I noticed that Safestyle UK (SFE.L) has been undergoing some dilution of shares from 2015 and on. Share counts have been:
2015: 80.72M
2016: 82.35M (about 2% dilution)
TTM: 83.19M (about 1% dilution for a half of one year)
Without reading the financial filings, can someone let me know is this all stock grants to management, and are these one-time special events, or is this going to be a new normal for them?
A quick look at the company website and the accounts suggests they operate several share schemes for Directors and Employees (an SAYE scheme, an ESOP and presumably exec options as well). Looks as though most of these are options to buy at a reasonable exercise price (at the time the options are granted; most seem to now be well in the money). They seem to make available shares to an extent to all employees although as ever the CEO and CFO seem to take the lion's share. Can't see any reference to shares being issued for other purposes (e.g. as part of an acquisition) so I would infer they are used to provide employee/director remuneration.
Easy enough to use the filter (Check Director and Capital Structure options) to identify Director and Capital Structure related RNS. The major recent dilution event seems to be on April 22, 2016 as covered by the attached RNS.
http://www.safestyleukplc.co.uk/investor-relations/rns-announcements.aspx
Not, in my opinion, the most usurious management bung (sorry, valid incentive program) I've seen on AIM but reasonably generous. As ever, take a look and form your own view.
Gus.
