Kinovo Share Discussion Threads

[honestworker1] 16/5/2022 18:00

Seemed to me Chek was in charge to start with from what i heard and saw. There was Paul Eghan, Chek Whyte, val ( pierre valarin) and John Smith. They were the 4 who were running things although it was never 100% clear who was what.

[darryn1] 16/5/2022 17:54

Honestworker, you said in your march 4th post that DCB was being managed by a guy called Chek White rather than the director Paul Eghan. Was he fired.

[d0m1n1c5] 16/5/2022 17:52

New management seem honest I left a job half done today seems like Kinovo have tried toPull a fast one and me and all the other creditors already Paying the price

[honestworker1] 16/5/2022 17:46

Names correct. I must say though I found Paul Eghan ok to deal with. He was always up front and honest with me. Even answered the phone today when many would've dodged. I think kinovo haven't been honest about the deal struck in the 1st place. It's going to be tough to take the loss. I think DCB was so underfunded for so long it just couldn't be bought back. I should have gone sooner but felt some sort of weird loyalty to finishing the jobs I started.

[sooty snipes] 16/5/2022 17:36

Honestworker1 I refer to your post of 4th of March. Were the names you mentioned in that post correct? (See below)

Honestworker - 04 Mar 2022 - 22:02:06 - 231 of 344.


Something has gone very badly wrong here. Stinks to high heaven. Is this criminal activity? If so the police should be informed. So sorry for for all the good hard working people who look like they have been fleeced. How can such a well run company like Kinovo have got involved in such a mess?

[aim2105] 16/5/2022 17:34

Honest Worker, I’m so sorry to hear that, these situations are disgusting..

Some questions off the top of my head

1. Did Kinovo know that DCB was failed prior to selling? They must have known, the cash they have advanced in such a short space of time doesn’t feel right?!

2. Did the purchasers carry out a rigorous due diligence? Or was it the plan to milk the business dry?!

3. Exactly WHO was running DCB on a day to day basis? Have they tried to enter the building market blindly?!

4. Who approved the sale agreement?!

5. Are Kinovo now in a desperate position after losing £4m supporting a dead business and now have a full investigation from the administrators?

6. Has the market been misled with the original RNS in Jan?

I could go on and on, I’m afraid this saga isn’t going to end well, something is wrong with the whole deal and needs an urgent investigation and suspension of shares until resolved..

Good luck all, but I’m sorry to say this might be game over…

[honestworker1] 16/5/2022 16:51

DCB been intentionally crashed owing a lot of good people wages and a lot of sub contractors and suppliers money. This really stinks. How can Kinovo justify this? How can a company fail so soon after being sold? I'm owed a lot of money as a sub contractor. Will kinovo pay this? Probably going to cost me my house. How can kinovo think they can just worm out of parental company guarantees? How can they be trusted after the P&R business? DCB was a great company with great people until they got involved with bilby. Shame. Good hard working people and shareholders going to lose out.

[aim2105] 16/5/2022 16:45

This is an absolute disgrace!

Serious questions need to be asked here!

I sincerely hope that Kinovo have the answers, I sold out, but feel sorry for any remaining holders, much better investments out there with honest BODS….

This just stinks of corruption

[tomboyb] 16/5/2022 16:39

StartCars is correct -

Jeeze!

[tomboyb] 16/5/2022 16:38

Kinovo PLC Update re DCB Kent Limited ("DCB")
16/05/2022 4:33pm
UK Regulatory (RNS & others)

Kinovo (LSE:KINO)
Intraday Stock Chart

Monday 16 May 2022

Click Here for more Kinovo Charts.
TIDMKINO

RNS Number : 6689L

Kinovo PLC

16 May 2022

16 May 2022

Kinovo plc

("Kinovo" or the "Company")

Update re DCB Kent Limited ("DCB")

Kinovo Plc (AIM: KINO), the specialist property services Group that delivers compliance and sustainability solutions, provides the following update on developments in the financial position of DCB, its former subsidiary, since the release by Kinovo, on 6 May 2022, of its trading update for the year ended 31 March 2022 (the "6 May Announcement").

Kinovo has today been informed that two partners of CFS Restructuring LLP have been appointed as joint administrators of DCB (the "Joint Administrators").

As referred to in the 6 May Announcement, since the completion of its disposal of DCB, Kinovo has provided working capital support to DCB in the amount of GBP3.7 million in aggregate, to facilitate the completion by DCB of active projects. Prior to the disposal, as also referred to in the 6 May Announcement, Kinovo provided certain parent company guarantees relating to construction projects in existence at the time of the disposal, which were expected to be released by the purchaser of DCB following completion of the disposal.

Kinovo is currently establishing the impact of an administration of DCB on the monies it has advanced DCB to support its working capital, which remain at GBP3.7 million, as well as on the parent company guarantees it has provided.

The deferred purchase price for the disposal of DCB was based on the successful completion of active projects, upon trade settlements relating to those projects, and on profits for financial years ending March 2023 and 2024, respectively. In consequence of an administration of DCB, Kinovo's directors expect that any deferred consideration it may receive would only likely now arise from trade settlements and retentions related to contracts; this would be linked directly to the administration process and completion of the relevant construction projects.

A further announcement will be made to shareholders as and when appropriate.

Sangita Shah, Chairman of Kinovo plc, commented:

"We are very disappointed to be informed of the appointment by DCB of the Joint Administrators. We are actively engaged with our legal advisors in establishing Kinovo's position in consequence of an administration of DCB, and we are also in direct discussions with the Joint Administrators."

