Member Article

Contract delays impact Paragon Entertainment

Paragon Entertainment, the designers and builders of attractions, said the delay of a major contract earlier in the year has pushed some 2014 work into 2015.

The Elvington-headquartered firm said the delay would result in a small EBITDA loss at the interim stage of the year, with EBITDA coming below management expectations for the full year.

A growth of 10% at revenue and EBITDA levels is now expected for 2014, which is below expectations.

The firm is currently working on a number of high profile projects including the National Museum of Kazakhstan, Kidzania London, Dubai Dreamworks Hotel and Hamley’s Russia, among others.

Paragon said its record order book and pipeline, plus an increase in its margins, was corroboration of the firm’s longer term strategy.

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.”

This was posted in Bdaily's Members' News section by Tom Keighley .