Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksKinovo Plc Regulatory News (KINO)

Share Price Information for Kinovo Plc (KINO)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 53.50
Bid: 52.00
Ask: 55.00
Change: -2.50 (-4.46%)
Spread: 3.00 (5.769%)
Open: 56.00
High: 55.00
Low: 53.50
Prev. Close: 56.00
KINO Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Year-End Trading Update

6 May 2022 07:00

RNS Number : 5366K
Kinovo PLC
06 May 2022
 

6 May 2022

Kinovo plc

("Kinovo" or the "Company")

 

Year-End Trading Update

 

Kinovo Plc (AIM: KINO), the specialist property services Group that delivers compliance and sustainability solutions, provides the following trading update for the year ending 31 March 2022.

 

Trading and Financial Position

In the 12 month period to 31 March 2022 the Company performed well following a year of Covid-related disruption, winning new contracts and revenue streams under its three strategic pillars of Regulation, Regeneration and Renewables. This performance has been achieved despite challenges posed by supply chain disruptions and labour availability. Kinovo has continued to build on its strong client relationships, adding new workstreams under existing contracts due to our track record of delivering excellence in both quality and service.

 

Revenues, for Continuing operations, during the period increased by 36% to £53.5 million (2021: £39.4 million), while Adjusted EBITDA (after the effect of a charge for lease payments) rose by 100% to £4.2 million (2021: £2.1 million).

 

Net debt fell to £0.3 million at 31 March 2022 (31 March 2021: £2.7 million) including cash balances of £2.5 million (31 March 2021: £1.3 million).

 

As mentioned above, the Company won a number of new contracts during the period. The total potential value attributed from new business won during the year could rise to £43.8 million over the life of these contracts.

 

Update on the disposal of DCB Kent Limited ("DCB")

 

On 12 January 2022, Kinovo announced the sale of DCB, the Company's non-core construction business (the "Disposal") which was categorised under "Discontinued activities" in the Half Year Results, as published on 7 December 2021.

 

The Disposal was undertaken to allow the Company to harmonise operations and increase the focus on its three strategic pillars: Regulation, Regeneration and Renewables. These pillars are centred on compliance driven, regulatory-led specialist services that offer long-term contracts, recurring revenue streams and strong cash generation.

 

Consideration to be received by Kinovo from the Disposal was dependent on the future financial performance of DCB.

 

Under the terms of the Disposal agreement with the purchasers, the Company agreed to provide a working capital facility to support DCB in completing active projects. The Directors assumed at the time of entering into the Disposal agreement the overall net outflow of cash to support DCB would be minimal, with the initial working capital support necessary to optimise the potential deferred consideration.

 

The Company has been notified that DCB has experienced delays in completing active projects and has not secured new project work to the levels anticipated at the time of the Disposal and has therefore had to provide unanticipated working capital support to date of £3.7 million, and the Directors expect this to increase in the short term, absent any additional investment into DCB.

 

This additional support was provided due to a lack of new business receipts, ongoing challenges and delays in the period. As part of our obligation under the terms of the Disposal, the Company provided parent company guarantees which run through to practical completion on each of the construction projects that were in existence at the time of the Disposal. It was, however, anticipated that the purchaser would make all reasonable endeavours to transfer these parent company guarantees post-disposal.

 

During the year, discontinued activities traded at a loss of £0.5 million. In addition, the pre-tax loss on the disposal of DCB for the Company is expected to be around £5.0 million, which will be taken as a non-underlying exceptional charge. This includes an impairment of £2.3 million of intangible assets relating to goodwill and customer relationships.

 

The Company as at 30 April 2022, had net cash of £0.4 million (30 September 2021: £1.7m net debt), which includes the impact of the working capital support to DCB. The Company has debt facilities of £5.0 million in place with HSBC UK Bank plc. This debt facility is structured as a £2.5 million term loan, repayable by September 2022, and a £2.5 million overdraft facility. The Company expects to meet financial covenants at the next test, being the year ended 31 March 2022..

 

There remains significant uncertainty around the amount of further support required to be provided to DCB under the parent company guarantees, and a number of claims and recoveries are being pursued by Kinovo. The Company is currently reviewing its legal position in relation to recoverability of funds provided by way of the working capital support to DCB. A further announcement updating shareholders will be made as and when appropriate. 

 

 

David Bullen, Chief Executive Officer of Kinovo plc, commented:

"I am pleased to announce this year-end trading update, with Kinovo's underlying continuing businesses performing well, notwithstanding difficult market conditions. Kinovo is winning new business at a strong rate, and continues to add new revenue streams from existing clients.

