Atlas Ward switches pension assets into bonds

The deficit in the Atlas Ward Holdings pension scheme now stands at £4.5m, representing a rise of £1.2m over the previous figure.

Atlas Ward was bought by Severfield-Rowen in March 2005 for £1.2m, with Severfield also taking on its bank overdraft of £3.6m. The pension scheme was also closed.

Latest accounts from Atlas Ward Holdings (nine months to 31 December 2005) report that the pension scheme’s actuarial valuation in the early part of the period puts the assets at £12m, representing only 68% of the sum need to cover accrued benefits.

When assessed to accounting standard FRS17 at the end of the year, the assets’ rise in value to £13.4m (previous year’s figure £12.1m) was overshadowed by the increase in liabilities to £19.8m (previous year: £16.9m).

During the nine-month period, there has been a massive transformation of the pension fund’s investment policy.

As a result, it now holds equities worth £2.8m and bonds to the tune of £10.5m whereas at the end of the previous financial period, there were no bonds at all, the scheme’s entire £11.9m assets at that time being in the more volatile equity sector.