MortgagesMay 21 2013

Paragon reveals jump in profits

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ByDonia O’Loughlin

The Paragon Group of Companies has seen an increase in its profit before tax of 9.6 per cent to £49.1m in the six months to the end of March 2013, compared with the same period in 2012.

In its half-yearly results for the six months to 31 March 2013, total operating income increased by 5.5 per cent to £86.8m and its underlying profit before tax also increased by 10 per cent to £48.2m.

The specialist lender also advanced £102.3m of buy-to-let loans compared with £89.2m for the same period a year ago.

The pipeline at 31 March 2013 was £241.2m, with the group expecting a “significant increase” in lending in the second half of the year.

Nigel Terrington, chief executive of Paragon, said: “The group has made significant progress in the six months to 31 March 2013. Buy-to-let lending activity has increased considerably and strong growth in lending volumes is expected in the second half of the year.

“Idem Capital [a consumer debt buyer] has increased its portfolio through further investments in the period, which are expected to contribute to second half profits, and is actively engaged in reviewing potential acquisitions.

“The new retail bond programme and the increased warehouse capacity provide access to funding to support future growth in Idem Capital and Paragon Mortgages. With a return to consumer finance lending in development, the board is confident that the group is well positioned for future growth.”