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From Credit Today
Shares in Cattles fell 60 per cent to five pence this morning after the specialist lender announced that it would delay its preliminary results.
In a statement to the stock exchange this morning, Cattles said profits would be "significantly" lower than predicted. At the time of writing, the share price had risen to 7.4 pence.
It said: "The board of Cattles announces a delay in the release of its preliminary results announcement pending completion of a review of the adequacy of its impairment provisions. Although it is not possible to determine the outcome of the review at this stage, it is expected to result in profit before tax being substantially lower than current market expectations."
The news follows Cattles’ decision not to apply for a retail banking licence, which would have allowed it to accept deposits. The Financial Services Authority had indicated that it was unlikely to be successful if it proceeded.
Cattles also announced plans to cull 1,000 staff last month.
A new date for the results will be released in due course.
In a statement to the stock exchange this morning, Cattles said profits would be "significantly" lower than predicted. At the time of writing, the share price had risen to 7.4 pence.
It said: "The board of Cattles announces a delay in the release of its preliminary results announcement pending completion of a review of the adequacy of its impairment provisions. Although it is not possible to determine the outcome of the review at this stage, it is expected to result in profit before tax being substantially lower than current market expectations."
The news follows Cattles’ decision not to apply for a retail banking licence, which would have allowed it to accept deposits. The Financial Services Authority had indicated that it was unlikely to be successful if it proceeded.
Cattles also announced plans to cull 1,000 staff last month.
A new date for the results will be released in due course.
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