Long Term Incentive Plan Awards
25 May 2023
Lords, a leading distributor of building materials in the UK, announces that the Group’s Remuneration Committee has conditionally granted nil cost options over 4,034,125 new ordinary shares of 0.5 pence each in the Company (‘Ordinary Shares’) under the terms of the Company’s Long Term Incentive Plan (the ‘LTIP Awards’).
The LTIP Awards will be issued to divisional executives and will replace the Annual Deferred Bonus Plan incentive arrangements which has been in place since the Group’s IPO. The Group’s Remuneration Committee, recognising the importance of ensuring that all senior employees are aligned closely with the success of the Group in the medium and long-term, has reviewed Lords’ existing incentive arrangements and determined the LTIP Awards will provide a more targeted incentive for divisional managers given the LTIP Awards will relate to performance targets of the specific business units in which the individual operates. No board members or persons discharging managerial responsibilities (‘PDMRs’) will be made eligible for these specific LTIP Awards and no further new awards will be made under the Annual Deferred Bonus Plan.
The performance targets attached to the LTIP Awards are based on the earnings before interest, tax, depreciation, and amortisation (‘EBITDA’) of the awardee’s respective division achieving a minimum growth rate of 25% over a three year performance period from January 2023 to December 2025 (the ‘Minimum Target’). The growth rate targets account for EBITDA growth stemming from acquisitions through a calculation factoring in a cost of capital charge. The Awards will not vest if the division performs below the Minimum Target. LTIP Awards will begin to vest upon achieving the Minimum Target with the full LTIP Award being made if a division’s EBITDA growth rate of 75% is achieved over the three year performance period, with the total number of LTIPs Award vesting between those two points on a straight-line basis.
The vesting of the final number of LTIP Awards granted after the three year performance period will be split with 50% of the final LTIP Awards vesting and be exercisable anytime from May 2026, with a further 25% of the final LTIP Awards vesting from May 2027, and the remaining 25% of the final LTIP Awards vesting from May 2028.
The Remuneration Committee has discretion to amend these terms to ensure that any performance targets remain appropriate.
FOR FURTHER ENQUIRIES:
|Lords Group Trading plc||Via Buchanan|
|Shanker Patel, Chief Executive Officer||Tel: +44 (0) 20 7466 5000|
|Chris Day, Chief Financial Officer and Chief Operating Officer|
Cenkos Securities plc (Nominated Adviser and Joint Broker)
Tel: +44 (0)20 7397 8900
|Ben Jeynes / Max Gould / Dan Hodkinson (Corporate Finance)|
|Alex Pollen (Sales)|
Berenberg (Joint Broker)
Tel: +44 (0)20 3207 7800
|Matthew Armitt / Richard Bootle / Detlir Elezi|
|Tel: +44 (0) 20 7466 5000|
|Henry Harrison-Topham / Jamie Hooper / Abby Gilchrist||[email protected]|
Notes to editors:
Lords is a specialist distributor of building, plumbing, heating and DIY goods. The Group principally sells to local tradesmen, small to medium sized plumbing and heating merchants, construction companies and retails directly to the general public. The Group operates through the following two divisions:
- Merchanting: supplies building materials and DIY goods through its network of merchant businesses and online platform capabilities. It operates both in the 'light side' (building materials and timber) and 'heavy side' (civils and landscaping), through 26 locations in the UK.
- Plumbing and Heating: a specialist distributor in the UK of plumbing and heating products to a UK network of independent merchants, installers and the general public. The division offers its customers an attractive proposition through a multi-channel offering. The division operates over 16 locations enabling nationwide next day delivery service.
Lords was established over 35 years ago as a family business with its first retail unit in Gerrards Cross, Buckinghamshire. Since then, the Group has grown to a business operating from 42 sites. Lords aims to become a £500 million turnover building materials distributor group by 2024 as it grows its national presence.
Lords was admitted to trading on AIM in July 2021 with the ticker LORD.L. For additional information please visit www.lordsgrouptradingplc.co.uk.