26th Nov 2024 18:57
(Alliance News) - Kinovo PLC on Tuesday said profit grew in the first half of its current financial year due to reduced expenses, despite revenue falling after a "significant" contract deferral.
The London-based property services group that provides compliance and sustainability solutions said pretax profit for the six months that ended September 30 grew 7.4% to GBP2.8 million from GBP2.6 million the year before.
Revenue fell 2.3% to GBP29.6 million from GBP30.3 million last year, due to a "significant" deferral to its second half of a contract with the London borough of Hackney.
Cost of sales reduced by 6.6% to GBP20.5 million from GBP21.9 million, while underlying administrative expenses increased 6.9% to GBP6.0 million from GBP5.6 million.
Chief Executive Officer David Bullen said: "I am pleased to report a robust performance for Kinovo during the first half, underpinned by strong profitability growth and the continued execution of our strategy across the three key pillars of regulation, regeneration and renewables.
"Despite a modest overall decline in revenues, due to previously announced deferred contract agreements which have now been signed and are underway, we have continued to increase underlying revenues, deliver improved margins and grow our three-year visible revenue pipeline to GBP175.2 million, reflecting the strength of our business model and our ability to capitalise on market opportunities.
"With the DCB Kent Ltd legacy projects now essentially behind us, we are fully focused on advancing our core operations and strategic priorities. The second half has started positively, and we are seeing strong momentum across our service pillars. Supported by a clear growth strategy and a motivated team, I am confident that Kinovo is well-positioned to continue building on this progress and delivering long-term success."
Looking ahead, Kinovo said it expects its full-year results to be "moderately ahead" of its previous expectations, supported by "increasing demand driven by compliance requirements, decarbonisation initiatives, and strong pipeline visibility".
Shares in Kinovo closed 9.4% at 64.00 pence each in London on Tuesday.
By Emily Parsons, Alliance News reporter
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