TIDMFRAN
RNS Number : 0968Z
Franchise Brands PLC
16 September 2020
16 September 2020
Franchise Brands plc
("Franchise Brands" or the "Company")
New Share Option Schemes, Grant of Share Options and Director
Share Dealings
Franchise Brands (AIM: FRAN) announces that its Remuneration
Committee yesterday approved the grant of options to employees and
directors under two new incentive schemes, a Company Share Option
Plan ("CSOP") and a Management Share Option Scheme. In addition,
the Company has been notified of two non-financial movements in the
holdings of shares held by two directors, as detailed at the end of
this announcement.
Company Share Option Plan
The Company has established a new CSOP for employees and
directors, which will enable them to acquire new ordinary shares of
0.5 pence each in the Company ("Ordinary Shares") subject to
certain Company performance criteria being met. Similar to the
Company's existing share option schemes, employees and directors
are only able to exercise their options under the CSOP as
follows:
1) as to 20 per cent. after reported fully diluted adjusted
earnings per share ("EPS") achieves compound annual growth of 8 per
cent. over each of the next three financial years;
2) as to 100 per cent. after reported fully diluted adjusted EPS
achieves compound annual growth of 15 per cent. over each of the
next three financial years; and
3) between 20 per cent. to 100 per cent. of their options on a
sliding scale basis on EPS growth between the targets in 1) and 2)
above.
The Company yesterday awarded a total of 1,622,136 options under
the CSOP to the majority of employees of the Group, including
238,636 to five executive directors and two senior employees but
which have an additional investment condition as detailed below.
All these options are exercisable at the closing mid-market price
on 14 September of 88 pence per Ordinary Share (the "Exercise
Price") and the options expire on 15 September 2030 if not
exercised.
The number of options granted to each director and senior
employee under the CSOP at the Exercise Price has been determined
as being two times the value of Ordinary Shares they have each
agreed to acquire in the Company, either by acquiring existing
Ordinary Shares in the market or, where this is not possible,
through the issue of new Ordinary Shares by the Company at the then
prevailing share price (and any such issue of new Ordinary Shares
will be announced separately once the shares have been acquired),
subject to a maximum of GBP30,000 of CSOP options each. These CSOP
options will lapse to the extent that the requisite investment into
Ordinary Shares has not been made by a pre-determined date (subject
to limited exceptions approved by the Remuneration Committee).
Details of the options granted to directors under the CSOP are
as follows:
Director Position Number of Value of shares
options granted to be acquired
at 88p at market price
Peter Molloy Managing Director, Metro 34,091 GBP15,000
Rod
Tim Harris Managing Director, B2C 34,091 GBP15,000
Division
Julia Choudhury Corporate Development 34,091 GBP15,000
Director
Chris Dent Chief Financial Officer 34,091 GBP15,000
Colin Rees Chief Information Officer 34,091 GBP15,000
170,455 GBP75,000
Management Share Option Scheme
In addition to the above, the Company has awarded 181,818
options to three executive directors and one senior employee under
a new unapproved "nil cost" Management Share Option Scheme
("Management Scheme"), which will enable them to acquire new
Ordinary Shares at their nominal value of 0.5 pence each based on
the value of Ordinary Shares they have agreed to acquire in the
Company. Options granted under the Management Scheme have the same
EPS conditions of exercise as the CSOP as set out above.
Similar to the grants to directors and senior employees under
the CSOP, the number of options granted to each director and senior
employee under the Management Scheme has been determined as being
equal to the value of Ordinary Shares they have each agreed to
acquire in the Company, either by acquiring existing Ordinary
Shares in the market or where this is not possible, through the
issue of new Ordinary Shares by the Company at the then prevailing
share price (and any such issue of new Ordinary Shares will be
announced separately once the shares have been acquired). Options
under the Management Scheme will lapse to the extent that the
requisite investment into Ordinary Shares has not been made by a
pre-determined date (subject to limited exceptions approved by the
Remuneration Committee).
