Kinovo PLC (AIM:KINO, OTC:BILBF) said its three-year visible revenues are increasing as it wins more higher-value contracts over longer average durations.
The sustainability-focused property services group reported revenue up 18% to £62.7mln for the year to 3 March 2023, with regulation contributing 56%, regeneration 28% and renewables 16%.
Underlying profits (EBITDA) rose 29% to £5.5mln and profit before tax by 58% to £4.4mln.
It said the business benefited from legislative drivers and its decision to streamline its focus on the three areas of regulation, regeneration and renewables.
Three-year visible revenues increased to over £146mln, of which 98% of the three-year visible revenues are anticipated to be recurring, with £64mln of that total anticipated to be recognised in the new financial year.
The AIM-listed company highlighted its greater number of contract wins with longer average lengths, including a five-year contract with the Hyde Group housing association for electrical testing and associated works and a two-year contract with the London Borough of Waltham Forest for electrical, commercial mechanical and associated builders works.
It also flagged placings on contract frameworks, including some "top place rankings", including three awards under the National Housing Maintenance Framework, first position on the Hyde Group framework agreement and the Greener Future Partnership's decarbonisation framework.
Chief executive David Bullen said it was a “strong set of results in what has been a critical year of transition” following the strategic repositioning that accompanied the name change from Bilby in 2021.
He also said “significant progress” had been made over a contract dispute relating to former construction division, DCB Kent, with seven of the nine projects to be completed this year and talks regarding the final two.
An estimated £4.3mln of net costs are estimated to complete the projects, with a £5.3mln reported loss for the past year and £1mln of anticipated recoveries recognised in future periods when they have been realised.
The shares rose 3.9% to 43.64p in the first hour of trading on Tuesday.