Last checked at 16 May 2022 16:33
16 May 2022
Kinovo plc
("Kinovo" or the "Company")
Update re DCB Kent Limited ("DCB")
Kinovo Plc (AIM: KINO), the specialist property services Group that delivers compliance and sustainability solutions, provides the following update on developments in the financial position of DCB, its former subsidiary, since the release by Kinovo, on 6 May 2022, of its trading update for the year ended 31 March 2022 (the "6 May Announcement").
Kinovo has today been informed that two partners of CFS Restructuring LLP have been appointed as joint administrators of DCB (the "Joint Administrators").
As referred to in the 6 May Announcement, since the completion of its disposal of DCB, Kinovo has provided working capital support to DCB in the amount of £3.7 million in aggregate, to facilitate the completion by DCB of active projects. Prior to the disposal, as also referred to in the 6 May Announcement, Kinovo provided certain parent company guarantees relating to construction projects in existence at the time of the disposal, which were expected to be released by the purchaser of DCB following completion of the disposal.
Kinovo is currently establishing the impact of an administration of DCB on the monies it has advanced DCB to support its working capital, which remain at £3.7 million, as well as on the parent company guarantees it has provided.
The deferred purchase price for the disposal of DCB was based on the successful completion of active projects, upon trade settlements relating to those projects, and on profits for financial years ending March 2023 and 2024, respectively. In consequence of an administration of DCB, Kinovo's directors expect that any deferred consideration it may receive would only likely now arise from trade settlements and retentions related to contracts; this would be linked directly to the administration process and completion of the relevant construction projects.
A further announcement will be made to shareholders as and when appropriate.
Sangita Shah, Chairman of Kinovo plc, commented:
"We are very disappointed to be informed of the appointment by DCB of the Joint Administrators. We are actively engaged with our legal advisors in establishing Kinovo's position in consequence of an administration of DCB, and we are also in direct discussions with the Joint Administrators."
Enquiries
Kinovo plc | |
Sangita Shah, Chairman David Bullen, Chief Executive Officer | +44 (0)20 7796 4133 (via Hudson Sandler) |
Canaccord Genuity Limited (Nominated Adviser and Sole Broker) | +44 (0)20 7523 8000 |
Andrew Potts Bobbie Hilliam | |
Hudson Sandler (Financial PR) | +44 (0)20 7796 4133 |
Dan de Belder Harry Griffiths |
This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement, this information is now considered to be in the public domain.