THE INFORMATION CONTAINED WITHIN
THIS ANNOUNCEMENT CONSTITUTES INSIDE INFORMATION AS DEFINED BY THE
MARKET ABUSE REGULATIONS (EU) NO. 596/2014, WHICH FORMS PART OF
DOMESTIC UK LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT
2018 ("UK MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT
VIA REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW
CONSIDERED TO BE IN THE PUBLIC DOMAIN.
26 March
2024
H C SLINGSBY
PLC
("Slingsby", "the Group" or the "Company")
Update Regarding Retirement
Benefits Scheme
HC Slingsby PLC, one of the market
leaders in the distribution of industrial and commercial equipment,
provides the following update in respect of its defined benefit
pension scheme, the H.C. Slingsby PLC Retirement Benefits Scheme
("the Scheme").
The Company has agreed a new
Schedule of Contributions and Recovery Plan with the Trustee of the
Scheme pursuant to the requirements of the Pension Act 1995 ("the
New Trustee Agreement") which replaces previous Scheme funding
obligations.
The actuarial valuation of the
Scheme as at 1 January 2023 showed a funding shortfall (technical
provisions minus value of assets) of approximately £7.2 million (30
June 2019: funding shortfall of £10.5m).
Under the New Trustee Agreement, the
Company is scheduled to pay:
- £5,222 per
month from 1 April 2024 to 31 December 2024;
- £29,167
per month from 1 January 2025 to 31 December 2025;
- £33,333
per month from 1 January 2026 to 31 December 2026; and
- £37,500
per month from 1 January 2027 until the shortfall has been met,
increasing annually at each 1 July by 3%.
The phasing of deficit reduction
contributions above, represents a short-to medium term total cash
saving to the Group over the years 2024, 2025 and 2026 of
approximately £390,000 when compared to the previous
arrangement. This re-phasing of deficit reduction
contributions, whilst improving the Group's shorter-term cash
outlook, does not alter the Company's obligation to fund the
Scheme's shortfall in its entirety.
Over January 2023 to June 2023
Slingsby made contributions of £33,334 per month to the Scheme and
from July 2023 to March 2024, the Company made contributions of
£34,334 per month.
The Company remains required to pay
an additional contingent shortfall-correction contribution to the
Scheme equal to 50% of the Group's cashflow in excess of £150,000
for each year (on the basis of the audited cashflow statement
adjusted for any changes in borrowings). The payments due
under the New Trustee Agreement will be reviewed no later than 15
months after 1 January 2026, the next actuarial valuation date of
the Scheme.
The Company will also continue to
pay up to £160,000 per annum towards the running costs of the
Scheme.
The Company has undertaken not to
make any distribution to shareholders prior to 1 June 2025 and has
an obligation under its previous Trustee agreement to limit any
distributions from 1 June 2025 onwards to an amount not greater
than £60,000 plus 50% of its audited net cashflow (adjusted for any
changes in borrowings). The Company remains obliged to consult with
the Trustee regarding certain other matters but is not obliged to
change its approach as a result.
For further information, please
contact:
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H C
Slingsby PLC
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Tel: 01274 535 030
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Andrew Kitchingman, Non-Executive
Chairman
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Morgan Morris, Group Chief
Executive
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Allenby Capital Limited (Nominated adviser and Broker)
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Tel: 020 3328 5656
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Alex Brearley / George Payne
(Corporate Finance)
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Amrit Nahal (Sales and Corporate
Broking)
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