Contract delays impact Paragon as CEO to step down

PARAGON Entertainment, which announced that its chief executive is to step down, has seen revenues slide as it said further contract delays would “significantly” impact expectations for the rest of 2014.

In its unaudited interim results for the six months ended June 30, 2014, the York-based group, which designs and runs a series of high profile attractions, reported revenue £4m, down from £4.5m in the prior year period.

The group made a small loss at the EBITDA level of £88,000 during the period but said it has a record contracted order book of nearly £12m for the second half of 2014 and into 2015.

Loss before tax came in at £720,000 from a £1.26m loss in the half year of 2013.

The group said that Mark Pyrah is to step down from role as CEO to focus on group-wide sales activities as sales and marketing director, while vice chairman Mark Taylor has been appointed executive chairman with immediate effect.

Paragon said the search for a replacement CEO is now underway.

Mr Pyrah said: “Paragon’s ‘Design and Build’ division remains the most profitable segment of the business and continues to have a record contracted order book. However, further delays on certain Paragon Creative contracts will cause a delay in recognising the revenue from these contracts, which will now move into 2015.

“The group continues to focus on our strategy of diversifying into Attractions and Licensing, both of which should generate more predictable revenue and are showing encouraging signs of progress.

“The group’s strategic focus remains on the allocation of resources, sales and the execution of our five year plan. The Board is satisfied with the progress made across all divisions of the business which has created solid opportunities for a return to growth.”

Mr Taylor added: “I would like to take the opportunity on behalf of the board to thank Mark Pyrah for the commitment, skill and enthusiasm that he has brought to Paragon and the role of CEO.

“We are delighted that Mark will continue to focus his significant sector and industry expertise on driving the group’s growth.”

The group’s current and recent projects include the design and build of The Olympic Museum for the IOC in Lausanne, Switzerland, the design and build of Titanic Belfast and the build of the Wallace and Gromit ride at Blackpool Pleasure Beach.