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.


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


HOWDENS Making space more valuable

Business Model and Strategy

Find out more about our business model and strategy, the markets in which we operate and our strategic approach to protect our unique business model and ensure that the business continues to grow.


As a familiar sight across towns and cities in the UK and Europe, our depots are always within easy reach, so a trade professional never has far to travel to find their nearest Howdens. Get to know more about how each one operates.


Our sustainable behaviour is at the heart of our business and enables us to reduce some of our risks. We take great pride in ensuring that our business positively impacts the world around us and the people within it.


We are passionate about supporting the local communities we operate in, which is why our depots and support staff actively seek ways to give something back. Whether it is running half marathons or sponsoring local Scout groups, discover the many ways we help good causes.


With around 80 kitchen ranges, our exclusive Lamona appliance brand, and thousands of products across joinery and hardware, learn why our builders have come to trust the range and quality of the products we offer.

People and Careers

The Sunday Times named Howdens as one of the top 25 big companies to work for. Discover why Howdens is a great place to work, how we develop our people and reward them, whilst building a culture with an entrepreneurial spirit.

Financial Results

Download copies of the latest financial results for Howdens both past and present including the associated presentations and Interim Management Statements released between results announcements.


Howdens is a responsible business which was founded on the tenet that the Company should be worthwhile for all concerned, with a commitment to the people within its reach and the wider world. Here we provide the links to the framework that informs our decisions and outcomes.