REG - Kinovo PLC - Agreement to terminate ninth DCB Project completed

KinovoAnnouncement

16/07/2024 07:00

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RNS Number : 4852W  Kinovo PLC  16 July 2024

 

16 July 2024

 

Kinovo plc

("Kinovo", the "Company" or the "Group")

 

Agreement to terminate the ninth DCB (Kent) Ltd Project completed

 

Kinovo plc (AIM: KINO), the specialist property services Group that delivers
compliance and sustainability solutions, is pleased to confirm that, further
to the 9 July 2024 announcement, it has now reached agreement to terminate its
contract for the ninth legacy project of its former construction subsidiary,
DCB (Kent) Ltd ("DCB") for a cash consideration of £2.2 million (the
"Agreement").

The terms of the Agreement, the project of which would otherwise have been
expected to be completed in FY26, releases Kinovo from all liabilities under
the parent company guarantee relating to this ninth DCB project, including all
future obligations and any potential respective claims. The Agreement also
confirms termination of the performance bond, releasing Kinovo from any
liability or potential claim under the performance bond.

Under the Agreement, Kinovo will pay a total cash consideration of £2.2
million. The consideration will be paid in monthly instalments over an
18-month period, providing certainty over future cashflow and is expected to
be funded by cash from the core business and existing facilities. The
agreement removes the risk from possible future cost overruns or claims from
this final DCB legacy project.

With seven DCB projects having already been concluded, the eighth is expected
to complete in July 2024, with minimal net cash remaining payable on these
eight projects.

As previously announced, including the consideration relating to the
Agreement, the total cost to complete all nine legacy DCB projects is expected
to be £12.9 million, excluding anticipated final account recoveries, contract
variations and claims of up to £2.6 million, which will be reported in future
periods once monies are received.

With this Agreement and imminent completion of the eighth project, this will
draw a line under the legacy projects of DCB, enabling the Company to focus on
the core business and its ambitious organic growth strategy.

 

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

 Will Reynish

 

 

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