Advertisement

Interserve addresses pension deficit

Support services and construction firm Interserve is to transfer its remaining interest in a portfolio of 19 PFI assets to the trustee of its pension scheme at a valuation of 55m pounds, the group announced on Wednesday.

Support services and construction firm Interserve is to transfer its remaining interest in a portfolio of 19 PFI assets to the trustee of its pension scheme at a valuation of 55m pounds, the group announced on Wednesday.

Interserve said that proposed transaction will provide a "significant contribution" towards its current pension scheme funding shortfall and will crystallise further value from its PFI investment portfolio.

Advertisement - Article continues below

The agreement is conditional upon the approval from shareholders at a meeting in January.

In 2011, the interests contributed £3.7m of profit and gross assets were valued at £3.6m at June 30th 2012.

When combined with two previous transactions in relation to its PFI portfolio (announced in June and October), the deals will have raised £124.5m in cash to reduce the actuarial deficit from £150m to £95m and reduce the annual deficit recovery payment from £23.2m to £12m per annum.

"The transaction announced today is good news for both shareholders and members of our pension scheme," said Chief Executive Officer Adrian Ringrose.

"Through a series of transactions during 2012 we have realised significant latent value in our PFI portfolio and with today's announcement are proposing to bolster our pension position. The conclusion of our triennial pension funding review, of which this transaction is an integral part, balances the interests of our pension scheme with our ambition to make further progress against our strategic growth plans."

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

What gold, bonds and tech stocks have in common
Stockmarkets

What gold, bonds and tech stocks have in common

"Risk off" or "safe haven" assets such as gold and government bonds have been doing well lately. But so have riskier tech stocks. That seems to defy c…
10 Jul 2020
An economics lesson from my barber
Inflation

An economics lesson from my barber

On reopening his shop after lockdown, Dominic Frisby’s barber doubled his prices. It’s all part of the post-Covid inflation process – and we’re going …
8 Jul 2020
Share tips of the week
Share tips

Share tips of the week

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
10 Jul 2020