Buy-to-let lender Paragon Group has revealed profits have increased by more than a third after seeing a recovery in the market.
Shirley-based Paragon (PAG) posted pre-tax profits of £39.5 million in the six months to March 31, compared to £29.7 million in the first half of last year.
That came after shareholders’ funds increased from £664.6 million in the first half of 2010 to £715.2 milllion.
And Nigel Terrington, chief executive of Paragon, said he was expecting a strong second half performance.
He said: “The group’s performance continues to be strong, with excellent profit growth, credit performance and cash generation during the first half of the financial year.
“New lending has progressed well, with a strong application flow building to a meaningful pipeline of business. Strong growth in lending is expected in the second half of the year. Further progress has been achieved in servicing and investing in loan portfolios, and additional opportunities are under review which seek to take advantage of the group’s recognised expertise in these areas.
“We look forward to building on the success of the group’s return to new lending as the foundation for future growth and to returning to the securitisation market.”
In a statement to the London Stock Exchange, the group said its improved performance had left it in a stronger cash position.
It had £179.7 million free cash at the end of the period, compared to £128.1 million in the middle part of last year.