AGA Aga Rangemaster

 
TIDMAGA 
 
27th November 2012 
 
AGA RANGEMASTER UPDATES ON IMPLEMENTATION OF NEW PENSION FINANCING AND BANKING 
                                 ARRANGEMENTS 
 
The Group has now implemented new financing arrangements with the trustee of 
the AGA Rangemaster Group Pension Scheme ("the Scheme") following completion of 
the Scheme's triennial actuarial valuation as at 31st December 2011. These 
arrangements were outlined when the interim results were announced in August 
2012. 
 
The objective of the arrangements is to provide a clear, stable framework 
within which both the Scheme and the Group can operate in the coming years. The 
long-term objective of reaching self-sufficiency when reasonably practicable 
under existing agreements remains for the Scheme. 
 
Under these arrangements, deficit recovery contributions totalling GBP16 million 
have been made this year. No deficit recovery contributions will be made in 
2013 or 2014. The next deficit recovery contribution of GBP4 million will be made 
in the second half of 2015 prior to the expected completion of the next 
triennial actuarial valuation to be undertaken as at 31st December 2014. 
Deficit recovery contributions after 2015 are set at GBP10 million per annum from 
2016 to 2021 inclusive, with a lump sum contribution of GBP30 million to be paid 
at the end of 2020. As part of the agreement, guarantees of possible future 
contributions provided to the Scheme have been reduced from GBP50 million to GBP30 
million. 
 
As explained at the interim results in August, trustee consent would be needed 
for dividend payments through to the practical completion of the 2014 actuarial 
valuation. 
 
The Scheme had a surplus on an accounting basis at 31st December 2011 of GBP6.8 
million and a deficit of GBP41.9 million at 30th June 2012 - a movement 
reflecting a fall in yields on `AA' corporate bonds in the first half of 2012. 
 
At the same time, new banking facilities totalling GBP60 million have now been 
agreed with Lloyds TSB, HSBC and Barclays, with all of whom the Group has 
long-standing relationships. The new facilities run until December 2015 and 
replace existing facilities which date primarily from 2008. 
 
"These new agreements are genuine progress for the Group. Careful consideration 
of the position by all parties has resulted in the development of a clear, 
stable financial framework within which we will operate in the next three 
years." : William McGrath, Chief Executive. 
 
 
Enquiries: 
 
William McGrath, Chief Executive, AGA Rangemaster - 01926 455731 
Simon Sporborg / Charlotte Winsley, Brunswick Group - 020 7404 5959 
 
 
 
END 
 

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