Acquisition of Loan Portfolio

RNS Number : 9225Q

Paragon Group Of Companies PLC

27 October 2011

 



27 October 2011

THE PARAGON GROUP OF COMPANIES PLC

Acquisition of Loan Portfolio

The Paragon Group of Companies PLC ("Paragon") is pleased to announce the acquisition of a portfolio of unsecured consumer loans from The Royal Bank of Scotland PLC.

The consideration, which is being financed from Paragon's cash reserves and which represents the value at which the acquired loans will be taken on to the Group's balance sheet, is £43.2 million (calculated as £48.4 million net of £5.2 million cash received following the determination date of 30 June 2011).  The acquisition is expected to be earnings enhancing to Paragon in the current financial year.

Commenting on the acquisition, Nigel Terrington, Chief Executive of Paragon, said:

"We are extremely pleased to announce a further loan portfolio acquisition through our investment division, Idem Capital.  Our servicing division, Moorgate Loan Servicing, has managed this portfolio of loans for the last two years.

Paragon, through Idem Capital, has made great progress with its strategy.  This is the sixth portfolio acquired since mid-2009, of which four have been acquired in 2011, bringing the total investment to date to £89.5 million.  We continue to see further attractive portfolio acquisition opportunities."

Paragon intends to announce its full year results on Tuesday 22 November 2011.

For further information, please contact:

The Paragon Group of Companies PLC

Nigel Terrington          Chief Executive

Telephone:                  0121 712 2024

Fishburn Hedges

Andy Berry

Telephone:                  020 7839 4321

Mobile:                        07767 374421

Jane Padgham             07990 571366

 

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