REG - Coats Group PLC - Director/PDMR Shareholding

CoatsAnnouncement

20/03/2023 14:45

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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  Share award constituting a right to acquire Ordinary shares of £0.05
     code

 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  +44 (0)797 497 4690

 Media            Richard Mountain / Nick Hasell  FTI Consulting   +44 (0)20 3727 1374

 

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            Definition

                                                                           (% of total award)
 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                                                                       25%            62.5%          100%

 (The proportion of the award for this measure that vests)
 Average Cash Conversion                                                       Threshold      Target         Maximum
 Average Cash conversion over the period 2023 to 2025                          70%            80%            90%
 Vesting                                                                       25%            62.5%          100%

 (The proportion of the award for this measure that vests)
 Total Shareholder Return                                                      Threshold      Mid            Maximum
 Ranking Position vs FTSE250 (excluding investment trusts)                     Median         62.5           Upper Quartile

                                                                                              Percentile
 Vesting                                                                       25%            62.5%          100%

 (The proportion of the award for this measure that vests)
 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              21%            23%            25%
 leadership (senior manager and above) population
 Vesting                                                                       25%            62.5%          100%

 (The proportion of the award for this measure that vests)
 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:  the 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

 

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