Shares in Cambridge Nutritional Sciences PLC (AIM:CNSL) soared 25% after the company announced it had resolved its longstanding dispute with the Department of Health and Social Care (DHSC).
The settlement, reached on a "drop hands" basis with no admission of liability by either party, means DHSC will not pursue claims for reimbursement of pre-production payments, and CNSL’s subsidiary Omega Diagnostics will not seek damages for lost orders of lateral flow tests (LFTs).
As part of the agreement, £2.5 million of deferred income will be reclassified as exceptional income in the group’s financial results for the year ending March 31.
In early trading, the stock was up 0.74p at 3.69p.