As a result the company has suspended John Blake, managing director, Peter Miller, finance director and Mick Belcher, operations director of Welcome Financial Services pending the outcome of the inquiry which is also being conducted by Deloitte. David Postings, CEO of Cattles, has taken direct management control of Welcome Financial Services, Cattles' principal operating entity.
Back on 20 February 2009, the Board of Cattles announced that it would delay the release of its preliminary results announcement for the year ended 31 December 2008 pending completion of a review of the adequacy of the Group's impairment provisions. At that time, the Board stated that, although it was not possible to determine the outcome of the review, it was expected to result in profit before tax for the year ended 31 December 2008 being substantially lower than the prevailing market expectations.
Based on the review carried out to date, the Board believes that there has been a breakdown in internal controls which has resulted in the Group's impairment policies having been applied incorrectly. The Board anticipates that it will be required to enter into discussions with its banks and the holders of its outstanding Eurobonds and US Private Placement Notes.
