Renewal of Debt Facilities

RNS Number : 7881B

Kinovo PLC

05 October 2022

 

5 October 2022

Kinovo plc

("Kinovo" or the "Company")

Renewal of Debt Facilities

Kinovo Plc (AIM: KINO), the specialist property services group that delivers compliance and sustainability solutions, is pleased to confirm that it has completed the refinancing of its £1.5 million term loan ("Term Loan") with its partner, HSBC UK Bank plc, together with the annual renewal of the current £2.5 million overdraft facility ("Overdraft").

As at 30 September 2022, Kinovo's net debt position had reduced to £0.1 million (H1 2022: £1.7 million) with a cash balance of £1.7 million (H1 2022: £2.2 million).

The Term Loan is a 12-month facility and there will be £0.38 million quarterly repayments starting in November 2022. The interest cost on the Term Loan is 4.00% above the compounded Sterling Overnight Index Average ("SONIA"). The total expenses permitted to be incurred on DCB (Kent) Limited are £4.6 million.

The Overdraft is repayable on demand and subject to an annual review. The cost of the Overdraft is held at an interest rate of 3.00% above the Bank of England base rate.

The covenants on the Term Loan will be tested monthly and quarterly and they are (i) achievement of minimum levels of EBITDA; (ii) minimum liquidity; and (iii) interest cover.

David Bullen, Chief Executive Officer of Kinovo plc, commented:

"We are pleased to have agreed new debt facilities with our partner HSBC Bank UK, strengthening Kinovo's financial stability. As highlighted in our recent trading update, despite the challenging macro-economic conditions, the momentum of our strong operational and financial performance has been maintained throughout the first half of the year."

Enquiries

Kinovo plc
Sangita Shah, Chairman David Bullen, Chief Executive Officer	[phone] (via Hudson Sandler)
Canaccord Genuity Limited  (Nominated Adviser and Sole Broker)	[phone]
Adam James Andrew Potts Harry Rees
Hudson Sandler  (Financial PR)	[phone]
Dan de Belder Harry Griffiths

This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement, this information is now considered to be in the public domain.

 

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