Kinovo Share Discussion Threads

[masurenguy] 06/7/2021 07:24

Results as projected in the Y/E trading update at the begining of May. Key factors were significant debt reduction, increased bank credit facility, restoration of the dividend and restructuring of the business.

Final results for the year ended 31 March 2021

Kinovo plc (AIM:KINO), the specialist property services Group that delivers compliance and sustainability solutions, announces its full year results for the twelve months ended 31 March 2021.

Financial highlights

-- Operating profit of £601,000 (2020: £2.3 million) on revenues of £60.2 million (2020: £65.4 million).

-- Adjusted EBITDA (1) of £3.0 million (2020: £4.7 million).
-- Strong adjusted operating cash flow (2) of £4.7 million (2020: £4.6 million).
-- Net debt(3) reduced by £4.5 million to £2.7 million (2020: £7.2 million).
-- Basic earnings per share of 0.27 pence per share (2020: 2.93 pence per share) based on a profit after tax of £157,000 (2020: £1.4 million).

-- Adjusted earnings per share was 3.91 pence per share (2020: 7.10 pence per share).
-- Debt facilities restructured with HSBC including changing of covenants, providing a £7.3 million term loan facility and a £2.5 million overdraft facility to ensure maximum flexibility for the Group.

-- Proposed reinstatement of dividend of 0.5 pence per share to reflect significant reduction in net debt, resilient underlying trading and confidence in outlook.

Operating highlights

-- Completion of rebranding and repositioning of the Group to Kinovo around the three key strategic pillars of Regulation, Regeneration and Renewables.

-- Investment in energy efficient solutions relating to the Microgeneration Certification Scheme.

-- Investment in Business Development Team in H2 already gaining traction with both contract wins and inclusion onto SEC and Fusion 21 frameworks, alongside geographic diversification into the Midlands.

-- Visible revenues over the next three years of £170 million (2020: £172 million) including £8 million in visible revenues secured since the year end with a strong pipeline.

-- Focus on our people accelerated with implementation of a wide range of HR initiatives including talent management and investment into key commercial and operational roles to continue driving operational excellence for growth.

-- Investment into IT infrastructure including roll-out of software package to monitor and measure our social value contribution as a Group, which was calculated at over £1.15 million in the financial year.

(1) Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation and excluding non-underlying items. To align with internal and bank covenant reporting it is also stated after a charge for lease payments, as set out in note 8 of the financial statements.

(2) Adjusted operating cash generated is stated before tax and after lease payments and after adding back £379,000 (2020: £1.9 million) exceptional item cash payments incurred in the year ended 31 March 2021. It is also adjusted to reflect the payment of deferred HMRC payments to normal terms. Further analysis is set out in the Financial Review.

(3) Includes term and other loans and overdraft net of cash, and excludes lease obligations.

(4) Adjusted earnings per share is the profit, excluding non-underlying items, after tax divided by the weighted average number of ordinary shares which is set out in note 14 to the financial statements.

(5) 3 year visible revenues are the minimum identifiable revenues, over the following 3 year period; being contracted or anticipated spend as well as historical run rate.

Commenting on the results and prospects, David Bullen, Chief Executive Officer, said:"Despite the challenges of Covid-19 and the disruption caused by multiple lockdowns, we delivered a resilient performance in 2021 as well as a major achievement in repositioning the business. We have now announced our re-brand, laying the foundations for Kinovo to accelerate its growth strategy. I am positive of the outlook for the Group and I look forward to capturing the vast amount of organic growth potential alongside strategic acquisition opportunities. We sit at the centre of compliance and sustainability solutions with a complete focus on supporting our customers on their sustainability goals and the UK Government's net-zero pledges. As a result, we have invested in the skillsets that will ensure we can serve our customers fully. Since March 21, we have secured a further £8 million in visible revenues, following contract wins including de-carbonisation funding works installing air source heat pumps and solar photovoltaic systems. "

[nico115] 06/7/2021 07:15

Good set of results Debt slashed Great to see a divi as this shows confidence I still have a 100p target Cheap as chips

[johnhemming] 06/7/2021 07:13

Personally I am quite happy with the results. To actually make a profit during the pandemic is a good thing. I am still of the view that a valuation more in line with the turnover is not an unreasonable thing.

A small dividend (0.5p) is better than no dividend as well.

[a2584728] 01/7/2021 10:18

This needs an acquisition away from the core activities

[masurenguy] 30/6/2021 13:12

Final results, for the year ended 31 March 2021, will be announced on Tuesday 6 July.

A reminder from the year end trading update issued on 6 May: "Bilby had a strong performance in the second half and, as a result, expects revenues of approximately £60m for the full year ending March 2021. Margins were affected by higher operational costs arising from the increased no access rates and mix of works. Adjusted EBITDA for the second half of the year is expected to be comparable to the first half, delivering approximately £3m for the full year. The objective to reduce net debt remains a priority for the Group. Over the last 18 months, net debt has significantly reduced by £8.4m and at 31 March 2021 was £2.7m, net of cash balances of £1.3m. Significant progress has been made in strategically realigning the Company to serve our stakeholders in a sustainable, profitable way in the future. The outcomes of this process will be communicated in more detail at the results."

[aublune] 28/6/2021 11:39

I am thankful that finally my brokers have processed the new name. Kinovo!

[masurenguy] 18/6/2021 16:01

A good opportunity to top up on a market down day but of course it is showing as a Sell here.

[garyb01] 17/6/2021 11:05

Basically the Australian Bilby is a Rat like creature - obviously no reference to the previous owners and management team!

[johnhemming] 17/6/2021 06:07

I am not myself massively enthusiastic about name changes, but on the other hand if the company is moving from a relatively narrowly focussed recovery play into an interesting growth story for the future we could see this going a long way.

[masurenguy] 17/6/2021 01:17

New thread to mark the change of name from Bilby plc to Kinovo plc.

“As a Board, we believed the time was right for a re-brand, having steered the business through a successful turnaround and wishing to now look to the future with a reinvigorated purpose. We are therefore delighted to announce our new name and brand identity. The name Kinovo was derived through a series of workshops that included our employees; “kin” relates to family; our people, our subsidiaries, our clients and communities. It also forms part of the word “kinetic”; a type of motion
that gains more energy as it accelerates. The word “novo” is from the Latin word meaning to make new. Combined, Kinovo reflects a renewed family with connected competence as its core.”
David Bullen, CEO. 17 June, 2021

[masurenguy] 17/6/2021 00:49

I first invested here in January 2021 at just under 26p and added thereafter. However, the DCB disposal debacle, the sheer failure by the BoD to disclose the ongoing fiscal liabilities that were inherent in the original disposal agreement and the remaining unresolved financial & legal issues, created quite a significant management credibility issue for me. Consequently, I started downsizing my position here and completed my final exit during Nov 2022. Ref post #778.

New thread now set up here:

This thread is now closed