International chemicals company ICI saved £17 million through working capital management (WCM) schemes last year, easily covering the £10 million increase in its pension fund requirements.
CFO Tim Scott talked through ICI’s annual results today, explaining that as a result of the company’s commitment in 2003 to pay £62 million a year into its pension fund, costs in 2004 rose by £10 million.
But the company’s WCM plan, which has seen it reduce its proportion of operating working capital to annualised sales from 19% in 1998 to 8% last year, saved it £17 million in 2004.
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