(Reuters) - Shares of Britain's Premier Foods (LON:PFD) rose to a nearly 13-year high on Wednesday after the Mr Kipling maker reached an agreement with the trustee of its pension scheme to suspended pension deficit payments from next month.
The company, which makes a variety of products ranging from plain flour to cooking sauces and quick meals, will benefit from 33 million pounds ($42 million) increase in free cash flow for the financial year ending in March, 2025.
Shares in the company surged 10% to 152.8 pence at 0827 GMT, marking the highest level seen since June 2011.
"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," Chief Finance Officer Duncan Leggett said in a statement.
The company will suspend the pension deficit payments from April 1.
($1 = 0.7860 pounds)