TIDMACRL

RNS Number : 3110R

Accrol Group Holdings PLC

05 March 2021

05 March 2021

Accrol Group Holdings plc

("Accrol", the "Group" or the "Company")

Implementation of Long Term Incentive Plan and PDMR dealing

Accrol (AIM: ACRL), the UK's leading independent tissue converter, announces the implementation of a new Long Term Incentive Plan ("LTIP") together with an initial grant under the LTIP to the executive Directors and certain senior management.

The LTIP has been established to incentivise management to deliver long-term value creation for shareholders and ensure alignment with shareholder interests.

Background

The existing Management Incentive Plan ("MIP") which has been in place since May 2018, was designed around the Company's then turnround plan, with awards that matched management's business turnaround achievements. No further grants of options have been made under the MIP since those made in May 2018, and no further awards will be made under the MIP.

The new LTIP will be based on market standard annual awards and will incentivise the senior management team after the current MIP ceases in April 2021.

The LTIP will be limited to a maximum of 5% of the issued share capital of the Company over its five year life, and individual awards ranging between 100% and 150% of base salaries in any one year.

All awards made under the LTIP will be made by the granting of nil-cost options established in accordance with the rules of the LTIP and vesting is subject to adjusted EBITDA targets measured over the three financial year period commencing on the date of grant.

The Remuneration Committee has discretion to amend these terms to take account of, for example, corporate activities such as acquisitions to ensure that the performance targets remain appropriate. Malus and clawback provisions are also in place to reduce or recover any awards for criteria such as any material misstatement of the financial statements, a serious breach of the Company's code of ethics or a serious health and safety issue.

Award size, performance conditions and dilution

On 05 March 2021, options over 3,082,823 shares in aggregate (the " 2021 Awards") were granted under the LTIP, including those set out below which were granted to directors and other persons discharging managerial responsibility:

 
 Director / PDMR    Role                       Number of shares over 
                                                which 2021 Awards 
                                                made 
 Dan Wright         Executive Chairman                362,903 
                   -------------------------  ---------------------- 
 Gareth Jenkins     Chief Executive Officer           907,258 
                   -------------------------  ---------------------- 
 Richard Newman     Chief Financial Officer           554,435 
                   -------------------------  ---------------------- 
 

The 2021 Awards are subject to the below Adjusted EBITDA targets measured over the performance period ending on 30 April 2023 and are summarised below:

 
   Adjusted EBITDA for FY2023     Percentage of the 2021 Award 
                                          that may vest 
       Less than GBP27.0m                      0% 
                                 ----------------------------- 
 Between GBP27.0m and GBP29.7m        between 25% and 100% 
                                 ----------------------------- 
      GBP29.7m or greater                     100% 
                                 ----------------------------- 
 

If the maximum targets are met in FY23, the total dilutive impact of the 2021 Awards will be c.1.0%. The maximum aggregate dilutive effect including unexercised options which still exist under the MIP over 3.6% of the issued share capital of the Company, will therefore be 4.6%. In the event that the LTIP is utilised in full, then this potentially dilutive impact will increase to a maximum of 8.6% of the Company's current issued share capital.

 
For further information, please contact: 
 
Accrol Group Holdings plc 
Dan Wright, Executive Chairman            Via Belvedere Communications 
Gareth Jenkins, Chief Executive Officer 
 
Zeus Capital Limited (Nominated Adviser 
 & Broker) 
Dan Bate / Jordan Warburton                  Tel: +44 (0) 161 831 1512 
Dominic King / John Goold                    Tel: +44 (0) 203 829 5000 
 
Liberum Capital Limited (Joint Broker)       Tel: +44 (0) 20 3100 2222 
Clayton Bush / Edward Thomas 
 
Belvedere Communications Limited 
Cat Valentine                                Tel: +44 (0) 7715 769 078 
Keeley Clarke                                Tel: +44 (0) 7967 816 525 
Llew Angus                                   Tel: +44 (0) 7407 023 147 
                                              accrolpr@belvederepr.com 
 

Overview of Accrol

Accrol Group Holdings plc is a leading tissue converter and supplier of toilet tissues, kitchen rolls and facial tissues to many of the UK's leading discounters and grocery retailers across the UK. Following the recent acquisition of a state-of-the-art tissue converter based in Leicester, the Group now operates from five sites, including four in Lancashire, which generate revenues totalling c.16% of the GBP1.7bn UK retail tissue market.

The below information and notification is made in accordance with the EU Market Abuse Regulation.

