Mr Kipling and Bisto owner Premier Foods is suspending deficit make-up payments to its pension scheme and instead will use the cash to fund its growth plans.

Premier said that it had reached a deal with its pension scheme trustees to suspend deficit payments from April 1, the start of its new financial year. The move will boost its cashflow for its 2024/25 financial year by £33million.

Chief financial officer Duncan Leggett said: “This suspension of pension payments substantially increases the free cash flow available to us and presents us with enhanced capital allocation options to deliver on our growth ambitions.”

Mr Kipling and Bisto owner Premier Foods is suspending deficit make-up payments to its pension scheme and instead will use the cash to fund its growth plans.

Premier said that it had reached a deal with its pension scheme trustees to suspend deficit payments from April 1, the start of its new financial year. The move will boost its cashflow for its 2024/25 financial year by £33million.

He added that depending on the results of its latest triennial actuarial valuation, Premier thinks it will no longer have to make any deficit payments after March 29, 2025.

Shore Capital analyst Darren Shirley said: “Premier Foods has undertaken considerable heavy lifting over the past decade in rebuilding its balance sheet and reducing what were onerous cash commitments to debt holders and pension schemes.”