Share Name Share Symbol Market Type Share ISIN Share Description
Paragon Entertainment Limited LSE:PEL London Ordinary Share KYG6906M1069 ORD 0.1P (DI)
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.0% 1.15 0.00 01:00:00
Bid Price Offer Price High Price Low Price Open Price
1.10 1.20 0.00 0.00 0.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 14.81 0.04 0.06 19.2 2
Last Trade Time Trade Type Trade Size Trade Price Currency
- O 0 1.15 GBX

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Paragon Entertainment Daily Update: Paragon Entertainment Limited is listed in the Equity Investment Instruments sector of the London Stock Exchange with ticker PEL. The last closing price for Paragon Entertainment was 1.15p.
Paragon Entertainment Limited has a 4 week average price of 0p and a 12 week average price of 0p.
The 1 year high share price is 0p while the 1 year low share price is currently 0p.
There are currently 206,430,550 shares in issue and the average daily traded volume is 0 shares. The market capitalisation of Paragon Entertainment Limited is £2,373,951.33.
pj 1: So far this week, subject to late notifications (I assume there must be some). 5/6/19 415k shares traded = £5917. +33% 6/6/19 395k shares traded = £5235. +14% So the share price is up 52% on so far reported trades of just £11,200. ref post above, I could 'sell'' an easy 1 million shares @ 1.302p = £13,000, more than so far declared by the Market Makers in 2 days. Something does not add up!
pj 1: Indeed playful, something following the Director's placing has to be in the offing? They had previously stated in February ''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.'' The working Capital must have been extremely tight. ''The funds raised from the Subscription will be used for general working capital and to increase the Company's headroom against its on-demand facility with HSBC.'' It reads to me there is more investment to come following the appointment of Rian when Mark P stated ''My aim is to strengthen our management team and bring core skills into the business'' However, as we approach the end of Q1, and assuming they have delayed any CAPEX the return to profitability should now be resulting in works at the start of 2019 being paid and a (2019)positive free cash flow and a little breathing space? So subject to expected funding, any possible unknown dilution, no significant sellers and an ''in-line'' at some point (HY?) I remain hopeful of a ''bounce'' here and share price much closer to 2p than the current 0.75p.
pj 1: Unsurprisingly PEL is totally unloved after the 2018 profit warnings, reflected in the fact Neil Jefferies the CFO took a maiden £25k, that alone in isolations would normally have given a significant boost to a Company the size of PEL IMO. £80K from the Pyrahs and £42k from MT which at least shows some confidence in the future. The BoD now hold 29.3%. Will this put a line under the share price decline as it usually would? What is needed now over the next few months is some further good news and indications probably toward HY that trading is at least in-line. Small volume moves this significantly both ways so I remain hopeful, that if positive news materialises and figures are in line with a reasonable net profit, of a rerate back more towards 2p. No more profit warnings.....please.... which the Market is fearful off
depjoe: "Obviously if PEL hit those figures and they are funded then there is significant share price appreciation to be had." ===================================================================================== is this an attempt to ramp the share price pj ?
pj 1: stiffybristol- I agree that it's all about 2019 and beyond. But if we are looking at 2019 then we also need to review if PEL are currently funded or not to achieve the £12/13m Revenues What are your views on funding? Obviously if PEL hit those figures and they are funded then there is significant share price appreciation to be had. IMO the Market isn't convinced hence the share price. I agree the work they do is second to none.
dontsweatit: DontSweatIt - 09 May 2018 - 19:05:31 - 2296 of 2474 Paragon Entertainment - PEL DontSweatIt 15 Feb '18 - 20:23 - 2254 of 2295 0 1 0 Currently uninvestable? +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Still uninvestable. Share price now 1.2p equal to previous lows, and going to all time lows and less than 1p, more like 0.5p. ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Not often I call it this well as I did in may, not exact but close enough. If they do the minimum guidance of £6million half year then this doubles from here with a good wind. Ignored the panic selling and now INVESTABLE with just a small position to start and see how it goes
pj 1: Dave,It depends on what sort of a bounce and profit you are looking for from your trade? Back in 2016 the share price hit 1.2p ish lows, but was followed by significant Director buys by John Dobson from August 2016, then an ''ahead'' statement in November 2016 and then the new CFO also put his hand in his pocket, a signal the Market always likes. The share price then hit 6p in February 2017, following a clear break of a 2 year ''base'' and break of resistance. (400%) I suspect you are looking for a short term bounce and profit, but maybe I am wrong? Could history repeat itself? Whilst we have Revenue guidance for H1 2019 there is nothing for EBITDA or pre tax profit, therefore it would be difficult to issue an ''ahead'' statement in H1 without disclosure of other key financials. The new CFO has not bought any and MP has a large holding which is added to regularly in smaller amounts. Any takers with Financial Projections before I put my neck on the block?
