Paragon Entertainment Share Discussion Threads

[cockerhoop] 29/7/2016 14:05

Would have been cash generative too, if they'd moved the year end to early July :-)

[playful] 29/7/2016 13:30

This ideally should have been released this morning, but its PEL so nothing surprises me with them.

They seem to be chugging along nicely, just the admin costs as PJ1 mentioned.

[pj 1] 29/7/2016 13:11

Out on the road so quick glance. GP of 26% excellent news. Other overheads of £1.3 (£2.6p.a.) need controlling. Reads well though imo, the best update for a while.

Will digest more later this afternoon

[cockerhoop] 29/7/2016 13:02

Interims relreased - slightly strange timing!

[ianb5004] 28/7/2016 18:36

Apologies.. Took trades of lse which has been up the wall. Some trades have been duplicated.
The big buys since 22/7 = £4.5 mil

[pj 1] 28/7/2016 18:09

The notes seem very short to say I was there 3.5 hours.

They MUST do a smaller Buffet next time, I hate leaving anything!

[janeann] 28/7/2016 10:10

Certainly good to see and long may it continue ...... hopefully your timing this time proves opportune PJ

[ianb5004] 28/7/2016 10:02

Rumoured to be an institutional buyer at the moment, supported by 9.5m buys in 1m and 1.5 m lumps since 22/7.
Another 1m buy this morning so may stillbe going.

[dontsweatit] 27/7/2016 09:15

either the other attendant at the AGM was rich or something you have said has hit a nail on the head somewhere PJ UP 26% since AGM and reports

[pj 1] 25/7/2016 15:03

DSI
I wouldn't go as far as to say I bottomed anything. Obviously some of the questions I asked were deflected, as an answer would have been ''inside'' probably. As always I tried to interpret and pick up what I could from the site tour, so I am wary of getting it wrong. There is a definite air of change around the place though

I'd like to see HY Results before commenting further, other than to add I have added recently.(after my PF performance though this year that's probably a warning sign! lol) :-//

[playful] 22/7/2016 14:15

They are gradually rebuilding PI confidence, but must keep their feet on the ground and restrict PI communications to the Q&A and annual AGM, which thankfully seems to be happening.

[dontsweatit] 22/7/2016 13:48

Thanks for the effort and reports PJ, a good AGM does not make a Company profitable and investible though! did you get to a bottom with anything with regard to gross profits and margins?

[pj 1] 22/7/2016 12:48

Hopefully with a much improved share price in the future many others will consider attending the AGM. They really were 2nd to none yesterday with the Directors all giving us 3.5 hours of their time including the Presentation and Site tour. There are not many companies that do that.

[pj 1] 22/7/2016 09:06

LOL-I certainly don't need any more sausage rolls janeanne!

Correct.Their internal capacity is currently £13-14 million hence me using £13.5m. This is recruited for with sub contract at a minimum. Obviously the tricky area for the future is regarding mix of works where more complex model making etc results in sub contracting out.

The new COO is also trialing new 'production' methods which if successful could reduce assembly time on the wood working and landscape items. (lower margin work).

Aside from that they must be very confident in the confirmed order book as 'staffing' up in readiness carries increased risk in that any delays to contracts results in a more adverse effect on the bottom line.

[janeann] 22/7/2016 07:14

Thanks PJ - sorry couldn't make it - but then you might have had fewer sausage rolls! Are they then taking on more permanent staff or still using self employed folk and only taking them on when they need them?

[fft] 22/7/2016 02:38

Thanks PJ1. Good to see you making the effort. I am sure got as much out of them as anyone else would !

[santar] 22/7/2016 01:35

Thanks PJ 1.

[pj 1] 21/7/2016 20:32

So, does that explain the lower than expected EBITDA of £0.5m from £11m Revs as training and some down time are bound to be incurred,

Then, when production capacity is filled, a step change in EBITDA results?

[pj 1] 21/7/2016 20:22

Apols I missed a really important summary point. Rather than staff levels being reactive to Sales. ie. sell it then recruit, train up and make it, resulting in possible lost Sales due to capacity constraints, Pel have reversed and become pro-active, increase (hands on) production capacity and train staff with the emphasis on Sales then filling capacity. So maximum (excluding sub contract) production capacity is circa £13.5M subject to mix.

That probably explains better the reasoning for the COO

Obviously that raises other Risk.

[pj 1] 21/7/2016 19:05

I'll name that tune in One eh..?

[playful] 21/7/2016 18:21

I suspect the salary increase was because they gave-up some of their previous years salary due to the O/D situation.

[pj 1] 21/7/2016 17:08

Major II supportive and consulted over revamped PEIL scheme (Director options)

[pj 1] 21/7/2016 17:02

Good AGM meeting today. Only 1 other (quiet) PI attended so i hope I did not hog the meeting too much (although I was here for 3.5 hours)

I could therefore (hog) take my pick of the lovely buffet and sausage rolls, taken as a dividend :-)

There should be a response via Q&A explaining the Director remuneration 'increase' in 2015 which is not perhaps as it appears.

Hopeful of pipeline and contract order book levels published in HY 2016

20/2020 re-iterated as an achievable target. However, Co understandably taking a cautious approach and were guarded as regards EBITDA/Profit levels although that would probably have been inside information? Margins fluctuate by project and geographic area (UK currently lower than usual. MENA region higher). Hence some more digging for me to do in the future on EBITDA and Margin. Emphasis on repeatable projects (e.g. at franchised operational Business). Internal pressure to increase Gross Profit.

The new COO has made an immediate impact that's clearly seen with revamped work flows and systems and importantly freeing up other Directors for amended roles. New/rearranged staff departments and lines of responsibilty. The new (automated) machinery is to increase capacity not just a cost saving exercise. Evidence of modern methods/technology including 3d printing and automation of scaling up of approved models.

Increased unit space,, and staff with lots of WIP, mainly Dubai Park, MAF and .........Coronation street. Unfortunately the bar in the Rovers Return was totally dry. Nor was Annie Walkers ghost in attendance. Staffing levels now +120 (unsure if that is full time equivalent or not, or is a head count) up from circa 100.

Total change in Directors body language from 2 years ago.

I will do a fuller write up when time permits. As always usual disclaimers apply. DYOR etc. PJ