Practical Completion. There are ongoing disputes with sub contractors, struck payments which may put back PC , particularly on the Surbiton project. |
he has only just created his account and that's his first post. |
Can you elaborate FattyD? What is PC? And what issues are you talking about? |
Morning All
PC on two of Kinovo’s projects are due next week but I suspect it’s quite likely they won’t receive PC as many subbies have not been paid and there are ongoing issues. |
How weird is that. You'd need very fat fingers to make that error. Luckily for whoever it was for a very small amount. Just 250 shares |
alex_mc
Menu - top right
Trades - middle left |
Fill in a gap in my knowledge here, how do you get that information? As in where can you see sales at certain prices going through from? Thanks |
Who sold the shares at 25p at the close......? |
Ok get the mitigation- what about accountability?... |
 I've now watched all 54 minutes of the presentation and Q&A.
The DCB fiasco certainly has the full attention of the management and they seem now to be on top of it. Eight projects have been derisked and the final one is a flat site project which is therefore less risky as there are no unseen construction faults as construction has not yet begun. All options for the final project are on the table including a early settlement without construction. As the Company is involved in negotiations on these options it is understandably cagey about disclosing figures.
Overall I was reassured about the level of remaining risk which I judge to be small and manageable.
What I don't still understand is how they got into this mess.
I may have got this wrong so correct me if I have.
In 2018 the Company was singing the praises of DCB Kent in their Annual Report.
httxs://www.kinovoplc.com/wp-content/uploads/2021/07/Bilby-Annual-Report-2018.pdf
Nevertheless, for reasons I don't understand, they decided to sell it to MCG Global in 2022 with guarantees on the execution of the ongoing projects.
"MCG Global Limited acquired DCB (Kent) Limited from Kinovo plc (AIM:KINO) for £5 million on January 12, 2022. Under the terms of the consideration, £1.9 million will be payable on the successful completion of current projects, most of which are due in the calendar year 2022, £2.1 million will be payable on trade settlements relating to these current contracts and £1 million payable as earnout amount subject to DCB achieving £3 million profit before tax in 2023 and 2024 respectively."
MCG was incorporated in May 2021 and went bust around June 2023 leaving Kinovo holding the baby with nine unfinished project with many hidden faults. I'm not clear whether the faults were caused by Kino before the sale or by MCG subsequently, or whether MCG was even a company with operations. Very odd.
The management stated in the Q&A that the lesson they have learned is to stay out of the construction business and focus on their core business. I think there are many other lessons to be learned from this messy business!
Be that as it may, I am reassured that the DCB liability is now under control and will continue to hold my shares. |
Adding around 100k shares at 47p, taking it’s time to fulfil the order
Bullish on KINO |
fft did you listen to the presentation? From what I recall it wasn't as simple as that. Go from 6.30 on the presentation video. |
Plastic pipes which are glue fitted are as good as copper and easier/cheaper to install.Put glue round the pipe, insert the male and twist 90 degrees. Easy. Also, when changes required, far easier to work with.Or use threaded. |
Thanks all, really interesting.
I haven't had a chance to look at yet, at work (!), was there any chat about recompense from those shoddy workmen/companies??
Thanks |
I posted the link as requested. People can make their own minds up. Bear in mind when MCG Global collapsed these legacy contracts were left unfinished and open to the elements for quite a while. Are you invested here Smithie? |
...sooty snipes
I disagree.
If you contract to get stuff like fresh water pipes or dirty water pipes or electricity put in
Logic says that you do a basic test or inspection soon after it is done.....& before you fit/add plaster/plasterboard.
If do a number of joints with push fit pipejoints then personally I think that a leak is a real possibility, whereas with soldered copper joints the % chance of a leak is very small imo if visual inspection shows that it has been done correctly, using enough or too much solder & the colours, sheen, overflow look correct/sufficient.
Sounds there was zero quality control & zero/little inspection by any site manager. |
Link to yesterdays presentation below |
Sooty - could you please post a link. It sounds really valuable info. |
If the work was so shoddy, why wasn't it picked up when kinovo first had to provide an estimate of the cost of fixing it ? Did KINO actually look at what needed doing or just kick the can down the road ? The difference is so large from the original estimate that it doesn't look good from a trusting mgmt point of view. |
From the presentation seems that they are considering a way out of the final project. Makes sense. |
I listened to the live presentation this morning. Feeling very confident that the storm clouds are behind us. |
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