Paragon Entertainment Share Discussion Threads

[cockerhoop] 09/11/2018 09:53

Sounds a excellent project - and repeatable.

[playful] 08/11/2018 21:28

Regular selling at the moment

[playful] 01/11/2018 20:56

It would be good to see them pitch for Christmas theme attractions within shopping centres here in the UK. I suspect budgets go out the window as shopping centres strive to impress & create the best Christmas shopping experience.

Good solid repeat business!

[pj 1] 01/11/2018 15:49

More than 200 UK shopping centres 'in crisis'



"UK shopping centres must change if they are to survive," according to Mr Blackley.
"They need to think like a hospitality brand. There has been a marked shift to the 'experience economy', and an increase in spend on food and beverage, which is now accounting for over 20% of total spend in some of the newest schemes.
"Some of the big centres in the UK are incorporating Sea Life Centres, ice rinks, indoor ski slopes. These are the shopping centres that, in my view, will survive.
"There's no doubt that if shopping centres don't deliver an experience consumers want, they will fall by the wayside.

[pj 1] 29/10/2018 10:28

Maybe that's because no questions have been raised that they can answer on the Q&A? The AGM was very informative I thought but off course things have changed following the Director changesAre the H2 targets achievable is an obvious one that cannot be answered without an RNS.

[playful] 28/10/2018 23:54

Nothing on the shareholder Q&A for a while perhaps they should hold a PEL AMA on YouTube and setup a reddit thread for questions. It would be more interactive and might stimulate interest.

[1savvyinvestor] 14/10/2018 21:50

Indeed. If they could run the business as well as they design their products we would all be happy!!

[playful] 01/10/2018 11:44

They should really issue the TR1 form providing the required information. To be fair It’s the NOMAD that’s at fault and not PEL.

[playful] 04/9/2018 10:42

Absolutely no indication JD was planning on going anywhere at the AGM and joining us on the tour he was happily chatting with me about his future plans for the business.

Was he pushed out? I don’t think so he probably thinks having all your eggs in the digit basket is tad risky and any spanner in the works would probably see the shutters come down.

He is a big shareholder so will he continue to hold beyond 6 months? This will be the litmus test for me.

The return of Peter Holdsworth would be helpful despite some talk of him making a mistake on a past project. I’d give him another chance due to his long history with the business and positive influence/relationship with MP.

[pj 1] 03/9/2018 08:53

Well that has caught me by surprise. JD came over with clear plans operationally and financially at the AGM. However the decisions has been made and as always it's now about the future and how PEL strengthen the Board and senior management. Ramas has a point. The market will be focussed on profit margin and cash generation over revenues especially with the increased borrowings and obvious associated risk. Profits have turned to cash previously so I don't see any issues but timely confirmation will help in the future. The proposed unit move is the wild card. Mark P obviously knows the business inside and out but will be under pressure from day 1 with the finances and appointing the right board director.

[ramas] 03/9/2018 07:57

Disagree the share price is well up with events , PEL no longer deserves a premium , it needs to prove itself now ... cash generation not revenue

[1savvyinvestor] 03/9/2018 07:56

it was certainly on Dobson's watch that major mistakes were made in terms of profitability and an unsustainable workforce

[csmwssk12hu] 03/9/2018 07:21

Not in here but watching in case it pulls back, my view of that move is overseen large fall in share price and turnover drop which now is allegedly stemmed and turned and probably should have gone much earlier, from experience no one knows a company better than the person who started it, I will wait to see how share price moves today and may have to raise my entry point as this may be a significant positive imho dyor

[1savvyinvestor] 03/9/2018 07:09

So - John Dobson to go. Mark Pyrah taking over again. Seems something comes out after the AGM each year.! Dobson probably had enough of the stress!!

[pj 1] 28/8/2018 11:45

Probably irrelevant currently but perhaps more relevant in the future, but worth noting, is that the share premium account has been amended to allow the payments of dividends in the future, being Caymen registered makes it easier to do than if UK registered.

