REG - Kinovo PLC - Renewal of Debt Facilities

Canaccord GenuityAnnouncement

05/10/2022 09:33

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RNS Number : 7881B  Kinovo PLC  05 October 2022

5 October 2022

Kinovo plc

("Kinovo" or the "Company")

 

Renewal of Debt Facilities

 

Kinovo Plc (AIM: KINO), the specialist property services group that delivers
compliance and sustainability solutions, is pleased to confirm that it has
completed the refinancing of its £1.5 million term loan ("Term Loan") with
its partner, HSBC UK Bank plc, together with the annual renewal of the current
£2.5 million overdraft facility ("Overdraft").

 

As at 30 September 2022, Kinovo's net debt position had reduced to £0.1
million (H1 2022: £1.7 million) with a cash balance of £1.7 million (H1
2022: £2.2 million).

 

The Term Loan is a 12-month facility and there will be £0.38 million
quarterly repayments starting in November 2022. The interest cost on the Term
Loan is 4.00% above the compounded Sterling Overnight Index Average ("SONIA").
The total expenses permitted to be incurred on DCB (Kent) Limited are £4.6
million.

 

The Overdraft is repayable on demand and subject to an annual review. The cost
of the Overdraft is held at an interest rate of 3.00% above the Bank of
England base rate.

 

The covenants on the Term Loan will be tested monthly and quarterly and they
are (i) achievement of minimum levels of EBITDA; (ii) minimum liquidity; and
(iii) interest cover.

 

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

 

"We are pleased to have agreed new debt facilities with our partner HSBC Bank
UK, strengthening Kinovo's financial stability. As highlighted in our recent
trading update, despite the challenging macro-economic conditions, the
momentum of our strong operational and financial performance has been
maintained throughout the first half of the year."

 

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
 Adam James

 Andrew Potts

 Harry Rees

 Hudson Sandler (Financial PR)                                   +44 (0)20 7796 4133
 Dan de Belder

 Harry Griffiths

 

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the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the
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