Cattles’ share price continues to dive

Specialist lender Cattles has seen its shares tumble this week as it waits to hear whether its application for a banking licence will be granted.

Cattles, which is the parent company of Welcome Financial Services, saw its share price open today at 18.5p this morning after starting the week just under 25p.

It emerged last week that AKO Capital, its second-largest shareholder had sold its entire stake in the firm.

Cattles has also revealed that its application for a banking licence, which would allow it to accept deposits, is not progressing quickly enough.

It is expected to give a trading update tomorrow concerning its funding.

Cattles says it has submitted its detailed business plans to the Financial Services Authority for consideration and is currently dealing with a number of requests for further information before it can be granted its licence.

It says: Given the current banking environment and market conditions, the FSA is proposing more stringent tests for firms, particularly relating to liquidity and stress testing, on which the FSA has recently issued consultative papers.

As a result, Cattles’ application is proceeding at a slower pace than the company had previously anticipated. A final decision on whether Cattles’ application has been granted will not be made by the FSA until its enquiry process is completed.