27th Jan 2016 08:07
LONDON (Alliance News) - Buy-to-let lender and consumer debt purchases Paragon Group of Companies PLC on Wednesday said its financial performance met its expectations in the quarter to the end of December and said it remains confident on the outlook for the buy-to-let market in the UK, despite regulatory changes.
The FTSE 250-listed group said its underlying operating profit, which strips out fair value items and acquisition-related costs, rose 14% in the quarter year-on-year. Its pretax profit was GBP33.9 million for the quarter, up from GBP30.2 million.
Paragon said its loan portfolios performed well in the quarter, with buy-to-let originations rising 81% year-on-year to GBP400.9 million, Its buy-to-let pipeline at the end of December was GBP595.7 million, up 43% from the same point a year earlier.
For its Paragon Bank business, car finance volumes rose to GBP20.6 million from GBP6.3 million a year earlier, while its Idem Capital debt purchasing business raised new financing in the quarter to back its strategy.
Paragon said it remains committed to the buy-to-let market, despite legislative changes announced in the UK in recent months, including a stamp duty levy on buy-to-let buyers, which have caused jitters in the sector. Paragon said it expects the changes will drive a shift in the market towards professional landlords but said it anticipates rental demand will remain high.
By Sam Unsted; [email protected]; @SamUAtAlliance
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