Specialist property services group, Kinovo, has reached an agreement to terminate its contract for the ninth legacy project of its former construction subsidiary, DCB (Kent), for a cash consideration of £2.2m.

This consideration will be paid in monthly instalments over an 18-month period and is expected to be funded by cash from the core business and existing facilities.

Kinovo is expecting the total cost to complete all nine legacy DCB projects to be £12.9m, excluding anticipated final account recoveries, contract variations and claims of up to £2.6m, which will be reported in future periods once the transactions have been made.

With seven DCB projects having already been concluded, the eighth is expected to complete in July 2024, with minimal net cash remaining payable on these eight projects.

Kinovo suggested the agreement to terminate the ninth and final DCB legacy project removes the “risk from possible future cost overruns”.

In a statement to the London Stock Exchange, Kinovo said: “With this agreement and imminent completion of the eighth project, this will draw a line under the legacy projects of DCB, enabling the company to focus on the core business and its ambitious organic growth strategy.”

Kinovo has now been released from all liabilities under the parent company guarantee relating to this ninth DCB project, including all future obligations and any potential respective claims. The agreement also confirms termination of the performance bond, releasing Kinovo from any liability or potential claim under this bond.

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