Kinovo Share Discussion Threads

[nico115] 15/9/2022 07:52

Without a doubt PE dream

[nico115] 15/9/2022 07:51

Disagree with you MasurenNorthern were getting a huge premium to the market price at the time and obv had enough having invested at 100p.Miton like to buy high and sell low and have been selling many smallers due to redemptions .For me TIpacs paying 27p when offer was 18p is MUCH more telling .I remain a bull and certainly NOT selling a share at anywhere near this ridiculous market cap.It's a doubler for me .

[masurenguy] 15/9/2022 07:48

Hmmm.....the announcements are all positive but so was the January 12th announcement about the DCB disposal. At the same time you have to wonder why institutional investors Northern Trust have completely exited their 9.93% position and Premier Milton and Miton have both reduced their positions by 40% and 14% respectively.

[qs99] 15/9/2022 07:47

agreed nico115.

well over 50% of its EBITDA was generated in H2 last year, so more of the same could mean it is pushing nearer £5.5m FY IMO this year alone, and then the next year why could it not deliver £6.5m with super cash flow etc etc....

Regulated market of which it has a great and growing position, cheap on EV/EBITDA basis and possible costs to take out....pe dream no? DYOR

[nico115] 15/9/2022 07:37

Wow that's a fantastic trading update.On track for 5m plus ebitda this year Huge growth so a pe of 10 isn't unreasonable.Surely it's a no brainer for a bigger co to take us out and strip BOD costs?I think whether it's a bid or we stay independent we should get to 75pAbsolute steal at 38p

[qs99] 15/9/2022 07:33

That is a cracking update IMO.....

So on that basis, by my DYOR calcs, they could be doing materially North of £5m Adj EBITDA this fiscal.

With good strong momentum, the following year IMO will have at least £6m EBITDA pencilled in....

Market cap c.£22m

Far too cheap for a business answering a regulated industry's demands and IMO will leave it vulnerable to a bid....

DYOR

[jj3483598] 14/9/2022 20:29

I think I misunderstood the regulations. the 25/30% threshold is for non-UK issuers. They indeed need to file for 1% change. But they don't need to talk to management to make an offer.

[nico115] 14/9/2022 18:11

Why wouldn't they ?Isn't it every 1pct or more increase ?Director bought so doubt we are in take over talks

[jj3483598] 14/9/2022 17:47

Okay, so this is interesting. No filing has been made after Miton sold about 3.5% of shares outstanding. This likely means the buyer had no obligation to file. The only possible party that would not be obligated to file after buying 3.5% of shares is Tipacs2. They already owned 25.7% of the shares. The next threshold after owning over 25% of shares is 30%. Tipacs2 probably owns about 29.2% of shares outstanding today. Will we see a (mandatory) offer for the company soon?

[qs99] 13/9/2022 14:45

Indeed, lots of more positive signs IMO DYOR

[sos100] 13/9/2022 14:32

nice director purchase...

[nico115] 13/9/2022 09:13

Miton have been selling since the low teens They obviously want out .I think the buyers will make decent money still as we are worth 60p today looking at recent figures and growth trajectory.

[gerry pacemaker] 12/9/2022 12:25

Hmmmm. I'd be more interested in who purchased such a large amount. Let's see what unfolds.

[someuwin] 12/9/2022 08:51

Miton selling a good chunk.

[jj3483598] 07/9/2022 23:17

@sooty snipes: can you elaborate about your research about Tipacs 2? Thanks!

[qs99] 07/9/2022 14:37

if the directors et al are all so super confident of the underlying management, and tbf the underlying business has done really very well indeed, then why don't they buy it all out for say 60-70p, bargain IMO as I thnk this should be over a quid, and have done with it all and enjoy being private?

DYOR

[masurenguy] 07/9/2022 13:05

I think that post #702 above makes some very valid points about the DCB scenario !

I note that there has been no responses from Rooneys or 1JohnL to the two questions raised in my previous post #701, which I challenged them to address. Their reticence, following the timing of their ADVFN registrations and the sentiments that they expressed, just creates an impression that both posts appear to have been 'orchestrated' internally to provide unqualified support for the status quo.

The company has failed to address why their ongoing financial liabilities, that were an inherent part of the terms of the disposal of DCB, were not disclosed in the January 12 RNS announcement and why the first public disclosure of this liability did not take place until the Y/E Trading Update was released almost 4 months later on 6 May.

"Under the terms of the Disposal agreement with the purchasers, the Company agreed to provide a working capital facility to support DCB in completing active projects......As part of our obligation under the terms of the Disposal, the Company provided parent company guarantees which run through to practical completion on each of the construction projects that were in existence at the time of the Disposal.......There remains significant uncertainty around the amount of further support required to be provided to DCB under the parent company guarantees" RNS 6 May.

The CEO's only comment following the above revelation was simply: "Whilst we have incurred a loss on the disposal of DCB, it streamlines our operations and allows us to focus on our core activities of compliance and regulatory work.", This might be regarded as a somewhat enigmatic understatement given the commentary from the CFO in their final results last month which announced that ""The loss on disposal of DCB amounted to GBP12.6m".

There have been no further comments by the company explaining why they failed to disclose their financial liabilities as part of the disposal announcement on 12 January. It is also worth noting that the auditors found it necessary to provide a qualified opinion on the accounts statement, due to the DCB situation, issued on 19 August.

