Cattles plc

29 June 2010

Cattles plc

Annual General Meeting and Board changes

Annual General Meeting

Cattles plc ('the Company' or 'Cattles') today held its Annual General Meeting.  At the meeting, all of the Resolutions proposed and recommended by the Board were passed with the exception of a resolution to shorten the notice period required for convening General Meetings.

A further four resolutions, which had been proposed and supported by certain of the Company's shareholders and which the Board had recommended shareholders to vote against, were all defeated.

During the meeting, the Board highlighted the deficit on shareholders' funds as shown by the 2008 Accounts.  While the audit of the 2009 Accounts has not yet been completed, it is already clear that the size of this deficit will have increased significantly since 31 December 2008, principally due to further impairment of the loan book.  The Board repeated its previous advice to shareholders that in view of the significant financial deficit, the Company's shares have little or no value.  

The Board very much regrets the serious loss suffered by shareholders and understands their frustration.  Nevertheless, in these circumstances the Board's legal obligation is to give priority to the interests of the Company's creditors.

Board changes

On 3 June 2010, the Company announced that James Drummond Smith would resign as a Director and as Finance Director with effect from the conclusion of the AGM and that his successor, subject to FSA approval, would be Paul Felton-Smith. Mr Felton-Smith has now received approval from the FSA for this appointment and has therefore joined the Board with immediate effect.

In addition, Robert East will become Managing Director of the Group's operations with immediate effect.  Margaret Young will continue in her role as Executive Chairman of Cattles and Welcome Financial Services Limited.

Margaret Young, Executive Chairman, said:

 "On behalf of the Board and all of our employees, I would like to thank those shareholders who have supported the Board at this difficult time for the Company. Your support will help us achieve our objective of a consensual restructuring of the Company, which we hope will include an offer for shareholders."

For further information:

Paul Marriott, Financial Dynamics               020 7269 7252