Cattles has revealed that unprecedented financial market turmoil and its £635m financing renewal plan have forced it to withdraw its retail deposit application.
The sub-prime lender said in a statement this morning that permission for the application would be delayed until market turmoil stabilises and the renegotiated terms are known of £635m in bank facilities.
Cattles owns brands such as Welcome Finance the consumer facing brand and Cattles Invoice Finance which provided Invoice Factoring to the SME sector.
After discussions with the Financial Services Authority, the firm has withdrawn its application until there is greater clarity on these issues.
David Postings, chief executive of Cattles, said: “Given the turmoil in the financial markets we have taken prompt and prudent action to reduce costs, conserve capital and to focus our efforts on securing ongoing wholesale funding for the group. Demand for our products remains strong and the group continues to trade profitably and in line with expectations.”
Cattles revealed plans to reduce costs, preserve liquidity and strengthen the capital position of the business earlier this month. Cattles and its lending banks are continuing talks about the scope and terms of the renewal of the group’s bank facilities which are due this year.