Cattles has suspending three more directors as an independent investigation into its affairs continues.
James Corr, finance director of Cattles, Ian Cummine, chief operating officer of Cattles and chairman of Welcome Financial Services, and Adrian Cummings, compliance and risk director for Welcome Financial Services Lending Division, have been suspended pending the outcome of the review.
These suspensions are in addition to the three suspensions announced on 3 March.
The independent forensic review, established by the Audit Committee, is being undertaken with the assistance of Freshfields Bruckhaus Deringer LLP, Cattles’ legal advisers, and Deloitte LLP, the Group’s internal auditors.
Based on information received to date and subject to completion of its external audit, the Board believes that the Group will incur a significant loss before tax for the year ended 31 December, 2008 and that it will be necessary to restate the Group’s financial statements for the year ended 31 December, 2007.
The Board believes that Cattles is in breach of covenants under its borrowing arrangements and Cattles will therefore be seeking appropriate waivers from its relevant debt providers.
Cattles share price was down 17% in early trading.