REG - STV Group PLC - STV agrees pension triennial funding valuations

STVAnnouncement

02/10/2024 07:00

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RNS Number : 5160G  STV Group PLC  02 October 2024

 

 

 

 

 

0700hrs, Wednesday 2 October 2024

 

STV Group plc reaches agreement on pension triennial funding valuations

·    Funding deficit reduces to £61m from £116m in 2020 valuation

·    Aggregate monthly cash contributions slightly lower

·    Contingent cash contribution mechanism paused until at least 2028

STV Group plc today announces that it has reached agreement with the trustees
of its defined benefit pension schemes (the Scottish & Grampian Television
Retirement Benefits Scheme and the Caledonian Publishing Pension Scheme) for
the 31 December 2023 triennial funding valuations and deficit recovery plans.

The combined funding deficit, having allowed for movements in the funding
position to 30 June 2024, has reduced to £61m on a pre-tax basis.  This
compares to the pre-tax deficit of £116m at the previous valuation, which
allowed for movements in the funding position between the 31 December 2020
valuation date and 30 June 2021.

The duration of the deficit recovery plans is unchanged from the previous
valuation with an end date of 31 October 2030.  Aggregate monthly cash
payments committed by the Company will be slightly lower than under the
previous agreement.  The 2025 contributions will total £10.2m, with annual
contributions then increasing at the rate of 2% per annum over the term of the
recovery plans, in line with the previous agreement.

The contingent cash contribution mechanism previously in place has been paused
until at least 2028 with no further contingent payments required until then
unless the Company and the trustees agree otherwise.

The recovery plans are designed to enable the schemes to reach a fully funded
position, using prudent assumptions about the future, by October 2030.

The next triennial valuations will take place as at 31 December 2026.

Lindsay Dixon, CFO/COO, said: "Agreement on the pension scheme valuations has
been reached in an efficient and timely manner, providing certainty to STV,
the schemes' trustees and to our other stakeholders, as well as demonstrating
STV's continued commitment to our former colleagues. Retaining the existing
recovery period end date, combined with the small reduction in cash payments
under the new schedules of contributions and the pause in any contingent cash
requirements, reflects the positive progress against plan which the schemes
have made in recent years despite markets having been volatile over the
period.  The new valuation agreements will provide the Company with
additional flexibility across the full spectrum of capital allocation."

Contact:

Kirstin Stevenson, Head of Communications, STV - 07803 970106 /
Kirstin.stevenson@stv.tv (mailto:Kirstin.stevenson@stv.tv)

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