£6.3m for medical tests maker which pursued Government for unpaid invoices

Abingdon Health says it has received £6.3m from the Department for Health & Social Care (DHSC) after the York-based company took legal action against the Government.

The business, which develops and manufactures rapid medical diagnostic tests, had been waiting to be paid more than £8m owned to it by the DHSC for Covid-19 tests and services, despite having agreed non-binding Heads of Agreement through mediation.

Abingdon Health, which also has manufacturing facilities in Doncaster, said its cashflow had been put under severe pressure because of the Government’s non-payment.

More than £5m of the unpaid revenue was due from one million antibody tests which were supplied by the business between July 2020 and January 2021.

On 28 June 2022 the company confirmed it had reached a settlement with the DHSC on the outstanding invoices.

The company said it has today – 7 July – received a £6.3m cash payment from DHSC as part of the settlement agreement.