Buyout of Pension Scheme Agreement

RNS Number : 8715U

600 Group PLC

17 July 2018

 

The 600 Group PLC 

Buyout of Pension scheme liabilities with surplus funds

to be returned to the Company

The 600 Group PLC ("the Group" or the "Company"), the AIM listed distributor, designer and manufacturer of industrial products (AIM: SIXH), is pleased to announce that the Trustee of its UK defined benefits scheme has agreed to a buyout of the scheme liabilities by Pension Insurance Corporation Plc, a specialist insurer.  

Agreement has been reached for the pension scheme liabilities of £201m covering some 2,000 pensioners and 800 deferred members to be entirely transferred to Pension Insurance Corporation Plc. Once the buy out is completed and the scheme is wound up, all surplus funds remaining will be returned to the 600 Group less a statutory 35% tax charge. The total net amount payable to the Company is currently estimated to be between £3m and £4m.

Further details on the transaction will be available in the Group's Annual Report which will be published after the Group's financial results for the year ended 31 March 2018 have been announced which is expected shortly.

Commenting today, Paul Dupee, Executive Chairman of The 600 Group PLC said: 

"For some time the Trustee of our UK Pension Fund and the Company have been working towards a permanent transfer of future liability to achieve two goals: firstly, to better secure the benefits to be paid to the pensioners and fund members; and secondly to relieve the Company of the disproportionate liability of such a large scheme.

Today's agreement with Pension Insurance Corporation plc meets both of these important criteria. On completion the Company will have significantly greater liquidity, financial flexibility and been relieved of potential regulatory constraints while at the same time affording our pensioners and fund members the comfort of having a successful multi billion pound specialist organisation to fulfil the pension scheme's future obligations."

Enquiries:
The 600 Group PLC	Tel: [phone]
Paul Dupee, Executive Chairman
Neil Carrick, Finance Director
Spark Advisory Partners Limited (NOMAD)	Tel: [phone]
Matt Davis/ Miriam Greenwood
Cadogan PR Limited (Financial PR)	Tel: [phone]
Alex Walters
WH Ireland (Broker)	Tel: [phone]
Adam Pollock / Tim Feather

 

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