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4 Apr 2013 07:00
4 April 2013
KCOM Group Pre-close Announcement and Pension Update
KCOM Group ("the Group") announces it has entered a close period, ahead of its preliminary results announcement for the year ended 31 March 2013. The Board confirms that trading has remained in line with market expectations.
The preliminary results will be released on 11 June 2013 and will include, as previously stated, an update on the Group's future dividend policy.
Pension Update
The Group is pleased to announce also that it has reached an agreement with the Trustees of its Defined Benefit Pension Schemes ("the Schemes") to create an asset backed Partnership ("the Partnership"), providing the Group with an efficient mechanism of funding the Schemes' current deficit position.
The Group has transferred into the Partnership its interest in certain freehold properties, entitling the Schemes to an annual income distribution of £1.05 million, rising in line with the Consumer Price Index (CPI), over a potential period of 15 years. The total value of this income distribution to the Schemes is £10.0 million, which the Company anticipates will attract full corporation tax relief for the year ending 31 March 2013. In recognition of that value and the security provided to the Schemes by the income stream, the Group has agreed with the Trustees that no deficit repair contributions will be due in respect of the financial year ending 31 March 2014. The agreement was reached ahead of the Scheme's 2013 triennial valuation.
The Group continues to work closely with the Trustees on further funding options, including the ability to provide additional efficient income streams through the Partnership and envisages being able to provide an update as to the Schemes' funding position and deficit repair plan at the preliminary results announcement in June.
ends
Enquiries:
Bill Halbert, Executive Chairman / Paul Simpson, CFOKCOM Group PLC01482 602595
Cathy Phillips, Investor RelationsKCOM Group PLC07778 335735
Matt Ridsdale/Lulu Bridges/Mike Bartlett
Tavistock Communications
020 7920 3150
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