 

Whilst we have incurred a loss on the disposal of DCB, it streamlines our operations and allows us to focus on our core activities of compliance and regulatory work.

 

Kinovo continues to focus on long-term partnerships and relationships, and currently over 90% of revenue can be attributed to recurring contracts."

 

 

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

Corporate Broking:

Bobbie Hilliam

Andrew Potts

Georgina McCooke

Sales:

Jonathan Barr

Hudson Sandler (Financial PR)

+44 (0)20 7796 4133

Dan de Belder

Harry Griffiths

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
TSTSSMFUIEESEFI
Date   Source Headline
17th May 20243:50 pmRNSHolding(s) in Company
2nd May 20247:00 amRNSTrading Update
25th Mar 20244:36 pmRNSExercise of Options, PDMR Shareholdings & TVR
11th Mar 20247:00 amRNSDirector/PDMR Shareholding
8th Mar 20247:00 amRNSUpdate on DCB Discontinued Operations
9th Feb 20247:00 amRNSTrading Update
28th Nov 20237:00 amRNSInterim Results
22nd Nov 20237:00 amRNSNotice of Investor Presentation
7th Nov 20237:00 amRNSFirst Half Trading Update
26th Sep 20232:30 pmRNSDirector/PDMR Shareholdings
25th Sep 20237:00 amRNSDirector/PDMR Shareholding
20th Sep 20237:00 amRNSStatement regarding Rule 2.8 announcement
19th Sep 202312:53 pmRNSNo intention to bid statement
19th Sep 202311:30 amRNSForm 8.5 (EPT/RI) - Kinovo PLC
15th Sep 202311:43 amRNSForm 8.5 (EPT/RI)
13th Sep 20233:30 pmRNSForm 8.3 - Kinovo plc - Neil Rooney
13th Sep 20233:30 pmRNSForm 8.3 - Kinovo plc - JTC Employer Solutions
13th Sep 20237:00 amRNSDecarbonisation Direct Award
12th Sep 20236:03 pmRNSForm 8.3 - KINOVO PLC
12th Sep 20233:23 pmRNSForm 8.3 - KINOVO PLC
12th Sep 20239:20 amRNSForm 8.5 (EPT/RI)
8th Sep 20234:30 pmRNSForm 8.3 - Kinovo plc - Fiduchi Trustees Ltd
8th Sep 202311:45 amRNSForm 8 (OPD) - Kinovo plc
8th Sep 20239:55 amRNSForm 8.3 - Kinovo Plc
7th Sep 20236:25 pmRNSForm 8.3 - Kinovo plc
7th Sep 202310:29 amRNSForm 8.3 - Kinovo plc - Amendment
7th Sep 20237:00 amRNSAdditional Framework Wins and Direct Award
5th Sep 20233:30 pmRNSForm 8.3 - Kinovo plc - Michael Whitaker
5th Sep 202311:15 amRNSForm 8.3 - Kinovo plc
5th Sep 20238:34 amRNSForm 8.5 (EPT/RI)
5th Sep 20237:00 amRNSRenewal of Bank Facilities
4th Sep 202311:10 amRNSForm 8.5 (EPT/RI) - Kinovo PLC
1st Sep 202312:51 pmRNSForm 8.3 - KINOVO PLC
1st Sep 202312:37 pmRNSForm 8 (OPD) (Rx3 Holdings Limited)
1st Sep 202311:00 amRNSStatement regarding possible offer
1st Sep 202310:26 amRNSForm 8.5 (EPT/RI)
31st Aug 20236:29 pmRNSTotal Voting Rights
31st Aug 20236:29 pmRNSForm 8.3 - Kinovo plc
31st Aug 20234:55 pmRNSForm 8.3 - Kinovo PLC
31st Aug 20239:53 amRNSForm 8.5 (EPT/RI)
31st Aug 20237:00 amRNSResult of AGM
30th Aug 202310:00 amRNSForm 8.5 (EPT/RI)
30th Aug 20237:00 amRNSPossible offer for Kinovo plc
29th Aug 20232:27 pmRNSForm 8.3 - Kinovo PLC
29th Aug 202310:31 amRNSForm 8.3 - KINOVO PLC
29th Aug 202310:08 amRNSForm 8.5 (EPT/RI) - Kinovo PLC
25th Aug 20233:24 pmRNSForm 8.3 - Kinovo plc
25th Aug 202312:06 pmRNSForm 8.3 - Kinovo PLC
25th Aug 202311:54 amPRNForm 8.3 - Kinovo Plc
25th Aug 20239:10 amRNSForm 8.5 (EPT/RI)

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.