Sub-prime finance specialist Cattles has revealed strong growth for the first half of 2007 with trading above management expectations.
In a pre-close trading statement on the London Stock Exchange today, the listed company says in the first five months of 2007 its sub-prime loans division Welcome saw a 51% rise in volumes on the previous year.
This was fuelled in part by its new customer selection system which it says led to a significant increase in applications received from its network of brokers and introducers.
At the same time though it says credit quality remains stable, with arrears levels at 7.4% of gross receivabless slightly below the group’s long established target range of 8-10%.
Lewis, the group’s debt recovery specialist, has continued to build on its strong performance in 2006. Cattles says the purchased debt marketplace remains active and debt portfolios acquired by Lewis in the five months to 31 May 2007, at £21 million, are 33% ahead of the same period last year.
Directors at the firm say that combined with its long-term investment in IT it remains well positioned to take advantage of the “significant growth opportunities” in the sub-prime market in 2007.