9th Dec 2024 19:41
Hays PLC - London-based recruitment company - Announces the de-risking of the group's legacy UK defined benefit pension scheme through a GBP370 million bulk annuity policy entered into with Pension Insurance Corp. Building on the purchase of a bulk annuity policy with Canada Life for a premium of GBP270.6 million in August 2018, the new policy fully insures the scheme's remaining benefit obligations. Says the group's current GBP18.2 million annual deficit funding contribution has ceased, effective from the date of the transaction. Adds that a GBP12.6 million upfront cash contribution has been paid with an expected further around GBP6 million of expenses to be paid through to final scheme buy-out and wind-up.
Chief Financial Officer James Hilton explains the transaction eliminates pension related balance sheet volatility and is expected to have a "materially positive" impact on group free cash flow from 2026.
Current share price: 83.10 pence, up 4.9% in London on Monday
12-month change: down 21%
By Jeremy Cutler, Alliance News reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.