YORK based theme park and attraction fit out firm Paragon Entertainment as posted a “difficult set of results” as gross profits fell by more than eight per cent.

Announcing its full years results, for the year ending December 31 2017, Paragon Entertainment said it had “learnt lessons” from the period in which market deterioration caused delays to payments and project start times.

The Elvington business posted a 2.6 per cent year on year rise in revenues to £14.8 million, but a fall in gross profits from £3.8 million to £3.6 million.

In its financial report, released to the Alternative Investment Market (AIM), Paragon warned its first half of 2018 is forecast to end in a “significant loss”, however said its expects “substantial recovery” in the second half is due thanks to the best order book in the firm’s history.

Mark Taylor, non-executive chairman of Paragon Entertainment said: “This has been a difficult set of results to present.

“We have a good track record of delivering what we say and we had commenced shifting the focus of our sales mix so as to diversify our sources of revenue.

“Despite our optimism in mid-2017, it is now apparent that the market started to deteriorate in the latter part of 2017 and into 2018.

“This meant that contract starts and payments were delayed at a time when our workshops were less efficient and not operating at capacity, and Paragon suffered a great deal of pain.

“Fortunately, the change in sales focus is starting to reap rewards and we face a rapid ramp up in workshop activity. We have taken the lessons of this experience on board and continue to take action to improve our operations.”