(Alliance News) - Kinovo PLC on Friday said it is close to concluding its remaining projects associated to DCB Kent Ltd.
Kinovo is a London-based property services provider offering safety compliance and sustainability solutions.
Shares in Kinovo were down 17% at 39.00 pence in London on Friday.
The company said it continues to make progress towards concluding the remaining projects relating to DCB Kent, its former construction division, with a further four sites having their build completed subject only to final minor snagging checks.
This means that in total, seven of the nine remaining projects will soon have been concluded before the end of Kinovo's financial year.
Kinovo said it expects the penultimate project build to be complete by the end of May. Discussions continue regarding the final project, which is due to complete in 2026.
DCB Kent went into administration in 2022. As a result, Kinovo has had to repay the liabilities of its discontinued projects.
"These nine projects have been affected by a number of unforeseen and legacy issues, arising from poor quality workmanship, with most only becoming apparent on final commissioning and surveys at the sites as they approached completion," Kinovo explained.
"These issues caused damage that required significant remedial action with additional costs, causing associated project delays which were, in certain instances, exacerbated by one of the wettest winters on record."
The firm added that it "continues to assess the recovery of costs incurred as a result of works that have not been performed to a reasonable standard and intends to pursue these rigorously".
Kinovo also said that the pretax net cost to complete all the DCB projects has risen, by a total of GBP2.9 million from the GBP5.7 million highlighted in November.
By Sabrina Penty, Alliance News reporter
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Kinovo Plc (KINO)