Kinovo shares jump as firm swings to profit and revenue rises

(Alliance News) - Kinovo PLC on Friday reported it swung to an annual profit despite a challenging year and boasted a strong start to its new financial year.

Shares in Kinovo were up 10% at 28.60 pence on Friday morning in London.

In the year ended March 31, the London-based property services provider swung sharply to a pretax profit of GBP2.8 million from a loss of GBP371,000 the previous year.

Revenue surged 35% to GBP53.3 million from GBP39.4 million.

The firm's Regulation services delivered 59% of revenue and grew 30% year-on-year, while its Renewables services, which accounts for 21% of revenue, grew 32% year-on-year.

Adjusted earnings before interest, tax, depreciation and amortisation more than doubled to GBP4.2 million from GBP2.1 million.

Chief Executive David Bullen said this increase was a "direct result" of the company's repositioning announced last year.

"This streamlining of operations has allowed the underlying business to prioritise what it does best and flourish. Coupled with the significant investment in our people, upskilling of employees and bringing in additional expertise, Kinovo is well positioned to negotiate this difficult macro-economic environment," Bullen explained.

In the first quarter of its new financial year, Kinovo said its revenue increased by 28% against the previous year to GBP14.0 million from GBP10.9 million.

Adjusted earnings before interest, tax, depreciation and amortisation in the first quarter rose by 24% to GBP827,000 from GBP668,000.

Due to the company's loss on the disposal of DCB Kent Ltd, it decided not to declare a dividend for the year.

Kinovo disposed of DCB for GBP5 million to MCG Global Ltd. However, DCB did not perform to Kinovo's expectations following the disposal and the firm provided GBP3.7 million in working capital support.

DCB has since gone into administration, and Kinovo has had the obligation to uphold parent company guarantees.

By Heather Rydings; heatherrydings@alliancenews.com

Copyright 2022 Alliance News Limited. All Rights Reserved.