Financial Performance
Profit before tax increased by 10.4% to £105.4 million (2012: £95.5 million)
Total operating income increased by 4.5% to £177.9 million (2012: £170.2 million)
Underlying profit before tax increased by 10.5% to £104.1 million (2012: £94.2 million)
Earnings per share increased by 17.4% to 28.4p (2012: 24.2p)
Return on equity increased to 10.2% (2012: 9.3%)
Final dividend increased to 4.8p per share (2012: 4.5p per share). Total dividend for the year increased by 20% to 7.2p per share (2012: 6.0p per share) in line with dividend policy
Capital and Funding
Strong operational cash generation: free cash balances £170.8 million at year end after investments (2012: £127.7 million)
Warehouse facilities increased to £450.0 million
Two securitisations of new buy-to-let loan assets completed successfully
First retail bond issue completed successfully
Business and Operations
90.5% growth in buy-to-let loans advanced to £359.8 million (2012: £188.9 million); pipeline at 30 September 2013 of £231.9 million (2012: £129.9 million)
£92.8 million invested in consumer loan portfolios in the period with a further £13.5 million invested shortly after the year end
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:
"Paragon has made significant progress in 2013 delivering record profits, whilst also laying the foundations for further sustainable growth in the future. Buy-to-let lending volumes have grown by over 90% as landlords feel increasingly optimistic about the housing market and the prospects for the private rental sector. At the same time, the Group has continued to build on its highly regarded expertise in the debt purchase market, making further significant investments through Idem Capital.
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."
