Strong performance boost Paragon FY results
First mortgages and consumer finance focused Paragon Group of Companies said strong performances across the board boosted its full year profit.
Financial Services
14,051.23
16:59 26/04/24
Paragon Banking Group
698.00p
16:40 26/04/24
Profit before tax for the year ended 30 September rose from £104.8m to £122.8m, while underlying profit rose from £103.5m to £122.2m.
The group’s mortgages division saw an 82.5% increase to £656.6m in buy-to-let completions as the group broadened its distribution through its Paragon Mortgages and Mortgage Trust brands.
"The past year has seen considerable progress in the group's strategic plans and in the performance of its businesses,” Nigel Terrington, the group chief executive said.
“Paragon Mortgages and Idem Capital have witnessed significantly increased new business and are well positioned for further growth. Significant progress has also been achieved in diversifying further the group's funding sources.”
The firm added that the buy-to-let market continued to grow, supporting the private rented sector (PRS), which now accounts for 18% of the housing stock in England.
Paragon said that tenant demand strengthened throughout the year and recent forecasts suggested the PRS share of total housing stock would continue to grow in the future.
The group has proposed a final dividend of 6p per share compared to 4.8p per share in the previous financial year.
Existing businesses provided significant opportunities for growth and the potential to develop additional products.
Paragon shares were up 4.68% to 395.57p as of 09:07.