€10.2m deficit in ICI Ireland pension funds

Conor Keane, Business Correspondent

The accounts filled under the name of ICI Ireland Limited and Subsidiaries show that the total market value of the pension schemes' assets was €20m as of December 31, 2002, down from €25.7m a year earlier.

However, the value of the schemes' liabilities rose to €30.2m in 2002 from €25.3m in 2001, leaving a €10.2 million deficit at the end of 2002.

A spokesperson for ICI Ireland said the accounts relate to the company as a whole, and added that they did not consider it "appropriate to comment further".

Because of a fall in the value of shares the pension schemes of a large number of companies are in deficit. Surprisingly, the value of the pension funds' property holdings dropped from €2.5m in 2001 to €1.75m in 2002. The accounts show that there are three pension schemes operated by the company; Dulux Paints staff scheme, Dulux Paints wage earners scheme and Quest International staff scheme.

The accounts show that because of a €1.14m deferred tax payment the net pension deficit comes to €9.06m. In December 2001 the was a net surplus of €318,000 in the schemes.

Staff numbers at the company rose by five to 266 in 2002 while total payroll costs rose to €13m from €12.8m.

Turnover increased by less than 2% to €83 million in 2002 but pre-tax profits rose by 12.8% to €11.673m.

Despite the increase in profits the company paid less tax in 2002, paying €2.04m compared to €2.99m in 2001, the accounts show.

The company has net stocks of €9.6m including €6.4m in finished goods, the accounts indicate.

The company also has loans and borrowings of €13.2m, down from €13.9m a year earlier.

The accounts show the company made a exceptional profit of €1.26m in 2002 on the sale of land and made a profit of €1.4m in 2001 on a similar transaction.

The fees of auditors KPMG fell from €56,000 in 2001 to €46,000 in 2002.

The company also made a royalty payment of €2.18m in 2002, up from €2m a year earlier.