24th Jan 2020 12:37
(Alliance News) - Mi-Pay Group PLC on Friday said it is expecting a delayed research and development tax credit claim to be approved after new correspondence from UK tax collector HMRC, though not before its operating unit disposal.
Shares in Mi-Pay were down 11% at 1.02 pence in London in midday trading.
The claim was made by Mi-Pay's wholly owned operating subsidiary, Mi-Pay Ltd. In November 2019, mobile payment and payment fraud management solutions firm Mi-Pay said Mi-Pay Ltd had yet to receive the tax credit as HMRC had requested further information. The credit of around GBP300,000 relates to a 2018 claim.
Following this, on Thursday this week, Mi-Pay received further HMRC correspondence which stated that that no more information was needed for the claim and no amendment to the claim was being proposed by HMRC.
Although this does not constitute a formal claim approval from HMRC, Mi-Pay is expecting a formal closure notice "in due course". Deducting claim costs, Mi-Pay Ltd is expected to receive around GBP260,000 from the claim.
It is unlikely that this money will arrive before Mi-Pay's general meeting on Monday next week to approve the disposal of Mi-Pay Ltd to Alphacomm BV for GBP792,000 and cancellation of Mi-Pay's shares from AIM trading.
The company noted that any amounts under the claim are payable to Mi-Pay Ltd and not Mi-Pay Group and the credit doesn't alter the amount to be paid as consideration for Mi-Pay Ltd. Further, the GBP260,000 is not considered to alter Mi-Pay Ltd's working capital position in any material way.
"Notwithstanding this further correspondence from HMRC, it remains the opinion of Seamus Keating and Ed Lascelles, being the directors that are independent for the purposes of the disposal, that it is in the best interest of shareholders to proceed with the disposal on the terms contemplated in the circular and it remains the opinion of the board that it is in the best interest of shareholders to proceed with the cancellation," said Mi-Pay.
Mi-Pay's board plans to vote in favour of both the disposal and cancellation at the meeting, their shareholdings equating to around 9.6% of Mi-Pay's issued share capital.
By Anna Farley; [email protected]
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