Caffyns PLC
24 September 2004
ANNOUNCEMENT TO THE STOCK EXCHANGE
Caffyns PLC Agreement of VAT Claims
Caffyns PLC is pleased to announce that it has been notified by HM Customs &
Excise that its initial claim in respect of VAT overpaid on demonstrator
vehicles in the period 1973 to 1996 has been agreed.
The amount receivable from Customs & Excise net of expenses will be £1.475
million plus interest. The amount of interest has not yet been confirmed but is
expected to be approximately £1.9 million. This will be disclosed in the Interim
Announcement covering the six months ending 30 September 2004 as £1.475 million
as an exceptional item within operating profit and the interest as interest
receivable. The Company has been advised that both the VAT claim and the
interest will be subject to Corporation Tax.
While the timing of the receipt of these amounts is not yet known, it is
expected that settlement of these sums will take place in 2004.
In common with other motor retailers, an additional claim has been made to
Customs which would also be material to the Group's results. Payment of this
claim, made as a result of the Elida Gibbs European Court case, has been
withheld by Customs & Excise pending resolution of a point in law governing the
reclaim of input VAT.
The cash received from the initial claim will be used to reduce gearing and fund
the Group's continuing acquisition programme.
Enquiries:
Simon Caffyn
Chief Executive
Mark Harrison
Finance Director
Telephone: 01323 730201
This information is provided by RNS
The company news service from the London Stock Exchange