Paragon profits soar

18th May 2010 08:36

Specialist mortgage lender Paragon nearly doubled profits in the six months to March 31, helped by the low interest rate environment making it easier for customers to pay back debts.Pre-tax profits jumped to £29.3m from £15.9m in the same period a year previously. The company lifted its dividend to 1.2p from 1.1p.'The group has successfully steered its way through a period of difficult market conditions, delivering excellent trading performance during the first half of the current financial year, grounded in high quality lending, sound portfolio management and the group's new initiatives delivering profits ahead of expectations,' chief executive Nigel Terrington said. 'The group is in a strong financial position with a healthy balance sheet and robust capital level and is generating a strong cash flow from its operations.'Paragon said it expects interest rates to remain low for the foreseeable future, though its performance will remain resilient when rates eventually rise.