RNS Number : 9076R
Kinovo PLC
11 July 2022

11 July 2022

Kinovo plc

("Kinovo" or the "Company")


Further update re DCB Kent Limited ("DCB")


Kinovo Plc (AIM: KINO), the specialist property services Group that delivers compliance and sustainability solutions, today announces an update on trading and developments relating to DCB, its former subsidiary.


The Company reports that its 3 year visible revenues for the continuing business have increased from £105 million as at 31 March 2021 to £139 million as at 31 March 2022, with further additional wins totalling over £3 million post-period end. 


We are pleased to see further progress in the first two months of the current financial year to end May 2022, a seasonally quieter period, with 28% growth in revenues to £9.1 million and 35% growth in Adjusted EBITDA to £0.5 million, compared to the prior period.


The Company has continued to reduce its debt facilities with its lending bank HSBC UK Bank plc ("HSBC") to £4.5 million, structured as a £2.0 million term loan and a £2.5 million overdraft facility at 30 June 2022. Kinovo continues to facilitate constructive discussions with HSBC regarding the refinancing of its existing facilities. With respect to its financial covenants, the EBITDA calculations are based on continuing EBITDA, which excludes adjustments related to DCB. Based on current financial expectations, the Company expects to be in compliance with its financial covenants for the year ended 31 March 2022 when the year-end audit is finalised.


Kinovo is working with specialist consultants in order to establish the costs to complete for the relevant construction projects which are subject to parent company guarantees provided in respect of DCB. Kinovo notes that there has been speculation regarding the costs to complete, however, these will only be able to be determined once Kinovo has reached agreement with the respective clients under the relevant projects and the joint administrators of DCB, for the final costing to complete for each project.  The Company reports that the discussions with clients are both productive and encouraging, with all parties committed to provide positive solutions to complete the outstanding projects in a timely manner.  Kinovo is also the largest creditor of DCB and at this stage, Kinovo's expectation is that there will be limited recovery of the amounts owed.


Kinovo continues to strongly uphold its legal position that any claim from MCG Global Limited ("MCG") is without merit, whilst also continuing to pursue counter-claims, including claims for misrepresentation, against MCG and its associates, as set out in the announcement dated 24 May 2022.


A further announcement will be made to shareholders as and when appropriate. The Company expects to report that revenues for continuing operations for the year ending 31 March 2022 have increased by 35% to £53.3 million (2021: £39.4 million) with Adjusted EBITDA (after the effect of a charge for lease payments) rising by 100% to £4.2 million (2021: £2.1 million). 






Kinovo plc

Sangita Shah, Chairman

David Bullen, Chief Executive Officer

+44 (0)20 7796 4133

(via Hudson Sandler)

Canaccord Genuity Limited (Nominated Adviser and Sole Broker)

+44 (0)20 7523 8000

Andrew Potts

Bobbie Hilliam

Hudson Sandler (Financial PR)

+44 (0)20 7796 4133

Dan de Belder

Harry Griffiths


This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement, this 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.