Buy-to-let loan specialist Paragon continues to broaden its revenue stream with the purchase of another portfolio of consumer credit from MBNA Europe Bank for £16.2m. And, while the contribution in the current financial year to 30 September will be negligible, a full-year contribution could add pre-tax profits of £3.5m. Accordingly, analysts at broker Shore Capital have increased their forecasts for 2012-13's pre-tax profits to £105m.
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Paragon is also working on securing an extension of its £200m loan warehousing facility with Macquarie Bank, which expires in 2014 but can't be tapped beyond December.
