Kinovo (KINO ), a provider of specialist property services centered on safety and regulatory compliance, issued a trading update for the year ended 31 March 2023 (FY23).
The company said it expected FY23 financial performance to be "marginally above expectations". Revenues for continuing operations increased by 18% to £62.7m from £53.3m the year before, while EBITDA (adjusted to include lease payments) rose by 29% to £5.5m.
It said progress during the period was driven by an increase in underlying volumes and new workstreams, price renegotiations, and winning new and extending existing contracts.
In March, Kinovo accelerated repayment of its outstanding term loan of £766k, well in advance of the two quarterly payment dates of May 2023 and August 2023. As of 31 March 2023, the group had a cash balance of £1.3m and a net cash position of £1.1m, compared to a net debt position of £339k a year ago.
David Bullen, CEO, commented: "We are delighted to report another strong year for Kinovo as the business continues to deliver good progress against its strategic goals. 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."
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Kinovo shares jumped 12% as the company saw its FY23 financial performance marginally above consensus. The shares are now up 58% year-to-date and a whopping 282% in the past 12 months as the property services provider continues to benefit from its strategic repositioning under 3 key pillars - regulation, regeneration and renewables.
Within the "regulation" and "regeneration" categories, Kinovo benefited from ever-increasing legislative tailwinds, including the Building Safety Act, Fire Safety Act, and changes to the Electrical Wiring Legislation, all of which raised the bar for compliance and materially increased demand for related work, including remedial projects.
Furthermore, at the end of March 2023, the Government announced the latest awards for the Social Housing Decarbonisation Fund for 2023-2025 totalling £778m, which will be match-funded by recipients. This includes a total of £143m awarded to direct clients of Kinovo and its subsidiaries, offering further potential for the year ahead.
Kinovo entered FY24 with strong momentum, having significantly expanded and diversified its client base through new contract wins in FY23, with over 20% of its client base being added in the last 2 years.
Having restructured its business to benefit from ongoing regulatory and economic pressures to increase energy efficiency in premises, and successfully navigated challenges of inflationary pressures, material shortages, and labour shortages over the past year, Kinovo is set for continued growth in FY24.
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