Cattles chief leaves as senior execs are sacked

SIX senior Cattles executives – suspended until the completion of a forensic review of its accounts – have had their jobs terminated with immediate effect.

The Yorkshire lender, which runs Manchester-based Cattles Invoice Finance, confirmed today that finance director James Corr and Ian Cummine, chief operating officer and the chairman of the Welcome car finance division are among the sacked senior staff members. 

Mark Collins, currently treasury and risk director, is also to leave the company with immediate effect. None of the departing executives will receive any compensation for loss of office.

Cattles said that a number of other employees at both group and subsidiary level will face appropriate disciplinary action.

In addition, chief executive David Postings has decided to step down with immediate effect, although he will act as consultant for six weeks to aid with the handover.

The board had previously announced that Norman Broadhurst would not seek re-election at the annual general meeting either as chairman or as a director of Cattles.

Mr Broadhurst has now decided to step down as chairman and as a director of Cattles with immediate effect. 

The announcement follows completion of an investigation into Cattles’ accounts by law firm Freshfields Bruckhaus Deringer and business adviser Deloitte.

Earlier this year the investigating firms confirmed there had been a breakdown of internal controls, which had resulted in the group’s impairment policies being applied incorrectly.

As a consequence, Cattles will not only have to restate last year’s accounts to the tune of £700m in impairment provisions but has warned that previous year’s financial statements may also need to be adjusted as well.

The sum was additional to £400m already identified and confirmed the Leeds firm’s earlier fears of a “significant” pre-tax profit loss for the year ended December 31.

Cattles said that its board was continuing to improve the stability and control of the business to provide a solid platform for its future development.

Margaret Young, currently a non-executive director and chairman of the audit committee, has been appointed executive chairman. She will be supported in that role by Robert East and Jamie Smith, who became interim finance director in April.
 
The board of Welcome will also be restructured with the appointment of Laura Barlow as executive chairman. Paul Mackin has become managing director of Welcome.