Paragon reports rise in profits

Paragon reports rise in profits

The Paragon Group has reported profits of £68.9 million for the nine months to 30 June 2012, compared with £58.9 million for the corresponding period in the previous year.

It attributed the increase primarily to income generated from the Group’s acquired portfolios of consumer loans.

Pre-tax profits, inclusive of a credit of £0.6 million for fair value hedging items, were £69.5 million for the period.

During the quarter, £45.1 million of new buy-to-let loans were advanced and a further £2.1 million was lent as further advances to existing borrowers.

In the year to date advances total £136.4 million and the pipeline of new business at 30 June 2012 was £121.3 million.

At 30 June 2012 arrears of three months or more on the buy-to-let portfolio, including acquired loans and receivership cases, were 54bp (55bp at 31 March 2012).

At the same time, free cash balances were £126.9 million (£104.9 million at 31 March 2012).

Paragon said that negotiations are underway for an extension to the Group’s warehouse facility at the end of the current commitment period in December 2012 and an increase in its warehouse funding capacity to facilitate further development of the buy-to-let business.