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.

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.