Kinovo PLC Trading Update (4534S)
November 16 2021 - 1:00AM
UK Regulatory
TIDMKINO
RNS Number : 4534S
Kinovo PLC
16 November 2021
16 November 2021
Kinovo plc
("Kinovo" or the "Company")
Trading Update
Kinovo Plc (AIM: KINO), the specialist property services Group
that delivers compliance and sustainability solutions, provides the
following half-year update for the six months ending 30 September
2021.
Trading and Financial Position
In the six month period to 30 September 2021, Kinovo has
continued to demonstrate resilient progress, delivering strong
growth in revenues as COVID restrictions eased, earnings and cash
generation from its continuing operations, despite the market
challenges of supply chain inflation and material and labour
availability.
Comparative revenues for continuing operations during the period
grew 64% to GBP23.8 million (2020: GBP14.5 million), Adjusted
EBITDA (after the effect of a charge for lease payments) increased
by 75% to GBP1.8 million (2020: GBP1.0 million), with operating
profit from continuing operations delivering GBP1.2 million (2020:
loss GBP0.2 million). Total profit after tax was GBP0.6 million
(2020: loss GBP0.2 million).
Net debt fell further from GBP2.7 million at 31 March 2021
(GBP4.9 million at 30 September 2020) to GBP1.7 million at 30
September 2021, including cash balances that rose from GBP1.3
million at 31 March 2021 to GBP2.2 million at 30 September
2021.
During the six month period, the Company reinstated its final
dividend and paid GBP0.3 million, as well as deferred VAT payments
totalling GBP0.6 million, strengthening its financial position
further following the effects of the pandemic. Outstanding deferred
VAT was GBP0.4 million at 30 September 2021 and will be fully
repaid by January 2022.
The Company has also won a number of new contracts during the
period, most of which will be initiated during the second half of
the year, with a total potential value of GBP43.6 million over the
life of the contracts.
Planned Sale of Construction Division
Following its rebranding and strategic review, Kinovo announces
that it is currently in advanced discussions regarding the planned
sale of DCB Kent Limited (DCB), the Company's non-core construction
business. The disposal of DCB will allow the Company to harmonise
its operations and increase the focus on its three strategic
workflow 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. There can be no certainty that the sale
will proceed, however further announcements will be made as
appropriate.
The Company expects to release its interim results for the
period ended 30 September 2021 on Tuesday 7(th) December 2021.
David Bullen, Chief Executive Officer of Kinovo plc,
commented:
"We are pleased with how the Company has managed to deal with
the significant issues posed by the pandemic, emerging in a strong
position for growth. The commitment of the team has allowed the
business to combat a very challenging year and I re-iterate my
thanks and gratitude for all their hard work.
The potential sale of DCB will serve to strengthen our strategic
footing and allow us to focus and build on our core business,
centred around the non-discretionary arenas of compliance and
regulatory work.
We look forward to providing more detail at our Half-Year
Results in December."
Enquiries
Kinovo plc
Sangita Shah, Chairman +44 (0)20 7796 4133
David Bullen, Chief Executive Officer (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
Bertie Berger
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