Novacyt S.A.
("Novacyt", the "Company" or the
"Group")
AGM Statement on Impact of DHSC
Settlement
Potential for up to c. £7m net cash increase
following VAT reclaim
Paris, France, Eastleigh and
Manchester, UK - 18 July 2024 - Novacyt (EURONEXT GROWTH: ALNOV;
AIM: NCYT), an international specialist in clinical diagnostics,
provides the following update ahead of its Annual General Meeting
("AGM"), which will be held at 1pm BST/2pm CEST today.
As
announced on 11 June 2024 (here),
the Group reached a settlement with the Department of Health and
Social Care ("DHSC") on terms that the Company pays £5.0m to the
DHSC. Under French regulations, Article A. 821-85 of the Commercial
Code, as this settlement took place before the Company's General
Assembly (AGM) but after the issue of the auditor's report on the
Group consolidated accounts for the year ended 31 December 2023,
the Group is required to update shareholders at the AGM on the
financial impact of the settlement. Consequently, the following
update will be provided to shareholders on the accounting
implications of the DHSC settlement that will be reflected in the
2024 Group interim accounts for the six-months ended 30 June 2024
("2024 Interim Accounts").
From an
income statement perspective, the following transactions will flow
through the 2024 Interim Accounts resulting in a net loss of circa
£5.0m:
i. The December 2020
outstanding DHSC invoice for circa £20.0m (excluding £4.0m VAT)
will be written off as a bad debt as it will not be
paid;
ii. The product
warranty provision for £19.8m will be reversed as it is no longer
required;
iii. The settlement fee of
£5.0m (gross) will be recorded to exceptional items.
From a
cash flow perspective:
i.
The Group has paid £5.0m inclusive of all taxes, to
the DHSC (paid post-period-end in July 2024);
ii.
The Group has submitted a request to reclaim
circa £12.2m VAT paid to HMRC relating to DHSC invoices that will
now not be paid. The Company believes it is entitled to have
all VAT refunded, however there is no guarantee that the claim will
be successful and the timing of the refund is currently
unknown.
Assuming all VAT is repaid, the Group's net
cash position following the settlement will increase by over
£7.0m.
This
announcement contains inside information for the purposes of
Article 7 of Regulation (EU) 596/2014.
Contacts
|
Novacyt SA
|
https://novacyt.com/investors
|
|
Lyn Rees, Chief Executive
Officer
|
Via Walbrook
PR
|
|
Steve Gibson, Chief Financial
Officer
|
|
|
SP
Angel Corporate Finance LLP (Nominated Adviser and
Broker)
|
+44 (0)20
3470 0470
|
|
Matthew Johnson / Charlie Bouverat
(Corporate Finance)
Vadim Alexandre / Rob Rees
(Corporate Broking)
|
|
|
|
|
|
Deutsche Numis (Joint
Broker)
|
+44 (0)20
7260 1000
|
|
Freddie Barnfield / Duncan Monteith
/ Michael Palser
|
|
|
|
|
|
Allegra Finance (French Listing Sponsor)
Rémi Durgetto / Yannick
Petit
|
+33 (1) 42 22 10 10
r.durgetto@allegrafinance.com
/ y.petit@allegrafinance.com
|
|
|
|
|
Walbrook PR (Financial PR & IR)
Stephanie Cuthbert / Paul McManus
/
Phillip Marriage / Alice
Woodings
|
+44 (0)20
7933 8780 or novacyt@walbrookpr.com
+44
(0)7796 794 663 / +44 (0)7980 541 893
+44
(0)7867 984 082 / +44 (0)7407 804 654
|
|
|
|
|
| |
About Novacyt Group (www.novacyt.com)
Novacyt is an international
molecular diagnostics company providing a broad portfolio of
integrated technologies and services, primarily focused on the
delivery of genomic medicine. The
Company develops, manufactures, and
commercialises a range of molecular assays
and instrumentation to deliver workflows and services that enable
seamless end-to-end solutions from sample to result across multiple
sectors including human health, animal health and environmental.
The Company is divided into three
business segments:
|
Clinical
|
Broad portfolio of human clinical
in vitro diagnostic
products, workflows and services focused on three therapeutic
areas:
·
Reproductive Health: NIPT, Cystic Fibrosis and
other rapid aneuploidy tests
·
Precision Medicine: DPYD genotyping
assay
·
Infectious Diseases: Winterplex, multiplex winter
respiratory PCR panel
|
|
Instrumentation
|
Portfolio of next generation size
selection DNA sample preparation platforms and rapid
PCR machines, including:
·
Ranger® Technology: automated DNA sample
preparation and target enrichment technology
·
MyGo: real-time quantitative PCR (qPCR)
instruments
|
|
Research Use Only
|
Range of services for the life
sciences industry:
·
Design, manufacture, and supply of
high-performance qPCR assays and workflows for use in human health,
agriculture, veterinary and environmental, to support global health
organisations and the research industry
·
Pharmaceutical research services: whole genome
sequencing (WGS) / whole exome sequencing (WES)
|
Novacyt is headquartered in
Vélizy-Villacoublay in France with offices in the UK (in Stokesley,
Eastleigh and Manchester), Taipei, Singapore, the US and Canada and
has a commercial presence in over 65 countries. The Company is
listed on the London Stock Exchange's AIM market ("NCYT") and on
the Paris Stock Exchange Euronext Growth ("ALNOV").
For more information, please refer
to the website: www.novacyt.com