WHILE MOST pension funds in Ireland strain under the weight of their deficits following the collapse of property and stock market investments, the Arnotts staff scheme continues to ring up hefty surpluses.
Accounts for Arnotts Holdings Ltd, which were filed recently, show the staff pension fund had a surplus of €90.4 million at the end of January 2008.
Admittedly, this was down from €111 million a year earlier and came before the financial sector crash, but it was sufficient for the trustees to rubber-stamp a distribution of €59.1 million equally between the scheme members and Arnotts Ltd last year. The company received its €29.5 million windfall on March 25th, 2008. This money will have come in handy last year for Arnotts’ backers Richard Nesbitt and Niall McFadden.
Like all retailers, the department store is having to adjust to a steep decline in consumer spending. Arnotts Holdings posted an operating loss of €2.4 million in the year to January 2008 and the picture is unlikely to have brightened in the interim.
It also has to service a hefty debt – €243 million at the end of the reporting period – while progressing plans to build the Northern Quarter. Hats off to the trustees of the Arnotts staff pension fund. Brian Lenihan could do worse than have them in for lunch.
