under its borrowing arrangements. Cattles continues in discussions with its banks and the holders of its outstanding Eurobonds and US Private Placement Notes. Management is working closely with its debt providers to sustain their support for the Group's programme of action to stabilise its financial position. The closure of Welcome Car Finance is another step aimed at reducing costs, preserving liquidity and reshaping the Group."

anybody got their silver locked in this?, cmon this is agony aunt thread!

Not me.

Sub-prime lender Cattles shares frozen as auditors scrutinise books
Failure to report annual results leads to suspension.


Cattles, the sub-prime lender which suspended six executives in February, had trading in its shares stopped on Thursday after failing to hit the deadline to report its already delayed annual results.

The company said its auditors were continuing to trawl through its books and could not sign off its accounts in time for it to report results by April 30.

Cattles has already delayed reporting results from the end of February, after discovering an 850m blackhole in its accounts.

The company, which lends to customers with poor credit histories, said it would not have been able to publish the figures by the end of April, and so it requested for trading in its shares to be suspended.

Cattles is also in talks with a syndicate of banks led by Royal Bank of Scotland which have loaned it 500m. Unless RBS and the rest of the group's creditors agree to roll over the credit line, which expires in July, Cattles may fall into administration.

Cattles asked accountancy firm Deloitte to review its books to work out what level of provisions it needs to take. Deloitte has completed the ask and PricewaterhouseCoopers (PwC), Cattles' long-standing auditors, are considering the numbers.

One of the issues delaying Cattles reporting its results is that PwC may want discussions with the banking syndicate over a refinancing to be finalised before it signs off Cattles' accounts as a going concern.

Cattles said it requested a suspension "in order to avoid a disorderly market and to protect investors pending publication of its audited report and accounts for the year."

The company shocked the market in February when it announced that six senior executives, including its finance director, had been suspended, amid accusations that the rest of the board were being supplied with "inaccurate and/or incomplete information".

An investigation by City law firm Freshfields Bruckhaus Deringer and Deloitte estimated that the black hole in the books stands at some 850m -about 25pc of the company's loan book.

More than 1,000 jobs have been cut from the main offices at Batley, West Yorkshire, Hull and Nottingham, with more job losses seen as inevitable.