pj 1: Previous Results 26/03/2014 share price 3.75p Revs £10m EBITDA £600k 26/06/2015 share price 1.73p Breach of Covenants. CFO resigns 14/06/2016 share price 1.48p Closure of legacy issues. More confident outlook 20/04/2017 share price 4.73p Excited about the future So, the trend is the earlier the Results the better the share price performance. The later the Results...…. Late June Results whilst not the norm, have been regular. However, I'm not aware they have ever issued a Results date and then not met that date before.
pj 1: Q&A response to the Director remuneration AGM comments. It also looks as if they are generally within the Remuneration guidelines issued from Sharesoc A round up of several questions concerning remuneration 30 August 2016 Q1. “Please explain the changes in salaries for executive directors (Mark Pyrah, Pete Holdsworth and Mark Taylor) from 2011 to the present?” A. When the company was listed in 2011, executive directors undertook to earn discounted salaries until certain targets relating to the roll-out of attractions were reached. The 3 executive directors earned, in aggregate, £231k per annum until 2014 when the attractions strategy was abandoned. At this time, the remuneration committee decided to grant a 10% increase and further created a further cash bonus scheme. This increase took the aggregate salaries to £255k per annum and there have been no increases in these annual salaries since then. In retrospect, the Board did not communicate the 2014 increase in salaries to shareholders adequately. By way of background, in November and December 2014, the executive directors waived £42k of salaries to support the business at the time of the profit warning and breach of bank convenant. This waiver was effectively repaid in 2016 when the remuneration committee chairman awarded a discretionary bonus of £42k to the executive directors. There is a typo in the Directors’ Emoluments note in the Report of the Remuneration Committee in the Annual Report 2015 showing that the bonuses were paid in 2015 when this should have read that the bonuses were actually paid in “2016”. Nevertheless, the income statement for 2015 reflects the salaries correctly and the bonuses will only be reflected in the income statement of 2016, so the annual report is correct in all respects, except for the typo in the note. Q2. “Please explain the changes to the Management Participation Scheme for executive directors (Mark Pyrah, Pete Holdsworth and Mark Taylor) which were announced on 22 June 2016?” A. The Management Participation Scheme was created in 2011 and is structured through a subsidiary company, Paragon Entertainment Investments Limited. In summary, it provides for executive directors to participate in 10% of gain in PEL’s shares above 4p per share (ie the share price at which the shares were admitted in 2011), provided that the growth rate in share price is over 12.5%: At 12.5%, the share price needs to be 7.2p by December 2016 when the initial 5 year term expires. The scheme is therefore underwater and is neither an incentive nor a retention tool. The new amendments comprise the following: The base share price target (ie the strike price) of 4p is unchanged. The scheme is extended by 5 years to December 2021. The hurdle rate is reduced from 12.5% to 5% from inception. The company must have achieved a minimum rolling 12 month EBITDA of £800k at the time of exercising the option. The amendments therefore require that the share price target must be 6.5p by the end of 2021 for the executive directors to be permitted to exercise their options. By comparison, at 12.5%, the target share price would have to have been 13p. Note that, at the time of announcing the amendments to the Scheme, the share price was 1.40p. The management EMI scheme for non-directors will be amended to achieve substantially similar economics so that the entire management team is aligned with shareholders. Q3. “What governance process did you follow for these remuneration changes?” A. In case of both the salary increase and the management participation scheme, before seeking the changes, we, as executive directors, asked ourselves if we felt that we were being fair to the company and its stakeholders. Being satisfied with this, we consulted extensively with both our NOMAD and Paragon’s biggest institutional shareholder, and we sought their advice and approval before proceeding. We did some benchmarking against other AIM companies and at the current levels of remuneration, remuneration is fair and in line with other AIM companies. Finally, based on this information, the independent non-executive director of PEL made the final decisions and the executive directors abstained from voting. In respect of the management participation scheme, we also sought an independent option valuation from a firm of professional advisors which confirmed that the benefit conferred on the executive directors was minimal. The directors will pay tax on this benefit. The consequence of the various changes is that the executive directors are each paid a modest but reasonable salary, they have the benefit of a discretionary bonus based on performance, and they are well incentivised to grow the share price through the management participation scheme. We hope that by now we have built up a body of useful Q&A responses to help you think about our business. If we haven’t covered everything that interests you, please continue to engage us by emailing your questions to us at - See more at:
