20th Jun 2007 07:01
Driver Group plc20 June 2007 DRV.L Driver Group plc ("the Company" or "Driver Group") Settlement of Pension Liability As set out in the Company's Admission Document dated 7 October 2005 andsubsequently referred to in the Annual Report and Accounts for the year ended 30September 2006, the Company and Driver Consult Limited ("Driver Consult"), asubsidiary of Driver Group, participated in the Baker Wilkins & Smith RetirementBenefit Scheme ("the Scheme") which is in the process of being wound up. As a member of the Scheme, the Company and Driver Consult are required to pay adebt to the Scheme under pensions legislation which provides that if the assetsof the Scheme are less than the liabilities of the Scheme, the shortfall shouldbe treated as a debt due from the participating employers. However, the actualamount of any such deficit and the amount of the Company's contribution couldonly be calculated when the trustees of the Scheme ("the Trustees") confirmedthe date upon which they wish to calculate such liabilities. The Trustees havenow stated that they intend to select 17 November 2006 as the date at which theliabilities of the Scheme should be calculated. At the time of Admission to AIM in 2005, the Company advised that the totalDriver Group liability could be approximately £860,000 although the actualamount could be higher or lower. In the Annual Report and Accounts for the yearended 30 September 2006 the Company advised that this liability was likely tohave increased as a result of the time taken to wind up the Scheme. The Actuaryof the Scheme has now indicated that the liability of Driver Group and BWSInternational Limited (a former subsidiary of the Company) ("BWS International")will be from £240,000 to £1,294,000. The Company is pleased to announce that on 19 June 2007 the Company and BWSInternational entered into an agreement with the Trustees of the Scheme underwhich the Trustees of the Scheme have agreed with Driver Group and BWSInternational to accept an aggregate sum of £550,000 in full and finalsettlement of all claims under the Scheme. Driver Group's proportion of thesettlement is £450,230. In addition, the Company has received tax advice that its contribution should bedeductible as a business expense for tax purposes which should result in a taxsaving to the Company of approximately £135,069 leaving the net cash positionpayable by the Company of approximately £315,161. For further information, please contact: Driver Group plc Steve Driver, CEO T: 020 7448 1000 (today) T: 01706 244 172 WH Ireland David Youngman T: 0161 832 2174 Biddicks Katie Tzouliadis T: 020 7448 1000 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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