The Paragon Group of Companies has reported operating profits for the period 1 October 2009 to 30 June 2010 of £47.6 million.

Pre-tax profits, inclusive of an exceptional profit of £5.7 million on the purchase of Group securitised bonds and a charge of £0.5 million for fair value hedging items, were £52.7 million for the period.

Arrears within the buy-to-let portfolio improved further during the third quarter, with the proportion of the portfolio three months or more in arrears reducing to 0.97% at 30 June 2010 from 1.17% at 31 March 2010.

Paragon confirmed it was continuing to make operational preparations for the recommencement of lending, adding it was “well positioned to re-enter the lending market when funding conditions are appropriate””.”