Fewer bad debts give Cattle's a 35% lift

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The Independent Online
CATTLE'S Holdings, the consumer credit company that floated off its Rosebys curtain and linen subsidiary earlier this year, yesterday reported a 35 per cent increase in interim pre-tax profits to pounds 5.2m, writes Paul Durman.

The improvement was aided by reduced losses from the firm's hire purchase arm, which had fewer bad debts on loans. Edward Cran, Cattle's chief executive, said he expected the HP arm to repeat its first-half loss of pounds 300,000 in the second half, and to return to profit next year.

Profits from Shopacheck, the main door-to-door credit operation, rose 25 per cent to pounds 5.2m as it overcame the disruption caused by last year's acquisition of Compass Credit.

Shopacheck, some of whose working-class customers pay an APR as high as 100 per cent on unsecured loans, also benefited from a successful spring promotion of goods.

Profits from Rosebys, where Cattle's retains a 45 per cent stake, were virtually unchanged at about pounds 400,000. Its reduced contribution in future will mean Cattle's second-half growth 'cannot be expected to be at the same level as the first half', the group said.

Cattle's increased its interim dividend from 1.5p to 1.6p.