Q&A Forum

Q&As for November 2015

What are the plans to improve operating conditions?

20 November 2015

Q. Over last 3 years PEL has had a revenue total between £6m and £9.5m each year, and has been loss-making in each of these years. What confluence of events/factors will lead PEL to break ...

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How does Nerf generate income for PEL?

20 November 2015

Hasbro has licensed us with the sole right to sub-license their Nerf brand for ‘blaster arenas’ throughout the UK and Ireland. The arenas are typically several thousand square feet, fully ...

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What happened to working with the Bear Grylls IP?

20 November 2015

As a company, we are always open to explore new opportunities and forge new connections and we have been specifically asked on several occasions about one such connection, the Bear Grylls attraction c...

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What are the main risks to the business, excluding recession?

20 November 2015

Besides recession, the main risk to the business is that we run out of working capital due to a mismatch in our available funding and the demands of a specific project. For this reason, we focus much ...

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EBITDA and EPS reporting

20 November 2015

Q. Continuing focus on EBITDA reporting needs to include focus on EPS and cash generation as for example depreciation has to be paid for in cash at some point. Sole EBITDA reporting can be seen as a s...

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Are there still no plans to strengthen the board with a CFO?

20 November 2015

We originally appointed a CFO because we had an ambition to own and operate proprietary attractions.  Ownership of attractions increases financial complexity and would also have required us to ra...

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Is there a market capitalisation target that PEL have in their mind as a target?

20 November 2015

We don’t have a market capitalisation target because the size of the company does not necessarily equate to value for shareholders. Instead, we are driven by metrics around our cash generation, ...

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Regarding the RNS of 6 October 2015

13 November 2015

Q. The RNS of 6 October 2015 states that you expect full year results for the current financial year to be below current expectations with 2015 revenue and EBITDA now expected to be approximately &pou...

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Why do you fluctuate between using the terms Pipeline, Confirmed Order Book and Tender?

13 November 2015

Different companies use the words ‘Pipeline’ and ‘Confirmed Order Book’ to mean different things. In our parlance: Pipeline refers to projects that we know are available, th...

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How do we get involved in high end projects with low cash showing on the balance sheet?

13 November 2015

Our primary source of working capital comprises our own cash balance and our bank facility, the major part of which is an £800k overdraft.  Our bank balance can fluctuate considerably depen...

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The AGM needs bringing forward much earlier and used as an effective means of Communication

13 November 2015

This year’s AGM will remain in December 2015. We agree that this is too long after the results but we do think that a December AGM is an appropriate time and forum to review our likely outturn f...

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Paragon needs moving out of the Financial Services sector (FTSE Classification)

13 November 2015

Paragon definitely needs to be moved out of the specialty finance sector – this is a historical legacy matter that we agree is odd. We have made an application to FTSE to correct our classificat...

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Do you anticipate requiring funding in the short to medium term?

13 November 2015

We anticipate no longer needing to use our overdraft after the next two years based on current work levels. However, to be financially prudent, we will maintain the facility just in case we need it on...

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Paragon Economics 101

6 November 2015

We have had a number of questions about the economics of our business, including our margins, our capacity levels and how we manage project-related delays.  Strategically, as we have previously o...

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