22
Pension commitments
|
NOTES
TO THE FINANCIAL STATEMENTS
The Group uses a mixture of defined benefit and defined
contribution schemes, the former having been acquired as part
of the merger with Torex. The assets of the Torex Medical Systems
(‘TMS’) defined benefit scheme are held in a separate
trustee administered fund. Full actuarial valuations of the
scheme are undertaken on a tri-annual basis. The last completed
full actuarial valuation was as at 1 January 2002. The most
recent actuarial valuation of the scheme for FRS 17 disclosures
was at 30 April 2005. The FRS 17 valuation of the TMS scheme
used the projected unit method and was carried out by KPMG,
professionally qualified actuaries.
The principal assumptions used by the actuaries were:
| |
30
April 2005 |
|
30 April
2004 |
|
23 December
2003 |
| |
% |
|
% |
|
% |
| |
|
|
|
|
|
| Rate of increase in pensionable
salaries |
4.3 |
|
4.4 |
|
4.3 |
| Rate of increase in pensions in
payment and deferment |
2.8 |
|
2.9 |
|
2.8 |
| Discount rate |
5.4 |
|
5.6 |
|
5.5 |
| Inflation assumption |
2.8 |
|
2.9 |
|
2.8 |
The assets of the scheme and the weighted average expected
return were:
Long
term rate
of return
expected at
30 April
2005
|
|
Value
at
30 April
2005 |
|
Long term rate
of return
expected at
30 April
2004 |
|
Value at
30 April
2004 |
|
Long
term rate
of return
expected at 23
December 2003 |
|
Value
at 23
December
2003 |
|
| |
% |
|
£’000 |
|
% |
|
£’000 |
|
% |
|
£'000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Equities |
7.5 |
|
9,626 |
|
7.5 |
|
8,834 |
|
7.5 |
|
8,848 |
|
| Bonds |
4.7 |
|
1,179 |
|
4.9 |
|
1,085 |
|
4.9 |
|
1,170 |
|
| Insurance policy |
5.0 |
|
1,256 |
|
5.0 |
|
1,193 |
|
5.0 |
|
1,173 |
|
| Other |
3.75 |
|
751 |
|
3.75 |
|
684 |
|
3.75 |
|
489 |
|
| Total market value of assets |
|
|
12,812 |
|
|
|
11,796 |
|
|
|
11,680 |
|
| Present value of scheme liabilities |
|
|
(21,979) |
|
|
|
(20,537) |
|
|
|
(20,199) |
|
| Deficit in the scheme |
|
|
(9,167) |
|
|
|
(8,741) |
|
|
|
(8,519) |
|
| Related deferred tax asset |
|
|
2,750 |
|
|
|
2,622 |
|
|
|
2,555 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net pension liability |
|
|
(6,417) |
|
|
|
(6,119) |
|
|
|
(5,964) |
|
i_Analysis of amount charged to operating profit in
respect of defined benefit scheme:
| |
Year
to
30 April 2005 |
|
Period to
30 April 2004 |
| |
£’000 |
|
£’000 |
| |
|
|
|
| Current service cost |
676 |
|
226 |
| Past service cost |
– |
|
– |
| |
|
|
|
| Total operating charge |
676 |
|
226 |
ii_Movement in deficit during the period:
| |
Year
to
30 April
2005 |
|
|
Period
to
30 April
2004 |
|
| |
£'000 |
|
|
£'000 |
|
| |
|
|
|
|
|
| Deficit in scheme brought forward |
(8,741) |
|
|
(8,519) |
|
| Movement: |
|
|
|
|
|
| Current service cost |
(676) |
|
|
(226) |
|
| Contributions |
479 |
|
|
149 |
|
| Other finance cost |
(361) |
|
|
(105) |
|
| Actuarial gain/(loss) |
132 |
|
|
(40) |
|
| |
|
|
|
|
|
| Deficit in scheme
carried forward |
(9,167) |
|
|
(8,741) |
|
iii_Analysis of the amount charged to other finance
cost:
| |
Year
to
30 April
2005 |
|
|
Period
to
30 April
2004 |
|
| |
£'000 |
|
|
£'000 |
|
| |
|
|
|
|
|
| Expected return on pension scheme
assets |
813 |
|
|
261 |
|
| Interest on pension
scheme liabilities |
(1,174) |
|
|
(366) |
|
| |
|
|
|
|
|
| Net finance
cost |
(361) |
|
|
(105) |
|
|
 |
