Novacyt recovers £12.2m in VAT after settling DHSC dispute

22nd Aug 2024 12:29

(Sharecast News) - Molecular diagnostics company Novacyt announced the successful recovery of £12.2m in VAT from HM Revenue and Customs (HMRC) on Thursday.

The firm said it had already received the full amount, boosting its financial position.

It said the VAT reclaim was related to invoices issued to the UK Department of Health and Social Care (DHSC), which would no longer be paid following a recent dispute settlement.

As previously reported in the company's annual general meeting statement on 18 July, Novacyt said it had sought to reclaim the VAT as part of its financial strategy following the resolution of the dispute.

After settling the dispute, which included a £5m payment to the DHSC in early July, Novacyt's net cash position had improved by over £7m.

At 1446 BST, shares in Novacyt were up 24.45% at 112.5p.

Reporting by Josh White for Sharecast.com.