Record Results Announced - Part 2

Paragon Group Of Companies PLC
16 November 1999

Part 2

 THE PARAGON GROUP OF COMPANIES PLC
 CONSOLIDATED PROFIT AND  LOSS  ACCOUNT
 for the year ended 30 September 1999
                                                                              
                                Year to                      Year to
                           30 September                 30 September
                                   1999                         1998
                                     £m                           £m
 
 Interest receivable              167.6                        159.5
 Interest payable and similar 
charges                          (112.2)                      (110.0)
 Net interest income               55.4                         49.5
 Other operating income            12.7                         11.1
 Total operating income            68.1                         60.6
 Operating expenses               (31.0)                       (30.4)
 Provisions for losses             (5.8)                        (5.1)
 Operating profit                  31.3                         25.1
 Profit on sale of fixed assets     2.5                          0.0
 Profit on ordinary activities 
 before taxation                   33.8                         25.1
 Tax charge on profit on 
 ordinary activities               (3.5)                        (1.2)
 Profit on ordinary activities 
 after taxation                    30.3                         23.9
 Dividend                          (4.0)                        (3.1)
 Retained profit                   26.3                         20.8
                                    ===                          ===
 
 Dividend - Rate per Share          3.4p                         3.0p
 
 Earnings per Share
    - basic (restated)             26.1p                        22.4p
    - diluted (restated)           25.8p                        22.1p
 
 There have been no recognised gains or losses other than the profit for the
 year.
 The results for the year relate entirely to continuing operations.

 THE PARAGON GROUP OF COMPANIES PLC
 CONSOLIDATED BALANCE SHEET
 at 30 September 1999
                          30 September                  30 September
                                  1999                         1998
                                    £m                           £m
                                                          (restated)
 
 Assets employed :
 Fixed assets
  Tangible assets        3.6                         21.8
  Loans to customers 1,482.5                      1,379.2
  Investment in own 
  shares                 2.8                          2.8
                               1,488.9                      1,403.8
 Current assets
  Stocks                14.5                         17.6
  Debtors               22.8                        18.2
  Cash at banks 
  and in hand          147.2                       165.9
                                 184.5                        201.7
                               1,673.4                      1,605.5
                                ======                       ======
 Financed by :
 Equity shareholders' funds
  Called up share 
  capital               11.6                        11.6
  Reserves             101.9                        75.2
                                 113.5                         86.8
 Provisions for liabilities 
 and charges                       4.2                          4.4
 Creditors
  Amounts falling due 
  within one year       27.0                        32.8
  Amounts falling due 
  after more than 
  one year           1,528.7                     1,481.5
                               1,555.7                      1,514.3
                               1,673.4                      1,605.5
                                ======                       ======
 


THE PARAGON GROUP OF COMPANIES PLC

NOTES:
1. This summary of results does not constitute full accounts and is unaudited.
The summary  of results is prepared using the same accounting policies as were
used in  preparing  the  accounts  for the year ended 30  September  1998, 
with  the exception  of the adoption of FRS 14 - Earnings per  Share (see note
3.  Below). The  directors  consider that the separate presentation  of 
provisions  in  the balance sheet is a more appropriate presentation in light
of the requirements of FRS  12  -  Provisions, Contingent Liabilities and
Contingent Assets, which  has been adopted in the year. The 1998 accounts have
been restated accordingly.

2. A final dividend of 1.9p per share is proposed, payable on 18 February 2000
with a record date of 21 January 2000.

3. The basic earnings per share figures have been calculated by dividing the
profit attributable  to shareholders by the weighted average number of
ordinary  shares outstanding during the period.

This  calculation complies with FRS14 - Earnings per Share and  is  a 
departure from  the calculation applied in previous periods. The comparative
figures  have been  restated  accordingly. For the year ended 30 September
1999  the  weighted average  number of ordinary shares outstanding was 116.0
million (1998 :   106.7 million).

The  diluted  earnings per share figures have been calculated by  adjusting 
the weighted  average number of ordinary shares outstanding for the effects 
of  all dilutive  potential  ordinary shares. For the year ended 30 September 
1999  the adjusted  weighted  average  number of ordinary  shares  outstanding
was  117.0 million (1998: 108.0 million).

The  numerator  in  all  calculations is profit  on  ordinary  activities 
after taxation.

4. The  amounts  included  in  the  balance sheet as 'Investments  in  own 
shares' represent shares held by the trustee of the company's share option
schemes.

5. The  financial  information set out in the announcement does not constitute
 the company's statutory accounts for the years ended 30 September 1999 or
1998.  The financial information for the year ended 30 September 1998 is
derived  from  the statutory  accounts for that year which have been delivered
to the Registrar  of Companies. The auditors reported on those accounts; their
report was unqualified and  did  not  contain  a statement under section 237
(2)  or  237  (3)  of  the Companies Act 1985. The statutory accounts for the
year ended 30 September  1999 will  be  finalised on the basis of the
financial information presented  by  the directors  in  this  preliminary
announcement  and  will  be  delivered  to  the Registrar of Companies
following the company's Annual General Meeting.

6. The  1999  Annual  Report  and Accounts will be posted to  shareholders  in
due course.  Copies  of this announcement are available from the Company 
Secretary, The  Paragon  Group  of  Companies  PLC, St. Catherine's  Court, 
Herbert  Road, Solihull, West Midlands, B91 3QE.



 THE PARAGON GROUP OF COMPANIES PLC
 CONSOLIDATED CASH FLOW  STATEMENT
 for the year ended 30 September 1999
                                 Year to                      Year to
                            30 September                 30 September
                                    1999                         1998
                                      £m                           £m
 
 Net cash inflow from 
 operating activities               33.2                         25.8
 Taxation                           (1.3)                         0.2
 Capital expenditure and 
 financial investment
    Net increase in loans 
    to customers                  (109.5)                       (73.7)
     Other                          19.1                         (2.1)
 Acquisitions and disposals          0.0                        (25.4)
 Dividends paid                     (3.8)                        (2.5)
 Management of liquid resources     23.7                        (16.0)
 Financing                          45.2                        151.2
 Increase in cash in the year        6.6                         57.5
                                    ====                         ====

 (a) Reconciliation of operating profit to net cash flows from operating
 activities.
 Operating profit                   31.3                         25.1
 Provision for losses                5.8                          5.1
 Depreciation                        1.6                          1.7
 Decrease/(increase) in stock        1.1                         (2.4)
 Increase in debtors                (6.9)                        (3.6)
 Increase/(decrease) in creditors    0.3                         (0.1)
 Net cash inflow from operating 
 activities                         33.2                         25.8
                                    ====                         ====

 (b) Reconciliation of the movement of cash with the movement in net debt.
 Increase in cash in period          6.6                          57.5
 Cash inflow from increase in debt (44.8)                       (343.2)
 Cash movement from changes in 
 liquid resources                  (23.7)                         16.0
 Movement in net debt              (61.9)                       (269.7)
 Opening net debt               (1,312.4)                     (1,042.7)
 Closing net debt               (1,374.3)                     (1,312.4)
                                  =======                       =======