Last checked at 20 Apr 2015 13:12
CHANGE TO DEFINED BENEFIT PENSION SCHEME AND IMPACT ON RESULTS FOR YEAR ENDED 31 MARCH 2015
Caffyns plc ("the Company") announces that it has agreed with the Trustees of the Company's Defined Benefit Pension Scheme ("the Scheme") that future increases in pensions payable from the Scheme will be based upon the change in the Consumer Prices Index, as opposed to the Retail Prices Index, with effect from 1 April 2015. The Company has been advised that this change will result in a reduction of the liabilities of the Scheme as at 31 March 2015 of £8.861m as calculated under IAS 19 "Employee Benefits". This amount will be credited in the Company's Income Statement for the year ended 31 March 2015 as an exceptional non-underlying profit and will be subject to a deferred taxation charge of 20%, therefore increasing the profit after tax for the year by £7.09m. The Scheme was closed to future accrual with effect from 1 April 2010.
The deficit previously reported in the Company's Half Year Report as at 30 September 2014 of £11.85m will reduce to £5.4m as at 31 March 2015, subject to audit. This reduction in the deficit of £6.45m is primarily after taking into account the adjustment noted above, together with the adverse impact of other actuarial changes to the deficit arising from market fluctuations which will be charged in the Statement of Comprehensive Income. The reduction is also subject to deferred tax at 20% and the increase to the Company's net assets as at 31 March 2015 will therefore be £5.16m.
The Company will announce its audited Preliminary Results for the year ended 31 March 2015 on 3 June 2015.
20 April 2015
Enquiries:
Simon Caffyn, Chief Executive
Mark Harrison, Finance Director
Telephone: 01323 730201