LONDON (Alliance News) - Paragon Entertainment Ltd on Tuesday reported a swing to a pretax profit for 2015 and expressed confidence for delivering on market expectations going forward.
The attractions design, production and fit-out business reported a pretax profit of GBP346,000 for 2015, swung from a pretax loss of GBP427,000 the year before, as revenue rose to GBP8.5 million from GBP7.7 million.
Paragon said it resolved a number of challenges during 2015. After breaching its earnings before interest, tax, depreciation and amortisation covenant in the fourth quarter of 2014, Paragon worked to address its bankers' concerns. It extended its overdraft facility to July 9, and its bankers have said they plan to extend this a further twelve months.
The company resolved a contentious contract, and whilst this hit its second half earnings, it contained any further exposure to Paragon. Additionally, Paragon sold its loss-making mall attraction in Birmingham.
Over the year, Paragon won and executed projects worth GBP7.4 million for new clients, and saw GBP1.1 million revenue from repeat business. It expects GBP9 million of revenue for 2016 from repeat business.
Whilst the UK museum and heritage market is currently weak, and Paragon expects it to stay like this for two or three years, it sees considerable growth in retail, theme parks, and science centres worldwide.
"During 2015 we were successful in closing out a number of legacy challenges. Paragon moved into profitability at every level of measurement for the first time since AIM admission in 2011 and we have now laid a solid foundation for the business to resume its growth," said Executive Chairman Mark Taylor in a statement.
"By continuing to nurture our long term partner relationships and by producing such high quality work, we are confident that we will continue to deliver on market expectations," Taylor added.
Shares in Paragon were down 1.8% at 1.40 pence, having initially risen on the announcement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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