(Alliance News) - Kinovo PLC on Tuesday reported strong financial results as the company shifted focus to a new business strategy.

The London-based property services provider said that pretax profit increased 37% to GBP6.0 million in the financial year that ended March 31 from GBP4.4 million the year before.

Revenue rose 2.3% to GBP64.1 million from GBP62.7 million, while cost of sales contracted 2.0% to GBP45.3 million from GBP46.2 million.

Unchanged from the year previous year, the company declared no dividend. Payments have been suspended since Kinovo last paid a final dividend of 0.5 pence per share in 2021.

Chief Executive Officer David Bullen said: "Underpinned by regulatory and market drivers, our strategy to focus on the three pillars of Regulation, Regeneration and Renewables continues to bear fruit, with considerable growth in profitability that exceeded prior expectations, a number of considerable new contract wins and framework placings and growing visible revenue."

One of these contract wins with The Hyde Group Ltd will deliver GBP40 million over the next 8 years, while a two-year contract extension with Haringey Council has a historical value of approximately GBP3 million per annum.

Kinovo finished the year with three-year visible revenue up 11% to GBP162.6 million, 99% of which is recurring, from GBP146.4 million.

In addition, Bullen attributed this performance to an increased proportion of higher margin Electrical services during the period as well as improved operational efficiency and cost base management.

Looking ahead, management's primary focus is to deliver organic growth. However, Kinovo has suggested it will consider "bolt-on" acquisitions when opportunities arise and in time the company hopes to reinstate its dividend.

Following the end of the financial year, Kinovo is close to completing the disposal of its legacy DCB Kent Ltd construction business.

"Having agreed in principle the settlement of the final of the nine projects post period end, there is only one project in progress on site which will be completed in July 2024. Formal agreement on the final project and completion of the eighth project will, bring an end to this disappointing situation. This has had a massive impact on resources both operationally and financially, significantly hindering our valuation and growth opportunities," Bullen said.

The final and full settlement agreed in principle stands at GBP2.2 million payable over eighteen months.

Kinovo shares were up 1.3% to 66.85 pence each in London on Tuesday morning.

By Elijah Dale, Alliance News reporter

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