Directors of the National Exhibition Centre have revealed a £3.2 reduction in pension liabilities after closing the final salary pension scheme.
Accounts filed at Companies House show the saving after the NEC Group agreed with employees last year to close the defined benefits scheme to future accruals.
At the time the accounts were drawn up, the group’s pension deficit had fallen to £13.6 million, compared to £39.4 million at the end of the 2010 financial year.
NEC Group chief operating officer John Hornby said the £3.2 million curtailment gain had made a small change to the overall deficit, which the company is working towards eradicating.
He said the changes to the pension scheme, which affected nearly 360 workers and came into force in June 2010, delivered a fairer basis of pension provision across all employees, and helped the company manage pension risk.
Mr Hornby added: “Over time our objective is to manage the deficit down to zero, or even a small surplus, but that will take years to deliver that.
“As with everyone else, it is a volatile position when it comes to pensions.
“We have a long-term recovery plan which involves us paying a certain amount a year to the pension, and we manage it just as we manage any other financial risk.”
The Post revealed in July that the NEC Group – which includes catering business Amadeus and national ticketing agency The Ticket Factory as well as four exhibition and events venues – reported a rise in operating profit to £29.4 million.
Accounts filed at Companies House show revenue from continuing operations increased by £29.4 million in 2011, to £122.8 million.
It’s pre-tax profits rose from £2.7 million in 2010 to £4.4 million last year.