31st Mar 2014 11:13
LONDON (Alliance News) - ITV PLC said Monday that the deficit on its pension scheme has been reduced by GBP50 million immediately after if concluded an agreement with the trustee of the scheme on a payment schedule, backed by its London Television Centre property.
Under the arrangement, ITV has paid GBP2.05 million into the scheme immediately, and will then increase annual distributions at 5% a year for up to 25 annual payments, as long as the scheme is in deficit.
"The GBP50 million reduction in the pension funding deficit effectively reflects the net present value of these payments and ITV will receive tax relief on this amount in 2014," it said in a statement.
Ownership of the London Television Centre remains with ITV, the company said.
"Today's agreement reduces ITV's pension deficit on the basis that drives our cash funding whilst retaining operational flexibility with respect to the LTVC," Finance Director Ian Griffiths said.
ITV's payments towards deficit funding in 2014 is expected to total GBP91 million.
Shares in ITV were trading up 1.2% at 191.60 pence Monday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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