As Britain's pensions crisis escalates, engine manufacturer Rolls-Royce is the latest company to announce plans to address the problem, according to the company's annual results statement.
Although the company was able to report a 49% rise in underlying annual pretax profits to GBP 584 million, it admitted to a GBP1.15 billion deficit in its pensions scheme.
The company’s annual results release stated: The deficit on the group’s pension schemes, after taking account of deferred taxation, was GBP1,154 million (2004 GBP1,002 million). The group introduced significant changes, in 2003, to reduce the pension scheme deficit and will review further actions in the light of the actuarial review of the main scheme, which is due this year, and the changing regulatory environment.
The company’s admission coincides with ICI’s announcement that its pensions deficit had escalated to GBP1.5 billion.