Johnston Press rallies on pension deficit reduction

Johnston Press said the findings of the study it carried out to assess the liabilities of its pension plan are expected to reduce the present value of the media group’s plan by around £50m.

In addition, the company said that following a change to the scheme rules agreed by the trustees, it will now be entitled to participate in any surplus when the scheme closes.

As a result, an additional liability of £3m at 3 January 2015 will not be required.

Johnston said the adjustments, taken together, reduce the scheme deficit by some £53m from £90m.

The group said full details of the study and assumptions used in calculating the changes to the scheme deficit will be presented in the preliminary results for the 52 weeks to 2 January on 22 March.

Peel Hunt said: “This is almost the same as the market cap of JPR, and hence it is good news.”

At 0940 GMT, Johnston Press shares were up 13.6% to 41.48p.