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Paragon Entertainmnt (PEL)

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Friday 22 February, 2019

Paragon Entertainmnt

Property Disposal

RNS Number : 9027Q
Paragon Entertainment Limited
22 February 2019
 

Date:

22 February 2019

On behalf of:

Paragon Entertainment Limited ("Paragon", the "Company" or the "Group")

Paragon Entertainment Limited

Property Disposal

Paragon Entertainment is pleased to announce that it has today completed the sale of its freehold property at the Elvington Industrial Estate, York for £550,000 in cash (the "Disposal"). The site currently houses the Company's administrative functions and these activities will shortly be relocated to the Company's closely adjacent site in York, bringing the administrative and creative parts of the business onto a single site, yielding modest operational cost savings estimated of approximately £100,000 on an annualised basis.

The proceeds of the Disposal will be used to reduce the level of the Company's on-demand overdraft facility with HSBC (which stood at approximately £1.04m at 11 February 2018 against a limit of £1.2m) and pay off the mortgage facility which stands at £134,000. Following the Disposal, the limit on the overdraft facility will be reduced to £882,000, making the Disposal neutral in terms of cash and bank facilities.

As reported on 18 December 2018 HSBC remains supportive of the Company and has, as secured lender to the Company, consented to the Disposal.

Paragon has learned that one of its foreign debtors has sought protection from creditors. This debtor owes Paragon £168,000 and Paragon had already made provision for part of this amount as a doubtful debt. Paragon will be reviewing the impact of this on the 2018 annual results.

Whilst the Directors remain vigilant as to day to day cashflow and borrowing levels they remain comfortable that following the Disposal they will be able to trade within the confines of the reduced facility level. Notwithstanding the Board is of the view that an on-demand overdraft facility is a sub-optimal financing structure for a business like Paragon and are accordingly looking closely at ways of bringing longer term capital into the business.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 ("MAR").

 

For further information:

Paragon Entertainment Limited

Neil Jefferies (Finance Director)

Mark Taylor (Non-Executive Chairman)

finnCap Ltd

Julian Blunt / Simon Hicks (corporate finance)

Alice Lane (corporate broking)

 

01904 608020

 

 

020 7220 0500

 

 

About Paragon

Paragon Entertainment Limited (AIM:PEL) is an award winning provider of attraction services from initial design production and consulting through to the fit out and installation of themed attractions, heritage exhibits, museums, aquariums and water parks, inter alia. Paragon Entertainment is the holding company for Paragon Creative Limited.

 

The Group's projects have included:

·     The build of Rolling Stones Exhibitionism at the Saatchi Gallery, London;

·     The design and build of Kidzania, London;

·     The design and build of galleries at the Olympic Museum for the IOC in Lausanne, Switzerland;

·     The design and build of the galleries at The National Museum of Kazakhstan;

·     The design and build of Titanic Belfast; and

·     The thematic build of the Wallace and Gromit ride at Blackpool Pleasure Beach.

 

The Group listed on AIM in 2011. Further information can be found at http://www.paragonent.com.

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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