NOTIFICATION AND PUBLIC DISCLOSURE OF TRANSACTIONS BY PERSONS DISCHARGING MANAGERIAL RESPONSIBILITIES AND PERSONS CLOSELY ASSOCIATED WITH THEM

 
      Details of the person discharging managerial 
  1    responsibilities / person closely associated 
 a)   Name                   Dan Wright 
     ---------------------  ------------------------------- 
 2    Reason for the notification 
     ------------------------------------------------------ 
 a)   Position/status        Executive Chairman 
     ---------------------  ------------------------------- 
 b)   Initial notification   Initial notification 
       /Amendment 
     ---------------------  ------------------------------- 
 3    Details of the issuer, emission allowance 
       market participant, auction platform, 
       auctioneer or auction monitor 
     ------------------------------------------------------ 
 a)   Name                   Accrol Group Holdings plc 
     ---------------------  ------------------------------- 
 b)   LEI                    213800MC56M5G69RJ226 
     ---------------------  ------------------------------- 
 4    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            Ordinary shares of GBP0.001 
       of the financial       each 
       instrument, 
       type of instrument 
       Identification 
       code                   ISIN: GB00BZ6VT592 
     ---------------------  ------------------------------- 
 b)   Nature of              Grant of options over ordinary 
       the transaction        shares under the Company's 
                              new LTIP 
     ---------------------  ------------------------------- 
 c)   Price(s) and                a) Volume: 362,903 
       volume(s)                   Price : GBP0.001 
     ---------------------  ------------------------------- 
 d)   Aggregated 
       information                  a) Price : GBP0.001 
       - Aggregated                 Volume: 362,903 
       volume 
       - Price 
     ---------------------  ------------------------------- 
 e)   Date of the                 a) 05 March 2021 
       transaction 
     ---------------------  ------------------------------- 
 f)   Place of the                a) Off market transaction 
       transaction 
     ---------------------  ------------------------------- 
 
 
      Details of the person discharging managerial 
  1    responsibilities / person closely associated 
 a)   Name                   Gareth Jenkins 
     ---------------------  ------------------------------- 
 2    Reason for the notification 
     ------------------------------------------------------ 
 a)   Position/status        Chief Executive Officer 
     ---------------------  ------------------------------- 
 b)   Initial notification   Initial notification 
       /Amendment 
     ---------------------  ------------------------------- 
 3    Details of the issuer, emission allowance 
       market participant, auction platform, 
       auctioneer or auction monitor 
     ------------------------------------------------------ 
 a)   Name                   Accrol Group Holdings plc 
     ---------------------  ------------------------------- 
 b)   LEI                    213800MC56M5G69RJ226 
     ---------------------  ------------------------------- 
 4    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            Ordinary shares of GBP0.001 
       of the financial       each 
       instrument, 
       type of instrument 
       Identification 
       code                   ISIN: GB00BZ6VT592 
     ---------------------  ------------------------------- 
 b)   Nature of              Grant of options over ordinary 
       the transaction        shares under the Company's 
                              new LTIP 
     ---------------------  ------------------------------- 
 c)   Price(s) and                a) Volume: 907,258 
       volume(s)                   Price : GBP0.001 
     ---------------------  ------------------------------- 
 d)   Aggregated 
       information                  a) Price : GBP0.001 
       - Aggregated                 Volume: 907,258 
       volume 
       - Price 
     ---------------------  ------------------------------- 
 e)   Date of the                 a) 05 March 2021 
       transaction 
     ---------------------  ------------------------------- 
 f)   Place of the                a) Off market transaction 
       transaction 
     ---------------------  ------------------------------- 
 
 
      Details of the person discharging managerial 
  1    responsibilities / person closely associated 
 a)   Name                   Richard Newman 
     ---------------------  ------------------------------- 
 2    Reason for the notification 
     ------------------------------------------------------ 
 a)   Position/status        Chief Financial Officer 
     ---------------------  ------------------------------- 
 b)   Initial notification   Initial notification 
       /Amendment 
     ---------------------  ------------------------------- 
 3    Details of the issuer, emission allowance 
       market participant, auction platform, 
       auctioneer or auction monitor 
     ------------------------------------------------------ 
 a)   Name                   Accrol Group Holdings plc 
     ---------------------  ------------------------------- 
 b)   LEI                    213800MC56M5G69RJ226 
     ---------------------  ------------------------------- 
 4    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            Ordinary shares of GBP0.001 
       of the financial       each 
       instrument, 
       type of instrument 
       Identification 
       code                   ISIN: GB00BZ6VT592 
     ---------------------  ------------------------------- 
 b)   Nature of              Grant of options over ordinary 
       the transaction        shares under the Company's 
                              new LTIP 
     ---------------------  ------------------------------- 
 c)   Price(s) and                a) Volume: 554,435 
       volume(s)                   Price : GBP0.001 
     ---------------------  ------------------------------- 
 d)   Aggregated 
       information                  a) Price : GBP0.001 
       - Aggregated                 Volume: 554,435 
       volume 
       - Price 
     ---------------------  ------------------------------- 
 e)   Date of the                 a) 05 March 2021 
       transaction 
     ---------------------  ------------------------------- 
 f)   Place of the                a) Off market transaction 
       transaction 
     ---------------------  ------------------------------- 
 

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END

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