Trading Update

2 May 2024

Kinovo plc

("Kinovo", the "Company" or the "Group")

Trading Update

Full Year results anticipated to be ahead of expectations

Kinovo Plc (AIM: KINO), the specialist property services Group that delivers compliance and sustainability solutions, is pleased to announce that it expects its results for the continuing business in the year ended 31 March 2024 to be ahead of prior expectations. Numbers presented are subject to audit.

The Company expects to report an adjusted EBITDA, for the continuing business, of £6.7 million for FY24, 23% ahead of previous year (FY23: £5.5 million) and ahead of prior management expectations of £6.2 million, as disclosed on 9 February 2024, for the full year ending 31 March 2024. 

The Company also expects to report revenues for FY24 of approximately £64 million (FY23: £62.7 million), reflecting a different revenue mix of projects contracted in the year and including the strategic exit from a private sector mechanical contract amounting to £3.6 million in revenue. As previously highlighted, certain planned workstreams in FY24 have experienced some client related administrative delays and are therefore now expected to be delivered in the year ahead.

This performance reflects the successful implementation of Kinovo's growth strategy, centred around the three pillars of Regulation, Regeneration and Renewables, supporting the increasing regulatory, legislation and "carbon net zero" challenges for our clients, as well as a strong mix of works and stringent cost control management.

Discontinued Operations

In regards DCB Kent ("DCB"), Kinovo's former construction subsidiary, the Company is also pleased to confirm that it has achieved practical completion on a further four sites, concluding a total of seven of the nine projects. Timings for the statutory gas connection of the penultimate site has now been confirmed and will therefore be due to complete by early July 2024 with Kinovo remaining in discussions regarding the final project (due to complete in 2026). The anticipated financial liabilities for DCB remain in line with that disclosed on 8 March 2024.

A more detailed Trading Update will be provided to the market in the second half of May.

David Bullen, Chief Executive Officer of Kinovo plc, commented:

"I am delighted we have achieved such a strong full year performance, reiterating the strength of the continuing business whilst reaping the rewards of our growth strategy. Our FY24 performance proves again the robustness and resilience of the Group and, with the residual legacy issues of DCB closer to being completed, we remain focused on capitalising on further growth opportunities and maximising shareholder value creation."

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.

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