Recruitment consultant Hays has reported a decrease in its deficit of £44.4m in the year to 30 June 2016.

As a result, the group’s pension deficit under IAS19 accounting standards is £13.3m compared to £58.7m at 30 June 2015.

It said this was primarily due to an increase in asset values, a decrease in the inflation rate and favourable changes in experience and demographics assumptions following the 2015 triennial actuarial valuation, partially offset by a decrease in the discount rate.

During the year the company contributed £14.4m of cash to the DB scheme compared to £14m in 2015, in line with the agreed deficit recovery plan.

This is because the 2015 triennial valuation quantified the actuarial deficit at c.£95m and the recovery plan comprises an annual payment of £14m from July 2015 with a fixed 3 per cent uplift per year, over a period of just under 10 years. The scheme was closed to future accrual in June 2012.

The net interest charge on DB pension scheme obligations was £3.9m (2015: £3m) and the Pension Protection Fund levy was £0.3m (2015: £0.5m).

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