Paragon makes strong progress as profits increase

SOLIHULL financial services group Paragon has seen its operating profit increase by 16.6% to £88.3m in the nine months to June.

This compares to £75.7m for the corresponding period last year.

In an interim management statement, the firm said its three business divisions have all made strong progress in the period.
 
In Paragon Mortgages, conversions from the strong pipeline at the half year generated new completions of £187mduring the quarter, taking year to date advances to £456.3m (compared to £234.9m in the same period in 2013).

Despite accelerated conversion numbers the pipeline has been maintained at £349.8m at the end of June. 
 
Idem Capital, the group’s portfolio purchase division, invested a further £47.5m during the quarter, taking net investments for the year to date to £169.5m (nine months to 30 June 2013: £92.7m). Cash receipts from the acquired portfolios remain in line with projections.  Idem continues to see a strong pipeline of opportunities in the UK debt purchase market.
 
Paragon Bank’s initial focus is on the establishment of distribution arrangements for its car finance lending products, through brokers and car dealers under the Paragon Car Finance brand. 

Paragon said the offering has been well received by the intermediaries engaged to date and a roll-out across these distribution channels is on-going. 

The first savings products have been launched, initially on a small scale to test delivery and operational systems, before a broader launch to coincide with higher lending volumes. .
 
The group’s available cash and capital resources remain strong.  At 30 June free cash balances were £198.0m (£169.4m at 31 March 2014).
 

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