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Augean Plc (AUG)

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Tuesday 03 December, 2019

Augean Plc

Vesting of LTIP

RNS Number : 4157V
Augean Plc
03 December 2019
 

Augean plc

("Augean", "the Group")

 Vesting of Cash LTIP

 

Augean, one of the UK's leading specialist waste management businesses, announces that the Group's cash long-term incentive plan ("Cash LTIP" or "Plan") for its management team vested on 2 December 2019.

The Cash LTIP was, as previously notified, introduced on 16 August 2018. The aim of the Cash LTIP was to retain and motivate key employees during the potentially extended period of uncertainty for the Group following receipt of the HMRC assessments. The Cash LTIP was designed, following consultation with the Group's major shareholders, to align and optimise the performance of the Group for the benefit of all shareholders, with the management team sharing in the incremental value generated from a base share price of 35 pence subject to an overall cap on total payments under the Cash LTIP of £7.0 million.

One of the criteria for the Cash LTIP to vest in full is an average closing share price for the preceding 90 days ("Average Closing Price") of at least 140 pence per share. The closing share price on 2 December 2019 was 179.5 pence, with the Average Closing Price for the 90 days being 141 pence.  Accordingly, the Board confirms that the Cash LTIP has now vested in full. Payments will therefore be made in December 2019 to recipients of awards totalling £7.0 million, of which £3.164 million will be paid to Jim Meredith (Executive Chairman) and £1.029 million to Mark Fryer (Group Finance Director). The balance of the Cash LTIP of £7.0 million will be paid to a number of senior and key managers within the Group. The payment will be made in December from the Group's cash balance, which was approximately £28 million at the end of November 2019.

The total awards of £7.0m represent approximately 6.3% of the increase in shareholder value from the base price of 35p to the 90 day Average Closing Price of 141 pence, and approximately 4.7% of the increase in shareholder value from the base price to the closing share price of 179.5 pence on 2 December 2019.

The Group recognised an expense of £0.4m in relation to the Cash LTIP in the year ended 31 December 2018.  A charge equal to the total value of the payments on vesting of the Cash LTIP less any amounts charged in previous accounting periods will be recognised as an exceptional cost in the Group's results for the year ending 31 December 2019, with the total charge expected to be £7.6m, including £1.0m of associated National Insurance costs.

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Enquiries:

 

Augean plc

Roger McDowell, Chairman of the Remuneration Committee

Angela McGhin, Company Secretary

 

01937 844 980

N+1 Singer

Shaun Dobson

Peter Steel

Rachel Hayes

 

020 7496 3000

 


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