AGA Rangemaster updates on implementation of new pension financing and banking arrangements

The Group has now implemented new financing arrangements with the trustee of the AGA Rangemaster Group Pension Scheme ("the Scheme") following completion of the Scheme's triennial actuarial valuation as at 31st December 2011.   These arrangements were outlined when the interim results were announced in August 2012.

The objective of the arrangements is to provide a clear, stable framework within which both the Scheme and the Group can operate in the coming years. The long-term objective of reaching self-sufficiency when reasonably practicable under existing agreements remains for the Scheme.

Under these arrangements, deficit recovery contributions totalling £16 million have been made this year.  No deficit recovery contributions will be made in 2013 or 2014.  The next deficit recovery contribution of £4 million will be made in the second half of 2015 prior to the expected completion of the next triennial actuarial valuation to be undertaken as at 31st December 2014. Deficit recovery contributions after 2015 are set at £10 million per annum from 2016 to 2021 inclusive, with a lump sum contribution of £30 million to be paid at the end of 2020. As part of the agreement, guarantees of possible future contributions provided to the Scheme have been reduced from £50 million to £30 million.

As explained at the interim results in August, trustee consent would be needed for dividend payments through to the practical completion of the 2014 actuarial valuation.

The Scheme had a surplus on an accounting basis at 31st December 2011 of £6.8 million and a deficit of £41.9 million at 30th June 2012 - a movement reflecting a fall in yields on 'AA' corporate bonds in the first half of 2012.

At the same time, new banking facilities totalling £60 million have now been agreed with Lloyds TSB, HSBC and Barclays, with all of whom the Group has long-standing relationships.  The new facilities run until December 2015 and replace existing facilities which date primarily from 2008.

"These new agreements are genuine progress for the Group.  Careful consideration of the position by all parties has resulted in the development of a clear, stable financial framework within which we will operate in the next three years." :  William McGrath, Chief Executive.

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Enquiries:
William McGrath, Chief Executive, AGA Rangemaster           - 01926 455731
Simon Sporborg / Charlotte Winsley, Brunswick Group        - 020 7404 5959