Thursday June 19, 07:40 AM
Cattles applies stricter credit criteria
LONDON (ShareCast) - Specialist lender Cattles (LSE: CTT.L - news) said it has applied tighter credit criteria to new business, which
has resulted in lower receivables growth in its Welcome Finance unit.As a result of the moderation in the rate of growth of receivables, the traditional split of profits between half one and half two will be less pronounced this year. "In the face of this increase in demand, and taking account of the pressure on household budgets from higher fuel, food and utility costs, the Group has applied tightened credit criteria to new business to enable robust credit quality to be maintained," it said. It has resulted in lower receivables growth in Welcome Finance of 14.4% compared with 19.5% in May 2007. "Whilst maintaining planned profitability, this lower volume and higher quality approach has resulted in the acceptance rates falling from 6.3% to 5.3%," it added. It said demand for its consumer finance products has continued to grow. "The directors are pleased to report that trading to date is in line with management's expectations. Good progress is being made in each of the group's businesses," added the group.
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