15 Jul 2014 07:00
Date: | 15 July 2014 |
On behalf of: | Paragon Entertainment Limited ("Paragon", the "Company" or the "Group") |
Embargoed until 0700hrs |
Paragon Entertainment Limited
Trading Update
Paragon Entertainment Limited (AIM: PEL), the AIM-listed company which designs and builds attractions, develops proprietary attractions and licenses and distributes related offerings, is providing a trading update for the half year to 30 June 2014.
Creative ('Design and Build')
Paragon Creative, the Group's largest division, is working on a number of high profile projects, including the National Museum of Kazakhstan, Kidzania London, Dubai Dreamworks Hotel, Hamley's Russia, Glasgow Science Centre, Harrods Zaha Hadid, Kapsaic Aramco and new Olympic Museum works. The quality of its order book and pipeline are at record levels, underpinning visibility of ongoing growth.
Attractions
The Attractions division has made progress in developing and negotiating new attractions opportunities and concepts. It has continued to address the previously reported performance of Quest and is taking action to achieve profitability.
Licensing
The Licensing division, which commenced operations at the end of 2013, is performing in line with expectations.
Group
A delay of a major Paragon Creative contract earlier in the year has meant that some 2014 work will now move into 2015. Whilst we expect a large increase in 'design and build' activity from the first half to the second half of this year, this contract delay will result in a small EBITDA loss at the interim stage with full year EBITDA coming in below current management expectations. Forecast annual growth of 10 per cent is now expected for 2014 at both the Revenue and EBITDA levels.
Notwithstanding the timing of the Paragon Creative contracts, Paragon's record order book and pipeline, plus an increase in its margins, is a clear corroboration of our longer term strategy and in excess last years forecast.
The results are expected to be released on or around 15 September 2014.
Paragon Entertainment, CEO, Mark Pyrah said:
"We entered 2014 with a good platform for growth and have developed a five year plan to guide us in achieving our strategic goals. Whilst there has been delay in a project award for Paragon Creative ('design and build') in the first half, we are confident that we have in place the contracts and the pipeline to considerably increase our pace in H2 2014 and deliver a 10% growth in Revenue and EBITDA for the full 2014 year.
"Our strategy includes the development of both the Attractions and Licensing divisions; these still remain at an early stage and we continue to invest heavily in the development of these divisions. We are particularly excited about the potential in these divisions to enable us to diversify our revenues and reduce the degree of volatility that Creative has on its own."
"The Board is confident for 2014 and beyond, and looks forward to driving growth and value for its shareholders."
- ENDS -
For further information:
Paragon Entertainment Limited Mark Pyrah/Richard Arden
Cenkos Securities plc Ivonne Cantu (Nomad) Alex Aylen/Julian Morse |
Via Redleaf Polhill
020 7397 8900
|
Redleaf Polhill Dwight Burden/Jenny Bahr/ Rachael Brown |
paragon@redleafpr.com 020 7382 4730 |
Notes to Editors
Paragon Entertainment Limited (AIM:PEL) is an award-winning provider of attraction services with the expertise to create, develop and operate world-class visitor attractions.
It is the holding company for:
The Group's current and recent projects and transactions include:
The Group listed on AIM in late 2011.
Further information can be found at: http://www.paragonent.com/