Buy-to-let mortgage specialist Paragon Group has delivered strong financial performance, in line with management expectations, during the period from October 1st 2011 to June 30th 2012.
Operating profits came in at £68.9m compared to £58.9m during the same nine month period the previous year, primarily as a result of income generated from the group's acquired portfolios of consumer loans. Pre-tax profits, inclusive of a credit of £0.6m for fair value hedging items, were £69.5m for the period.
The portfolio has continued to perform well, generating strong profits and cash flows, with redemption remaining low. At June 30th, 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), while free cash balances were £126.9m (£104.9m at 31 March 2012).
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
During the quarter, £45.1m of new buy-to-let loans were advanced and a further £2.1m was advanced by way of further advances to existing borrowers In the year to date advances total £136.4m and the pipeline of new business at June 30th was £121.3m.
"During the period, the group has continued to build on the excellent progress made during the first half of the financial year, continuing the prudent management of the existing and acquired books whilst seeking growth through new loan originations and through portfolio acquisitions, which the group will continue to pursue this strategy," the firm said.
"Negotiations are progressing well 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. Further information on the conclusion of these negotiations should be available in due course."
NR
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
