Is This A Buy Yet??????????? @115p

thanks to someone (sticky?) i bought some for my SIPP the other day at 358, so very many thanks to that benefactor

Latest Broker Views........

Date Company Name Broker Rec. Price Old target price New target price Notes

18 Feb 14 Paragon Group Of... Canaccord Genuity Buy 381.25 420.00 453.00 Reiterates
18 Feb 14 Paragon Group Of... Espirito Santo Execution Noble Buy 381.25 481.00 481.00 Retains
13 Feb 14 Paragon Group Of... Espirito Santo Execution Noble Buy 381.25 424.00 481.00 Retains
03 Feb 14 Paragon Group Of... RBC Capital Markets Outperform 381.25 - - Reiterates
03 Feb 14 Paragon Group Of... Jefferies International Buy 381.25 400.00 420.00 Reiterates
03 Feb 14 Paragon Group Of... JP Morgan Cazenove Overweight 381.25 396.00 396.00 Retains

Half Yearly report

Highlights
Strong increase in buy-to-let lending and Idem Capital investment levels. Banking subsidiary established
· £269.3 million of buy-to-let loans advanced (2013 H1: £102.3 million); pipeline at 31 March 2014 of £348.1 million; significant increase in lending expected in second half

· Idem Capital invested £121.9 million in consumer loan portfolios in the period

· Car Finance business launched by Paragon Bank PLC


The business produced underlying profits of £57.9 million for the period, a 20.9% increase, generating a 19.0% increase in EPS and a 25.0% increase in the interim dividend
· Underlying profit before tax increased by 20.9% to £57.9 million (2013 H1 (restated*): £47.9 million) †

· Profit before tax increased by 19.3% to £58.2 million (2013 H1 (restated*): £48.8 million)

· Total operating income increased by 11.3% to £96.4 million (2013 H1 (restated*): £86.6 million)

· Earnings per share increased by 19.0% to 15.0p (2013 H1 (restated*): 12.6p)

· Interim dividend increased by 25.0% to 3.0p per share (2013 H1: 2.4p per share) in line with dividend policy


To enable future growth, funding sources were diversified and expanded on improved terms
· Warehouse facilities extended on improved terms and increased after 31 March 2014 from £450.0 million to £550.0 million

· Paragon Mortgages (No. 19) PLC securitisation completed, with a broader investor base and on improved terms, funding new buy-to-let loan assets and refinancing a legacy deal, First Flexible No. 4 PLC, the first since 2007

· First structured funding of acquired Idem Capital assets completed

· Second issue under retail bond programme

· Banking licence granted to Paragon Bank PLC, retail deposit taking capability established

PAG got a lot going for it, as some resistance coming up pretty soon but if it gets through we should see a move for the high of the year at 425p. Some healthy brokerage following aswel

i've got these in my sipp from 358, so fairly happy

Results in the morning.

PAG

BEATS CONSENSUS Broker Figures easily......

2014 2015
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)
Shore Capital
21-11-14 BUY 122.20 30.50 8.60 142.50 36.10 10.40
Panmure Gordon
21-11-14 BUY 31.20 8.50 35.70 10.00
Peel Hunt LLP
21-11-14 BUY 121.20 30.01 8.20 138.66 34.23 9.50
Westhouse Securities
20-11-14 BUY
Canaccord Genuity Ltd
29-10-14 BUY 117.00 29.90 9.00 141.00 35.50 10.50
Numis Securities Ltd
24-07-14 SELL 119.20 30.70 8.76 126.70 32.80 10.10
Espirito Santo Investment Bank Inc
02-04-14 BUY 114.90 28.90 8.40 120.30 30.60 9.50
2014 2015

Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)
Consensus 120.68 30.28 8.58 140.40 35.30 10.13


Fantastic results and lets not forget the consensus figures were revised upwards on the IMS.

HIGHLIGHTS

Underlying profits increased by 18.1% to £122.2 million from £103.5 million in 2013


2014
2013
(restated*)
Change
% change
Profit before tax
£122.8m
£104.8m
+£18.0m
+17.2%
Basic EPS
31.9p
28.2p
+3.7p
+13.1%
Dividend per share
9.0p
7.2p
+1.8p
+25%
Dividend cover ratio
3.5 times
3.9 times


Return on equity
10.7%
10.1%


Cost:income ratio
32.0%
33.2%


* note 2

Strong progress in buy-to-let and debt purchase divisions. Banking franchise established. All divisions showing strong growth prospects

· Buy-to-let completions increased by 82.5% to £656.6 million (2013: £359.8 million); pipeline increased by 78.9% to £414.8 million (2013: £231.9 million)

· Idem Capital increased its investments, net of debt, by 89.3% to £175.7 million (2013: £92.8 million)

· Paragon Bank launched car finance, second mortgage and buy-to-let operations

Significant progress achieved in Group's funding diversification strategy

· Paragon Bank's retail deposit taking activities commenced in June 2014, with £60.1 million of deposits by the year end

