16th Nov 2005 11:31
Low & Bonar PLC16 November 2005 Low & Bonar PLC - Pension Scheme Financing Following the sale of the Group's Plastics Division for £25.75m, completed on 8September 2005, Low & Bonar announces its intention to inject a total of £10minto the Low & Bonar Group Retirement Benefit Scheme, the Group's UK definedbenefit scheme, (the "Scheme") which was closed to new entrants on 1 November2002. The Company has also committed to make total cash contributions of c.£3.7m per annum in the financial years ending 30 November 2007 and 2008 (2004:£2.695m). The Company has agreed these funding arrangements with the Scheme's TrusteeBoard, following the completion of the actuarial valuation of the Low & BonarGroup Retirement Benefit Pension Scheme at 31 March 2005. The actuarialvaluation detailed a shortfall of £33m between the market value of the assets ofthe UK scheme (£114m) and the assessment of the liabilities (£147m). Thisrepresents a funding level of 78%. In addition, Low & Bonar announces that it will be adopting accounting standardFRS 17 (Retirement Benefits) for the year ending 30 November 2005. As aconsequence of adopting FRS 17, the FRS 17 deficit will now be reflected on theGroup's current and prior year balance sheet. Jon Kempster, Group Finance Director of Low & Bonar, said: "Low & Bonar iscommitted to ensuring its Defined Benefit Pension Scheme is adequately funded.By taking this action we are providing reassurance to the Scheme members." Contact for enquiries: Jon KempsterGroup Finance Director, Low & Bonar PLC 020 7298 6820 David TrenchardTulchan Communications Group Limited 020 7353 4200 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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