Annual report and accounts 2023 - Flipbook - Page 191
Strategic Report
Corporate Governance
Accounts
On 1 May 2016, the defined benefit section of the 2008 Scheme was closed to future accrual following a negotiated agreement between the Company and the board
of trustees.
The Company made a £1.0m contribution to the defined benefit section of the 2008 Scheme each year in May 2016 through May 2022. A further contribution of £1.0m was
due to be paid in May 2023 but was paid in the current financial year to support the 2008 Scheme’s liquidity during a period of stock market turbulence.
The movement in the defined benefit obligation in the year to 30 January 2022 was as follows:
Group and Company
At 24 January 2021
Fair value of
plan assets
£m
Present value
of obligation
£m
Total
£m
116.0
(123.9)
(7.9)
Current service cost and past service cost
Interest income/(expense)
–
1.6
(0.1)
(1.7)
(0.1)
(0.1)
Total cost recognised in income statement
1.6
(1.8)
(0.2)
Remeasurements
– changes in demographic assumptions
– changes in financial assumptions
– experience
– actuarial return on assets excluding amounts recognised in net interest
–
–
–
(1.7)
(0.9)
9.5
(2.2)
–
(0.9)
9.5
(2.2)
(1.7)
Total remeasurements recognised in other comprehensive income
(1.7)
6.4
4.7
Cash flows
Employer contributions
Benefits paid
2.4
(4.4)
–
4.4
2.4
–
Total cash outflow
At 30 January 2022
(2.0)
4.4
2.4
113.9
(114.9)
(1.0)
This table excludes the Company contribution made to the 2008 Scheme through the asset-backed funding arrangement as described below and reconciled in the
table above.
Asset-backed funding arrangement
During the year to 26 January 2014, the Company established the A.G. BARR Scottish Limited Partnership (the “Partnership”) and through the Partnership has entered into
a long-term pension funding arrangement with the 2008 Scheme.
Under this arrangement certain property assets were transferred into the Partnership and are being leased back to A.G. BARR p.l.c. under a 21-year lease agreement,
generating an income stream of £1.1m per annum for the 2008 Scheme, increasing annually in line with inflation.
The Partnership is controlled by A.G. BARR p.l.c. and its results are consolidated by the Group. The value of the properties transferred into the Partnership remains included on
the Group’s and Company’s balance sheet at carrying values at the date of transfer with the Group and Company retaining full operational control over these properties.
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