Visitor attraction designer Paragon Entertainment (PEL:AIM) is hoping to reverse its profit slide by increasing its presence internationally.
The company, which designs, consults on and installs themed attractions, museums and water parks, has signed a joint representation agreement with H2E, a Latvian designer of museums, attractions and heritage-based projects.
Paragon will represent H2E in the UK, while H2E will represent Paragon’s offering across Latvia, Scandinavia, the Baltic States and CIS countries. The news sends the shares up 9.3% to 1.5p.
The £2.5 million microcap says its objective in 2016 is to increase its representation around the world so as to attract and find new projects in regions where it’s not currently active.
Last month Paragon entered into a similar joint representation deal with China-based leisure and play equipment maker Funlandia, which it hopes will increase its presence in the Far East.
Investors were also given encouraging news in December when it announced a five-year agreement with international toy brand Hamleys, giving it the right of first refusal to design and build theme-park style attractions in Hamleys’ stores.
These developments, alongside a £5 million design and build contract for a theme park in the UAE, could help to boost the group’s fortunes in 2016.
In October Paragon said results for 2015 would be below expectations as a result of unexpected project delays and underperformance at its flagship adventure playground attraction at Quest in Westfield Merry Hill. It said 2016 is expected to a better year given the progress made on the order book and improved visibility of earnings.
Paragon's shares have slumped 32.4% over the past 12 months.