QinetiQ completes pension scheme buy-in

RNS Number : 6749V

QinetiQ Group plc

10 April 2019

 

QinetiQ completes pension scheme buy-in with Scottish Widows

10 April 2019

QinetiQ Group PLC (QinetiQ or the Group) today announces that the QinetiQ Pension Scheme (the Scheme) has completed its first bulk annuity insurance buy-in for approximately £690m. Scottish Widows were selected for the buy-in following a competitive process.  The agreement covers approximately 33% of the Scheme's liabilities.

The buy-in removes longevity, interest rate, and inflation risk for a proportion of the Scheme and is in line with the Group's strategy of de-risking the pension liabilities. As a result of the transaction, the accounting pension surplus recorded on the Group's balance sheet will reduce by an estimated £120m with no related cash impact. 

LCP acted as lead adviser on the transaction. Legal advice was provided to the Scheme by Gowling WLG and to Scottish Widows by CMS.

Huw Evans of BESTrustees, Chairman of the Scheme, commented:

"This buy-in improves the risk profile and investment efficiency of the Scheme for all members and represents a significant step towards securing the benefits promised.  The Trustees are grateful to their advisers and to the Company and its advisers all of whom worked seamlessly together to ensure that the transaction followed an effective and efficient process."

For further information please contact:

David Bishop, Group Director Investor Relations and Communications:	[phone]
Ian Brown, Group Head of Investor Relations:	[phone]
Jon Hay-Campbell, Group Head of Communications:	[phone]

About QinetiQ:

QinetiQ (QQ.L) is a leading science and engineering company operating primarily in the defence, security and critical infrastructure markets. We work in partnership with our customers to solve real world problems through innovative solutions delivering operational and competitive advantage. Visit our website www.QinetiQ.com. Follow us on LinkedIn and Twitter @QinetiQ. Visit our blog www.QinetiQ-blogs.com.

About BESTrustees

BESTrustees is an unquoted Limited Company, founded in 1992 and is owned by its employees.  We are a leading independent provider of professional trustee services and our client base is as varied as the UK pensions market.  We now have over 30 Trustee Executives working with more than 150 clients with assets in excess of £100 billion.

 Disclaimer

This document contains certain forward-looking statements relating to the business, strategy, financial performance and results of the Company and/or the industry in which it operates. Actual results, levels of activity, performance, achievements and events are most likely to vary materially from those implied by the forward-looking statements. The forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words 'believes',' expects', 'predicts', 'intends', 'projects', 'plans', 'estimates', 'aims', 'foresees', 'anticipates', 'targets', 'goals', 'due', 'could', 'may', 'should', 'potential', 'likely' and similar expressions, although these words are not the exclusive means of doing so. These forward-looking statements include, without limitation, statements regarding the Company's future financial position, income growth, impairment charges, business strategy, projected levels of growth in the relevant markets, projected costs, estimates of capital expenditures, and plans and objectives for future operations. Forward-looking statements contained in this announcement regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Nothing in this document should be regarded as a profit forecast.

The forward-looking statements, including assumptions, opinions and views of the Company or cited from third party sources, contained in this announcement are solely opinions and forecasts which are uncertain and subject to risks. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to be correct. Actual results may differ materially from those expressed or implied by these forward-looking statements. A number of factors could cause actual events to differ significantly and these are set out in the principal risks and uncertainties section of this document.       

Most of these factors are difficult to predict accurately and are generally beyond the control of the Company. Any forward-looking statements made by, or on behalf of, the Company speak only as of the date they are made. Save as required by law, the Company will not publicly release the results of any revisions to any forward-looking statements in this document that may occur due to any change in the Directors' expectations or to reflect events or circumstances after the date of this document.

 

END

 

 

MSCBUGDSIUGBGCC