26th Jan 2006 09:52
MFI Furniture Group PLC26 January 2006 26 January 2006 MFI Furniture Group Plc Structural Guarantee Settlement with HM Revenue & Customs MFI is pleased to announce that it has this morning reached a settlement with HMRevenue & Customs over its VAT dispute on its insurance-backed structuralguarantees. As at the last published balance sheet date (June 2005), the Grouphad paid all of the relevant VAT and this was shown as a receivable on theGroup's balance sheet of £60.5m from HM Revenue & Customs without any provision. Taking into account the cost, timing, resource and risk involved withlitigation, both parties have agreed to settle, with HM Revenue & Customs paying£21.8m to MFI. As a result MFI will write off the balance of the receivable of£38.7m in the accounts prepared for the year to 24 December 2005. It isanticipated that the cash will be received in mid February. Enquiries: Susan Gilchrist Brunswick 020 7404 5959Fiona LaffanAnna Jones This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Howden Joinery