Kinovo reports strong first-half momentum
By Josh White
Date: Monday 28 Nov 2022
(Sharecast News) - Property service provider Kinovo reported a 25% rise in revenue in its interim results on Monday, to £29.8m.
The AIM-traded company said its gross margin percentage increased by 1.2 percentage points for the six months ended 30 September, to 25.9%.
Its adjusted EBITDA was ahead 31% to £2.4m, while operating profit grew by 56% year-on-year to £1.9m.
Kinovo said its cash conversion came in at 130% for the period, while its net debt totalled £0.1m at the end of the half-year, narrowing from £1.7m a year earlier.
Basic earnings per share increased 59% to 2.16p, from 1.36p in the first half of the 2021 fiscal period.
Looking ahead, Kinovo said the implementation of regulatory-driven legislation changes during the period, alongside the government's commitment to decarbonisation, aligned "favourably" with its strategic pillars, positioning it to support clients in delivering such mandates.
The board said it was "confident" of achieving full-year results in line with expectations.
"Our strategy, business model and investment case remain stronger than ever with sustainability at the heart of what we do, underpinned by the predominantly non-discretionary nature of our three key pillars - regulation, regeneration and renewables," said chief executive officer David Bullen.
"While the DCB disposal has been challenging, we are pleased to be making progress on the outstanding projects.
"We have commenced work on two of the sites, a further three will begin in the first quarter of 2023, and we are in a constructive dialogue with the clients of all the other projects."
Bullen said the company continued to believe that the £4.3m total costs to complete was an "appropriate" estimate.
"The underlying business continues to excel, with all three pillars delivering substantial growth and Kinovo is well-positioned to grow further.
"We believe a number of significant legislative changes that were implemented during the period alongside the government's decarbonisation commitments will only increase the frequency and scope of our works."
At 1135 GMT, shares in Kinovo were up 1.39% at 35.49p.
Reporting by Josh White for Sharecast.com.
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