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Paragon Entertainment shares slide as group lowers guidance

Wed 12 June 2019 09:53 | A A A

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(Sharecast News) - Attractions design and fit-out business Paragon Entertainment warned investors on Wednesday that full-year losses would be larger than initially expected despite witnessing revenues come in bang on guidance.

Paragon said that during the audit of its full-year financial statements it had become apparent that following the adoption of IFRS 15, some revenues that were previously expected to be recognisable in 2018 would now be recognised in 2019.

Revenue expectations for Paragon's last trading year were revised to £9m, in the middle of the £8.8m to £9.2m previously estimated, while pre-tax losses were pegged to come in at £3m - wider than the £2.5m to £2.7m originally forecast.

The AIM-listed group revealed the revenue issues mainly related to a shift in the programme at its Kidzania project in Abu Dhabi.

However, Paragon now expects revenue for the first half of 2019 to be between £6.5m and £7m, with similar revenue expected in the second half, while underlying earnings for the six months ended 30 June were expected to be around £300,000.

Looking forward, Paragon assured shareholders it would continue to look at opportunities to reduce its cost base with a view to reducing long-term overheads and increasing future profitability.

As of 0950 BST, Paragon shares had slumped 21.88% to 1.25p.

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