View more on these topics

Rights issue pays off for Paragon

Paragon has completed the successful take-up of its £287m rights issue.

The buy-to-let lender faced speculation that it could be taken over after its share price fell by 46 per cent in November when it warned that it would have to make an emergency rights issue due to the liquidity crunch.

Paragon has now confirmed at it has 100 per cent take-up of the rights issue. The company’s share price is still down by 88 per cent at111.5p from 999p a year ago.

Home Funding chief exec-utive Tony Ward says: “I do not think it is a sale targetany more.

“Paragon is sitting on around £140m cash so thereis a lot of embedded value inthe business that is not reflec-ted in its share price.”

Paragon is now in a position to repay its corporate debt following the rights issue but it looks set to stop lending on February 28 as it has been unable to secure commercially acceptable terms for the extension of its term.

The company’s warehouse will now convert to a term-out facility but the lender’s assets, which are already funded at that date, will remain funded until they mature.

Ward says: “Paragon will not be lending for the foreseeable future but I think it will be fine in the long run. We are assuming at the moment that the market is definitely shut this year.”

Robert Sterling managing director Kevin Duffy says: “I think that Paragon will find itself through this. There is a lot of value in that business.”


Cash landing

The importance of dividends has come to the fore once again. Take Northern Rock investors. Hundreds of thousands of the former building society members got free shares worth around £4.55 each when it demutualised in 1997.

‘Don’t rely on sale of your business for retirement’

Rowanmoor director of consultancy David Seaton says pension simplification has been a disaster and is urging business owner/directors not to rely on the sale of their businesses for their pension.In a speech at the Henry Stewart small self-administered scheme conference in London last week, Seaton said it would have been simpler if the Government had […]

Speculation mounts on AWD Chase de Vere

Speculation is growing about the future ownership ofAWD Chase de Vere, with a number of suitors thought to be interested in taking over the adviser company.Swiss Life made its offer for parent company AWD Holding AG for £824m in December and the deal is due to be accepted this week. SwissLife statements have consis-tently excluded […]

Chiefs say CAR will not stop bias

Leading adviser firms are warning that customer-agreed remuneration will not remove product bias.Speaking at a Money Marketing RDR round table, the chief executives of Bankhall, Sesame and Tenet warned that CAR is a widely misunderstood term and is actually a dressed-up form of commission.Sesame chief executive Ivan Martin said: “We have somehow got to nail […]

Artemis Monthly Distribution Fund: positioning and outlook

Managers James Foster and Jacob de Tusch-Lec outline the fund’s investment approach and discuss current investment themes and outlook for the bond and equity markets. As James and Jacob confirm, the Artemis Monthly Distribution Fund’s aim is to generate an income from both equities and bonds. They explain their investment approach in each asset class, the sectors where they are […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm