Slingsby(H.C.)Plc Update Regarding Defined Benefit Pension Scheme (8774W)
December 13 2019 - 9:39AM
UK Regulatory
TIDMSLNG
RNS Number : 8774W
Slingsby(H.C.)Plc
13 December 2019
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ("MAR"). With the publication of this announcement,
this information is now considered to be in the public domain.
13 December 2019
H C SLINGSBY PLC
("Slingsby", "the Group" or the "Company")
Update Regarding Defined Benefit Pension Scheme
HC Slingsby PLC, one of the market leaders in the distribution
of industrial and commercial equipment, issues the following update
in respect of its defined benefit pension scheme, the H.C. Slingsby
PLC Retirement Benefits Scheme ("the Scheme").
As at 30 June 2019, the Scheme liability on an accounting basis
was GBP10.54 million (including arrears of contributions of
GBP1.58m million as at that date), increasing from GBP8.44 million
as at 31 December 2018 due to a change in the assumption regarding
interest rates and the Group making no deficit reduction
contributions. However, the Company has now agreed a Schedule of
Contributions and Recovery Plan with the Trustee of the Scheme
pursuant to the requirements of the Pension Act 1995 ("the Trustee
Agreement") and replaces previous Scheme funding obligations.
The Trustee Agreement removes the short-term uncertainty
concerning the Company's cash flows as regards the Scheme. It also
removes the risk that the Scheme's Trustee can demand payment of
the arrears of contributions to August 2019 (previously payable
under the Scheme's 2015 valuation documents) which totalled GBP1.62
million, which will now form part of the contributions set out
below.
On 11 December 2019, the Company received a letter from the
Trustee confirming that due to transfers from the Scheme, the
funding position had improved sufficiently that the arrears were
irrevocably and permanently extinguished. The impact of this
improvement on the Company's pension deficit, on an accounting
basis, will be reviewed at 31 December 2019 and reflected in the
Company's annual financial statements.
Under the Trustee Agreement, the Company is scheduled to
pay:
- GBP125,000 on or before 31 December 2019;
- GBP25,000 per month from 1 December 2019 to 30 June 2020;
- GBP25,750 per month from July 2020 to June 2021; and
- GBP26,500 per month from July 2021 to June 2022, rising
annually thereafter on an agreed basis.
The Company will pay an additional contingent
shortfall-correction contribution to the Scheme equal to 50% of the
Group's cashflow in excess of GBP150,000 for each year (on the
basis of the audited cashflow statement adjusted for any changes in
borrowings). The first such contribution will be assessed in
respect of the year ending 31 December 2019.
The payments due under the Trustee Agreement will be reviewed no
later than 15 months after 1 January 2020, the next actuarial
valuation date of the Scheme. The Company will also continue to pay
GBP160,000 per annum towards the running costs of the Scheme.
The Company has undertaken not to make any distribution to
shareholders prior to 1 June 2021 and to limit distributions to an
amount not greater than GBP60,000 plus 50% of its audited net
cashflow (adjusted for any changes in borrowings). The Company is
obliged to consult with the Trustee regarding certain other matters
but is not obliged to change its approach as a result.
The Company is continuing to work with the Trustee and the
appropriate regulatory authorities in relation to a long-term
solution regarding the Scheme. A further announcement will be made
at the appropriate time.
For further information, please contact:
H C Slingsby PLC Tel: 01274
535 030
Dominic Slingsby, Interim Executive Chairman
and Operations Director
Morgan Morris, Group Chief Executive
Allenby Capital Limited (Nominated adviser and Tel: 020 3328
Broker) 5656
David Worlidge/Nicholas Chambers
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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