AGA RANGEMASTER GROUP PLC - Statement re Pension Financing and
Banking Arrangements
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 £16 million have been made this year. No deficit recovery
contributions will be made in 2013 or 2014. The next deficit
recovery contribution of £4 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 £10 million per annum from 2016
to 2021 inclusive, with a lump sum contribution of £30 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 £50 million to £30 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 £6.8 million and a deficit
of £41.9 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 £60 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