REG - Kinovo PLC - Trading Update

KinovoAnnouncement

16/11/2021 07:05

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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
£23.8 million (2020: £14.5 million), Adjusted EBITDA (after the effect of a
charge for lease payments) increased by 75% to £1.8 million (2020: £1.0
million), with operating profit from continuing operations delivering £1.2
million (2020: loss £0.2 million). Total profit after tax was £0.6 million
(2020: loss £0.2 million).

 

Net debt fell further from £2.7 million at 31 March 2021 (£4.9 million at 30
September 2020) to £1.7 million at 30 September 2021, including cash balances
that rose from £1.3 million at 31 March 2021 to £2.2 million at 30 September
2021.

 

During the six month period, the Company reinstated its final dividend and
paid £0.3 million, as well as deferred VAT payments totalling £0.6 million,
strengthening its financial position further following the effects of the
pandemic. Outstanding deferred VAT was £0.4 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 £43.6 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.

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