Background

  • Non audit client (construction industry)
  • Actuarial valuation showed deficit of £3m, net assets of £6m
  • Draft Recovery Plan required £400k per annum employer contributions
  • Employer indicated could only afford £100k per annum which only just covered PPF levy

We were asked by the trustees to conduct an independent review of the company’s finances to determine whether a higher level of contributions could be paid and to assist with employer negotiations.

Our review commenced immediately and focused on up to date management accounts and trading and cashflow forecasts. Although the company was experiencing cash flow difficulties, the nature and timing of its contract work and a deferral of capital expenditure allowed us to suggest a more practical Recovery Plan. This better suited the employer’s circumstances and improved on the initial proposal to fund the deficit.