The combined pension deficit for Reach Group’s defined benefit (DB) pension schemes fell by £7.5m in the first half of 2023 to £106.4m, after increases in the discount rate and group contributions were partially offset by reductions in asset values.

The group's half-year report revealed that the 2019 triennial valuations have been agreed for five of the schemes, with one scheme, the MGN Pension Scheme, outstanding, although the group is working with both the trustees and The Pensions Regulator on this work.

In total, the group operates six DB pension schemes: the MGN Pension Scheme, the Trinity Retirement Benefit Scheme, the Midland Independent Newspapers Pension Scheme (MIN Scheme), the Express Newspapers 1988 Pension Fund (EN88 Scheme), the Express Newspapers Senior Management Pension Fund (ENSM Scheme) and the West Ferry Printers Pension Scheme (WF Scheme).

However, some of these schemes are not expected to require further funding after a number of recent bulk purchase annuity deals.

In particular, the group confirmed that the trustees of the ENSM Scheme purchased a bulk annuity at no cost to the group in 2022, meaning that all pension liabilities are covered by annuity policies and no further funding is expected.

In addition to this, the group paid £9.6m to the WF Scheme in 2021, which, together with the payment of £5m made in 2020, enabled the trustees to purchase a £120m bulk annuity, meaning that the scheme now has all pension liabilities covered and no further funding is expected.

In total, group contributions in respect of the remaining four DB pension schemes in the first half were £23.3m, up from £23m in H1 2022.

However, contributions in 2023 are expected to hit £55.8m under the current schedule of contributions for the four schemes, with a further £32.5m of group contributions due to be paid in the second half of the year.

In particular, the group confirmed that the 2019 funding valuation of the MIN Scheme was agreed after the year end on 3 February 2023, showing a deficit of £73.8m.

The group paid contributions of £2.9m to this scheme in the first half of 2023, and also agreed to pay £6.9m pa from 2023 to 2025, £7.8m pa in 2026 and 2027 and £8.6m pa in 2028 and 2029.

The 2019 funding valuation of the Trinity Scheme, meanwhile, was agreed on 21 December 2022, showing a deficit of £57.2m.

As part of the valuation, the group paid contributions of £2.2m to this scheme in the first half of 2023 and agreed an unchanged schedule of contributions of payments of £5.2m pa from 2023 to 2027.

Commenting in the half-year report, Reach chief executive, Jim Mullen, stated: "We continue to execute on our Customer Value Strategy, which is driving higher quality, more sustainable digital revenues.

"Digital growth for the period has been materially affected by lower referral traffic across the sector, particularly following Facebook's deprioritisation of news content, which has driven page view declines for publishers.

"In spite of this and continued macroeconomic uncertainty, our focus on customer data means we're driving more diversified, higher performing revenues, with greater exposure to directly sold, higher value advertising.

"We expect full year profits for 2023 to be in line with the current market consensus. The business has a strong balance sheet which supports long term growth, dividend and pension commitments. "

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