Norcros PLC on Thursday announced a significant reduction in its pension scheme deficit following the 2024 triennial review, with cash contributions expected to fall below £1 million per year from June 2027.
The Wilmslow-based supplier of bathroom and kitchen products said the actuarial deficit of its defined benefit pension scheme has been revised to £11.7 million as of April 2024, down from £36.0 million in 2021. This represents a funding level of 96%.
The company will maintain its current annual cash contributions of £3.8 million, indexed by the consumer price index, until June 2027. Beyond that, once the scheme moves into surplus, contributions will be directed to an escrow arrangement to prevent an overfunded position with trapped surplus.
Future contributions after June 2027 are expected to be below £1 million per year and will only be required if asset performance or escrow funds fail to cover scheme administration fees.
Chief Financial Officer James Eyre said: ‘We are pleased that the company and trustee’s strong and constructive relationship has produced a further positive outcome to the triennial valuation process and, importantly, that the company’s cash contribution materially decreases from June 2027. The agreement will mean that the scheme should remain in a healthy funding position and we look forward to continuing to work positively with the trustee.’
Shares in Norcros were down 3.5% at 212.32 pence in London on Thursday afternoon.
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