De La Rue: Actuarial valuation of the revised pension plan and deficit contribution plan

De La Rue plc (LSE: DLAR) (“De La Rue”) today announces that it has entered into an agreement with De La Rue Pension Trustee Limited (the “Trustee”) to present an actuarial valuation of the De La Rue pension scheme ( “the Plan”) on April 5, 2021, rather than the originally scheduled date of December 31, 2022.

The results of the latest actuarial valuation dated 5 April 2021 show a reduced deficit of the Scheme of £119.5 million. This compares to the schedule of deficit repair contributions, agreed with the trustee in May 2020, totaling approximately £177 million from April 2021 to March 2029. Following this new valuation, the scheme actuary has confirmed that the deficit can be financed by contributions. remaining stable at £15 million per year from April 2022 to March 2029.

Consequently, the company and the trustees have agreed to a new schedule which avoids the increase in contributions from £15m to £24.5m for the period April 2023 to March 2029. The company will make reparations contributions of the deficit of £15 million a year during this period. period. In total, this deal will result in a reduction of £57 million in cash payments to the Scheme by De La Rue.

To enable the anticipation of the actuarial valuation, the relevant De La Rue Group companies which are guarantors of the group’s main bank credit agreement have entered into a guarantee with the fiduciary which provides the scheme with equal “pari passu” guarantor recourse. to the bank facility agreement. In addition, De La Rue has agreed to engage with the Trustee if the Company contemplates material transactions that could potentially cause material harm to the Scheme and the Trustee will have a right of consent where De La Rue incurs priority financial indebtedness. beyond that permitted by its main banking facilities (as they may be refinanced or replaced from time to time). Finally, De La Rue confirmed its support in principle for the medium and long-term strategic objectives of the Trustee in terms of partial redemption / total redemption of the Scheme, subject to appropriate pricing and commercial conditions.

Clive Vacher, Managing Director of De La Rue, said: “I am delighted that we have reached an agreement with the trustee which continues to honor the commitments we made in 2020 to reimburse the deficit of the plan by 2029, and also introduces other substantial protections. for plan members. At the same time, a reduction of £57 million in cash contributions to the Scheme will clearly benefit the future projected cash generation of the Group”.

The LEI code for De La Rue plc is 213800DH741LZWIJXP78.

Requests:

De La Rue plc
+44 (0) 7990 337707
Clive Vacher, Managing Director
Rob Harding, Chief Financial Officer
Louise Rich, Head of Investor Relations

Braunschweig
+44 (0)207 404 5959
Stuart Donnelly
Ed Brown

The person responsible for posting this announcement on behalf of De La Rue for MAR purposes is Jane Hyde (General Counsel and Corporate Secretary).

Caution Regarding Forward-Looking Statements

This announcement includes statements that are, or may be deemed to be, “forward-looking statements.” These forward-looking statements can be identified by the use of forward-looking terminology, including the words “believes”, “estimates”, “anticipates”, “expects”, “intends”, “plans”. , “aim”, “target”, “aim”, “may”, “will”, “would”, “could” or “should” or, in each case, negative or other variations thereof or comparable terminology. forward-looking statements include all matters that are not historical facts. They appear in several places throughout this press release and include statements concerning the current intentions, beliefs or expectations of the directors, De La Rue or the Group concerning, among other things, the results of operations, profitability, financial condition, liquidity, prospects, growth and strategies of De La Rue and the industry in which it operates.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and may be beyond De La Rue’s ability to control or predict. Forward-looking statements are not guarantees of future performance. The actual results of operations, profitability, financial condition, liquidity, prospects, growth and/or strategy of the Group and the development of the industry in which it operates may differ materially from the impression created by the forward-looking statements. contained in this advertisement. Furthermore, even if the results of operations, profitability, financial condition, liquidity, prospects, growth and/or strategy of the Group and the development of the industry in which it operates are consistent with the forward-looking statements contained in this press release, these results or developments may not be indicative of the results or developments of subsequent periods.

Except in compliance with its legal or regulatory obligations, De La Rue undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.


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