What's scary Tim? |
Down another 6%. Scary |
It's all water under the bridge.
We need to look to the future.
I'm sure there have been hard lessons learned. |
It does sound like KINO mgmt didn't have any time limit on the work they were liable for when disposing of DCB.At the very least they should have checked the work carried out before the sale of DCB on projects that had been started but were not yet finished and rectified that work before doing the handover.On projects that had not yet started, and the remainder work on projects under way they should have been all over it when the work was being carried out with penalties for shoddy work. That level of oversight should have been built into the contract. It does look like a handshake deal between old mates that has gone seriously wrong for KINO. Or have I misread it ? |
Confused... the question is accountability - who was DBC management reporting into and how was it allowed to get to this situation?... |
Disposal maybe but not the issues. Disposal or not it would still have cost a fortune to sort out |
Not so. The whole farcical DCB disposal to MCG Global was handled by the current CEO David Bullen and Chair Sangita Shah in January 2022. |
Previous management |
Presentation... "Legacy operational issues" whose watch did these occur on?... |
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 |
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