for non-prime lender
Cattles, the UK financial service provider to the non-mainstream
credit market that also specialises in car finance, appears to have
benefited from the chaos of the ‘credit crunch’, announcing a
pre-tax profit increase of 28 per cent to £60.1m for the six months
to June 2007 and the addition of thousands of new customers to its
books.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Cattles’ direct repayment customers grew by 49,000 to 458,000 on
account of customers seeking alternative funding sources from
credit dry banks, and group loans and receivables consequently rose
by 14.6 per cent to £2.4bn.
Direct repayment arrears have been stable year-on-year from 7.4
per cent in H1 2006 to 7.3 per cent for H1 2007.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataFurthermore, despite interest rate rises in the UK, Cattles
maintained its average cost of borrowings at a consistent
year-on-year 6.8 per cent for H1 2007.
Cattles’ consumer credit division, which offers general loans
and car finance through its Welcome Finance brand, generated
revenue of £420m out of a group figure of £444m for H1 2007. Both
the consumer credit division and the group’s overall revenue grew
by 30 per cent year on year.
The group is therefore well on target to beat revenue figures
for year-end 2006, which reached £717.2m. The lender said its
priority in coming months is to maintain careful management of
credit quality, arrears and bad debts. It was also lucky to find
additional equity finding in March this year, after a successful
placing of 33m new ordinary shares, which resulted in gross
proceeds of £133m.
