REG - Novacyt S.A. - AGM Statement on Impact of DHSC Settlement

Novacyt SAAnnouncement

18/07/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240718:nRSR8436Wa&default-theme=true

RNS Number : 8436W  Novacyt S.A.  18 July 2024

 

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
(https://novacyt.com/settlement-of-the-dispute-with-the-dhsc/) ), 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 (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)       +33 (1) 42 22 10 10

                                             r.durgetto@allegrafinance.com (mailto:r.durgetto@allegrafinance.com) /
 Rémi Durgetto / Yannick Petit                 y.petit@allegrafinance.com (mailto:y.petit@allegrafinance.com)

 Walbrook PR (Financial PR & IR)                                         +44 (0)20 7933 8780 or novacyt@walbrookpr.com (mailto:novacyt@walbrookpr.com)

 Stephanie Cuthbert / Paul McManus /                                     +44 (0)7796 794 663 / +44 (0)7980 541 893

 Phillip Marriage / Alice Woodings                                        +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

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  AGMFFFFIDTIDLIS