2 September 2009

Cattles plc

Potential Staff Reductions at Welcome Financial Services

The Board of Cattles plc ("Cattles") today announces proposed changes in the organisation of its subsidiary Welcome Financial Services Limited ("Welcome").

As part of an ongoing comprehensive review of the Welcome business, Cattles proposes the closure of 30 branches where leases have expired or are due to expire and a reduction in the number of its sales and support teams.

Cattles' new management team believes that the proposed measures better align the network with reduced levels of lending and will deliver efficiencies in line with Cattles' commitment to manage the business through cost-efficient operations and improved cash collection processes. 

Cattles will now enter into a consultation process with staff affected by the proposals, of whom approximately 510 will today receive notice that they are at risk of redundancy. 

 Commenting on the plans, Margaret Young, Executive Chairman of Cattles, said:

"These proposed changes are central to Cattles achieving a more cost efficient business model which mirrors current levels of lending activity.

Cattles is still in constructive discussions with its key financial creditors to obtain a standstill agreement."

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For further information:

Margaret Young, Executive Chairman, Cattles plc

Paul Marriott, Financial Dynamics  

Tel: 020 7269 7252

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