pj 1: My AGM summary below. The most relevant towards the end as its not in any priority order. Unfortunately, I do not have the full time need to write it up more fully.As always IMO and DYOR apply. Feedback/ questions welcome. PJ Paragon Entertainment (PEL) AGM 11 December 2015 12:30 Venue- Head Office Attendees Mark Taylor Executive Chairman (MT) Mark Pyrah CEO (MP) Peter Holdsworth Production Director (PH) Martin Barratt NED (MB) Jarrod Marsden Financial Controller (JM) X2 Private Investors, including myself and X2 PI’s via telephone connection. No recording of the AGM was made and this is a representation of my notes and understanding of comments made including interpretations by myself. I am not, nor have I ever been, qualified to give financial advice and nothing in this article should be taken as such. All comments should be taken as in my opinion only (IMO) and as always it is imperative and vital to undertake and do your own research (DYOR). As per the 2014 AGM a presentation was given and questions allowed during the presentation. This resulted in some digression but relevant to the meeting therefore this article does not follow the exact route of the meeting, nor is it in any order of priority. At the time of writing (15th December 2015) I hold a long position in PEL. NOTE- A 7:00AM RNS was issued on the morning of the AGM. • Previous market guidance for 2015 EBITDA unchanged at £0.2m, though 2015 turnover likely to be approximately £8.5m and; (from £9m turnover) • Board guidance for 2016: Turnover of £11m and EBITDA of £0.5m • Mark Pyrah will now resume the position of Chief Executive Officer with immediate effect • At the request of a major shareholder the Board will not now be proposing resolution 5 (allotment authority) and resolution 6 (disapplication of pre-emption rights). The primary purpose of resolutions 5 and 6 was to ensure that Paragon was able to meet all and any legal commitments it might have to issue shares Recently over a number of months prior to the meeting (and continuing after) the share price had been subject to increasing volatility and increased volumes including both Amati and Vulcan Holdings (ex Director interest) reducing below the 3% notifiable level and exiting as shareholders. On the morning of the 11th December the shares actually opened up 4% but were quickly sold off and at one point were down over 30% on the day (with selling continuing post AGM date). Over this same period whilst the ADFN Bulletin Board remained quiet as it usually was, there was a noticeable large increase in the mention of PEL via social media in general. If the reduction in 2015 Revs was taken as another profit warning (although note EBITDA remains the same) or the £11m turnover guidance for 2016 being below expectations, or a combination of the 2, were perhaps the reasons remains to be seen? The volatility on the day prevented at least 3 Private Investors missing the meeting that I know to. The meeting was delayed by 20 minutes for a late arrival (PI), opened and chaired by Mark Taylor. Mark Pyrah then did the presentation and I have tried to comment from the questions raised in the order of the presentation. Page 3. No current focus on the Attractions division although not ruled out medium to long term following exit from Quest Merry Hill. Main focus is on the Design and Build (D&B) as this is the bread and butter and what PEL currently do best. Licenses are secondary; however there could be some future overlap similar to Hamleys license with NERF for example. Whilst Quest failed financially it did open doors to Hamleys and other (unknown as not divulged to us yet) relationships. No further accounting needed for Quest exit (I assume that meant post 2014 write offs) Page5.Trail of profit warnings needs to stop and has contributed to little sentiment towards the Company in the Market, also compounded by covenant breach and late 2014 Results due to disputes. (Kidzania?). Covenant breach is now in the past and trading with terms, although currently in overdraft. BoD looks light as MP has sales and design strength, MT and MB managing attractions strength but no manufacturing. New COO to have more manufacturing experience to compliment the team and release MP and PH more to their relevant levels of strength and focus (Note COO is accounted for in any 2016 projections) Page 9 &10. Main focus going forward on Hamleys, Lambda, Majif Al Futtaim (MAF), Olympic Committee, Dubai Park (motiongate, DreamWorks), Golden Hall (Lamda) as all offer substantial repeat projects. Note-Hellinikon Athens (Lamda project, LOI signed but nothing expected for 2 years due to size of project and Greek Government involvement) Page 11. Current D&B capacity around £12m to £13m not space constrained although the set up is spread over a number of Sites (far from ideal), and it does seem on easy in/out and short term lease’s. Currently no problems recruiting direct staff. Project Managers are included in cost of sales (i.e. in Gross profit) Strategic alliances, framework agreement and partnerships are starting to bear fruit but have taken longer than hoped. For example Hamleys has taken over 3 years to get the framework signed. Page 12.Order book at record high. No figures were given for (contracted) order book or overall Pipeline. It was stated PEL need to be consistent in reporting these in future. Page 13. Licensing. Target for some growth but secondary to D&B. Note Funlandia is the old ‘soft play’, HiLo challenge domes still includes possibility of Bear Grylls but some capex required so on a back burner. Page 14. Emphasis was placed on advising the Co. to move to and include eps predictions along side EBITDA as soon as possible EPS and free cash flow positive by end 2016. Margins- Guidance was given for 22% Gross Profit. This is lower than previous guidance at the 2014 AGM of 25%; however, as repeated by the Co Margin improvement is a key target. Headcount has reduced from 100 to roughly 80. However that is just a headcount, No of part time etc not included. More use of stated Freelance may explain it No major use currently of use of sub contract. Any major project sub-contracting reduces to 10%margin so PEL trying to keep all in house. Page 15. Note Co has increased turnover in 4 out of the last 5 years. 