AN £800m cash boost has been made to shore up Fujitsu’s UK and Irish pension schemes.
The investment has been made by the UK operation’s Japanese parent company, and follows a 12-month project between the two parties, investors, the schemes’ trustees and the Pensions Regulator.
The deal, which takes a big chunk out of the three defined benefit schemes’ £1.6bn liabilities, crucially frees up cash for the UK business to invest in growth.
Fujitsu UK&I chief financial officer Steve Clayton (pictured) told Financial Director that the move had “lanced the boil” of the deficit, and the company could now move forward with cash contributions reduced by £75m a year into the scheme, from 1 April 2013.
The asset structure behind the schemes is also being de-risked to reduce the chance of further volatility in the pension scheme valuation.
“We were keen to make sure a more sustainable solution was put in place.”
The freed-up funds will be reinvested into new products and services, and acquisitions are also being considered.
What can you do to ensure your employees know the company policy and stick to it? Hear from other CFOs and experts in our free-to-view video
The quality of reporting by the UK’s top public companies has slowed despite greater economic uncertainty and increased investor demands for better disclosure, new research has found
Boards must step up their focus on corporate culture and work to foster longer-term goals if they want to win back public trust and ensure sustainable businesses, the UK accountancy regulator said
MPs have launched an inquiry on corporate governance, focusing on executive pay, directors’ duties, and the composition of boardrooms, including worker representation and gender balance in executive positions