Re Tax Benefit
Microgen PLC
3 December 2001
Tax benefit of £1.5 million
The Group's main trading subsidiary, Microgen UK Limited, has received
confirmation from the Inland Revenue of settlement of its Corporation Tax
liability for the period ended 31 December 1998. The settlement will result in a
prior years' Corporation Tax credit of approximately £1.5 million being
recognised in the Group profit and loss account for the period ending 31
December 2001 equating to earnings per share of approximately 2.9 pence. A cash
repayment of £1.4 million including interest has been received from the Inland
Revenue.
The principal issues that gave rise to the repayment are:
(i) the agreement with the Inland Revenue of March 1982 valuations of shares in
Microgen UK Limited's overseas subsidiaries, Capella AB and Eurocom Depora,
disposed of in October 1998 in the first phase of the strategic restructuring of
the Group; and,
(ii) a provision for obligations under surplus property leases made in 1998 that
is now an allowable deduction for tax purposes.
There are consequent amendments to Microgen UK Limited's Corporation Tax
computations for 1999 and 2000 relating to movements on the surplus property
provision and these amendments are incorporated into the prior years' tax credit
of £1.5 million stated above
Contact :
Mike Phillips, Group Finance Director 01753-847123
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