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Pension Scheme Funding

16 July 2009

Galiform Plc (Galiform), the owner of Howden Joinery, is pleased to announce that it has reached agreement with the Trustees of its defined benefit pension scheme in relation to the schedule of payments towards the funding of the scheme's deficit for the three years ending 5 April 2012 (the "pension years"). This agreement, which is subject to confirmation from The Pensions Regulator that he does not object to the terms of the agreement, follows the triennial actuarial valuation of the scheme as at 5 April 2008 carried out by the scheme actuary which assessed that the scheme had a funding deficit of £214m, compared with £150m at 6 April 2005

Note: The pension deficit as at 27 December 2008, shown on the balance sheet in the Group's 2008 Annual Report and Accounts, which is calculated under International Accounting Standard 19, was £122.2m. As will be disclosed in the forthcoming Half Yearly Report (22 July 2009), this is expected to have increased by around £10m to c. £130m at 13 June 2009.

Under the agreement, Galiform's contributions to the pension deficit will be as follows:

Year ending 5 April 2010 2011 2012
£19m £28m £33m

An element of each of the annual contributions is, however, contingent on the attainment of an agreed level of performance of the Group in the financial year that ends during the relevant pension year. The contingent payments are:

Year ending 5 April 2010 2011 2012
£5m £8m £8m

If payable, these contingent payments will be made shortly after the relevant audited accounts have been signed. All other amounts are payable in equal monthly instalments during the relevant pension year.

The agreement will result in an expected cash contribution to the pension deficit in the current financial year (ending 26 December 2009) of £21m. This includes payments in respect of the previous agreement with the trustees, reached in 2006.

Galiform's Chief Executive, Matthew Ingle said:

"I am very pleased that we have reached an agreement on the funding of the pension scheme for the next three years. The terms of the agreement are testimony to the strength of our relationship with the scheme's Trustees, and their recognition of the economic and business environment that the Group is operating in."

Half Yearly Report

Galiform will issue its Half Yearly Report on 22 July 2009.

 

Enquiries
Investors/analysts: Media:
Gary Rawlinson Brunswick: Kate Holgate
Head of Investor Relations Annabel Entress
+44 (0)207 535 1127 +44 (0)207 404 5959
+44 (0)7989 397527

 

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