by Anthony O’Goryinoff
Kinovo plc said on Wednesday that it has agreed to sell its noncore construction division, DCB (Kent) Ltd., to MCG Global Ltd. for up to £5 million ($6.8 million).
The London-listed property services group that provides compliance and sustainability solutions said up to GBP1.9 million would be due upon completion of current projects, mostly due in 2022.
The company said up to GBP 2.1 million would be payable on trade settlement related to these existing contracts.
Kinovo said a further GBP500,000 would be payable on the division receiving pretax benefits of GBP3 million for the years ending March 2023 and 2024, respectively.
For the year ended March 2021, the division generated revenue of GBP20.8 million and a pretax profit of GBP240,000, the company said.
“This is a significant step forward for Kinovo, reinforcing the foundation of our core business and enhancing our strategic commitment to focus on regulation, regeneration and renewables. This commitment extends to the non-discretionary areas of compliance and regulatory work. We are focused on contracts that provide long-term, recurring revenue and strong cash generation,” Chief Executive David Bullen said.
Shares were up 3.50 pence, or 8%, at 47.50 pence at 0918 GMT.
Anthony O. Write to Goriainoff at [email protected]