The security printer said the results of the latest 5 April 2021 actuarial valuation show a reduced scheme deficit of £119.5m. This compared with the schedule of deficit repair contributions, agreed with the trustee in May 2020, totalling approximately £177m from April 2021 to March 2029.

As a result of this new valuation, the scheme actuary confirmed that the deficit can be funded through contributions remaining flat at £15m per annum from April 2022 to March 2029.

The company and the trustees have therefore agreed a new schedule that avoids the ‘step up’ in contributions from £15m to £24.5m for the period April 2023 to March 2029.

The company will make deficit repair contributions of £15m annually during that period. In aggregate, this agreement will result in a £57m reduction in cash payments to the scheme by De La Rue.

In a statement released today (3 March), De La Rue said: “To enable the bringing forward of the actuarial valuation, the relevant De La Rue group companies that are guarantors to the group’s principal Bank Facility Agreement have entered into a guarantee with the trustee that provides the scheme with an equal ‘pari passu’ guarantor recourse ranking to the Bank Facility Agreement.

“Additionally, De La Rue has committed to engage with the trustee should the company be considering any significant transactions that may potentially lead to material detriment to the scheme and the trustee will have a consent right where De La Rue incurs priority financial indebtedness beyond that permitted by its principal banking facilities (as they may be refinanced or replaced from time to time).

“Finally, De La Rue has confirmed its support in principle to both medium and long-term strategic objectives of the trustee in terms of partial buy-in / full buy-out of the scheme, subject to appropriate pricing and commercial terms.”

De La Rue CEO Clive Vacher added: “I am delighted that we have reached agreement with the trustee that continues to honour the commitments we made back in 2020 to pay off the scheme deficit by 2029, and also introduces further substantial protections for members of the scheme.

“At the same time, a £57m reduction in cash contributions to the scheme will clearly benefit the group’s projected future cash generation.”

De La Rue’s share price were up by 3.6% in early trading this morning to 115p but had fallen back to 111.40p at the time of writing. Its share price plunged in January after a profit warning. 

Earlier this year De La Rue announced that it had won a big authentication contract with the Oman Tax Authority.