LONDON (ShareCast) - (Sharecast News) - Compliance and sustainability-focussed property service provider Kinovo described a robust financial performance for the year just ended on Wednesday, as well as significant progress in its strategic growth objectives.
The AIM-traded firm said that despite challenges such as inflationary pressures and material and labour shortages, it expected to report a financial performance slightly above expectations for the year ended 31 March, pending audit.

Revenues for continuing operations increased 18% to £62.7m, while adjusted EBITDA rose 29% to £5.5m.

In March, Kinovo accelerated the repayment of its outstanding term loan of £0.77m, surpassing the final payment dates scheduled for May and August.

As at year-end on 31 March, the company had a cash balance of £1.3m, and achieved a net cash position of £1.1m, making for a solid turnaround from its net debt position of £0.34m at the same time last year.

The board said the firm's organic growth strategy, driven by increased underlying volumes, new workstreams, price renegotiations, and successful contract wins, was a key factor in its progress.

It said the regulation pillar, which was benefitting from increasing legislative tailwinds including the Building Safety Act, Fire Safety Act, and changes to electrical wiring legislation, had contributed to demand for compliance-related work.

The regeneration pillar also saw growth in additional remedial and planned works provided by Kinovo and its subsidiaries.

Sustainability remained a top priority, meanwhile, leading the renewables pillar to strengthen its qualifying criteria for Trustmark PAS2030 installer accreditations.

The company said it had adopted a "fabric first" approach to prioritise energy efficiency, considering the market's ageing social housing stock.

Kinovo said its success in securing prominent positions within the National Housing Maintenance Forum Framework, and the recent announcement of the Social Housing Decarbonisation Fund for 2023 to 2025 by the government totaling £778m, would provide further opportunities for growth.

The company and its subsidiaries had been awarded a total of £143m in direct client contracts, underpinning its potential for the coming year.

Following the sale of its non-core construction division DCB Kent, Kinovo said it was contracted on seven of the nine outstanding projects, with positive ongoing discussions for the remaining two.

Additionally, the board said the resolution of two out of three performance bonds for those projects, and the alignment of total project costs with expectations, indicated a favourable outlook.

"We are delighted to report another strong year for Kinovo as the business continues to deliver good progress against its strategic goals," said chief executive officer David Bullen.

"Despite the challenging economic backdrop, we have achieved significant growth this year, with revenue and adjusted EBITDA marginally above expectations.

"Momentum continues in the new financial year and with further opportunities to capitalise on our three key pillars of 'regulation, regeneration and renewables', we are confident of delivering another strong performance, driving further growth."

At 1526 BST, shares in Kinovo were up 8.91% at 50.1p.

Reporting by Josh White for Sharecast.com.

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