Financial Performance
Profit before tax increased by 9.6% to £49.1 million (2012 H1: £44.8 million)
Total operating income increased by 5.5% to £86.8 million (2012 H1: £82.3 million)
Underlying profit before tax increased by 10.0% to £48.2 million (2012 H1: £43.8 million) †
Earnings per share increased by 10.5% to 12.6p (2012 H1: 11.4p)
Interim dividend increased to 2.4p per share (2012 H1: 1.5p per share) in line with dividend policy
Capital and Funding
Strong operational cash generation: free cash balances £173.8 million at 31 March 2013 after investments (2012 H1: £104.9 million)
Warehouse facilities increased to £450.0 million
Successful securitisation of new buy-to-let loan assets
Retail bond programme launched and successful first issue completed
Business and Operations
£102.3 million of buy-to-let loans advanced (2012 H1: £89.2 million); pipeline at 31 March 2013 of £241.2 million; significant increase in lending expected in second half
£57.6 million invested in consumer loan portfolios in the period
Idem Capital established as one of the leading consumer debt buyers in the UK
Commenting on the results, Nigel Terrington, Chief Executive of Paragon, said:
"The Group has made significant progress in the six months to 31 March 2013. Buy-to-let lending activity has increased considerably and strong growth in lending volumes is expected in the second half of the year. Idem Capital has increased its portfolio through further investments in the period, which are expected to contribute to second half profits, and is actively engaged in reviewing potential acquisitions. The new retail bond programme and the increased warehouse capacity provide access to funding to support future growth in Idem Capital and Paragon Mortgages. With a return to consumer finance lending in development, the Board is confident that the Group is well positioned for future growth."
