Paragon Group, a specialist buy-to-let and consumer finance provider, has seen pre-tax profits fall by 39% over the last six months.
Pre-tax profits for the six months to 31 March 2008 were £26.4m, down from £43.3m in the first half of 2007. Underlying profits were £38.4m to 31 March, while H1 2007 saw underlying profits reach £40.2m.
However, arrears are low and stable, while the firm’s entire £11bn portfolio is match funded to maturity.
The value of completions has fallen significantly since the first half of 2007, down from £2.12bn to just £987.6m.
The firm has reinstated its dividend to 1p per share, compared with 8p per share in the first six months of 2007.
Paragon has fully completed its £287m rights issue and repaid a £280m corporate facility, and says its funding position is now secure.
Nigel Terrington, chief executive of Paragon, comments: “The Group enters the second half of the year in a strong financial position, fully match-funded and generating a positive cash flow.
“Whilst the credit environment has been significantly disrupted and new lending levels have been reduced accordingly, we do expect a return to market stability in due course.”
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