High Court rules Baroness Mone-linked company breached £122m Covid contract

In the court ruling on Wednesday, Justice Cockerill said the contract between Medpro and the government was "complex", but found that the company did in fact have to demonstrate it had undertaken a "validated sterilisation process".

"That was not complied with by Medpro," she said. "It followed that Medpro had breached the contract."

The ruling also said the gowns lacked the "notified body number" required to mark them as sterilised, and that Medpro had provided no evidence such a process had taken place.

Medpro had also argued that the government could have sold the gowns if it no longer wanted them, or repurposed to be used as non-sterile or isolation gowns.

During the case, the company said any lack of sterility or valid sterility marking "did not prevent the said gowns from being used within the NHS or from being sold to third parties outside of the EU".

Justice Cockerill said there were problems with that argument, including the fact that the NHS did not need any more isolation gowns.

However, she noted that the DHSC did not effectively reject the gowns within a reasonable timeframe, and also dismissed the government's claim for £8.65m in storage costs over lack of evidence.

The judge ruled the company must pay £121,999,219 in damages, plus interest, however, it remains unclear how Medpro will pay the fee, with the company appointing administrators the day before the court decision.

Its last set of accounts said it only had £666,025 of shareholders' funds.

The court said the firm had until 15 October to pay the damages to the government.

Speaking after the judgement, Chancellor Rachel Reeves said the government was working with administrators and "all different authorities" to try and claim the money.