Tuesday, November 24, 2009

Buy to let and consumer finance group Paragon full year pre-tax profits rise 1%

Posted By Ahmed Al-Salem

In its full year results for the period ended 30th September, specialist buy-to-let and consumer finance lender, the Paragon Group of Companies said it has fared well with increased profits and above-industry-average arrears performance.

According to Paragon, it has emerged strongly from ‘a deep UK recession and continuing turmoil’ among credit and banking markets. The specialist lender said its business strategy was established well before the crisis took hold; it has a fully securitised book with a high credit quality loan portfolio and strong operational management.

Group pre-tax profits increased by around 1% from the previous year to £54.3 million, earnings per share(‘EPS’) was lower at 13.9p, compared with 17.9p compared with 2008, however, the EPS figure was influenced by a rights issue in February 2008. Paragon increased the final dividend to 2.2p per share, the total full year dividend for 2009 will now be 3.3p per share.

Paragon Chief Executive, Nigel Terrington commented on the group’s performance over the full year and its outlook going forward:

"In a year which has seen a deep UK recession and continuing turmoil in credit and banking markets, the Group has fared well, significantly strengthening its position at a time when many of its competitors have failed. The Group enters the new financial year well capitalised, with the loan portfolio match funded to maturity, no debt maturing until 2017 and a strong cash position ... Whilst these are early days, recent improvements in funding markets will encourage us to look more confidently to reinstating the funding programme to support new lending going forward."

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