This announcement replaces the Cattles plc 'Potential Staff Reductions' announcement released today at 10.01am under RNS No 7456G.  The company name throughout the announcement should read 'Cattles plc' and not 'Moscow plc' as previously stated.  All other details remain unchanged.  The full announcement appears below.

Cattles plc

Potential Staff Reductions at Welcome Financial Services

The Board of Cattles plc ("Cattles") today announces proposed changes in the organisation of its subsidiary Welcome Financial Services Limited. 

The Board of Cattles announced recently that, following an extensive strategic review of its business and subsequent discussions with its financial creditors, it was unable to recommend a business plan which would allow Welcome Finance ("Welcome") to continue lending and it would therefore focus on collecting out Welcome's existing customer loans. It is envisaged that this process could take two to three years and, during that period, the Group's cost base will contract to reflect the reducing size of the book.

As part of an ongoing comprehensive review of the Welcome business, Cattles has announced today that it proposes the closure of circa 70 Local Management Branches and Local Collections Units nationwide. Cattles will now enter into a consultation process with staff affected by the proposals, of whom approximately 450 will today receive notice that they are at risk of redundancy.

Commenting on the plans, Margaret Young, Executive Chairman of Cattles, said:

"These proposals to further streamline the Welcome organisational structure have been put forward after an extensive review and careful consideration. We believe they are essential to Cattles achieving a more cost efficient business model which mirrors the reducing size of the Group's loan book."

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For further information:

Margaret Young, Executive Chairman, Cattles plc

Paul Marriott, Financial Dynamics 

Tel: 020 7269 7252