Details of the options granted to directors under the Management
Scheme are as follows:
Director Position Number of Value of shares
options granted to be acquired
at nominal at market price
value
Peter Molloy Managing Director, Metro 28,409 GBP25,000
Rod
Chris Dent Chief Financial Officer 17,045 GBP15,000
Colin Rees Chief Information Officer 39,773 GBP35,000
85,227 GBP75,000
Following the grant of all the CSOP options and Management
Scheme options set out above, the Company now has options issued
over a total of 5,753,302 new Ordinary Shares, representing 6.0 per
cent. of the Company's issued share capital.
Other Director Share Dealings
The Company has been notified that Chris Dent, Chief Financial
Officer, has transferred 26,207 Ordinary Shares to his SIPP and he
remains the beneficial owner of those shares.
In addition, Stephen Hemsley, Executive Chairman, has entered
into a share pledge for some Ordinary Shares but his total
beneficial ownership of Ordinary Shares remains unchanged.
Details of both these transactions are set out in the requisite
disclosure forms at the end of this announcement.
Enquiries:
Franchise Brands plc + 44 (0) 1625 813231
Stephen Hemsley, Executive Chairman
Chris Dent, Chief Financial Officer
Julia Choudhury, Corporate Development Director
Allenby Capital Limited (Nominated Adviser and
Joint Broker) +44 (0) 20 3328 5656
Jeremy Porter / Liz Kirchner
Dowgate Capital Limited (Joint Broker) +44 (0) 20 3903 7715
James Serjeant / Colin Climie
MHP Communications (Financial PR) +44 (0) 20 3128 8100
Katie Hunt +44 (0) 7884 494112
franchisebrands@mhpc.com
About Franchise Brands plc
Franchise Brands is focused on building market-leading
businesses in selected customer segments using primarily a
franchise model. The Group currently has a combined network of over
430 franchisees across five franchise brands. Our focus is on
established brands which can benefit from our shared support
services, specialist sector expertise, management experience and
group resources.
Franchise Brands' portfolio of market-leading service businesses
grew in 2019 with the acquisition of Willow Pumps. The addition of
Willow Pumps, a direct labour organisation, represented an
important step in expanding Metro Rod and Metro Plumb's range of
services to the commercial market.
The Group is organised into a B2B division comprised of Metro
Rod, Metro Plumb and Willow Pumps, and a B2C division that
incorporates ChipsAway, Ovenclean and Barking Mad. This divisional
organisation of our brands is designed to provide a greater focus
and structure to support the strategic development of our B2B and
B2C brands.
Each of our brands are leaders in their respective markets and
each brand has a long trading history. The combined trading history
of all the Group's brands is over 125 years.
Franchise Brands plc employs some 260 people across three
principal locations in Macclesfield, Kidderminster and
Aylesford.
For further information, visit www.franchisebrands.co.uk.
Notification and public disclosure of transactions by persons
discharging managerial responsibilities and persons closely
associated with them
1 Details of the person discharging managerial responsibilities
/ person closely associated
a) Name Peter Molloy
Tim Harris
Julia Choudhury
Chris Dent
Colin Rees
----------------------------- ---------------------------------------
2 Reason for the notification
----------------------------------------------------------------------
a) Position/status Executive Directors
----------------------------- ---------------------------------------
b) Initial notification Initial notification
/Amendment
----------------------------- ---------------------------------------
3 Details of the issuer, emission allowance market participant,
auction platform, auctioneer or auction monitor
----------------------------------------------------------------------
a) Name Franchise Brands plc
----------------------------- ---------------------------------------
b) LEI 213800CFRX6CJ8LCKN37
----------------------------- ---------------------------------------
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 of the financial Options over ordinary shares of
instrument, type of 0.5p each in Franchise Brands plc
instrument Identification code (ISIN) for
Identification code Franchise Brands plc ordinary shares:
GB00BD6P7Y24
----------------------------- ---------------------------------------
b) Nature of the transaction Grant of options over ordinary
shares
----------------------------- ---------------------------------------
c) Price(s) and volume(s) Price(s) Volume(s)
88p 170,455
----------
----------------------------- ---------------------------------------
d) Aggregated information Peter Malloy - 34,091 at 88p
- Aggregated volume Tim Harris - 34,091 at 88p
- Price Julia Choudhury - 34,091 at 88p
Chris Dent - 34,091 at 88p
Colin Rees - 34,091 at 88p
----------------------------- ---------------------------------------
e) Date of the transaction 15 September 2020
----------------------------- ---------------------------------------
