15th Jul 2014 08:07
LONDON (Alliance News) - Paragon Entertainment Ltd Tuesday expressed confidence for 2014, although it said that its earnings before interest, tax, depreciation and amortisation for the year will be below current management expectations due to the delay of a contract.
Shares in Paragon were trading down 27% at 3.00 pence Tuesday morning.
The company, which designs and builds attractions such as theme parks and museums, and said that a delayed contract in its largest business, Paragon Creative, means some work planned for 2014 will move into 2015, which will lead to a small EBITDA loss at the interim stage.
Despite this delay, the company expressed confidence that its contracted work and pipeline will build momentum in the second half of the year. It now expects 10% growth in revenue and EBITDA for the full year.
In the Creative business, the company worked on projects including the National Museum of Kazakhstan, Dubai's Dreamworks Hotel, and the Glasgow Science Centre amongst others.
In its Attractions division, Paragon continued to make progress in developing and negotiating new opportunities. It said it continued to take action to achieve profitability in its Quest business.
Its new Licensing division, which began operations at the end of 2013, is performing in line with expectations, Paragon said.
The company said that the Attractions and Licensing divisions remain at an early stage, and it continues to invest heavily in developing them. It said that these divisions will enable it to diversify its revenues and reduce volatility from its Creative division.
"The board is confident for 2014 and beyond, and looks forward to driving growth and value for its shareholders," said Chief Executive Mark Pyrah in a statement.
Paragon said it expects to release its full interim results on or around September 15.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
PEL.L