Kinovo warns of delays as legacy project costs surge

Property services group Kinovo warned on Friday that costs associated with legacy projects had surged as a result of several delays.

Kinovo stated that due to both extreme weather and inherited remedial works, costs in its discontinued construction unit jumped to £7.1m year-to-date. Although it said three of these legacy projects related to its DCB Kent wing, which has now been completed, a further four still face delays.

The AIM-listed firm said that accounting for additional works crystalising from its pipeline going into peak trading season, revenues from continuing operations for the year ending 31 March were expected to be approximately £65.0m, up from £62.7m a year earlier.

Adjusted underlying earnings were expected to be "significantly ahead" of last year's £5.5m level and no less than £6.2m, in line with management expectations.

"This demonstrates the board's continued confidence in the strength and resilience of the continuing business and its significant growth potential," said Kinovo.

As of 1145 GMT, Kinovo shares were down 9.76% at 55.95p.

Reporting by Iain Gilbert at Sharecast.com