KCOM works to bring down pension deficit

Communications services firm KCOM said it is working with the trustees of its pension schemes to pay back the deficit.

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.

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.

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

Most Popular

Bitcoin: fool’s gold or the new gold?
Bitcoin

Bitcoin: fool’s gold or the new gold?

With bitcoin hitting new highs last week, and close to becoming a mainstream investment, is it really gold for the 21st century?
15 Jan 2021
Forget austerity – governments and central banks have no intention of cutting back
Global Economy

Forget austerity – governments and central banks have no intention of cutting back

Once the pandemic is over will we return to an era of austerity to pay for all the stimulus? Not likely, says John Stepek. The money will continue to …
15 Jan 2021
The MoneyWeek Podcast: bitcoin special
Bitcoin

The MoneyWeek Podcast: bitcoin special

Merryn talks to bitcoin experts Dominic Frisby and Charlie Morris to get the lowdown on the cryptocurrency to find out why it's such a huge global phe…
15 Jan 2021
Free 6 issue trial then continue to