Where the DD issue on MCG is concerned, the only comment that has been made was in last months results announcement which stated "Whilst the Company, along with its legal advisers, believe it conducted the necessary due diligence regarding the disposal, we recorded a loss on the disposal of DCB of GBP12.6 million." So did this DD that they undertook reveal that MGC was a start-up company, with one director and no discernable assets, which they then considered to be on a sound enough basis to continue to provide with undisclosed ongoing working capital finance and PCG's, and which collapsed just 4 months later resulting in a current estimated loss of £12.6m to Kinovo ?

While the company has apparently made very good progress on the expansion of the remaining core business, there are still significant financial liabilities relating to DCB that have yet to be finally quantified plus some legal matters arising from the disposal deal that have still to be resolved. Furthermore, their failure to explain why they did not disclose the continuing financial liabilities inherent in the original disposal agreement, and their apparent DD approval on MGC to have been considered satisfactory at that time, must raise ongoing credibility concerns in relation to full disclosure and precision in their public announcements.

[jj3483598] 06/9/2022 17:07

Have we really gotten to a point where a publicly traded company gave permission to the subsidaries' directors to make some positive posts about the CEO on a random message board? All I see is red flags.

By the way...Rooney family and mr Lord...I have not seen you make a notification of buying KINO shares when shares were down 75% the last couple of months. How confident were you that the DCB debacle would be resolved? Actions speak louder than words.

To finish my post, because it needs to be mentioned: David Bullen/the board, the Rooney family, mr Lord and their teams have done an excellent job of running the operations of Kinovo and I hope they keep doing as well as they have been doing!

[ddt sprite] 06/9/2022 15:55

Im with the last few posts.

Lets forget that the BoD entered into the sale of DCB with terms that were by anyones standards inexplicable.

Lets forget that the most basic of searches would have shown that the buyers of DCB (MCG) were a newly formed company with no assets, value, trading history or experience in the industry and as such, there was never any chance that the PCGs would be transferred.

Lets forget that Kino gave MCG an open cheque book, of which they appear to have taken full advantage of.

Lets forget that the January announcement clearly misled investors and the market.

Lets forget that we are still unaware of the actual liabilities that Kino are in for as a result of the still unresolved PCGs.

Lets forget that no one at Kinovo has taken any responsibility for putting the company into the situation that it has been working through since May and that the share price today is no higher than it was before the sale announcement.

Lets make sure that the great results that have been reported recently help us forget the catastrophic incompetency that the board have shown.

In fact using this logic my football team did really well last season if you forget about all the games they lost and only focus on the wins over local rivals. 5th from bottom doesn't sound so bad?!

As I say, I support Bullen and his team Fully.

[nico115] 05/9/2022 11:14

Thanks for your messages .I have 4pct of Kinovo and am also fully supportive of David Bullen .What he has done with the core business (with his team) has been nothing short of outstanding and I hope he remains at Kinovo for many years to come .

[1johnl] 05/9/2022 10:35

I addition to the below comment and as Managing Director of Purdy Contracts Limited, the largest subsidiary within the Kinovo PLC group, I would like to convey that I have full confidence in the Kinovo Board of Directors and in particular David Bullen who has supported me and my entire team from our on-site engineers to our back-office staff and management team. Kinovo’s direction is very clear and very positive due to David’s exceptional hard work and encouragement. All subsidiary companies are looking forward to continuing with our successes, going from strength to strength, focusing on organic growth within current contracts and new business that sits within our three pillars, Regulation, Regeneration and Renewables.

[rooneys] 05/9/2022 10:25

For transparency we should state from the outset that we are the three Directors of Spokemead Maintenance Ltd, and private shareholders in Kinovo. We would describe ourselves as experienced in the contracting world, and far from naive. We have not commented before now, but with the AGM looming, we felt it appropriate that we did so.

We’ve been reading these threads for months now and the many critical comments regarding the Kinovo Board and in particular the CEO David Bullen.

We strongly disagree with the criticism. David Bullen inherited problems that were not of his making, which he has worked tirelessly, together with Clive Lovett to unravel and resolve.

This has been a difficult process, but David has remained steadfast and committed to putting the group back on a firm footing with its integrity intact, positioning the remainder of the group to thrive.

From our perspective, he has shown outstanding leadership through these turbulent and complex issues. He is entrepreneurial, extremely supportive and knows how to get the best out of his team. We have stayed with Kinovo, as Directors of Spokemead for 6 years since selling, 3 years longer than we were required to or intended to, solely because of David’s influence. However, if David was no longer CEO, all three of us would seriously re-evaluate whether we would wish to continue, such is our strength of feeling regarding his abilities and value to the Group going forward.

We do not intend to comment further or answer questions, we just wanted to make our position clear, and our feelings known.

[nico115] 03/9/2022 12:04

Yes a bidder can strip out a lot of Head office costs but I wouldn't accept less than double this share price and i hope other larger holders like TIpacs would want the same .Looking at the recent figs ,we have huge momentum in the core bus so whether we remain independent or get taken over there is still huge value here at 40p.I'm not adding as this is a large percentage of my portfolio (along with Spectra Systems ) but if I held no shares I would certainly be buying here.