New Long-Term Incentive Plan

RNS Number : 1183H

Gear4music (Holdings) PLC

13 November 2018

 

13 November 2018

Gear4music (Holdings) plc

New Long-Term Incentive Plan

The Board of Gear4music (Holdings) plc ('Gear4music, the 'Company', or the 'Group'), the largest UK based online retailer of musical instruments and music equipment, today announces a new long-term management incentive plan (the 'Plan') to incentivise senior employees in a manner that aligns with the interests of the Company's shareholders.

The Plan involves the issue of 210,000 'B' Ordinary shares in Gear4music Limited, a subsidiary of the Company.  These 'B' shares vest from 2021-26 and can be exchanged on a one-for-one basis for new ordinary Company shares subject to meeting specified criteria, including reaching a specified target share price for 75% of the award, and pre-determined revenue and profitability targets for 25%.

Financial year ending:	Share Price hurdle (being the average closing mid-price in the 30-day period following announcement of preliminary results)	Maximum nos. of shares vesting (including 25% performance related shares)
31 March 2021	£13	27,300
31 March 2022	£16	29,400
31 March 2023	£20	33,600
31 March 2024	£24	35,700
31 March 2025	£29	39,900
31 March 2026	£35	44,100

Certain of the Company's directors are participating in the Plan as detailed below, along with members of the Group's senior management team.

Name	Position	Number of shares
Andrew Wass	Chief Executive Officer	45,000
Gareth Bevan	Chief Commercial Officer	52,500
Chris Scott	Chief Financial Officer	45,000

The 'B' shares are non-voting, non-dividend restricted shares. The initial subscription cost is paid by way of a cash bonus.

Further details will be set out in the Annual Report and Accounts.

Ken Ford, the Company's Non-Executive Chairman and Remuneration Committee Chairman, commented "We wish to retain and incentivise key employees and to ensure that the interests of those individuals are closely aligned to the interests of our shareholders. The Company has enjoyed great success since coming to market, and has ambitions for long-term, sustained growth and this scheme reflects this by encouraging management to invest in future growth. The Company has introduced the Plan to play a central role in the achievement of these aims and demonstrates Andrew, Gareth, Chris and the other senior management's commitment to and belief in the long-term success of the Group."

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Enquiries:

Gear4music                                        Andrew Wass, Chief Executive Officer Chris Scott, Chief Financial Officer	[phone]
Panmure Gordon                                                                                             (Joint Financial Adviser, Joint Broker, and Nominated Adviser) Dominic Morley - Investment Banking Erik Anderson - Corporate Broking	[phone]
Peel Hunt                                                                                                            (Joint Financial Adviser and Joint Broker) Adrian Trimmings George Sellar	[phone]
Alma PR                                                                              (Financial PR)                                                                             Josh Royston/Rebecca Sanders-Hewett/Helena Bogle	[phone] [e-mail]

About Gear4music.com

Operating from a Head Office in York, and Distribution Centres and showrooms in York, Sweden and Germany, the Group sells own-brand musical instruments and music equipment alongside premium third-party brands including Fender, Yamaha and Roland, to customers ranging from beginners to musical enthusiasts and professionals, in the UK, Europe and, more recently, into the Rest of the World.

Having developed its own e-commerce platform, with multilingual, multicurrency and fully responsive design websites delivering to over 190 countries, the Group has rapidly expanded its database and continues to build its overseas presence.

 

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