Morgan Advanced Materials PLC Additional US pension payment (8663Y)
December 11 2017 - 2:00AM
UK Regulatory
TIDMMGAM
RNS Number : 8663Y
Morgan Advanced Materials PLC
11 December 2017
Press Release
Morgan Advanced Materials plc
11 December 2017
Morgan Advanced Materials plc today announces that the group has
elected to make an accelerated cash contribution of an additional
US$36million to the group's US defined benefit pension scheme in
December 2017.
The US defined benefit pension scheme had a deficit under IAS19
at 30 June 2017 of ca. US$46million, since when the funding
position has improved due largely to positive returns on the asset
portfolio. In recent years, the group has contributed between
US$10-11million per annum to the US defined benefit schemes under a
funding recovery plan that was anticipated to close the remaining
deficit over a 5 year recovery period to 2022.
Following this additional payment, the US defined benefit
pension scheme will be close to full funding on an IAS19 basis and
no further deficit recovery payments are anticipated. As a result
the group's total ongoing payments to the defined benefit pension
schemes across the group are currently estimated to reduce from the
previously expected GBP25 million per annum to ca. GBP16.5 million
per annum from 2018.
The payment into the US defined benefit pension scheme is
eligible for US corporation tax relief, and will also lead to a
reduction in the US Pension Benefit Guarantee Corporation levy of
ca. US$1 million per annum from 2018 onwards.
This payment will lead to a reduction in the IAS19 net defined
benefit pension obligation and an increase in net debt by
US$36million in December 2017.
For further enquiries:
Morgan Advanced
Pete Raby Materials plc 01753 837 000
Peter Turner
Alison Kay Brunswick 0207 404 5959
The next scheduled update is the Group's Preliminary Full Year
results presentation on 27 February 2018.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCMMMGZKRDGNZM
(END) Dow Jones Newswires
December 11, 2017 02:00 ET (07:00 GMT)
Morgan Advanced Materials (LSE:MGAM)
Historical Stock Chart
From Apr 2024 to May 2024
Morgan Advanced Materials (LSE:MGAM)
Historical Stock Chart
From May 2023 to May 2024