Undeterred that the bureaucratic process may take years rather than months, UK gambling group Sportech plc has launched a claim against HM Revenue and Customs to recover "…in excess of GBP 40 million" in overpaid VAT for its Spot the Ball game offered between 1979 and 1996.
"We caution that a successful outcome is not guaranteed and the process is likely to drag on for a number of years, but see the claim as yet another positive catalyst which is not, in any way, reflected in the current company valuation," Investec Securities says in a note to investors this week.
The broker highlights that the amount could increase to over GBP100 million including interest by the time the issue is resolved.