The one stop source for breaking news, expert analysis, and podcasts on fast-moving AIM and LSE listed shares

Join ShareProphets at less than 2p per article

> All the big AIM fraud exposés

> 300 articles and podcasts a month

> Hot share tips

> Original investigations by our experienced team

> No ads, no click-bait, no auto-play videos

Find out more

Paragon Entertainment – “Trading Update” = Profit Warning, Broker updates

By Steve Moore | Wednesday 8 November 2017

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

A “Trading Update” announcement yesterday from attractions design, production and fit-out company Paragon Entertainment (PEL) included news of project delays and increased costs – and house broker finnCap (them again) has downgraded forecasts…

The update actually commenced with sales expected to be “broadly in line with the board's expectations at £15.0m”. However, it then noted some project delays, cost overruns and increased overheads - and that “EBITDA for the full year to 31 December 2017 will be significantly lower than previous expectations at approximately £0.7m”.

FinnCap was forecasting £1.5 million and it translates the £0.7 million into a £0.3 million adjusted pre-tax profit. The noted EBITDA and profit also though respectively compare to £0.6 million and £0.4 million the company reported for the first half. Chairman Mark Taylor seeks to reassure that;

“While we are disappointed with the way 2017 has unfolded we remain satisfied that the longer term plan for Paragon is sound and our aspirational objective of achieving revenues of £20 million in 2020 remains an appropriate medium term goal for the business with a focus on high quality earnings rather than growth for growth's sake.

Hmmm. If not wanting growth for growth's sake, why have an ‘aspirational revenues objective’? I also note that, having only recently increased overheads in expectation of improved revenue growth, “the board is now taking steps to rationalise costs”. Is it short-term delay or longer-term issues then? Certainly until that is clearer, I avoid.

Filed under:

Never miss a story.

This area of the site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.

More on PEL


Comments are turned off for this article.

Site by Everywhen