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Dubai is huge-foot in the door fully expect more contracts.
Impressive backlog of work in progress and to complete. Page 5 and 6. 2 hamleys done in h1 - hamleys china next A mass of work @Dubai parks, theme park rides etc... thats also a big pay cheque. I expect the initial £5mil contract will be substantially extended.
http://paragonent.com/documents/PEL_Investor_Presentation_2016_AGM.pdf I have put the link to the presentation so everyone can fathom the serious potential now.
Directors also bought heavily in December not to mention paying a tax bill form their own pockets last year, A nice steady growth plan is in place and building.. Good revenues, Positive ebitda No dilutions.. = solid.
Directors have vision - remember the rules of MicroCapClub. Invest in passionate owners.
Profitable Strong pipeline Cash positive as 700k received
H1 RESULTS Highlights - Revenue £5.5m (2015: £4.5m) representing a 22% increase on 2015 - EBITDA increased to £0.3m representing a margin of 5.1% - Gross Margin of £1.4m (25.8%) continues to improve (2015 £1m (21.1%)) - Committed pipeline of £16.5m throughout 2016 and 2017 - Successful completion of projects including Hamleys Prague, Land of the Lions at London Zoo, The Rolling Stones Exhibitionism at the Saatchi Gallery, Centre for Life at Newcastle, Ninja at Portsmouth Boathouse, Drayton - Thomas the Tank Engine and Chatham Dockyard Interactives
4. Currently 11 projects have been completed in 2016 (x2 Hamleys) with x27 WIP.-mainly MAF and Dubai Parks, with a number of new initiatives which could give repeat projects such as Fire Safety Centres and Little explorers. Hasbro a possibility. New machinery was evident with automation. However it was stressed this is not to reduce labour costs but to increase capacity more cost effectively. This ties in with what I perceive to be a key point where MP and JD explained a change in internal management. Historically labour has been recruited to match sales sometimes resulting in employee burnout as targets become hard to achieve. As per slide 8 labour has been recruited ahead of controlled sales. So whilst we have a 2016 Rev target of £11m, the capacity is £13/14m **Does this explain the lower than expected 2016 EBITDA of £500k? It will be interesting to see GP% in the soon to be released HY Results. Obviously any late orders (which PEL have ‘missed out’ on in the past can be completed, but an increased risk if any orders are delayed or turn out to be ‘lumpy’. New initiatives to reduce build times with a right first time approach.(key if exporting and again could lead to increased GP). Gross Profits. I asked the question what would stop 30% GP being achieved and the answer seems to be internal controls, so there is massive opportunity there. (I couldn’t ascertain what internal targets were). Margins do fluctuate via project. MENA currently higher than UK for example. Visible extra space has been taken since the last AGM with plans for more relocation short term. Discussions then followed over the general growth strategy, lessons learnt and lessons to be learnt. A number of (growth) Companies who had had historical good growth and excellent Investor communications were mentioned with a commitment from the BoD to contact these and examine any best practice and common markets (if any). I expect at some point in the not too distant future the Co. will embark of different Investor relations such as PI meetings etc. and reintroduction of Broker coverage Overall I felt it was an extremely positive AGM with the Directors drive to succeed at the forefront
3. Currently 11 projects have been completed in 2016 (x2 Hamleys) with x27 WIP.-mainly MAF and Dubai Parks, with a number of new initiatives which could give repeat projects such as Fire Safety Centres and Little explorers. Hasbro a possibility. New machinery was evident with automation. However it was stressed this is not to reduce labour costs but to increase capacity more cost effectively. This ties in with what I perceive to be a key point where MP and JD explained a change in internal management. Historically labour has been recruited to match sales sometimes resulting in employee burnout as targets become hard to achieve. As per slide 8 labour has been recruited ahead of controlled sales. So whilst we have a 2016 Rev target of £11m, the capacity is £13/14m **Does this explain the lower than expected 2016 EBITDA of £500k? It will be interesting to see GP% in the soon to be released HY Results. Obviously any late orders (which PEL have ‘missed out’ on in the past can be completed, but an increased risk if any orders are delayed or turn out to be ‘lumpy’. New initiatives to reduce build times with a right first time approach.(key if exporting and again could lead to increased GP). Gross Profits. I asked the question what would stop 30% GP being achieved and the answer seems to be internal controls, so there is massive opportunity there. (I couldn’t ascertain what internal targets were). Margins do fluctuate via project. MENA currently higher than UK for example. Visible extra space has been taken since the last AGM with plans for more relocation short term.
