Paragon Entertainment Limited Property Disposal (9027Q)

TIDMPEL

RNS Number : 9027Q

Paragon Entertainment Limited

22 February 2019

 
Date:      22 February 2019 
On behalf  Paragon Entertainment Limited ("Paragon", the 
 of:        "Company" or the "Group") 
 

Paragon Entertainment Limited

Property Disposal

Paragon Entertainment is pleased to announce that it has today completed the sale of its freehold property at the Elvington Industrial Estate, York for GBP550,000 in cash (the "Disposal"). The site currently houses the Company's administrative functions and these activities will shortly be relocated to the Company's closely adjacent site in York, bringing the administrative and creative parts of the business onto a single site, yielding modest operational cost savings estimated of approximately GBP100,000 on an annualised basis.

The proceeds of the Disposal will be used to reduce the level of the Company's on-demand overdraft facility with HSBC (which stood at approximately GBP1.04m at 11 February 2018 against a limit of GBP1.2m) and pay off the mortgage facility which stands at GBP134,000. Following the Disposal, the limit on the overdraft facility will be reduced to GBP882,000, making the Disposal neutral in terms of cash and bank facilities.

As reported on 18 December 2018 HSBC remains supportive of the Company and has, as secured lender to the Company, consented to the Disposal.

Paragon has learned that one of its foreign debtors has sought protection from creditors. This debtor owes Paragon GBP168,000 and Paragon had already made provision for part of this amount as a doubtful debt. Paragon will be reviewing the impact of this on the 2018 annual results.

Whilst the Directors remain vigilant as to day to day cashflow and borrowing levels they remain comfortable that following the Disposal they will be able to trade within the confines of the reduced facility level. Notwithstanding the Board is of the view that an on-demand overdraft facility is a sub-optimal financing structure for a business like Paragon and are accordingly looking closely at ways of bringing longer term capital into the business.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 ("MAR").

 
 For further information: 
  Paragon Entertainment Limited 
  Neil Jefferies (Finance Director) 
  Mark Taylor (Non-Executive Chairman) 
  finnCap Ltd                                01904 608020 
  Julian Blunt / Simon Hicks (corporate 
  finance) 
  Alice Lane (corporate broking)             020 7220 0500 
 

About Paragon

Paragon Entertainment Limited (AIM:PEL) is an award winning provider of attraction services from initial design production and consulting through to the fit out and installation of themed attractions, heritage exhibits, museums, aquariums and water parks, inter alia. Paragon Entertainment is the holding company for Paragon Creative Limited.

The Group's projects have included:

   --     The build of Rolling Stones Exhibitionism at the Saatchi Gallery, London; 
   --     The design and build of Kidzania, London; 

-- The design and build of galleries at the Olympic Museum for the IOC in Lausanne, Switzerland;

   --     The design and build of the galleries at The National Museum of Kazakhstan; 
   --     The design and build of Titanic Belfast; and 
   --     The thematic build of the Wallace and Gromit ride at Blackpool Pleasure Beach. 

The Group listed on AIM in 2011. Further information can be found at http://www.paragonent.com.

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February 22, 2019 08:29 ET (13:29 GMT)