- Premier Foods
- 26 April 2024 17:19:25
Source: Sharecast
The company - which owns Bisto, Ambrosia, Bird’s and Batchelors, among others - said the suspension of future contributions is taking place earlier than originally expected, "reflecting the strong performance of the pension scheme, following the segregated merger in June 2020".
Administration costs associated with running the pension scheme of around £5m per year and the dividend match mechanism are currently unchanged.
Chief financial officer Duncan Leggett said: "The further significant progress in the funding position of the pension scheme has enabled us to take another important step to expected full resolution of the scheme by the end of 2026.
"This suspension of pension payments substantially increases the free cash flow available to us and presents us with enhanced capital allocation options to deliver on our growth ambitions.
"The scheme has reached this position following strong stewardship by the trustee over many years and we will continue to work collaboratively with them to further de-risk the scheme."