2. All resolutions were passed on a show of hands-to accept the annual accounts, to re-elect Mark Taylor as a director, to authorise directors to fix auditors remuneration and to authorise the market purchase of the Company’s shares. Due to the format the following is in no particular order. The Company has delivered on what it said it would do last year. Results in line with market expectations, x2 new Representation deals signed, appointment of COO (John now appointed to the Board), reduction in overdraft* and improved investor relations and communications via Q&A forum. *following a question MT confirmed debtor position had reduced as funds had been received just after year end. £20m Revs by year 2020 still the goal. More cautious forecasting (as discussed in 2015 AGM) with the goal of reducing as much a possible the risk from ‘lumpy’ or delayed contracts Apparent Director remuneration increase in 2015 to be explained more via Q&A article in the future. Pipeline and contractor order book to be shown at HY. I tried to place some emphasis on keeping reporting consistent PEIL scheme. Again following question BoD confirmed the previous scheme was as good as redundant as a share price of 7.2p by end 2016 is not achievable. Following discussions with at least one major Institutional Investor the scheme has been revamped to basically 5% compound growth over 10 years from IPO to target 6.5p by 2021 for strike price. (4p IPO +10 years @5%). As a note I expect more options will be issued in the future and is welcomed if in line with shareholder returns and at a reasonable price. As per last year Design and Build is key with much smaller but growing Revs from licensing. No further plans for attractions although if the right (target) business became available then possible but doubtful short/ medium term. Diversity is key away from the UK which short term has tough markets (tighter margins).Aim at partnerships where projects can be repeated. E.g. Hamleys, and targeting other clients. Note-during site tour it became evident such repeat projects have much less set up and development time and therefore should be at better margin (GP)- Myabe a key point I feel
With permission of PJ who attended agm... 1. Paragon Entertainment (PEL) AGM 21ST July 2016 10.00 am Share price 1.5p Market Cap £2.8m Background- This is my 3rd attendance at the AGM although it should be noted that this year the AGM has been brought forward by 6 months to the norm to be mid-year rather than a to late year end. Ignoring a spike in 2013, Revenues have grown consistently. However, the Company has had to overcome a number of major hurdles in the previous 2 years resulting in profit warnings and disappointing EBITDA levels. Challenges included-closure of the Merry Hill attraction, resolution of a historical tax liability to HMRC following the IPO, a contentious contract resulting in a £0.6m loss, and a breach of EBITDA/ debt banking covenant. (all resolved). 2015 gave a much more pleasing Revenue of £8.5m and EBITDA of £238k, with an overall profit of £600k after exceptional items. 2016 estimates are for an impressive Revenue increase of 30% to £11m, but with a lower than expected EBITDA level of £0.5m**. Share price weakness and Investor confidence was not helped by 2 Institutions selling in 2015. It was mentioned in the 2015 AGM that a number of initiatives were to be implemented to support achievable growth, reduce the risk of ‘lumpy’ contracts affecting estimates and restore investor confidence in the goal of achieving £20m Revs by year end 2020. On the morning of the meeting there was an in-line trading statement pre HY and 2016 guidance of £11m Revs and £500k EBITDA re-confirmed. The AGM was attended by all the Directors. Mark Taylor Exec. Chairman, Mark Pyrah CEO, John Dobson COO, Pete Holdsworth Tech Director, Martin Barratt NED. Also Jarrod Marsden Financial Controller and Co Secretary, 1 other Private Investor and myself. It should also be noted that impressively all the Company representatives remained for the presentation and site tour after including discussions. In total the visit took 3.5 hours. It was greatly appreciated All resolutions were passed on a show of hands-to accept the annual accounts, to re-elect Mark Taylor as a director, to authorise directors to fix auditors remuneration and to authorise the market purchase of the Company’s shares.
to see the appetite of our buyer. Has he done?
If its same buyer we will get holdings rns .. Rumour on twitter pel chat is its a ii and they are named but wait for rns as could be wrong info.
3% is only about 5.6m shares, so if you're right then there might be an announcement soon. Wouldn't surprise me if this was numerous PIs. FWIW I have a few of these, but not 3%.
Thats 9 million bought in buys of 1mil and 1.5mil since last week.. Could be higher of you count the round 500k buys and 250k, How many for 3%
Morning Draft, Another 1 mill buy.. II buying imo.
This morning but seems to have stopped The key is the world expo connecting hearts and minds contracts the bidding must be starting soon
For long _ easy multi bag here Contacts and contracts now just snowball hard work done sit back and deliver now on repeat business from lions gate and dubai
Expected Today or tomorrow?
nice
Suspect iceberg buyer still being filled.... find out later. About time this got back to a reasosnable value, hopefully heading that way now
shares - this is slowly moving up on small buys
on nothing - background buyer still around?
Dubai EXPO UK - Paramount theme park Lionsgate - Blair witch Hope PEL bidding for these