Director/PDMR Shareholding

Coats Group PLC

25 March 2024

 

25 March 2024

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 Execuitve 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	1,543,464
e)	Aggregated information - Aggregated volume - Price	1,543,464 n/a
f)	Date of the transaction	22 March 2024
g)	Place of the transaction	London Stock Exchange, Main Market (XLON)

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

 Appendix 1

Coats Group plc - 2024 Long Term Incentive Award - Performance Schedule

Introduction

The following schedule sets out the performance conditions that will apply to the 2024 Coats Group plc Long Term Incentive award.  The performance period is 1 January 2024 to 31 December 2026.

Performance Measures & Weighting

The award has four performance measures and is weighted as set out below.

Measure	Weighting (% of total award)	Definition1
Coats Group plc Earnings Per Share Compound Annual Growth (CAGR)	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	25%	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	25%	Achievement of 5 independent equally weighted 2026 Sustainability goals.
TOTAL	100%

1.     Subject to such adjustments as required by the Committee to ensure the performance condition fulfils its original intent. 

Performance Targets and Vesting Schedule

EPS CAGR (adjusted if necessary)	Threshold	Maximum
EPS CAGR in the period from 2024-2026.  Measured from the 2023 base year	5%	13%
Vesting (The proportion of the award for this measure that vests)	25%	100%
Average Cash Conversion	Threshold	Maximum
Average Cash Conversion over the period 2024 to 2026	70%	90%
Vesting (The proportion of the award for this measure that vests)	25%	100%
Total Shareholder Return	Threshold	Maximum
Ranking Position vs FTSE250 (excluding investment trusts)	Median	Upper Quartile
Vesting (The proportion of the award for this measure that vests)	25%	100%
Sustainability	Threshold	Maximum
Energy: Absolute reduction in Scope 1&2 emissions in tonnes from 2022 baseline	20%	24%
Sustainable Materials: Growth in sustainable (non-virgin oil) based materials from 2022 baseline	Growth to 55%	Growth to 65%
Waste: Zero waste generated within our facilities being diverted to landfill sites.	93% reduction from 2022 baseline	100% reduction and zero waste to landfill by 2026
Diversity & inclusion: Percentage of females in senior leadership roles	28%	32%
People: Percentage of employees in Coats units that have a GPTW or equivalent certification	87%	89%
Vesting (The proportion of the award for this measure that vests)	25%	100%

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

 

END