Last checked at 6 Dec 2022 07:00
Press Release
Morgan Advanced Materials plc
6 December 2022
Accelerated Pension Contribution
"Reducing the Pensions Burden"
Morgan Advanced Materials plc is pleased to announce that it has reached agreement with the trustees of its UK Defined Benefit Pension Schemes to make an accelerated contribution of £67m.
As part of its arrangement with the Company, the trustees have agreed to move to full hedging of inflation and interest risk. This will benefit both the Schemes and the Company by significantly reducing the volatility of valuations in the future, and represents a significant milestone towards being able to secure member benefits by means of annuities with insurance companies.
The benefits to the Company will be:
- Immediate improvement to free cash flow, with a reduction in cash pension contributions of £17m p.a. for at least the next three years, and modest or zero contributions thereafter
- Reduced volatility, with the likelihood of a material deficit arising at future triennial revaluations substantially reduced
- Prudent approach to hedging, with leverage on the scheme's LDI portfolio targeted below 2.0x
For further enquiries:
Pete Raby, CEO Morgan Advanced Materials plc 01753 837000
Richard Armitage, CFO
Nina Coad Brunswick 0207 404 5959