Director/PDMR Shareholding

RNS Number : 5635T

Coats Group PLC

20 March 2023

 

20 March 2023

Coats Group plc

Director/PDMR Shareholding  

Notification of Transactions of Directors/Persons Discharging Managerial Responsibility and their Closely Associated Persons 

1	Details of the person discharging managerial responsibilities/person closely associated
a)	Name	Rajiv Sharma
b)	Position/status	Chief Executive Officer
c)	Initial notification/ Amendment	Initial notification
2	Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
a)	Full name of entity	Coats Group plc
b)	Legal Entity Identifier Code	2138003SPYWGAITNFY17
3	Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
a)	Description of the financial instrument, type of instrument Identification code	Share award constituting a right to acquire Ordinary shares of £0.05
b)	Identification code/ ISIN	GB00B4YZN328
c)	Nature of the transaction	Award of nil cost share options under the terms of the Coats Group plc Long Term Incentive Plan ("LTIP") as set out in the attached Appendix 1.
d)	Price(s) and volume(s)	Price(s)	Volume(s)
		Nil	1,477,678
e)	Aggregated information - Aggregated volume - Price	1,477,678 n/a
f)	Date of the transaction	17 March 2023
g)	Place of the transaction	London Stock Exchange, Main Market (XLON)

Enquiry details
Investors	Chris Dyett	Coats Group plc	[phone]
Media	Richard Mountain / Nick Hasell	FTI Consulting	[phone]

Appendix 1

Coats Group plc - 2023 Long Term Incentive Award - Performance Schedule

17 March 2023

Introduction

The following schedule sets out the performance conditions that will apply to the 2023 Coats Group plc Long Term Incentive award.  The performance period is 1 January 2023 to 31 December 2025.

Performance Measures & Weighting

The award has four performance measures and is weighted according to the current allocation. 

Measure	Weighting (% of total award)	Definition
Coats Group plc Earnings Per Share Compound Annual Growth (CAGR) in 2024	30%	The Compound Annual Growth (CAGR) in EPS achieved in the performance period.  The Board will consider the CAGR in Normalised EPS which is EPS, adjusted to exclude exceptional items such as property gains or losses and the impact of IAS19 charges (pensions finance).
Average Cash Conversion over 3-years (Cash)	20%	The average of the adjusted Free Cash Flow divided by normalised Attributable Profit for each of the three years in the performance period.  The adjusted Free Cash Flow is before deficit repair contributions to the UK pension scheme and after maintaining the company's asset base ie operating cash flow minus capital expenditures, adjusted for exceptional items such as property gains or losses.
Total Shareholder Return	30%	The total returns to shareholders which includes share price growth and ordinary dividend payments.  The performance condition is measured against a comparator group consisting of the FTSE250 minus investment trusts.
Sustainability	20%	Achievement of 4 equally weighted specific strategic Sustainability goals identified which are linked to the Company's Sustainability goals.
TOTAL	100%

Performance Targets and Vesting Schedule

EPS CAGR (adjusted if necessary)	Threshold	Mid	Maximum
EPS CAGR in the period from 2023-2025.  Measured from a base year in 2022	5%	10%	15%
Vesting (The proportion of the award for this measure that vests)	25%	62.5%	100%
Average Cash Conversion	Threshold	Target	Maximum
Average Cash conversion over the period 2023 to 2025	70%	80%	90%
Vesting (The proportion of the award for this measure that vests)	25%	62.5%	100%
Total Shareholder Return	Threshold	Mid	Maximum
Ranking Position vs FTSE250 (excluding investment trusts)	Median	62.5 Percentile	Upper Quartile
Vesting (The proportion of the award for this measure that vests)	25%	62.5%	100%
Sustainability	Threshold	Mid	Maximum
Energy: reduction in Scope 1&2 emissions	15%	15.75%	16.5%
Recyclable Materials: growth in sustainable (non-virgin oil) based materials	Growth to 46%	Growth to 48%	Growth to 50%
Waste: reduction in waste to landfill	65% reduction	70% reduction	75% reduction
Diversity & inclusion: percentage representation of women in the leadership (senior manager and above) population	21%	23%	25%
Vesting (The proportion of the award for this measure that vests)	25%	62.5%	100%
Targets for energy and waste reduction and growth in recyclable materials are measured against a 2022 baseline.

There is a proportionate straight-line vesting for performance between each of the targets shown above. 

General Terms:  t he Committee retains the discretion to consider whatever adjustments it considers are fair and reasonable when considering the performance against the targets shown.  The Committee may adjust the level of vesting if it considers that the performance measures do not reflect the overall performance of the company during the performance period or if there has been a material event such as an acquisition or disposal during the course of the performance period. 

March 2023

 

END

 

 

DSHUROSROKUOUAR