26th Nov 2013 10:08
LONDON (Alliance News) - The Paragon Group of Companies PLC said Tuesday profit before tax rose by 10.4%, driven by 90.5% growth in buy-to-let loans during the reporting period.
In its financials for the year ended September 30 2013, Paragon said profit before tax rose to GBP10.4% from the GBP95.5 million reported last year, a 10.4% rise. Total operating income was up 4.5% to GBP177.9 million, up on the GBP170.2 million in 2012. Also on the rise, underlying profit before tax was up 10.5% to GBP104.1 million, up on GBP94.2 million last year.
The specialist buy-to-let and consumer finance group increased its earnings per share to 28.4 pence per share from 24.2 pence last year, a 17.4% rise. The firm increased its final dividend to 4.8 pence per share from 4.5 pence in 2012. Total dividend for the year increased by 20% to 7.2 pence per share, in line with the company's dividend policy.
Paragon reports strong operational cash generation for the period, with free cash balances of GBP170.8 million after investments, up on the GBP127.7 million reported in 2012. Also of note during the period; the firm said warehouse facilities increased to GBP450 million, two securitisations of new buy-to-loan assets completed successfully, and the firm's first retail bond issue - a GBP60 million issue maturing in 2020 - was completed successfully, said Paragon.
Considering business and operations during the year, Paragon reports a 90.5% increase in buy-to-let loans to GBP359.8 million from GBP188.9 million last year, and pipeline at September 30 of GBP231.9 million from GBP129.9 million. The firm said it invested GBP92.8 million in consumer loan portfolios during the period, with a further GBP13.5 million invested shortly after the year end, and that its consumer debt buyer, Idem Capital, has continued to grow with Paragon making further investments through the portfolio acquisition business.
Nigel Terrington, Chief Executive of Paragon, said, "Paragon has made significant progress in 2013 delivering record profits, whilst also laying the foundations for further sustainable growth in the future... The Group's actions to increase its warehouse facilities, its successful securitisations and the new retail bond programme all combine to provide substantial capacity to support further growth in our existing business areas. With our banking licence application making good progress and our plans for a return to consumer finance lending now well advanced, the Group is well positioned for further growth in the year ahead."
Shares in Paragon were trading 344 pence per share, up 0.67% Tuesday morning.
By Alice Attwood; [email protected]; @AliceAtAlliance
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