Gear4music (Holdings) PLC New Long-Term Incentive Plan (1183H)

TIDMG4M

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            Maximum nos. of shares 
                            (being the average               vesting (including 
                            closing mid-price           25% performance related 
                            in the 30-day period                        shares) 
                            following announcement 
                            of preliminary results) 
 31 March 2021             GBP13                                         27,300 
                          --------------------------  ------------------------- 
 31 March 2022             GBP16                                         29,400 
                          --------------------------  ------------------------- 
 31 March 2023             GBP20                                         33,600 
                          --------------------------  ------------------------- 
 31 March 2024             GBP24                                         35,700 
                          --------------------------  ------------------------- 
 31 March 2025             GBP29                                         39,900 
                          --------------------------  ------------------------- 
 31 March 2026             GBP35                                         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."

- Ends -

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            [phone] 
  Sanders-Hewett/Helena Bogle                    [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.

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 [e-mail] or visit www.rns.com.

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November 13, 2018 02:01 ET (07:01 GMT)