Pension Scheme Valuation Update

Mpac Group plc, a global leader in high-speed packaging and automation solutions, is pleased to announce that it has concluded negotiations with the Trustee of the legacy 'Molins U.K. Pension Fund' (the "Trustee") in relation to the IAS 19 triennial actuarial valuation and associated schedule of contributions, undertaken on 30 June 2024.

The result of the 30 June 2024 valuation concluded with the prior actuarial deficit from June 2021 of £28.4m being updated to an actuarial surplus of £21.1m on a technical provisions basis, representing a funding level of 107.8%.

The agreed schedule of contributions to the scheme continues, with the contributions being directed to an escrow arrangement from January 2025. All contributions cease should the funding level reach 110%, based upon an annual funding test. The escrow arrangement minimises the risk that the scheme becomes overfunded.

The Trustee and the Group are investigating options for the transfer of the scheme to a third party and will provide updates as appropriate.

Will Wilkins, Chief Financial Officer, commented:

"I am pleased to report that the recovery plan for the scheme, which has delivered almost £50m of funding improvement in three years, has eliminated the pension deficit and provided the basis for the Trustee and the Group to begin the assessment for the transfer of the scheme to a third party. There remains a significant amount of work to be done to ensure the best outcome for both scheme members and the Group, but there are reasons to be confident that, with continued sound governance, management of the scheme and cooperation between the Trustee and the Company, we will meet our long-term objective of decoupling the scheme from the Company.''