47153 AG Barr Annual Report 2025 AW4 SQ WEB - Flipbook - Page 186
A.G. BARR p.l.c. Annual Report and Accounts 2025
N OTE S
TO TH E
ACCO U NT S
CO N TI N U ED
26. Retirement benefit obligations continued
The movement in the defined benefit obligation in the year to 28 January 2024 was as follows:
Group and Company
Fair value of
plan assets
£m
Present value of
obligation
£m
Total
£m
At 29 January 2023
79.3
(76.9)
2.4
Interest income/(expense)
3.4
(3.3)
0.1
Total cost recognised in income statement
3.4
(3.3)
0.1
Remeasurements
- changes in demographic assumptions
- changes in financial assumptions
- experience
- actuarial return on assets excluding amounts recognised in net interest
–
–
–
(6.0)
2.4
5.7
(1.4)
–
2.4
5.7
(1.4)
(6.0)
Total remeasurements recognised in other comprehensive income
(6.0)
6.7
0.7
Cash flows
Employer contributions
Benefits paid
–
(4.2)
–
4.2
–
–
Total cash outflow
(4.2)
4.2
–
At 28 January 2024
72.5
(69.3)
3.2
This table excludes the Company contribution made to the 2008 Scheme through the asset-backed funding arrangement as described below and reconciled in the table above.
Asset-backed funding arrangement
During the year to 26 January 2014, the Company established the A.G. BARR Scottish Limited Partnership (the Partnership) and through the Partnership has entered into
a long-term pension funding arrangement with the 2008 Scheme.
Under this arrangement certain property assets were transferred into the Partnership and are being leased back to A.G. BARR p.l.c. under a 21-year lease agreement,
generating an original income stream of £1.1m per annum for the 2008 Scheme, increasing annually in line with inflation.
The Partnership is controlled by A.G. BARR p.l.c. and its results are consolidated by the Group. The value of the properties transferred into the Partnership remains included
on the Group and Company’s balance sheet at carrying values at the date of transfer with the Group and Company retaining full operational control over these properties.
At the end of the term of the relevant lease, or earlier if the 2008 Scheme becomes fully funded to the extent that the members’ benefits can be secured with an insurance
company, the Company has the option to repurchase the properties in the Partnership for an agreed fixed price.
A “structured entity” is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting
rights relate only to administrative tasks and the relevant activities are directed by means of contractual arrangements. As outlined above, during a prior year, certain freehold
properties were transferred to a limited Partnership (a structured entity) established by the Group, the main purpose of which is to lease these properties to a Group company
and, as a result, to provide the Group’s 2008 Scheme with a distribution of profits in the Partnership.
The distribution is subject to discretion exercisable by the Group in certain circumstances; however, given that the Group has the ability to control the limited Partnership by making
an additional contribution into the 2008 Scheme, it is the view of the directors that the Group controls the limited Partnership and, therefore, it is treated as a consolidated entity.
The carrying value of the properties sold to the Partnership and leased back to the Company remain included on the Group and Company’s balance sheet and continue
to be depreciated in line with the Group and Company’s accounting policies with the Group and Company retaining full operational control over these properties.
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