LONDON, UK: Kinovo Plc has entered into an agreement to sell the company’s non-core construction division, DCB (Kent) Limited, for a total deferred consideration of up to £5.0 million.
The construction division has been acquired by MCG Global Limited on the following terms, consisting of four constituent elements:
· Firstly, up to £1.9 million will be payable on the successful completion of current projects, most of which are due in the calendar year 2022;
· Secondly, up to £2.1 million will be payable on trade settlements relating to these current contracts; and
· The third and fourth elements, upon which £0.5 million will be payable for each element, relate to the achievement of a £3.0 million profit before tax target, for each of the years ending March 2023 and March 2024 respectively.
For the year ending March 2021, DCB generated revenues of £20.82 million and delivered an operating profit of £0.26 million with profit before tax of £0.24 million.
David Bullen, Chief Executive Officer of Kinovo plc, commented: “I am pleased to have concluded the disposal of DCB. This marks an important step for Kinovo, strengthening the foundation of our core business and enhancing our strategic commitment to focus on Regulation, Regeneration and Renewables. This commitment centres on the non-discretionary areas of compliance and regulatory work that offer long-term contracts, recurring revenues and strong cash generation.”
Kinovo plc is a leading UK provider of specialist property services centred on safety and regulatory compliance, home and community regeneration and sustainable living through the installation of efficient and greener energy alternatives.