European Motor Hldgs PLC
30 April 2004
EUROPEAN MOTOR HOLDINGS plc ("EMH")
AGREEMENT OF VAT CLAIMS
EMH is delighted to announce that it has been notified by HM Customs & Excise
that the Commissioners have agreed the vast majority of the Group's
retrospective VAT claims regarding demonstrator vehicles. The amount of the
claims has been agreed at £6.2 million plus interest. The amount of interest
has not yet been confirmed but is expected to be in the region of £6.0 million.
Whilst the timing of the receipt of these amounts is not yet known, the Board
understands that the claims are in the process of being passed for payment and
it is anticipated that settlement will take place during the first half of the
current financial year. It is believed that both the VAT claim and the
associated interest will be subject to corporation tax. However, this is not a
confirmed position and therefore the total net receipt to the Group of the VAT
claim exercise is not yet known.
The Board is currently considering possible alternative uses for these funds
including a return of cash to shareholders. A further announcement will be made
as appropriate.
This information is provided by RNS
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