RNS Number : 2423Q
Begbies Traynor Group PLC
28 November 2016
 

Begbies Traynor Group plc

 

Director's interests

Begbies Traynor Group plc ("the Group"), the business recovery and property services consultancy announces a new contractual arrangement with Mark Fry, an executive director of the Group.

Mark Fry has become an equity member of Begbies Traynor (London) LLP ("the LLP"), a subsidiary of the Group in which the Group retains the controlling interest. Under the arrangement Mark Fry's remuneration will become entirely variable on the basis that it shall be determined as a proportion of the profits of the LLP which replaces his existing salary and bonus package.  Based on the results for the financial year ended 30 April 2016 the new remuneration structure would have meant that the quantum of Mark Fry's remuneration in that year would have been broadly unchanged.

The revised agreement includes a put and call option for the Group to acquire Mark Fry's equity interest in the LLP during a 3 month period after 30 September 2019 at an agreed profit multiple or, alternatively for a nominal value in the event that a base level of profitability is not achieved over the period ("the Option"). In the event that the consideration for exercising the Option (capped at £4m in the event of significant growth in the LLP's profits) exceeds £1m, the Group has the right to pay the excess 50% in cash and 50% in ordinary shares. The Option replaces any right for Mark Fry to participate in any future awards under the Group's directors' share options and growth share plans.

In the event that the Option is exercised for anything other than nominal consideration then there is an additional contractual commitment for Mark Fry to remain with the Group for a further two years.

As this is a related party transaction, the directors (with the exception of Mark Fry) consider, having consulted with its nominated advisor (NOMAD) Canaccord Genuity Limited, that the terms of the transaction are fair and reasonable insofar as the shareholders are concerned.

 

- Ends -

 

Enquiries please contact:

           

Begbies Traynor Group PLC                                                                    0161 837 1700

Ric Traynor - Executive Chairman

Nick Taylor - Group Finance Director

 

Canaccord Genuity Limited                                                                     020 7523 8350

(Nominated Adviser and Joint Broker)

Bruce Garrow / Nilesh Patel

 

Shore Capital                                                                                             020 7408 4090

(Joint Broker)

Mark Percy / Anita Ghanekar

 

MHP Communications                                                                              020 3128 8100

Reg Hoare / Katie Hunt / Giles Robinson

 

Information on Begbies Traynor Group can be accessed via the Group's website at www.begbies-traynorgroup.com and on twitter @Begbies

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
DSHBVLBLQFFEFBQ