Communications services firm KCOM said it is working with the trustees of its pension schemes to pay back the deficit.
Alongside a trading update in which the firm said that its performance has been in line with market forecasts in the year to March 31st, the group said it has reached an agreement with the trustees to create an asset-backed partnership.
This partnership "provid[es] the group with an efficient mechanism of funding the schemes' current deficit position", KCOM said.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The firm has transferred its interest in certain freehold properties into the partnership, providing an annual income distribution of £1.05m, rising in line with CPI inflation over a potential period of 15 years.
"The group continues to work closely with the trustees on further funding options, including the ability to provide additional efficient income streams through the [artnership and envisages being able to provide an update as to the schemes' funding position and deficit repair plan at the preliminary results announcement in June."
KCOM's shares were up 0.25% at 81.6p in early trading on Thursday.
