Business
Update on Pension Scheme
Update on Pension Scheme.
About this update from Feedback Plc
[{"type":"text","content":"\n Feedback PLC\n01 March 2007\n\n Feedback plc\n\n Update on Pension Scheme and Current Trading\n\n\n\nAs previously reported, as at 30 September 2006 the Company had an FRS 17\nliability on its pension scheme of £8,257,000. Based on a provisional actuarial\nvaluation of the fund, carried out at 31 March 2006, there is a deficit of\n£17,100,000 on a buy-out basis. The Directors are in regular contact with the\npension fund trustees and have continued to take appropriate professional advice\nwith a view to addressing the pension scheme deficit. The process is not yet\ncomplete and the outcome remains uncertain. Nevertheless the Board believes that\nit should provide an update to shareholders.\n\n\n\nThe Board and its professional advisers are currently working on a proposal\nwhich is intended to address the pension scheme deficit. Whilst the actual\nterms of the proposal are yet to be agreed, the Board expects that the Company\nwill need to undertake an equity fund raising as part of the process.\n\n\n\nThe Group is currently operating within its banking facilities which the\ndirectors have agreed with the Group's bankers to the normal renewal date of 31\nMarch 2007. The Directors remain of the view that there is no reason why the\noverdraft facilities will not be renewed after that date.\n\n\n\nUpdate on current trading\n\n\n\nThe Board is pleased to announce that the current order book at each of the\nGroup's subsidiaries is ahead of their expectations and the Group has\nexperienced an improved trading performance during the current financial year.\n\n\n\nRestructuring and the relocation of all operations onto one site, in preparation\nfor the move to a new building following the sale of the freehold premises in\nCrowborough has hindered output. However the Board considers that the move to\nmore appropriate accommodation will benefit the Group.\n\n\n\nPreference Shares\n\n\n\nUnder the terms of the Articles of Association of the Company, the Company is\nrequired to redeem the Preference Shares on 31 March 2007 ('Redemption Date').\nThe Company will this week be notifying holders of Preference Shares that it is\ncurrently unable to lawfully redeem any of the Preference Shares on the\nRedemption Date due to the continued lack of distributable reserves.\n\n\n\nA further announcement will be made in due course.\n\n\n\n1 March 20...