Novacyt Announces Financial Impact of DHSC Settlement

Novacyt S.A. has disclosed the financial effects of its recent settlement with the Department of Health and Social Care (DHSC) ahead of its Annual General Meeting. The agreement includes the company paying £5.0 million to DHSC. This update is required by French regulations due to the timing of the settlement and auditor's report.

Financial impacts to be reflected in the 2024 Interim Accounts show a net loss of approximately £5.0 million. The DHSC invoice from December 2020 for £20.0 million will be written off as a bad debt, reversing a product warranty provision of £19.8 million, and recording the £5.0 million settlement fee under exceptional items.

In terms of cash flow, Novacyt has made the £5.0 million payment to DHSC and has submitted a VAT reclaim request for around £12.2 million. If successful, the group's net cash position could increase by over £7.0 million.