REG - Norcros PLC - Pension Scheme Valuation Update

NorcrosAnnouncement

13/03/2025 07:00

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RNS Number : 4417A  Norcros PLC  13 March 2025

 

13 March 2025

 

Pension Scheme Valuation Update

Positive outcome to the 2024 triennial review and reduction in cash
contribution from 2027

 

Norcros plc, the market leading designer and supplier of high quality
sustainable bathroom and kitchen products (the "Company"), is pleased to
announce that it has concluded negotiations with the Trustee of the Company's
legacy defined benefit pension scheme (the "Scheme") in relation to the
triennial actuarial valuation undertaken on 1 April 2024. This announcement
follows the update provided by the Group within its Interim Results statement
and presentation published on 21 November 2024.

 

The 1 April 2024 valuation has now been agreed, subject to completion of the
formal documentation, with the prior actuarial deficit from April 2021 of
£36.0m being updated to an actuarial deficit of £11.7m on a technical
provision basis, representing a funding level of 96%.

 

The schedule of cash contributions to June 2027 of £3.8m per annum (indexed
by CPI) that was agreed in the 2021 valuation, will continue. As a result of
the new agreement, once the Scheme is deemed to be in surplus on a technical
provision basis, contributions will be directed to an escrow arrangement.
Cash contributions post June 2027 are expected to be less than c.£1m per
annum and will only be paid to the extent that asset performance or any escrow
funds do not cover ongoing scheme administration fees. The escrow arrangement
minimises the risk that the Scheme becomes overfunded with a trapped surplus.

 

The valuation outcomes will now be submitted to the Pensions Regulator in the
usual way.

 

James Eyre, Norcros Chief Financial Officer, commented:

 

"We are pleased that the Company and Trustee's strong and constructive
relationship has produced a further positive outcome to the triennial
valuation process and, importantly, that the Company's cash contribution
materially decreases from June 2027.  The agreement will mean that the Scheme
should remain in a healthy funding position and we look forward to continuing
to work positively with the Trustee."

 

 

Notes:

1)   Key features of the 2024 actuarial valuation include: discount rate
gilts +0.5% (previously gilts +1.20%), aligned mortality 'base table' to
actual Plan's member death experience and application of the latest actuarial
models and CMI 2023 tables.

2)   As a result of indexation by CPI, the cash contribution agreed in 2021
of £3.8m per annum is currently £4.2m per annum.

 

 

Enquiries

 Norcros plc                                Tel: 01625 547700
 Thomas Willcocks, Chief Executive Officer
 James Eyre, Chief Financial Officer

 Hudson Sandler                             Tel: 0207 796 4133
 Nick Lyon

 Lucy Wollam-Coles

 

Notes to Editors

Norcros is a market leading group of brands specialising in design led,
sustainable bathroom and kitchen products across the UK, Ireland, South
Africa, and select export markets. Each of our brands offers mid-premium
product ranges distinguished by their innovation, design, and commitment to
sustainability, all backed by industry leading service to our trade and retail
customers.

 

Through a strategic blend of acquisitions and organic growth, Norcros has
become the UK and Ireland's number one bathroom products group. We see
significant potential for further expansion within this large and fragmented
market, accelerating growth and capturing market share through continued
acquisitions, organic development, operational excellence, and meaningful ESG
capabilities.

 

Norcros encompasses the renowned brands, Triton, Merlyn, Grant Westfield,
Vado, Croydex, and Abode in the UK, and Tile Africa, TAL, Johnson Tiles South
Africa, and House of Plumbing in South Africa.

 

Norcros is headquartered in Wilmslow, Cheshire and employs around 2,100
people. The Company is listed on the London Stock Exchange. For further
information please visit the Company website: http://www.norcros.com
(http://www.norcros.com)

 

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