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 
 

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

TSTFLFSALFLELIL

(END) Dow Jones Newswires

November 16, 2021 02:00 ET (07:00 GMT)

Kinovo (LSE:KINO)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Kinovo Charts.
Kinovo (LSE:KINO)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Kinovo Charts.