MARKET TALK: Smiths Grp Funding Plan "Slightly Novel" -Arden

7th Jul 2010 07:58

0658 GMT [Dow Jones] Smiths Group's (SMIN.LN) new funding plan for its two major U.K. pension schemes is "slightly novel" because it allows Smiths keep its contributions in an escrow account, which means it will not immediately see money taken off its balance sheet, says Arden Partners analyst Chris Thomas. Thomas notes, though, that Smiths could see "quite significant" cash outflows if its pensions schemes' funding positions show deficits in the near future. But says it's too early to say how the pensions schemes' funding position will move in the next few years, but "one thing going against them (Smiths) is the longevity assumption (on pension members)." Keeps neutral rating. Shares closed at 1077p Tuesday. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 07, 2010 02:58 ET (06:58 GMT)