Kinovo PLC Update re DCB Kent Limited ("DCB") (6689L)
May 16 2022 - 11:33AM
UK Regulatory
TIDMKINO
RNS Number : 6689L
Kinovo PLC
16 May 2022
16 May 2022
Kinovo plc
("Kinovo" or the "Company")
Update re DCB Kent Limited ("DCB")
Kinovo Plc (AIM: KINO), the specialist property services Group
that delivers compliance and sustainability solutions, provides the
following update on developments in the financial position of DCB,
its former subsidiary, since the release by Kinovo, on 6 May 2022,
of its trading update for the year ended 31 March 2022 (the "6 May
Announcement").
Kinovo has today been informed that two partners of CFS
Restructuring LLP have been appointed as joint administrators of
DCB (the "Joint Administrators").
As referred to in the 6 May Announcement, since the completion
of its disposal of DCB, Kinovo has provided working capital support
to DCB in the amount of GBP3.7 million in aggregate, to facilitate
the completion by DCB of active projects. Prior to the disposal, as
also referred to in the 6 May Announcement, Kinovo provided certain
parent company guarantees relating to construction projects in
existence at the time of the disposal, which were expected to be
released by the purchaser of DCB following completion of the
disposal.
Kinovo is currently establishing the impact of an administration
of DCB on the monies it has advanced DCB to support its working
capital, which remain at GBP3.7 million, as well as on the parent
company guarantees it has provided.
The deferred purchase price for the disposal of DCB was based on
the successful completion of active projects, upon trade
settlements relating to those projects, and on profits for
financial years ending March 2023 and 2024, respectively. In
consequence of an administration of DCB, Kinovo's directors expect
that any deferred consideration it may receive would only likely
now arise from trade settlements and retentions related to
contracts; this would be linked directly to the administration
process and completion of the relevant construction projects.
A further announcement will be made to shareholders as and when
appropriate.
Sangita Shah, Chairman of Kinovo plc, commented:
"We are very disappointed to be informed of the appointment by
DCB of the Joint Administrators. We are actively engaged with our
legal advisors in establishing Kinovo's position in consequence of
an administration of DCB, and we are also in direct discussions
with the Joint Administrators."
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
Andrew Potts
Bobbie Hilliam
Hudson Sandler (Financial PR) +44 (0)20 7796 4133
Dan de Belder
Harry Griffiths
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of article 7 of the Market Abuse Regulation (EU) 596/2014 as
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END
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