Annual report & review 2006 - Shopic.com
Annual report & review 2006 - Shopic.com Annual report & review 2006 - Shopic.com
Summary financial statements 18 Pensions The pension entitlements of employees, including executive directors, arise under defined benefit and defined contribution schemes and are secured by contributions by the Group to separately administered pension funds in the Republic of Ireland, Northern Ireland and Great Britain. The pension charge for the year is €11.3 million (2005: €13.8 million) comprising a current service cost of €12.4 million (2005: €13.5 million), past service costs of €0.1 million (2005: €nil) in respect of defined benefit schemes and defined contribution schemes cost of €0.3 million (2005: €0.3 million) and is reduced by gains on curtailments and settlements of €1.5 million (2005: €nil). The net finance cost resulting from the scheme deficits is €2.0 million (2005: €2.4 million). The funding requirements in relation to the Group’s defined benefits schemes are assessed in accordance with the advice of independent qualified actuaries and valuations are prepared at triennial intervals. Annual contributions are based on the advice of professionally qualified actuaries using the aggregate funding and projected unit methods. The most recent actuarial valuations for the Group’s schemes were: Republic of Ireland – 29 March 2004; Northern Ireland – 5 April 2003; Budgens Great Britain – 31 March 2003 and Londis Great Britain – 1 May 2005. The actuarial valuation reports are available for inspection by members of the schemes at the registered office of the company but are not available for public inspection. The latest agreed contribution rates for the Group’s material schemes are: Republic of Ireland – 24.4 per cent of pensionable salaries; Northern Ireland – 22.7 per cent of pensionable salaries and Budgens Great Britain – 15 per cent of members’ salaries. The Londis scheme has been closed to new members since August 1991. An updated actuarial valuation for the purposes of FRS 17 was carried out as at 31 December 2006 by a qualified independent actuary in respect of Group pension schemes. The main financial assumptions used in the valuation were: 2006 2005 Rate of increase in wages and salaries 4.00% 4.00% Rate of increase in pensions in payment 3.00% 2.90% Discount rate used for scheme liabilities 4.90% 4.40% Inflation assumption 2.50% 2.50% The long term expected rate of return at the balance sheet dates were: 2006 2005 Equities 6.70% 6.40% Property 4.00% 5.30% Bonds 5.70% 3.70% Others 4.30% 3.50% The following amounts at the balance sheet dates were measured in accordance with requirements of FRS 17: 2006 2005 €m €m Total market value of assets 215.4 178.2 Present value of schemes liabilities (279.2) (270.0) FRS 17 deficit in the schemes (63.8) (91.8) Related deferred tax at 12.5 to 30 per cent 11.4 16.1 Net pension liability (52.4) (75.7) 64 Musgrave Group Plc Annual Report & Review 2006
Summary financial statements Movement in pension liability during the year 2006 2005 €m €m Pension deficit in schemes at 1 January (91.8) (82.4) Movement in year: Current service costs (12.4) (13.5) Past service costs (0.1) – Gains on settlements or curtailments 1.5 – Employer contributions paid, including special contribution of €5.2 million (2005: €10.0 million) 19.8 24.3 Other finance costs (2.0) (2.4) Actuarial gain/(loss) recognised in the statement of total recognised gains and losses 21.6 (17.3) Translation adjustment (0.4) (0.5) Pension deficit in schemes at 31 December (63.8) (91.8) Deferred tax at 1 January 16.1 13.6 Movement in year: Charged to profit and loss account (0.6) (0.9) Recognised in the statement of total recognised gains and losses (4.2) 3.3 Translation adjustment 0.1 0.1 Deferred tax at 31 December 11.4 16.1 Pension liability net of related deferred tax (52.4) (75.7) The actuarial gain recognised in the statement of total recognised gains and losses is €21.6 million (2005: €17.3 million loss). The gain arises from improved investment returns of €6.8 million (2005: €17.0 million) and the favourable impact of changed assumptions (higher interest rates used to discount future scheme liabilities offset by revised mortality assumptions) of €18.4 million (2005: €34.8 million loss), offset by experience losses of €3.6 million (2005: €0.5 million gains). 65 Musgrave Group Plc Annual Report & Review 2006
- Page 13 and 14: Interview with our Group CEO exciti
- Page 15 and 16: Review of 2006 This is a year in wh
- Page 17 and 18: Our business is all about respondin
- Page 19 and 20: Review of 2006 Our innovative Marke
- Page 21 and 22: Review of 2006 Our business in Grea
- Page 23 and 24: Different & better - retailers & lo
- Page 25 and 26: Different & better - retailers & lo
- Page 27 and 28: Different & better - retailers & lo
- Page 29 and 30: Budgens Virginia Quay Providing a h
- Page 31 and 32: Different & better - retailers & lo
- Page 33 and 34: Different & better - consumers & co
- Page 35 and 36: Different & better - consumers & co
- Page 37 and 38: Different & better - consumers & co
- Page 39 and 40: to meet international best practice
- Page 41 and 42: Musgrave Group head office, Cork 41
- Page 43 and 44: Responsibility charitable support A
- Page 45 and 46: accordance with management’s auth
- Page 47 and 48: Our board of directors peter Musgra
- Page 49 and 50: Results Turnover amounted to €4,5
- Page 51 and 52: Finance review Taxation The effecti
- Page 53 and 54: Summary financial statements CONSOL
- Page 55 and 56: Summary financial statements Notes
- Page 57 and 58: Summary financial statements 5 Taxa
- Page 59 and 60: Summary financial statements 10 Ban
- Page 61 and 62: Summary financial statements 15 Rec
- Page 63: Summary financial statements Analys
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Summary financial statements<br />
Movement in pension liability during the year<br />
<strong>2006</strong> 2005<br />
€m €m<br />
Pension deficit in schemes at 1 January (91.8) (82.4)<br />
Movement in year:<br />
Current service costs (12.4) (13.5)<br />
Past service costs (0.1) –<br />
Gains on settlements or curtailments 1.5 –<br />
Employer contributions paid, including special contribution of €5.2 million<br />
(2005: €10.0 million) 19.8 24.3<br />
Other finance costs (2.0) (2.4)<br />
Actuarial gain/(loss) recognised in the statement of total recognised gains and losses 21.6 (17.3)<br />
Translation adjustment (0.4) (0.5)<br />
Pension deficit in schemes at 31 December (63.8) (91.8)<br />
Deferred tax at 1 January 16.1 13.6<br />
Movement in year:<br />
Charged to profit and loss account (0.6) (0.9)<br />
Recognised in the statement of total recognised gains and losses (4.2) 3.3<br />
Translation adjustment 0.1 0.1<br />
Deferred tax at 31 December 11.4 16.1<br />
Pension liability net of related deferred tax (52.4) (75.7)<br />
The actuarial gain recognised in the statement of total recognised gains and losses is €21.6 million (2005: €17.3 million loss).<br />
The gain arises from improved investment returns of €6.8 million (2005: €17.0 million) and the favourable impact of changed<br />
assumptions (higher interest rates used to discount future scheme liabilities offset by revised mortality assumptions) of €18.4 million<br />
(2005: €34.8 million loss), offset by experience losses of €3.6 million (2005: €0.5 million gains).<br />
65<br />
Musgrave Group Plc <strong>Annual</strong> Report & Review <strong>2006</strong>
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