1st Jul 2016 12:53
LONDON (Alliance News) - De La Rue PLC on Friday said it has reached agreement with its pension scheme trustee, in regarding to the valuation of its pension scheme and associated funding plan.
The banknote printer said the underlying funding deficit was GBP252.0 million at April 5, GBP92.0 million higher than the previous valuation in 2012, and has agreed a revised funding plan with the trustee to eliminate the deficit in the twelve years from March 31, 2017. The plan will see the existing funding payment schedule extended from 2022 to 2028.
The cash contributions to the scheme will be GBP13.0 million in 2017 and GBP13.5 million in 2018, and then GBP23.0 million every year after 2022. De La Rue said it will continue to pay annual fees of GBP1.6 million for managing the scheme in additional to cash contributions. In the year ended March 26, 2016, De La Rue said it made funding payments and management fees totalling GBP19.1 million.
The next funding evaluation is due in April 2018.
"I am pleased that we have reached agreement with the trustee on funding requirements to reduce the deficit. The revised funding plan has allowed the trustee to reduce risk in its investment strategy, which should result in lower volatility in the scheme. The revised funding schedule will underpin the group's ability to invest and drive long term growth," said Chief Financial Officer Jitesh Sodha.
Shares in De La Rue were down 0.8% at 507.00 pence on Friday.
By Hannah Boland; [email protected]; @Hannaheboland
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