Paragon Entertainment Share Discussion Threads

[playful] 21/7/2016 13:58

I wonder if it’s the same type of dome they were talking about a couple of years ago. Interesting concept, something along the lines of a pop up venue it would seem.

[cockerhoop] 21/7/2016 13:34

Bit of UK work

[playful] 21/7/2016 00:22

PJ1 should be a simple choice, it's a White Rose!

[janeann] 17/7/2016 22:07

very difficult week for me PJ - would like to go but it is probably unlikely.

[pj 1] 12/7/2016 14:09

Just moved to Bolton (of all places) Playful so no doubt will now have to factor in more Risk travel time for the M62!! Do I wear a Red or white rose in my lapel for the meeting?

Is anyone else planning on going?

[playful] 05/7/2016 23:41

Credit to them:

[playful] 01/7/2016 09:10

Deciding on a 10am AGM will mean PJ1 has an early start not sure why it couldn't have been lunchtime.

Edit: just seen it is also an investor open day following the AGM so this probably is the reason for the early start.

[ianb5004] 28/6/2016 10:02

Hasnt been pumped for 10 months so not a P and D .. Seems to be a big background buyer.

[pj 1] 28/6/2016 09:59

I have not seen any evidence on social media this time of any P&D fft. The buying isn't erratic either, so Im discounting P&D at the moment.

[fft] 28/6/2016 09:42

Looking unnaturaly strong over the last few days. Either a pump and dump (but no comments !), or news has leaked, or just really unusual behaviour...

[pj 1] 27/6/2016 16:32

Very unusual. +10% on a disasterous Market day. Pretty obvious to me Boris, Gove and Co have got this totally wrong. Where is any Brexit plan?

As regards PEL, no big sells, no panic selling, and buying pressure.

Maybe we have truly bottomed?

[pj 1] 25/6/2016 14:19

playful. Thanks for the nomination. Its a great honour! However, I am more focused on the recent vacancy at No 10 at the moment!

[playful] 24/6/2016 22:18

If Pj was the 2nd NED this company would be all the better...

[dontsweatit] 24/6/2016 16:42

Thanks you for posting pj, def sounds much more positive from the last reporting

[pj 1] 24/6/2016 14:43

If the £5m Dubai Park was on a fixed rate contract then PEL should be laughing short term? With no additional cost to the customer, exchange rates working in their favour by 8 or 9%?

[pj 1] 24/6/2016 14:12

Shares mag.

Paragon’s Middle East dream
Museum designer swings to profit as turnaround gathers pace

23 June 2016
The share price slump at visitor attraction designer Paragon Entertainment (PEL:AIM) could start to reverse this year as the £2.6 million cap takes advantage of the growing Middle Eastern market.

The stock has suffered a torrid 12 months, falling 20% to 1.4p after it reported widening losses and a breach of its banking covenant in June 2015, followed by a profit warning in October on the back of unexpected project delays.


Full year results (14 June 2016) show Paragon managed to grow revenue by 10% to £8.5 million and swing to a pre-tax profit of £346,000 in 2015. This is despite losing £600,000 at the EBITDA (earnings before interest, tax, depreciation and amortisation) level from a contentious contract, which has now been resolved.

The group, whose work includes the Wallace and Gromit Ride at Blackpool Pleasure Beach, has sold its loss-making mall attraction in Birmingham and renewed its banking facilities after trading in compliance with its covenants.

Paragon earned £1.1 million in revenue from repeat business in 2015, but expects this to rise to £9 million in 2016. It says that around 82% of its turnover this year will be repeat business, suggesting full year revenue will be around £11 million – a year-on-year increase of 29.4%.

The proportion of revenue that Paragon gets from the Middle East is expected to grow from 35% to 70% this year. This will help the group weather subdued trading in the UK.

Current projects in the Middle East include activities associated with the Kung Fu Panda, Madagascar, Little Explorers and Magic Planet brands.



Paragon says there is growth potential in retail, theme parks and science centres worldwide. ‘We have worked hard over the last 18 months developing these markets and our shift in geographical and market spread reflects the effort we have invested as well as the more global nature of our business,’ says chief executive Mark Pyrah.

