Paragon Entertainment Share Discussion Threads

[1savvyinvestor] 20/4/2017 17:04

What's T Clarke got do with anything here? PEL much more interesting. It is the potential rate of growth you should be looking at here not net profit.

[basem1] 20/4/2017 10:27

Big fan of PEL but I still believe CTO is much better value. Whilst the numbers look great against last years, £311k net profit against a market cap of £8m isn't particularly cheap even with the £1.2m cash. Id be interested again at 4.2p ish.

[csmwssk12hu] 20/4/2017 10:14

Not me QP sleep sound every night

[cfro] 20/4/2017 10:01

Thnks PJ1.


Looks like an excellent opportunity to add at these levels.

[pj 1] 20/4/2017 09:35

The group has reshaped its business over the past two years,
strengthening management and operational infrastructure, increasing
capacity and reviewing strategic emphasis. We anticipate a progressive
revaluation given the potential growth profile in an addressable and
fragmented international market. Our 2017 forecasts remain unchanged
following the results which imply EBITDA growth of 26%, and we raise our
target price to 6p, implying potential share price upside of 23%.
Strong final results. The final results to December 2016 were in line with
expectation. Revenue increased by 69% to £14.4m from £8.5m and compared
with forecast of £13.2m. Adjusted EBITDA improved to a profit of £1.19m from
£0.24m the previous year and compared with forecast £1.0m. Adjusted PBT
was £0.93m after adjustments of £0.56m and stated PBT was £0.37m
compared with forecast £0.40m.
Strategic and operational review. The group has reassessed its strategy to
achieve its ambition to become the number one global attractions ‘design &
build’ business in the world and has invested significantly to provide additional
capacity in the business to facilitate longer-term growth. The business is now
operating under a revised ‘3P’ strategy as follows: Projects: Focused on the
traditional business of ‘design & build’; Partnerships: Focused on developing
stronger relationships with key partners and their requirements globally for
‘design & build’ eg Hamleys; Products: eg the Family Entertainment Centres
currently being rolled out themed with third-party brands.
An internal review has also resulted in a complete update to the group’s IT
infrastructure to improve efficiency and provide capacity for growth; the
recruitment of new management in key areas such as HR, Purchasing and
Contracts and Project management, and the creation of training and
development plans for the entire business.
Valuation. The focus on valuation is now likely to switch to the 2017 financial
year and moving the current EV/EBITDA multiple forward one year implies an
increase to our target price to 6p from 5p.

[1savvyinvestor] 20/4/2017 09:06

Good spot pj

[pj 1] 20/4/2017 09:04

Finncap raise target price from 5p to 6p, based on 2017 projections and strategy.

[quepassa] 20/4/2017 08:49

QCSM something keeping you awake at night?

[1savvyinvestor] 20/4/2017 08:49

Couldn't agree more. I feel that the company has been very quiet recently. Very confident report. In my opinion the big news will be exciting contracts for 2018 and beyond. This is an excellent little growth stock and will reward patient holders. Wait for news about new wins. Massively strong hold or a buy if not already in. £20 market cap should happen with 12 months in my opinion

[playful] 20/4/2017 08:46

Quiet as a mouse but they’ll do just fine.

[pj 1] 20/4/2017 08:43

Id have thought the cash balance speaks for itself alone? Nice to see you Playful? Been quiet recently?

[luckyphilip] 20/4/2017 08:43

Totally bonkers to sell at 4.5. Idiot

[csmwssk12hu] 20/4/2017 08:42

Just shaking the tree trying so get some sellers imho dyor

[playful] 20/4/2017 08:41

Thumbs up PJ1

[pj 1] 20/4/2017 08:39

selling at 4.5p? Someone wants out so no doubt (or a fat finger?) its pegging the share price back. Be Brave Martin

[playful] 20/4/2017 08:39

They have done well!

[martinthebrave] 20/4/2017 08:32

Just added on pull back 4.88p. This has got to be good value, surely?

[cfro] 20/4/2017 08:32

I too thought the results were very good.

The geographical mix was the most interesting part for me too. Clearly the Middle East is important. Of topic - but i am invested in another company (completely unrelated to PEL's line of business) that operates in Egypt/Morocco and the management are saying that this region is extremely UK friendly and governments are increasingly open to new foreign investors. They claim its the best environment for doing business out there than it has been for a long time. So one can presume that PEL also have very good relations too.

Half of revenue from one customer is probably a little risky but they have won new customers recently too and im sure that they are capable of winning many more.


I would say the future looks very bright.

[csmwssk12hu] 20/4/2017 08:32

They have beaten guidance and have stated will grow further next year no doubt improve margins further, the share price messed about like this last time then nearly trebled, probably be up and down today as some sell and new buyers get in, confident will be higher than this soon though imho dyor

[phowdo] 20/4/2017 08:22

They beat the TU of Novembers numbers by a good 10%.
Suspect the guidance numbers could be conservative too, what with them investing for growth. China now listed as a geographic region.

[pj 1] 20/4/2017 08:19

Agreed, however it also proves they can deliver and perform on the large contracts, and puts to bed the (guessed) previous Kidzania problems.

Id still say they are playing it low key short term. Focus required on the med/long term goals

[csmwssk12hu] 20/4/2017 08:18

Good set of results, good forward projections and with some nice early buying interesting few weeks ahead

[eezymunny] 20/4/2017 08:13

Smashing numbers indeed.

One wonders if "Revenues from the largest customer of the Group's Design and Build segment represents £7,062,000 (2015: £1,408,000) of the Group's total revenues for the period" should put a lid on what's a sensible P/E ratio. Half your revenue from one customer is a little scary!

[qs99] 20/4/2017 08:07

interceptor, enjoy the hols!

PEL storming out of the blocks it would seem this am, let's hope it can be sustained