Highlights include
- Profit before tax up 36.8% to £71.0 million (2003: £51.9 million)
- Earnings per share up 35.2% to 48.0p (2003: 35.5p)
- Dividend per share up 52.4% to 9.6p (2003: 6.3p)
- Total advances up 43.8% to £2,124.3 million (2003: £1,477.4 million)
- Net loan assets increased to £5,950.9 million (2003: £5,287.1 million)
- Mortgage Trust fully integrated and trading profitably
- Strong start to the new financial year
- Long term prospects for buy-to-let sector remain attractive
Commenting on the results, Jonathan Perry, Chairman of Paragon, said: “The Group has had an outstanding year. Volumes and profits have continued to increase strongly and the integration of Mortgage Trust, which traded profitably during the year, has been completed successfully. We have seen a good start to the new financial year with a higher opening pipeline and completions in line with plan.
It is still too early to say whether slowing housing activity will lead to a soft or a hard landing for house prices and this uncertainty is weighing down sentiment for housing. Whilst this has beneficial consequences for the landlord, in the form of improved tenant demand and rising rents, the impact of this sentiment on buy-to-let activity over the coming months remains to be seen. In the longer term, we remain convinced that prospects for the private rented sector remain strong.
The acquisition of Mortgage Trust at a significant discount to net assets has provided a new profit stream for the Group in the core buy-to-let area of our business activities. The rapid and successful turnaround of this business has added significant value for shareholders. Looking forward, we shall continue to seek actively acquisition opportunities to supplement organic business flows.”
