Paragon FY profit up 9%; dividend lifted and share buyback extended

Paragon Group of Companies posted a 9.3% rise in full year pre-tax profit as it lifted its dividend and extended its share buyback programme.

For the year to the end of September, statutory pre-tax profit came in at £134.2m and the group raised the total dividend by 22.2% to 11p per share.

In addition, the share buyback programme was extended into 2016, by up to £50m.

Chief executive Nigel Terrington said: “Buy-to-let volumes increased by 102% and our pipeline at the year-end was up 72%. The level of capacity and diversification we have achieved in our funding, including over £950m in retail deposits raised to date through Paragon Bank, will allow us to capitalise on future growth opportunities.”

The British lender said its buy-to-let lending doubled from the previous year to £1.33bn, while the pipeline at year-end was up 72.1% to £713.7m.

The company added that its bank, which posted a £8.6m pounds this year, is expected to make a profit in 2016.

At 0824, Paragon shares were up 3.8% to 415.20p.