Enquiries


Kinovo plc
Sangita Shah, Chairman [phone]
David Bullen, Chief Executive Officer (via Hudson Sandler)

Canaccord Genuity Limited (Nominated Adviser
and Sole Broker) [phone]
Andrew Potts
Bobbie Hilliam

Hudson Sandler (Financial PR) [phone]
Dan de Belder
Harry Griffiths

[darryn1] 16/5/2022 15:35

What evidence do you have that DCB have gone into liquidation? I note that this is your first ever post on ADVFN.

[startcars] 16/5/2022 14:27

Latest news is DCB have now gone into administration. Kinovo won't be far behind given the debts they are liable for

[victor2] 13/5/2022 16:53

a short million just traded at 17.8197 ?

[sooty snipes] 12/5/2022 15:41

As a matter of interest someone over on the LSE thread wrote this back on the 12th of January 2022 the day of sale of the DCB construction unit sale. He seems to know a damn sight more about the construction business than the morons over at Kinovo do
=============================
Zero chance I’d say of seeing the final £1 million (2 x £500k) given it’s dependant on the disposed Company achieving £3 million net profit for each year in 2023 and 2024. Also the other £4 million is dependent on the performance of existing contracts and the cash collection performance from these. Pretty vague on details but the £4 million will be an absolute best case scenario and this could be discounted by a large chunk. There seems to be a danger that the new owners have no incentive to keep costs down and maximise cash collection on the inherited existing contracts, given that any underperformance of these two metrics will merely reduce the amount paid to Kinovo. i.e it is Kinovo who will pay for any inefficient performance and poor cash collection that occurs under the new owners. Having worked in the construction industry for over 30 years I know that it is very common for deals to be done on current contracts whereby the sub contractor will accept a reduced final settlement payment on an existing contract in order to secure the next contract(s). It therefore offers a perverse incentive as it is Kinovo who will be paying for the reduction on the current contracts but the new owners gaining all the future benefit. This offers the new owners an incentive to do such deals.
============================================
And that was before anyone knew the clowns had agreed to provide a working capital facility to support DCB in completing active projects. These idiots should't be allowed to run a business again.

[meijiman] 12/5/2022 15:13

Hope the Chairman realises that it is their responsibility to get rid of an incompetent ceo. It is the ceo's job to get rid of an incompetent FD. So who is it going to be? Why not blame someone else eg the lawyers?! LOL.

[sooty snipes] 12/5/2022 14:42

Would be handy to know just how much it will cost Kinovo to get out of this mess of their own making. If another 2-3 million, would a fundraise not solve the problem? The core business is performing very well so I'd be happy to re-invest but we need to know who is responsible for this debacle. Bullen and co may as well have just dropped their trousers and said shaft me.

[deanowls] 12/5/2022 14:26

Nico, any thoughts or have you been briefed as a significant investor?

[sooty snipes] 12/5/2022 14:22

Companies House shows this company was incorporated on the 28th of January this year.

DCB ENVIRONMENTAL BUILDING SERVICES LIMITED


On the 3rd of February 2022 it had a name change to

DCB THE GEM OF GREEN ENVIRONMENTAL BUILDING SERVICES LIMITED


Looking under the 28th of January entitled Incorporation. The same names PE and MCG are listed in the documentation.

Could be purely coincidental?

[sooty snipes] 12/5/2022 11:36

Spot on!

It's such a shame as the core of the business is doing so well. I's like having a parasite inside of the company eating it from the inside out. I'm a little encouraged by some chunky buys in the last couple of days. Maybe they know something we don't. Either way it's imperative they stop the outflowing of cash going into the sold company.

[kinwah] 12/5/2022 11:28

Bradders, interesting question re the Nomad. The Nomad is there to ensure KINO meets its AIM obligations. Sadly it does not extend to reviewing contracts signed by the company or other matters of a commercial nature. All the Nomad can do is ensure that the market is notified quickly regarding price sensitive information. KINO do seem to have been rather slow notifying the market on the scale of this problem. It is clearly vital that KINO engages fully with the Nomad. If that relationship breaks down then the Nomad can give notice to terminate which can lead to the shares being suspended if there is no Nomad is in place. The catch-22 is that replacing a Nomad when a company is under financial stress is not easy. My hope would be an aggressive new legal team would take action to stop the sold company sucking cash out of the business and look at the previous legal advice given to KINO.

[sooty snipes] 12/5/2022 11:25

Kinwah

"That to me suggests that all new business is being funnelled through another company probably under the same 'ownership'. This results in the liabilities accumulating rapidly in the sold company"
=======================================================
I think you've just about nailed it there.

From what I have been told Canaccord were not financial advisors. The Company engaged with the vendors, alongside its legal advisors. So looks to me that it's down to the rank stupidity of the board. We may as well have had a chimpanzee negotiating. The sting was well sprung. In my opinion they thought they were getting 5 million for a worthless asset. Blinded by this they didn't do due diligence. Hence the mess they are in. If the person who has been mentioned earlier on this thread is behind all this we are in big, big trouble. Our only hope is to try to prove a malpractice has taken place or to do a deal capping the liabilities.
=======================================================

[kinwah] 12/5/2022 10:56

I don't know this situation very well but the worrying factor is 'the lack of new business receipts'. That to me suggests that all new business is being funnelled through another company probably under the same 'ownership'. This results in the liabilities accumulating rapidly in the sold company. Unless stopped it can only end badly. One hopes the KINO management can engage new lawyers to try and get a grip on the situation.

[bradders51] 12/5/2022 10:53

flying pig : What about The responsibilities of its NOMAD ?

[dope007] 12/5/2022 10:48

No bottom until liabilities known