The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/878121/coronavirus-covid-19-testing-strategy.pdf
Another link from 2020 with a forward from that bloke off the "I'm a Celeb"
"We also have to ensure that any new test products are up to the job. Our experts are clear that having no test is better than an unreliable test, and several of the tests we’ve already checked have been too inaccurate to be used in this crisis. I will not send NHS staff back onto the wards with the false comfort of a false negative result."
So Novacyts products were accurate enough to win a concract (or 2) . But are now in breach of contract as the products didn't achieve 100% accuracy as stated. No diagnostic co would state this level of accuracy.
From 2020
https://www.gov.uk/government/news/industry-responds-to-call-to-arms-to-build-british-diagnostics-industry-at-scale
"The fifth pillar is the most ambitious. We want to build, in a short space of time, the large-scale diagnostics industry that this country currently lacks. Just as our top-end manufacturers have joined the national effort to build ventilators, so our life sciences companies will do the same for testing. UK pharmaceutical giants, which don’t have a tradition of diagnostics, are now working with our world-leading but smaller diagnostics companies to build a large-scale British diagnostics industry at scale. This new national effort for testing will ensure we can get tests for everyone who needs them."
The Government changed it's mind and went down the cheaper, faster, less accurate LFT route.
In this situation the Lawyers are the Dealers and the House always wins
Share holders appear to be solving the dispute with amazing fact finding. However, we are losing 5% of our investment every week and the lawyers are gainingg 5% in their fees everyweek. Who's winning?
Also the Newton report that apparently came out in June about testing providers may be of interest but i cant find any info about it
Yes agree ,,great find Ex,,havibg just skimed through a lot of the report it does come across that ' they ' wanted to pull out of certain contracts and shall we say looking for excuses,,Randox do not cover themselves in glory in this report imo and neither do 'certain 'ministers ,,it seems D&D wasnt as it should have been although they were unprecedented times i suppose,,lets hope we have good lawyers who are challenging them at every level,,having read what i have read i would be very surprised if it ever went to court and a settlement figure is not been talked about or 'maye ' has been talked about all imo
Great find Ex and thanks for sharing. The company lawyers need to get their hands on this. This document will stand up in court all day as it highlights the governements intention for testing methods and the fact they wanted to pull out the novacyt contract but needed an excuse. Didnt meet the standards my a***. How they are going through with this stil is beyond me.
Exmex I'm only on page 12 my jaw has fallen open reading.
Shareholders remember our company said something along the lines of we believe the govt. is baseing!! it's conclusion on incomplete data.
Well if you read this they e not kept notes for all sorts and the "chair"Dame Meg Hillier states verbatim read this
Chair: Let us be clear: we know that there was an urgent need. We get that. We have said that repeatedly since we started looking into all these issues in May and June of 2020. We were right there, early doors. But as I said at the start, the civil service prides itself on being the goldstandard administration. I have been a Minister in the Department, so I know that if you cough it is recorded and kept in a file forever— everything is recorded. But for some reason, even though it was a busy time, but a time when it was more important than ever, with huge sums of money going out without a normal procurement process, the record keeping was not just poor but woeful. You could not find records; there were no records to provide the auditors with, so they cannot make a judgment.
And these shiny shoe bastards are holding our company to ransom. Furious.
Well worth reading question two of the transcript from a meeting of the public accounts committee dated 18/05/22. In this they discuss the Oxford nanopore contract dispute with the DHSC. Tests from this contract awarded two months before Novacyts were planned for use in similar settings but were never rolled out at scale like those from Novacyt.The statement at the end said this didn't happen because newer tests were coming on the market .The final sentence summed up the direction testing had now taken- We are now very used to using lateral flow tests , which have taken precedence.
https://committees.parliament.uk/event/13552/formal-meeting-oral-evidence-session/
Just click on the transcript
Read the Corporate Governance page on the Investors section of the website. It includes:
The Directors recognise the value and importance of high standards of corporate governance and have adopted the QCA Corporate Governance Code (the “QCA Code”). At the present time, the Board believes the Group is fully compliant with the QCA Code.
James Wakefield, as non-executive director and Chairman, has assumed responsibility for ensuring that the Group has appropriate corporate governance standards in place and that these requirements are followed and applied within the Group as a whole.
