15 Deferred Consideration Receivable
On 27 February 2013 the Group sold its Free From business to Genius Foods for a total value of £21,257,000, £3,000,000 of which has been deferred and is payable 27 February 2015. Deferred consideration is shown as a current asset in the Consolidated Statement of Financial Position.
£000
Balance at 29 June 2013 Unwinding of discount Balance at 28 June 2014
16 Pension Schemes A number of companies within the Group operate defined contribution pension schemes with one company also operating a defined benefit scheme.
Defined Contribution Scheme Te Group made contributions in respect of its defined contribution pension arrangements of £688,000 (2013: £648,000).
Defined Benefit Scheme Te Group’s defined benefit scheme is the Memory Lane Cakes Pension Scheme, which is a separately administered plan. At the financial year end 2014, the scheme had no active members accruing benefits (2013: nil), 227 deferred pensioner members (2013: 240) and 200 pensioner members (2013: 189).
Te scheme was closed to future accrual on 31 May 2010. Te assets of the schemes are held separately from those of the company. Te amounts in the Financial Statements for the 52 weeks ended 28 June 2014 relating to defined benefit pension are based on a full actuarial valuation dated 31 December 2012, which was updated at the end of the financial year 2013.
A £70,834 contribution was paid during the financial year 2014 from Memory Lane Cakes (2013: £65,000). Te Group’s contribution has been agreed based on the outcome of the full actuarial valuation dated 31 December 2012. Te valuation of the Scheme on an equity/bond basis and projected unit method, showed that there was a deficit of £1,910,000 equivalent to a 10% deficit of liabilities over assets. Te valuation was conducted by a qualified independent actuary. Tis deficit is payable at a rate of £100,000 per annum until September 2020, a full valuation is due by 31 December 2015 which will challenge the appropriateness of this recovery plan taking into consideration the deficit recovery contributions and actual returns realised on the pension scheme assets.
A revised version of IAS 19 Defined Benefit Plans applies to accounting periods on or after 1 January 2013. Te year to 28 June 2014 is the first year end for which the revised standard will apply, comparatives have been restated under the new standard.
During the year over 90% of the plan assets previously held in a target return fund targeting three month LIBOR +3% pa were moved to two diversified growth funds which targets 6 month LIBOR +5% and CPI + 5%. Tis move followed a review of the investment strategy. Te expected return on cash balances held is based on the current Bank of England base rate rather than long-term deposit rates as cash is held to cover short-term requirements.
Te full actuarial valuation differs from the financial year end valuation deficit of £3,630,000 (2013: £2,843,000). No allowance is made in the financial year end valuation for any outperformance expected from the Scheme’s actual asset holding over and above high quality corporate bonds. Te weighted average expected return is 6.3% compared to the expected return in the year end valuation of 4.3%.
2014 £000
Fair value of plan assets
Present value of defined benefit obligations Deficit recognised
Te fair value of plan assets and the return on those assets were as follows:
2014 £000
Equities/target return fund Property Cash
Fair value of plan assets Actual return on plan assets
17,973 1,755 13
19,741 1,789
2013 £000
17,072 1,573 83
18,728 1,158
19,741
(23,371) (3,630)
Restated 2013 £000
18,728
(21,571) (2,843)
2,745 150
2,895
45
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