Paragon growth pays dividends
The board of the Paragon Group of Companies, a Solihull-based specialist mortgage and loans provider, has announced it will increase its dividend by 25 per cent after pre-tax profit reached £122.8m.
Chief executive Nigel Terrington also revealed plans for an initial £50m share buyback programme due to the group's "strong capital position".
In the year to 30 September 2014, Paragon posted pre-tax profit of £122.8m, a 17.2 per cent increase on last year's result of £104.8m.
The board has proposed a final dividend of 6 pence per share compared to 4.8 pence in 2013.
"The past year has seen considerable progress in the group's strategic plans and in the performance of its businesses," Terrington said.
"Paragon Mortgages and Idem Capital have witnessed significantly increased new business and are well positioned for further growth. Significant progress has also been achieved in diversifying further the Group's funding sources.
"In particular, the formation of Paragon Bank has provided us with the opportunity to diversify further both income streams and funding and we expect it to play an important role in the group's future plans."