Covid tests manufacturer in York close to settling £8.9m dispute with the department of health
The York-based firm, which listed on the stock exchange in December 2020, reported an operating loss of £6.7m for the year ended June 30, 2021, down from a profit of £3.3m the previous year. Its revenue grew 123 per cent from £5.2m to £11.6m.
Abingdon's successful admission to AIM raised £20m to further build operational capacity. It has also invested £8.9m in expanding manufacturing capabilities in York and Doncaster.
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Hide AdThe business is currently in a dispute with the Department for Health and Social Care (DHSC) over Covid-19 tests and services it has delivered. Abingdon is owed £8.9m by DHSC for a combination of tests delivered, £5.2m, components bought on behalf of DHSC, £3.3m, plus a further commitment of £400,000 for goods not yet delivered.
They have reached a non-binding agreement in principle which would, if concluded, lead to the outstanding money being substantially collected and resolve all outstanding disputes with DHSC, Abingdon said.
Chris Yates, CEO of Abingdon Health, said: "It has been a significant and challenging year for Abingdon, against the backdrop of a constantly evolving situation with regards to the Covid-19 pandemic.
"Following our successful admission to AIM and raise of £20m, we have invested heavily in expanding our manufacturing facilities in order to meet the growing demand for lateral flow tests, with our current manufacturing capacity now totalling 150 million tests in card format and 85 million foiled device format per year.
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Hide Ad"Whilst the Covid-19 market environment remains uncertain, the group is well placed to support our global customers, having expanded the range of Covid-19 rapid tests under manufacture.
"We now have a range of Covid-19 antigen and antibody lateral flow tests with manufacturing agreements or in the late stages of technical transfer, with our capabilities meaning we are also able to support any changes in product specification in the event of new variants.
"We are optimistic about the opportunities that lateral flow tests can play across multiple disease areas, as well as within the Covid-19 pandemic, and we also look forward to the conclusion of the DHSC Dispute Resolution Process, where constructive talks have taken place in recent weeks. I would like to thank all of our employees for their hard work during the past year."
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