Paragon recently signed an agreement with H2E in Latvia to grow and explore the Eastern European markets and with Lefunland in China to expand its presence in the Far East.

‘Paragon Entertainment is playing to its design and build strengths in international markets in a sector it believes is worth £1-2 billion annually, so clearly capable of providing room for growth from current levels,’ says FinnCap analyst Duncan Hall.



At 1.4p Paragon offers turnaround potential.

SWOT ANALYSIS

STRENGTHS

• Five-year agreement with Hamleys

• Geographically diverse

• High proportion of repeat business

WEAKNESSES

• UK margin squeezed

• Carries £200,000 of net debt

• Turbulent history

OPPORTUNITIES

• Strong Middle East market

• Grow repeat business

• Capitalise on Hamleys agreement

THREATS

• Contract delays

• Economic downturn

• Further lending issues

[pj 1] 24/6/2016 14:09

Very, and unexpected, almost non-PEL like LOL, most fixed to the dollar so cash advantageous.

[cockerhoop] 24/6/2016 13:49

Excellent answer regarding Brexit implications for PEL

[pj 1] 23/6/2016 15:16

Full page write up in Sharesmag today. A lot more positive than the last report, nothing new in it though but they have given a SWOT analysis. Will post when I can.

[pj 1] 23/6/2016 14:19

Yes, although like a lot of things it can be read two ways?

2015 2014 2013 2012

PH 112.3 80.0 84.0 87.1
MP 112.3 80.0 84.0 87.1
MT 72.9 52.3 56.5 56.5
RA 50.0 75.6
MB 15.0 22.8
MW 12.5 25.0
RH 30.0 36.1
DG 7.5
- ------- ----- ----- -----
362.5 310.7 267.0 299.3
HMRC -129.4
-------
233.1

So the 3 serving founding Directors actually took out less until last year when they increase by 40%, after a 10% cut since 2012. After paying the Tax liability last year are they recouping the outlay?One for the AGM as I believe the COO will become a Board member and Jarrod as well?

Options- Can anyone shed any light on the actual figures?
The original scheme, if I am reading it correctly was for an increase 0f 12.5% over 5 years, from the IPO price of 4p =7.2p. Now extended to 2021 to 5%. which would equal 9.2p. OR is it 4p plus (10 years@5%)=6.5p?

Whichever it is though does not correlate with £800k EBITDA in the preceding 12 months. There is no way imo that that level of EBITDA would equal those share prices, so am i misreading the EBITDA run rate?

Anyone understand these things much better than me?

edit- ADVFN has altered the columns, it doesn't like spaces does it

[playful] 22/6/2016 18:07

Yes, but let’s be fair they have just awarded themselves a 40% pay increase on the back of what exactly?

[pj 1] 22/6/2016 17:27

playful

'' requiring that a minimum trailing twelve month EBITDA run-rate of GBP800,000 is delivered in the 12 months prior to the measurement date selected for calculating the vesting of awards''

Is that condition met if they hit £800k EBITDA total, or is it on top of the predicted 2016 EBITDA of £0.5m= £1.3m?

3 year exit plan to sell to Merlin at a circa £12m Market Cap?

[playful] 22/6/2016 17:02

The A shares are valueless for a reason and should be allowed to expire in my view.

You simply can’t keep moving the goal posts.

[ianb5004] 18/6/2016 17:09

They can't do a placing even if they wnted to without an egm, see last agm minutes..
Pel have only ever done one placing in their entire aim history and as savvyinv says the bod bought in large last year and would not want to dilute themselves.

I was told they got a large forward payment form the £5m Dubai contract so cash may now be healthier than end of 2015 results. Revenue is fairly lumpy but they have completed some large projects very recently , Hamleys prague amongst others. A few decent contarct payments and suddenly they are cash rich.

In leaner times whilst awaiting revenues they rely on the bank overdraft for working capital....

Now all thats said we need something to lift the share price .

[1savvyinvestor] 15/6/2016 09:24

ramas; i don't think they will do a placing. Directors won't want to dilute their own shareholdings. I'm pretty confident their relationship with the bank is strong enough to avoid the expense and hassle of a placing