Surface Transforms plc (LON:SCE), manufacturers of carbon fibre reinforced ceramic automotive brake discs, has announced that it has granted, in total, 50.8m share options to three PDMRs and seven non-PDMR senior managers pursuant to its long term incentive plan (LTIP) approved by shareholders at the 2023 AGM.
Kevin Johnson (CEO) has been awarded 16.1m Options, Isabelle Maddock (CFO) 8.8m, Stephen Easton (COO) 7.7m and the seven other senior managers a total of 18.3m. The exercise price of the Options is 1.7099 pence being the 20 business day volume weighted average price (VWAP) up to Friday 9 August. The Options represent 3.9% of the total issued share capital of the Company.
The Options vest at the third anniversary of grant if the following conditions are met:
· EBITDA per share between 0.31 pence (10.5% of the award) and 0.46 pence (30% of the award). This is based on achieving between £4m EBITDA and £6m EBITDA in the year to 31 December 2026
· Installation of realisable £75m sales capacity (30% of the award)
· Share price above 5.0p on a VWAP basis for the 20 days prior to vesting date (20% of the award)
· A commercially confidential strategic milestone providing additional technical excellence, aimed at maintaining the Company’s technical leadership in the marketplace (20% of the award)
The vesting criteria are independent of each other, albeit clearly linked if the separate criteria are to be achieved.
After exercise the participants in the LTIP will be required to maintain a level of shareholding proportional to their salary.
David Bundred, Surface Transforms Chairman said “The LTIP scheme rules provide for annual LTIP awards and this is the 2024 award. The vesting criteria are stretching but considered achievable. To this end it is encouraging that the increase in output, reported in the 19 July trading update, has been maintained at the end of July and early August.”
