Marshalls, a manufacturer of sustainable solutions for the built environment, has reported an improved surplus of £24.1m for its defined benefit (DB) pension scheme in 2024, up from £11m in 2023.

The group's annual results showed that, as of 31 December 2024, the value of the scheme's assets decreased to £228.3m from £250.4m in 2023, while scheme liabilities fell to £204.2m from £239.4m in 2023.

Additionally, the total gain recorded in the Statement of Comprehensive Income net of deferred taxation was £10m.

The principal driver of the actuarial gain was an increase in the AA corporate bond rate used to discount the scheme's liabilities, which reduced the current value of liabilities.

The last formal actuarial valuation of the DB pension scheme was undertaken on 5 April 2021 and resulted in a surplus of £24.3m, on a technical provisions basis, which was a funding level of 107 per cent.

A triennial valuation as of 5 April 2024 is currently underway and, based on information to date, the company said it does not expect cash contributions to be payable following its finalisation.

The company recorded a £0.3m expense in 2024 related to its pension scheme, which is included in its finance costs.

This expense reflects the net interest expense of the DB pension scheme, after deducting any amounts the company recovers for scheme administration.

This figure was higher in 2023 at £1.6m due to a one-off, non-cash, technical accounting charge of £1.4m due to a resolution of a review into historical benefit issues. 

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