Paragon Entertainment said it expects full-year earnings to be significantly lower than previous expectations at around £0.7m.
The primary reason for the Ebtida shortfall was the deferral of two major projects, delays and cost overruns at other projects, and increased overheads.
Sales are expected to be broadly in line with the boards expectations at £15.0m.
"Our enormous growth in recent years necessitates that we take a breath and consolidate," chairman Mark Taylor said.
"While we are disappointed with the way 2017 has unfolded we remain satisfied that the longer term plan for Paragon is sound and our aspirational objective of achieving revenues of £20 million in 2020 remains an appropriate medium term goal for the business."