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Paragon Entertainment warns on 2017 profit, begins immediate restructure
(WebFG News) - Attractions design, production and fit-out business Paragon Entertainment updated the market on its trading on Monday, warning shareholders of a dip in previously-anticipated profits for the 2017 calendar year.
The AIM-traded firm said that, whilst revenue for 2017 would be broadly in line with previous guidance at £14.7m, EBITDA was now expected to be approximately £0.2m.
Its board put the warning down to "major cost overruns" in the design, manufacture and delivery on two large projects delivered during the fourth quarter of last year.
"Trading during 2018 has been slow with staff utilisation falling below expected levels," the board reported in its statement.
"Whilst the group has a number of exciting projects in the pipeline the slower trading will have a knock-on effect on 2018 financial performance."
As a result, the board said it had decided to implement an immediate restructuring programme with a view to achieving in the region of £0.4m of annualised cost savings.
The one-off cost of the programme was expected to be in the region of £0.15m.
Paragon expected to announce its 2017 results during May, when further information on current trading would be provided.