The Birstall-based credit company Cattles today delivered a 15 per cent rise in pre-tax profits to more than £141 million.

The firm, the second biggest player in the home credit market behind Bradford-based Provident Financial, hailed the results as a success in a challenging marketplace.

Like Provident, Cattles has moved to diversify its activities away from the traditional doorstep lending of small sums to families which would otherwise struggle to get credit.

The home credit sector, which is dominated by Provident and Cattles, is currently being investigated by the Competition Commission following an inquiry by the Office of Fair Trading.

However, Cattles today said that home collection now accounted for just 11 per cent of its consumer division's income, down from 13 per cent last year.

A highlight for the firm was the performance of Welcome Car Finance which achieved sales of 10,000 used cars during 2004. The success was a contrast to the used car market in general, which had a tough year, and outshone Provident's own used car finance arm Yes Car Credit which delivered a poor set of figures earlier this week. There was also good news for its Dial4aloan business, the specialist consumer credit broker, which originated £42m worth of loans, up 41 per cent on the previous year.

Today Cattles chief executive Sean Mahon said the results showed the company was on the right track by staying away from lending larger amounts and trying to compete with credit and store card firms where consumer debt is now spiralling.

"I am very pleased to report another year of excellent results for the group, as we continue to deliver against our five year growth plan," he said.

"The results reflect the benefits, in particular, of a successful focus on the profitable expansion of our consumer credit activities through strong distribution, responsible lending and stable credit quality.

"There remain significant opportunities for us to pursue further profitable and disciplined growth within the UK consumer credit market and, with current trading in line with our expectations, we look forward to another successful year in 2005."

Cattles announced an end of year dividend of 9.45p, making 14p for the year.