2013 peaked at circa £9.5m Page 16- Rough 26% Management and 26% II holdings Page 19- Note Framework is for Hamleys World. Pi’s have found to date 11 possible Hamleys worlds for next few years. Also plans for expansion via smaller stores but unlikely any work for PEL (airports etc) Note any Hamleys over 3 for 2016 and/or 4 for 2017 will be above any current forecasts LAMDA-Possible 4 projects excluding Hellinkon Athens MAF-significant opportunities above and beyond 2016 (INCORP) Page 22. High profile customers and relationships. Hopeful of new representation deal early in new year. Page 28. Targeting 20% growth per annum over the next 5 years. Turnover has doubled since 2010 Communications/ Strategy/Performance. As the meeting progressed there was quite some digression and discussion. The feeling from PI’s was that the good news ref. Hamleys and Dubai Park had not been communicated in an effective way to maximise the share price and deliver share holder value. It has to be said though that this news has been tempered with a string of profit warnings from the Company all related to delayed or rescheduled contracts. There was also an undercurrent of feeling that PEL do not understand the working of the Market. This will always be a live threat the PEL turnover as they are not often in a position when if one contract is delayed that another can be pulled in to its place. However it also needs to be stated that bespoke short term contracts for quick delivery can be forthcoming, but generally a risk to turnover remains. 2014 resulted in 2 profit warnings which I assume to be kidzania related. Looking at the opening of that project in London I suspect KZ also fell into 2015 through no direct fault of PEL. I am also of the opinion that PEL have always predicted their then total contracted order book for that year. I.e. contracted order book for 2014 £10m so prediction equals £10m. So any delays equals a miss and profit warning, Pel are left with no where to go. In fact looking at 2015 I wonder if they predicted more than the then current order book as it appears Dubai Park was delayed until Q3 hence profit warns in 2015? In some ways it was not an easy meeting as the BoD were hit around the head with previous profit failures a number of times, despite increases in turnover. It appears (please refer to previous notes) that ‘unofficial’ market expectations for 2016 projections were much higher than the £11m predicted, and that a significant % of the Company was in the hands of short term traders, hence the sell off on the day of and following the AGM? PEL have reviewed part of their procedures and strategies which I understand to be- • The Management will not focus on short term share price movements. They commit to generating shareholder value as has always been the goal over the medium / long term • No immediate dilution (Note- if my understanding is correct then it would require an EGM for that to happen before the next AGM). Nor are their any plans for dilution. • They are looking at ways of reducing reliance on overdraft from a number of ways including pre-payments. One customer offered a substantial pre payment (I believe Dubai Parks) up to £1m but this can be counter effective as a Bond as ‘insurance’ needs to be entered. The full pre payment was not taken up, but indication some of it was. • The Company is usually under a Non Disclosure Agreement (NDA) with contracts and Frameworks which greatly restricts the amount of particularly financial detail which can be communicated, as it could compromise the position of the Client (customer). Hence no direct financial detail with Hamleys. • RNS will be forthcoming as per Market regulations and taking advice from the NOMAD (Finncap) including any NDA restrictions, and within the remit of their Q& A statements on the web site • Whilst no current contracted order book figure is available the Company strives to reduce the chances of further profit warnings as they realise the effect on sentiment and share price performance this leads to. To that end the BoD are endeavouring to find a % of order book to predict with the goal of eliminating future profit warnings to a minimum by allowing for a certain amount of contract deferral. It was stressed that both contracted order book and total pipeline are both at record highs. (Note x10 fold increase in pipeline since listing at end 2014). It was stressed the Co needs to communicate the order book and pipeline in future communications in a uniform way. Therefore my understanding is that the current contracted order book for 2016 is well in excess of £11m. • My understanding is that 2 years of revenue visibility is not currently realistic. However ,my understanding is that some works are already contracted for 2017. • The BoD will endeavour to promote the Company via presentations and meetings etc. Proposed Resolutions. All were passed but note as previous Resolutions 5 and 6 were withdrawn at request of a major shareholder. My understanding is that this prevents any dilution other than at an EGM. Please also note that the Company have verbally committed to bring the next AGM forward to a more logical date of June 2016 (6 months away) The meeting was closed but unfortunately MT had to leave promptly which can be annoying to attendees and hope is not repeated next year. (Unless personal reasons prevailed off course)
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