Virgin Money reports strong full-year profits ahead of FTSE 250 flotation

Shares in Virgin Money rose 5% on Thursday after reporting a year of "record performance and profits".

The financial services provider saw an increase in underlying profit before tax by 127% to 121.2m. However, statutory profits before tax fell 82% to £34m.

Furthermore, mortgage balances increased 11.8% to £21.9bn and credit card balances rose 41% to £1.1bn.

Chief executive Jayne-Anne Gadhia said it expects the group to be admitted to the FTSE 225 on 20 March, following "a landmark year of the business".

Gadhia added: "We have made great progress against our objectives to achieve strong growth, maintain our high-quality balance sheet and deliver returns to shareholders."

Investec analysts said: "Virgin Money has enjoyed a strong market debut, already trading 13% above its IPO price (283p), outperforming the entire UK banking sector in 2015 year-to-date."

Shares were up 5.16% to 335.47p on Thursday at 11:34.