Kinovo PLC Further update re DCB Kent Limited (9076R)
July 11 2022 - 2:00AM
UK Regulatory
TIDMKINO
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 GBP105 million as at 31
March 2021 to GBP139 million as at 31 March 2022, with further
additional wins totalling over GBP3 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 GBP9.1 million and 35%
growth in Adjusted EBITDA to GBP0.5 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 GBP4.5 million,
structured as a GBP2.0 million term loan and a GBP2.5 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 GBP53.3 million (2021: GBP39.4 million) with
Adjusted EBITDA (after the effect of a charge for lease payments)
rising by 100% to GBP4.2 million (2021: GBP2.1 million).
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
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,
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