REG - Lords Group Trading - Long Term Incentive Plan Awards

Lords TradingAnnouncement

25/05/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230525:nRSY5757Aa&default-theme=true

RNS Number : 5757A  Lords Group Trading PLC  25 May 2023

     25 May 2023

 

Lords Group Trading plc

('Lords', the 'Group' or the 'Company')

 

Long Term Incentive Plan Awards

 

Lords, a leading distributor of building materials in the UK, announces that
the Group's Remuneration Committee has conditionally granted nil cost options
over 4,034,125 new ordinary shares of 0.5 pence each in the Company ('Ordinary
Shares') under the terms of the Company's Long Term Incentive Plan (the 'LTIP
Awards').

 

The LTIP Awards will be issued to divisional executives and will replace the
Annual Deferred Bonus Plan incentive arrangements which has been in place
since the Group's IPO. The Group's Remuneration Committee, recognising the
importance of ensuring that all senior employees are aligned closely with the
success of the Group in the medium and long-term, has reviewed Lords' existing
incentive arrangements and determined the LTIP Awards will provide a more
targeted incentive for divisional managers given the LTIP Awards will relate
to performance targets of the specific business units in which the individual
operates.  No board members or persons discharging managerial
responsibilities ('PDMRs') will be made eligible for these specific LTIP
Awards and no further new awards will be made under the Annual Deferred Bonus
Plan.

 

The performance targets attached to the LTIP Awards are based on the earnings
before interest, tax, depreciation, and amortisation ('EBITDA') of the
awardee's respective division achieving a minimum growth rate of 25% over a
three year performance period from January 2023 to December 2025 (the 'Minimum
Target').  The growth rate targets account for EBITDA growth stemming from
acquisitions through a calculation factoring in a cost of capital charge.
 The Awards will not vest if the division performs below the Minimum Target.
LTIP Awards will begin to vest upon achieving the Minimum Target with the full
LTIP Award being made if a division's EBITDA growth rate of 75% is achieved
over the three year performance period, with the total number of LTIPs Award
vesting between those two points on a straight-line basis.

 

The vesting of the final number of LTIP Awards granted after the three year
performance period will be split with 50% of the final LTIP Awards vesting and
be exercisable anytime from May 2026, with a further 25% of the final LTIP
Awards vesting from May 2027, and the remaining 25% of the final LTIP Awards
vesting from May 2028.

 

The Remuneration Committee has discretion to amend these terms to ensure that
any performance targets remain appropriate.

 

- Ends -

 

FOR FURTHER ENQUIRIES:

 

 Lords Group Trading plc                                         Via Buchanan
 Shanker Patel, Chief Executive Officer                          Tel: +44 (0) 20 7466 5000
 Chris Day, Chief Financial Officer and Chief Operating Officer

 Cenkos Securities plc (Nominated Adviser and Joint Broker)      Tel: +44 (0)20 7397 8900
 Ben Jeynes / Max Gould / Dan Hodkinson (Corporate Finance)
 Alex Pollen (Sales)

 

 Berenberg (Joint Broker)                               Tel: +44 (0)20 3207 7800

 Matthew Armitt / Richard Bootle / Detlir Elezi

 Buchanan Communications                                Tel: +44 (0) 20 7466 5000
 Henry Harrison-Topham / Jamie Hooper / Abby Gilchrist  LGT@buchanan.uk.com (mailto:LGT@buchanan.uk.com)

 

Notes to editors:

 

Lords is a specialist distributor of building, plumbing, heating and DIY
goods.  The Group principally sells to local tradesmen, small to medium sized
plumbing and heating merchants, construction companies and retails directly to
the general public.  The Group operates through the following two divisions:

 

·  Merchanting: supplies building materials and DIY goods through its
network of merchant businesses and online platform capabilities.  It operates
both in the 'light side' (building materials and timber) and 'heavy side'
(civils and landscaping), through 26 locations in the UK.

 

·    Plumbing and Heating: a specialist distributor in the UK of plumbing
and heating products to a UK network of independent merchants, installers and
the general public.  The division offers its customers an attractive
proposition through a multi-channel offering.  The division operates over 16
locations enabling nationwide next day delivery service.

 

Lords was established over 35 years ago as a family business with its first
retail unit in Gerrards Cross, Buckinghamshire.  Since then, the Group has
grown to a business operating from 42 sites.  Lords aims to become a £500
million turnover building materials distributor group by 2024 as it grows its
national presence.

 

Lords was admitted to trading on AIM in July 2021 with the ticker LORD.L.
 For additional information please visit www.lordsgrouptradingplc.co.uk
(http://www.lordsgrouptradingplc.co.uk/) .

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCAIMPTMTITBBJ