Robinson PLC Defined Benefit Pension Scheme Buy In (9441I)
07 Dezember 2022 - 2:15PM
UK Regulatory
TIDMRBN
RNS Number : 9441I
Robinson PLC
07 December 2022
Robinson plc
7 December 2022
DEFINED BENEFIT PENSION SCHEME BUY-IN
Robinson plc ("Robinson" or the "Group" stock code: RBN), the
custom manufacturer of plastic and paperboard packaging based in
Chesterfield, is pleased to announce that the Robinson & Sons'
Limited Pension Fund (the "Scheme") has executed a conditional
agreement with Legal and General Assurance Society Limited
("L&G") to effect a buy-in of all the Group's defined benefit
pension scheme liabilities.
The Scheme has exchanged contracts to purchase a bulk annuity
insurance policy from L&G covering all liabilities required to
pay all pensions for the Scheme's circa 500 members and any
eligible dependents. Completion is subject to payment by the Scheme
of the agreed circa GBP44m premium to L&G which is expected on
14 December 2022. The purchase of the insurance policy will be
financed entirely using existing assets held within the Scheme.
The Scheme's circa GBP44m of liabilities will be matched by the
insurance policy and following completion the Group will no longer
bear any investment, longevity, inflation or interest rate risk
associated with the Scheme. The buy-in will deliver greater
security to the Scheme's members.
The Group and the Scheme trustees have long shared an ambition
to achieve a buy-out of the liabilities when market conditions
allow. The buy-in is the first step towards this goal, with a full
buy-out proposed after a data cleanse exercise, which is expected
to be completed by the end of 2023.
The Scheme closed to new entrants in 1997 and there are 9
remaining active members who, subject to the outcome of a
consultation process, would cease accrual and be offered pensions
in the Group's money purchase pension scheme.
As the Scheme is in surplus, the Group is currently benefitting
from a contribution holiday and there will be no immediate benefit
to cashflow. If a surplus remains following the data cleanse
exercise and completion of a full buy-out, then it is likely that
the funds in the pension escrow account, which are circa GBP3.2m,
of which, GBP2.7m are loaned to the Group on commercial terms, will
be returned to the Group. Any funds returned to the Group would be
used to reduce net debt.
Alan Raleigh, Chairman, commented:
"The transaction is an excellent outcome for our defined benefit
pension scheme members, the Group and our shareholders. We have
worked hard with the Scheme trustees to reach this position and
those efforts mean that the Scheme can now be fully de-risked for
the benefit of members and the Group."
Robinson plc www.robinsonpackaging.com
Helene Roberts, CEO Tel: 01246 389280
Mike Cusick, Finance Director
finnCap Limited
Ed Frisby / Seamus Fricker, Corporate Tel: 020 7220 0500
Finance
Tim Redfern / Barney Hayward, ECM
About Robinson:
Being a purpose-led business, Robinson specialises in custom
packaging with technical and value-added solutions for food and
consumer product hygiene, safety, protection, and convenience;
going above and beyond to create a sustainable future for our
people and our planet. Its main activity is in injection and blow
moulded plastic packaging and rigid paperboard luxury packaging,
operating within the food and beverage, homecare, personal care and
beauty, and luxury gift sectors. Robinson provides products and
services to major players in the fast-moving consumer goods market
including McBride, Procter & Gamble, Reckitt Benckiser, SC
Johnson and Unilever.
Headquartered in Chesterfield, UK, Robinson has 2 plants in the
UK, 2 in Poland and acquired a plant in Denmark in 2021, Schela
Plast. Schela Plast specialises in the design and manufacture of
plastic blow moulded containers, serving a number of the major FMCG
brands in Denmark and neighbouring countries.
Robinson was formerly a family business with its origins dating
back to 1839, currently employing nearly 400 people. The Group also
has a substantial property portfolio with development
potential.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU No. 596/2014) which is part of UK law by virtue of
the European Union (Withdrawal) Act 2018. Upon the publication of
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END
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