De La Rue reaches agreement on actuarial pension valuation

De La Rue plc (“De La Rue”, or “the Group”) announces today that it has reached agreement with the Group’s Pension Scheme Trustee with regards to the 2015 triennial actuarial funding valuation of its UK defined benefit pension scheme (“the Scheme”) and associated funding plan.

The underlying funding deficit was £252m as at 5 April 2015, £92m higher than the previous valuation in 2012.

The Group has agreed a revised funding plan with the Trustee to eliminate the deficit over a period of 12 years from 31 March 2017. The plan will see the existing funding payment schedule extended from 2022 to 2028.

The cash contributions to the Scheme will be £13.0m and £13.5m in 2017 and 2018 respectively, and frozen at £23.0m per year after 2022. The Group will continue to pay annual fees of £1.6m for managing the Scheme in addition to the cash contributions shown below. In the year ended 26 March 2016, the Group made funding payments and management fees totalling £19.1m.

Contributions (£m)
Year ended 31 March

 

2017

 

2018

 

2019

 

2020

 

2021

 

2022

 

2023-2028

Annual cash contribution

13.0

13.5

20.5

21.3

22.2

23.1

23.0 p.a.

The next triennial funding valuation is due in April 2018.

Jitesh Sodha, Chief Financial Officer of De La Rue, commented:

“I am pleased that we have reached agreement with the Trustee on funding requirements to reduce the deficit. The revised funding plan has allowed the Trustee to reduce risk in its investment strategy, which should result in lower volatility in the Scheme. The revised funding schedule will underpin the Group’s ability to invest and drive long term growth.”

Notes:

At 5 April 2015, the Scheme had 7,821 members, including 3,720 deferred members and 4,101 pensioners. It had total liabilities of £1,147m and assets of £895m.

At the 2012 actuarial funding valuation of the Scheme, the Group agreed to make funding payments of £16.2m in the year ended 31 March 2013, rising by 4% per annum until 2022.

The Group’s UK defined benefit pension scheme was closed to new members in 2010 and to future accrual in 2013.

Enquiries:

De La Rue plc   +44 (0)1256 605000
Jitesh Sodha Chief Financial Officer  
Lili Huang Head of Investor Relations  
     
Brunswick   +44 (0)207 404 5959
Jon Coles    
Oliver Hughes

About De La Rue

De La Rue’s purpose is to enable every citizen to participate securely in the global economy. As a trusted partner of governments, central banks and commercial organisations, De La Rue provides products and services that underpin the integrity of trade, personal identity and the movement of goods.

As the world’s largest designer and commercial printer of banknotes, De La Rue designs, manufactures and delivers banknotes, banknote substrates and security features to customers in a world where currency will continue to be a key part of the developing payments eco-system. De La Rue is the only fully integrated supplier of both paper and polymer banknotes, and creates security features that ensure banknotes are protected against counterfeiting.

De La Rue is the world’s largest commercial designer and printer of passports, delivering national and international identity tokens and software solutions for governments in a world that is increasingly focused on the importance of a legal and secure identity for every individual.

De La Rue also creates and delivers secure product identifiers and ‘track and trace’ software for governments and commercial customers alike to help to tackle the challenge of illicit or counterfeit goods and the collection of revenue and excise duties.

De La Rue is listed on the London Stock Exchange (LSE:DLAR). For further information visit www.delarue.com

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