Marks & Spencer plugs huge pension shortfall

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The injection will be funded through a bond issue that should see the clothes and food retailer’s pension fund deficit fall from £585m to £185m.

It has also announced that it will adopt FRS17 (retirement benefits) for the year ending 3 April 2004. The pre-tax charge for its adoption is estimated to be £134m.

Marks & Spencer group FD Alison Reed said: ‘Marks & Spencer is committed to ensuring the defined benefit pension scheme is adequately funded. By taking this action we are providing reassurance to the scheme members.’

Its latest share price is 299.25p, a 2% increase from its opening price of 293.25p.

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