Dixons Carphone DB scheme deficit rises by £71m

Retail group Dixons Carphone’s defined benefit pension scheme deficit has increased by £71m year-on-year to total £585m, as of 26 October 2019.

Its H1 2019/20 Interim Results attributed the deficit increase to changed in discount rates following bond yield returns, which was offset by decreases in inflation rate assumptions and increased values of underlying assets.

The company also made £46m of pension scheme contributions during the period and £52m in dividend payments.

The contributions were paid in line with the agreement with the trustee to pay £46m a year until 2028/29, with a further payment of £25m in 2029/30.

DB scheme assets totalled £1,324m, up by around £180m year-on-year, while scheme liabilities increased by around £350m to £1,909m during the same period.

The company confirmed there were actuarial losses on the scheme totalling around £46m.

Commenting on the report, Dixons Carphone group chief executive, Alex Baldock said: "We're on track to deliver what we promised this year, and with our longer-term transformation.

“In a tough UK electricals market, we've gained significant share, and strengthened our market leadership.

"Our planned investments in the colleague and customer experience have played a big part in this resilient performance, demonstrated by sharply increased customer satisfaction scores.

“Our big international business also registered market share gains in every territory, with solid sales and margin improvements.

“Good progress, yes, but all of us at Dixons Carphone are shareholders, and conscious that our business is still nowhere near its full potential. We're determined to realise that potential, and confident we're on the right path to do so."

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