Kinovo PLC AGM Trading Update (4978Z)
September 15 2022 - 2:00AM
UK Regulatory
TIDMKINO
RNS Number : 4978Z
Kinovo PLC
15 September 2022
15 September 2022
Kinovo plc
("Kinovo" or the "Company")
AGM Trading Update
Kinovo Plc (AIM: KINO), the specialist property services Group
that delivers compliance and sustainability solutions, provides a
trading update ahead of the Company's Annual General Meeting
("AGM") being held at 10am today.
Current Trading
Kinovo has continued the strong momentum it achieved during the
last financial year and the first quarter, despite a difficult
trading environment resulting from the impacts of significant
inflation, supply chain constraints and labour availability. Kinovo
has been able to partially offset these challenges through positive
contract discussions regarding pricing, effective supply chain
management and maximising its available labour pool. Based on
management accounts the directors expect to report for the first
six months ending 30 September 2022, revenues of approximately
GBP30.0 million (H1 2022: GBP23.8 million) and Adjusted EBITDA in
the region of GBP2.3 million (H1 2022: GBP1.8 million). The
directors expect this positive momentum in financial performance to
continue into the second half of the financial year.
Throughout the pandemic the industry experienced a fall in
demand as both clients and residents limited access to properties.
However, due to the regulatory driven, non-discretionary nature of
our work, the current financial period has seen a significant
rebound in activity as the backlog of essential work has started to
be addressed. Additionally, the heightened increase in regulation
and compliance, for example through the Building Safety Act which
was granted Royal Assent on 28 April 2022, has also resulted in
greater demand for our services.
During the period, the Company renewed contracts for the London
Borough of Bexley and Estuary Housing worth a total of GBP7.0
million over a four-year period, new clients were gained including
the Royal Borough of Greenwich and Orbit Housing worth in aggregate
GBP2.6 million per annum and a GBP1.0 million contract for an
emergency lighting program, to be completed within the current
calendar year, was awarded by the London Borough of Southwark. In
addition, we have a number of selective new business proposals that
have already been submitted and are awaiting decisions, which the
Company will announce, when appropriate.
Discussions continue with clients on the DCB construction
projects and Kinovo hopes that on site activity will recommence in
the near future, enabling Kinovo to progress its commitments under
the parent company guarantees. Costs to complete the projects are
expected to be in the region GBP4.0 million plus expenses, as
previously announced.
Our banking partner, HSBC UK Bank plc, continue their positive
support of the Group and we are in the process of completing
documentation for the refinancing of the GBP1.5 million term loan
that was due for repayment on 30 September 2022 and the renewal of
the current GBP2.5 million overdraft facility.
With the current macro-economic challenges offering no immediate
sign of abating, coupled with the continued catch up from the
pandemic, the pressures for local councils and authorities within
the social housing sector remains ever increasing. The Company and
our range of services are well positioned to support the
authorities in addressing these challenges together.
David Bullen, Chief Executive Officer of Kinovo plc,
commented:
"I am delighted to issue this trading update and report on the
considerable progress made so far during FY23. I am proud of the
underlying business' performance and how this has continued amid a
number of very challenging conditions.
It is rewarding to observe the benefits of our strategic
repositioning. All of our staff deserve recognition for embracing
and implementing the strategy with commitment and vigour, enabling
us to deliver such strong progress. The Company is well-positioned
for growth and I look forward to further updating the market on our
progress."
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
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