RE: Cash v Mcap19 Aug 2019 12:07
Pension facts from prospectus...
The Group currently operates a DB Scheme and DC Scheme. In March 2010, the DB
Scheme was closed to new entrants and was further closed to future accrual on a defined
benefit basis in December 2015. On 1 April 2010, MOUK established the DC Scheme to
provide benefits to new employees and, on 1 January 2016 all former DB Scheme members
were transferred to the DC Scheme. The most recent full triennial valuation of the DB
Scheme was carried out as at 31 March 2016. As part of that valuation, a funding plan was
agreed with the DB Scheme trustees which provides for annual contributions of £13,000,000
until 31 December 2020.
On completion of the Marathon Acquisition on 1 July 2019 RockRose delivered a cashbacked
letter of credit to the trustees of the DB Scheme in the sum of £39,000,000 (covering the Group
***and its partners*** anticipated contributions to the DB Scheme for a period of three years).
As funding obligations become due under the DB Scheme ***a significant proportion are
recharged to the partners on licences*** these payment obligations of the partners were
affirmed by the Court of Appeal in a judgment delivered on 17 January 2019 (which was not
appealed by the partners). (note : see link to article on this in next post)
Pursuant to the Marathon Acquisition, RockRose has undertaken to use all reasonable commercial
efforts to procure the release of the current MOC parental guarantee in respect of the obligations
of the DB Scheme, and to this end has also delivered its own parental guarantee to the trustees of the
DB Scheme.
The DB Scheme will shortly commence its next formal triennial review, the statutory deadline
for completion of such review being 30 June 2020. RockRose intends tabling proposals for
a formal buy-out of the DB Scheme as part of that process, which involve an insurance
company assuming all of the obligations and liabilities of the DB Scheme. These costs have
been factored into the Enlarged Group’s working capital statement and the Company can
confirm that the working capital available to the Enlarged Group (which for the avoidance of
doubt includes the Marathon Group) is sufficient for the present requirements of the
Enlarged Group, that is, for at least 12 months following the date of this document.
RockRose and MOC remain in active discussions with the trustees of the DB Scheme and
the Pension Regulator concerning the future funding and current obligations of the DB
Scheme.
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