There have been no changes to governance related matters that have occurred during the year.
The sections below set out the ways in which the Group applies the ten principles of the QCA Code in support of the Group’s medium to long-term success.
Last updated 19.05.2022
DELIVER GROWTH
1. Establish a strategy and business model which promotes long-term value for shareholders
The Board is responsible to Shareholders for setting the Group’s strategy by:
maintaining the policy and decision making process around which the strategy is implemented; ensuring that necessary financial and human resources are in place to meet strategic aims; monitoring performance against key financial and non-financial indicators;
providing leadership whilst maintaining the controls for managing risk; overseeing the system of risk management; and setting values and standards in corporate governance matters.
The Board has established a strategy and business model which seek to promote long-term value for Shareholders and the business is focused on three strategic pillars of growth:
Organic Growth
Innovative R&D
Acquisition
2. Seek to understand and meet shareholder needs and expectations
The Company has a strong commitment to market communication, with the Directors seeking to be accountable against the stated strategic objectives of the Group. The Company maintains regular contact with Shareholders through publications such as the Annual Report and Accounts, operational updates, regular press announcements made via a regulatory information service and the Company’s website.
The Company is responsive to Shareholder telephone and email enquiries throughout the year and the Board regards the AGM as a particularly important opportunity for Shareholders and members of the Board to meet and exchange views.
The Company receives occasional feedback direct from investors, which is carefully considered by the Board, with appropriate action being taken where the Board believes it in the interests of Shareholders to do so. None of the feedback received from investors has involved non-compliance with the QCA Code.
WBAFC I think you are hopeful of a reply. I haven't had one to my correspondence although they have acted on it by updating the website.
PI100 did you write to James Wakefield / Mandy your great concerns and why you are so losing hope with this company. If you haven't, I suggest you spend your value time in writing to them instead of in here. Let us know your reply.
We’ve got nothing of note to sell and no customers of note. We’re now seeing that it was a total fad, a cycle. **** company, massive covid spike, **** company again.
Our utterly pathetic strategy is “there’ll be a pandemic again at some point”
Can someone explain what this man's actual job is , what does he bring to the company and how much power does he have ?
I feel he is the one pulling the strings at Novacyt and dictating the direction the company is heading in its strategy.
..but there appears little discussion about Sales on this forum nowadays, probably because there aren't any :) The last info' from Nova was pretty dire if I recall and my gut feel is that this may have deteriorated since last report. Contracts (remember those?) appear a thing of the past and the Company's mighty media strategy has been reduced to a few uninspiring Tweets. If ever a company was in need of an inspiring CEO it's NCYT! Let's hope someone is in position by Jan 2023 and that we do not waste yet another year. Next year cannot be any worse than this - or can it!
I think it would be rather complicated. I have a basic understanding of tax but certainly not the knowledge to comment about this situation. There is past history with IT-IS but as you say dependant on how it is structured.
I was reading a KPMG article dated April 2021 , so a little out of date .From what I've read there are tax implications, but not clear to me , as not my area of expertise and vary dependent on how a deal is structured .
An acquisition of a company is not a P&L item therefore what sort of tax are you referring to? It’ll have no impact on CT, not that that is relevant anyway as we are now loss making.
Pre question for a loss making company whereby tax is probably the last of their concern.
When :) if, Ncyt make an acquisition , how does that alter the tax position going forwards , if indeed it does at all. Can the purchase price be offset to any degree for example when :) if? they win their court case. Anyone knowledgeable on the board about the implications of an acquisition and tax liabilities please ?
PI100 , the doom gloom merchant is back from the graveyard.
thanks for posting Ted, a positive read for a change. Digby, abdx are still on the ropes and yes NCYT has the resources to see it out, however, I question their enthusiasm to do so. If NCYT made statements like this at least occasionally I would be a happier SH.
Agree Sir Digby, just a shame that so much money being wasted on legal services. Taxpayers included.
The difference between NCYT and abdx is NCYT theoretically have no shortage of (within limits) time and money to thrash out this dispute with the DHSC, the DHSCs money to be precise. That wouldn't suit most shareholders who'd prefer this to be done and dusted, me included but it's reality. Financially abdx were on the ropes.
Good to see a MSM article at least attempting to take a critical look at the government's behavior towards UK diagnostics.