· Second retail bond completed, taking cumulative issuance to £185.0 million

· Two bespoke financing packages, totalling £185.6 million raised to support Idem Capital

· Warehouse facilities for buy-to-let lending increased to £550.0 million

· Securitisation issuance totalled £929.7 million over the last 12 months

Capital management

· Strong increase of 20.2% in net cash generation to £157.8 million (2013: £131.3 million)

· Group capital ratios remain strong with Core Tier 1 ratio of 19.7% and leverage ratio of 8.3%

· 2014 dividend cover ratio at top of the targeted range of 3.0 to 3.5 times, two years ahead of expectations

· Initial £50.0 million share buy-back programme announced

Outlook

· Strong new lending and debt purchase pipelines, together with the development of Paragon Bank, present significant growth prospects

· Funding diversification programme and improving debt capacity underpin sustainable growth

· Shareholder returns enhanced by higher dividends and capital management programme

This Broker was looking for a 16% increase and we got a 17.2% increase year on year.

Tuesday 25 November

Paragon (PAG) will release its full-year results on Tuesday.

Analysts' expectations: Paragon's full-year results are expected to show both Mortgages and Idem Capital posting strong growth. Stuart Duncan at Peel Hunt reckons there could be a 16% increase in profits.

He anticipates "positive trends" in each aspect of the business, with expectations that "the Mortgage business [will] do £600 million of new completions, Idem [will] have completed further portfolio acquisitions, and the new bank to be making progress."

With Paragon currently trading at roughly 1.1x September 2015 forecast net asset value (NAV), he believes that this "undervalues the future growth in ROE (return on equity)", which is why he retains his 'buy' recommendation.

BRIEF – Paragon FY pretax profit up 17.2 pct
25 Nov 2014 - 07:45

Nov 25 (Reuters) – Paragon Group Of Companies Plc

FY pretax profit rose 17.2 percent to 122.8 million STG
Final dividend 6 pence per share
Total dividend 9 pence per share
FY basic EPS 31.9 pence
Strong new lending and debt purchase pipelines, together with development of paragon bank, present significant growth prospects
Source text for Eikon: ... Further company coverage: PARA.L

(Bangalore Newsroom: +91 80 6749 1136)

Keywords: PARAGONGROUPOFCOMPANIES/BRIE

sp still quite well short of its peak of about 420 reached in april this year

Yep plenty of manoeuvre space....

PAG

First of many Broker updates I reckon.......

25 Nov 2014 Paragon Group of... PAG Espirito Santo Execution Noble Buy 392.10 377.90 494.00 494.00 Reiterates

SP target 494p

25 Nov 2014 Paragon Group of... PAG Panmure Gordon Buy 392.10 377.90 500.00 500.00 Reiterates

500p SP Target.

25 Nov 2014 Paragon Group of... PAG Liberum Capital Buy 392.10 377.90 - 442.00 Reiterates

25 Nov 2014 Paragon Group of... PAG Canaccord Genuity Buy 394.05 377.90 453.00 453.00 Reiterates

25 Nov 2014 Paragon Group of... PAG Shore Capital Buy 401.05 377.90 - - Retains

IC TIP UPDATES:

Buy to let specialist and Simon Thompson recommendation Paragon Group of Companies (PAG) has issued a strong set of full year results reflecting ongoing buoyant trading conditions. Pre-tax profits rose by 17.2 per cent to £122.8m, allowing management to increase the dividend by 25 per cent to 9p a share. Buy to let completions in the year rose by 82.5 per cent and the forward order book is up 79 per cent to £415m. During the period the group also launching its own banking products and attracted £60.1m in deposits between June and September.

25 Nov 2014 Paragon Group of... PAG RBC Capital Markets Outperform 408.15 377.90 - - Reiterates

Strong performance boost Paragon FY results
Daniel Cancian | Sharecast | 25 Nov, 2014 08:11 - Updated: 09:31



First mortgages and consumer finance focused Paragon Group of Companies said strong performances across the board boosted its full year profit.
Profit before tax for the year ended 30 September rose from £104.8m to £122.8m, while underlying profit rose from £103.5m to £122.2m.
The group’s mortgages division saw an 82.5% increase to £656.6m in buy-to-let completions as the group broadened its distribution through its Paragon Mortgages and Mortgage Trust brands.
"The past year has seen considerable progress in the group's strategic plans and in the performance of its businesses,” Nigel Terrington, the group chief executive 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.”
The firm added that the buy-to-let market continued to grow, supporting the private rented sector (PRS), which now accounts for 18% of the housing stock in England.
Paragon said that tenant demand strengthened throughout the year and recent forecasts suggested the PRS share of total housing stock would continue to grow in the future.
The group has proposed a final dividend of 6p per share compared to 4.8p per share in the previous financial year.
Existing businesses provided significant opportunities for growth and the potential to develop additional products.

the more i think about the more PAG is a really good buy, even now

the buy-to-let market is booming at the expense of outright sales for all sorts of fairly obvious reasons
i do not see this picture changing in anything like the near future