[playful] 24/8/2018 16:28

Loss does not mean we’re sunk, says Paragon

[stiffybristol] 23/8/2018 17:59

Thanks PJ.

[mortimer7] 23/8/2018 09:39

PJ1 thanks for sharing, much appreciated.

[pj 1] 22/8/2018 21:23

Not a full write up but some initial comments from myself. I also look forward to comments and opinions from other attendees that I have not yet spoken to-As always the usual disclaimers apply, I am not qualified to give financial advice and all comments are my opinions alone-

The Company has been through the wringer and mangle, Whilst it seems the HSBC have been supportive I suspect this support was not always easily won. A number of faults in the Business and a deteriorating Market compounded Management into a fire fighting exercise. Initial costings on Projects led to overruns with no contractual back-up or counter claim which culminated in Debtors who refused to pay without going to War. Internal lower level Management failed in areas and previous poor working practices continued unchallenged. x2 rounds of redundancies, 5% across the business wage reductions, x2 financial teams have come and gone (as posted above)forfeiture of incentive schemes and Director Options, Debt chasing which required the CEO to take a considerable amount of time out of the Business and Country to collect in. Add in the general Market demise and the cancellation of 2 ''Product'' contracts explains the Tsunami. It appeared to me there are still some resistance to change issues to overcome hence there is still some very hard work ahead.It is to the credit of the Company that the Presentation included the challenges and mistakes made without pre questioning although we have to trust all the weaknesses and errors were covered. . I have no reason to suspect that they were not. Whilst the muted change of premises did not materialise, JD seems determined to move units and realise costs savings in Rent etc. Director remuneration as challenged by playful is not 160K each as per annual report but 120k as previous years were delayed into 2017.


The Business was trimmed towards a core £12m-ish capacity to reduce costs whilst keeping capacity for a turn around which is now happening with their largest confirmed order book and increased forecasts for H2 2018. Interestingly most projects for H2 2018 (and into 2019) have already started which should reduce Risk. Dig-it, Kidzania and repeatable Golf projects were seen in WIP in the workshops. 'Unprofitable projects have been turned away and a scoring system for tendering introduced which to date has retuned 50% plus 'vetted' tendering wins. Internal goal is to be 'cash rich' (my phrase) during 2019 i.e. no reliance on overdraft, however note, a new trade finance agreement by project are in the final stages of being agreed with HSBC to aid working capital going forward. Emphasis on more reliable sales via eg dig-it and repeat products, sales targeted to be 20% above capacity on a rolling basis, less emphasis on large projects with target 50/50 Products v Projects.(currently achieved but on low turnover)

As far as AGM'S go it was very well attended with x7 PI's present plus all the Board. Apologies its a brief summary but if you wanted more then you should have attended!

[pj 1] 22/8/2018 21:20

AGM Report.

The usual hospitality was shown which we have been accustomed to, with a lovely Buffet lunch, and no time constraint. Times must be hard though as this year there were no sausage rolls.

Ends

[stiffybristol] 22/8/2018 19:31

The first half was much worse than I thought it was going to be and easy to see now why the share price tumbled. Looks like they have turned the corner with a decent order book into 2019. Could not make the AGM today and really wanted to meet the team to try and understand more about the digit! and kidzania branding. Interesting there were very few sales today after the initial drop, most saw the news as a positive and mopped up the stock. Still seems a persistent big seller.

[1savvyinvestor] 22/8/2018 10:22

Agreed. Possibly making it a share to tuck away and ignore for a while. But I reckon a doubling of share price in two years from here likely and I'll gladly take that

[maddisonsqaure] 22/8/2018 09:39

Reading between the line here, but it looks like the loss of the FD last summer has hit them hard. It's put them back 2 years at least. Rumour has it he was replaced by a team of people who are now no longer there...

Hence the mess