By Kinovo, the property-services company, has successfully completed the renewal of its line of credit, effectively resolving the material uncertainty surrounding its going concern status.
The company has announced that its banking facilities with partner HSBC UK Bank have been renewed until the end of May 2024. These facilities include a generous £2.5 million ($3.2 million) overdraft line-of-credit with an interest rate set at 2.85 percentage points above the Bank of England’s base rate. Additionally, Kinovo has also secured a purchasing card facility of £6.0 million, which carries no interest charge.
In its previous annual accounts until March 31, Kinovo had alarmed stakeholders by acknowledging the lingering uncertainty that could potentially jeopardize its ability to continue as a going concern. This apprehension was rooted in the fact that the renewal approvals for these facilities had not been finalized at the time of publication on July 11.
However, Kinovo received written confirmation from HSBC expressing their continued support for the company and their intention to seek approval for the renewal of these facilities.
This successful renewal represents a significant milestone for Kinovo as it solidifies the company’s financial stability and ensures its uninterrupted operations. With the extension of its credit line, Kinovo can confidently pursue its strategic goals and deliver exceptional property services to its clients.
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