Transfer of Pension Scheme Liabilities

Sanderson Design Group PLC (AIM: SDG), the luxury interior design and furnishings group, announces an agreement with the Trustees of the Abaris Holdings Limited Pension Scheme ("Abaris Scheme") in which the Group has paid £2.3 million in cash to enable the transfer of the scheme's risks to an insurer under a buy-in insurance policy investment.

In addition to the agreed cash amount, which was funded from the Group's existing resources, the insurer has also received the Abaris Scheme's existing investments as part of the buy-in investment. Scheme administration and advisory costs, estimated to be approximately £700,000 in total, will continue to be paid by the Group over the life of the pension scheme but the core financial and demographic risks associated with funding member benefits has transferred to the insurer. The ongoing costs will not impact the Group's adjusted profit before tax.

The agreement means that the Group will no longer be required to fund shortfalls to the Abaris Scheme, which might arise from changes in market conditions.

The Abaris Scheme, a defined benefit scheme with 59 retirees and 60 deferred participants, is the smaller of two legacy pension schemes operated by the Group. It has been closed to new entrants and future defined benefit service accrual since 2005.