Engineering research consulting

Updated: 15th October 2018

Engineering research consulting

Background: The Trustees of the company’s smaller defined benefit pension scheme with assets of c. £16 million were seeking to establish the ability of the scheme employer to meet deficit contributions to the scheme and to what extent contingent asset support might be available recognising that the employer was a not for profit organisation and the parent company of a group structure including trading activities owned by charities none of which were participating employers.

Instructions: Our instructions were to carry out a covenant assessment of the scheme employer identifying its relationships with other group entities and the risks they posed to the scheme and opportunities they might also provide for additional cash and contingent assets in support of the scheme.

Action: We carried out a covenant assessment reviewing recent financial performance and future projections assessing the level of free cash flow available going forward and reviewed the group structure identifying for the Trustees the risks and opportunities arising from the employer’s relationship with other group members. We also identified some proposed sales of surplus assets which would give rise to significant cash receipts in excess of group requirements which therefore could be available to eliminate the current deficit in its entirety.

Follow up: Although the covenant assessment was adequate in relation to the size of the deficit we recommended the Trustees consider seeking a charge over the surplus assets pending their disposal and seeking agreement from the employer to eliminate the deficit upon realisation of the assets to be disposed of.


Network of Over 100 UK Offices

Find your local Begbies Traynor Group office and speak to an adviser today.

Find your Local Office
0800 063 9221

Call our Confidential Advice Line. Calls to this number are free of charge.

Call us now...
Request a Meeting

We invite you to come and discuss your enquiry with us at your convenience.

Request a meeting...
0800 464 0871

Call our Confidential Advice Line. Calls to this number are free of charge.

Call us now...
Request a Meeting

We invite you to come and discuss your enquiry with us at your convenience.

Request a meeting...
0161 837 1700

Call our Confidential Advice Line. Calls to this number are free of charge.

Call us now...
Request a Meeting

We invite you to come and discuss your enquiry with us at your convenience.

Request a meeting...
Begbies Traynor Group plc, announces that it has completed the acquisition of CVR Global LLP
CVR is a leading independent firm of insolvency practitioners, forensic accountants and experts in other related complementary disciplines.
Read More →
 
Coronavirus pushes financially distressed companies over the half-million mark
Number of businesses in significant distress stands at 509,000 – the highest number measured by the Red Flag Alert research
Read More →
 
BTG Advisory accelerates growth with appointment of four new partners to its London office
BTG Advisory, the boutique advisory arm of Begbies Traynor Group announces the appointment of four new partners to its Canary Wharf office
Read More →
 
Eighty jobs saved with £1m sale of engineering business
South Yorkshire company Newburgh Precision rescued through administration
Sale enables 75-year-old business to continue trading
Read More →
 
Join thousands of professionals by signing up for our updates
Analysis and Opinion from our Partners
Top Industry News
Register Now →
 

Advice you can trust

We are accredited by the following industry leading organisations

Insolvency Practitioners Association Institute of Chartered Accountants in England and Wales R3: Association of Business Recovery Professionals ICAEW Business Advice Service Turnaround Management Association ICAS | The Institute of Chartered Accountants of Scotland

Contact the Begbies Traynor Group team

or Find your Nearest Office

Here at Begbies Traynor Group we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Processing...

This site uses cookies to monitor site performance and provide a more responsive and personalised experience. You must agree to our use of certain cookies. For more information on how we use and manage cookies please read our PRIVACY POLICY