TT Electronics PLC (LSE:TTG), the components group, spiked 10% to 160.8p after completing a buy-in of all its UK-defined pension liabilities.
The move, according to a statement, gives the company an immediate £6mln cash flow benefit.
Additionally, TT said it will not be making any future contributions to the pension scheme.
As a result, “there will be an immediate benefit to the group’s current year cash flow of £6mln and an equivalent annual improvement to free cash flow in future years.”
"This transaction is an excellent outcome for our defined benefit pension scheme members, TT and our shareholders,” said chief financial officer Mark Hoad.