f) Place of the transaction Outside a trading venue
----------------------------- ---------------------------------------
1 Details of the person discharging managerial responsibilities
/ person closely associated
a) Name Peter Molloy
Chris Dent
Colin Rees
----------------------------- ---------------------------------------
2 Reason for the notification
----------------------------------------------------------------------
a) Position/status Executive Directors
----------------------------- ---------------------------------------
b) Initial notification Initial notification
/Amendment
----------------------------- ---------------------------------------
3 Details of the issuer, emission allowance market participant,
auction platform, auctioneer or auction monitor
----------------------------------------------------------------------
a) Name Franchise Brands plc
----------------------------- ---------------------------------------
b) LEI 213800CFRX6CJ8LCKN37
----------------------------- ---------------------------------------
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 of the financial Options over ordinary shares of
instrument, type of 0.5p each in Franchise Brands plc
instrument Identification code (ISIN) for
Identification code Franchise Brands plc ordinary shares:
GB00BD6P7Y24
----------------------------- ---------------------------------------
b) Nature of the transaction Grant of options over ordinary
shares
----------------------------- ---------------------------------------
c) Price(s) and volume(s) Price(s) Volume(s)
0.5p 85,227
----------
----------------------------- ---------------------------------------
d) Aggregated information Peter Molloy - 28,409 at 0.5p
- Aggregated volume Chris Dent - 17,045 at 0.5p
- Price Colin Rees - 39,773 at 0.5p
----------------------------- ---------------------------------------
e) Date of the transaction 15 September 2020
----------------------------- ---------------------------------------
f) Place of the transaction Outside a trading venue
----------------------------- ---------------------------------------
1 Details of the person discharging managerial responsibilities
/ person closely associated
a) Name John Christopher Dent
----------------------------- ---------------------------------------
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 Franchise Brands plc
----------------------------- ---------------------------------------
b) LEI 213800CFRX6CJ8LCKN37
----------------------------- ---------------------------------------
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 of the financial Ordinary shares of 0.5p each in
instrument, type of Franchise Brands plc
instrument Identification code (ISIN) for
Identification code Franchise Brands plc ordinary shares:
GB00BD6P7Y24
----------------------------- ---------------------------------------
b) Nature of the transaction Change of registered owner (transfer
to SIPP)
----------------------------- ---------------------------------------
c) Price(s) and volume(s) Price(s) Volume(s)
90p 26,207
----------
----------------------------- ---------------------------------------
d) Aggregated information N/A
- Aggregated volume
- Price
----------------------------- ---------------------------------------
e) Date of the transaction 14 September 2020
----------------------------- ---------------------------------------
f) Place of the transaction Outside a trading venue
----------------------------- ---------------------------------------
1 Details of the person discharging managerial responsibilities
/ person closely associated
a) Name Stephen Hemsley
----------------------------- ----------------------------------------
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 Franchise Brands plc
----------------------------- ----------------------------------------
b) LEI 213800CFRX6CJ8LCKN37
----------------------------- ----------------------------------------
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 of the financial Ordinary shares of 0.5p each in
instrument, type of Franchise Brands plc
instrument Identification code (ISIN) for
Identification code Franchise Brands plc ordinary shares:
GB00BD6P7Y24
----------------------------- ----------------------------------------
b) Nature of the transaction Share pledge to EFG Private Bank
Limited (the registered and beneficial
owner of the shares subject to
the pledge is unchanged and retains
full voting rights)
----------------------------- ----------------------------------------
c) Price(s) and volume(s) Price(s) Volume(s)
n/a 1,397,862
----------
----------------------------- ----------------------------------------
d) Aggregated information n/a
- Aggregated volume
- Price
----------------------------- ----------------------------------------
e) Date of the transaction 15 September 2020
----------------------------- ----------------------------------------
f) Place of the transaction n/a
----------------------------- ----------------------------------------
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