LTIP Vesting Outcome

At the time of publication of the Annual Report and Accounts for the year ended 30 June 2021, the remuneration committee was still in the process of finalising the vesting outcome for the above awards, in consultation with key shareholders. The consultation process has now concluded and the remuneration committee has determined the extent of vesting.  The vesting of awards was subject to two equally weighted performance criteria as set out in the table below. Based on performance against targets, the formulaic vesting outcome was 65% of maximum.

The remuneration committee however, when considering the overall outcome, took into account the broader financial and non-financial performance of the business over the three-year performance period to ensure the outcome was commensurate with the overall performance delivered.

Over the three-year performance period to 30 June 2021, significant value was created for shareholders. The Company’s market capitalisation increased by c.290% to £200m, and total shareholder return far exceeded performance of the wider market – at c.230% compared to c.20% for the AIM All Share index.

This share price performance is reflective of the Group’s successful progression and execution of its three-year strategy. Financial performance over the three-year performance period was strong – revenue grew over 10% per annum from £27.1m to £36.4m, while Adjusted Operating Profit increased from £3.1m to £5.4m, and EBITDA  increased by over 20% per annum to £10.2m. The Group also delivered a positive cash balance of over £10m for the year ended 30 June 2021 compared to a cash deficit of £2.7m in the year ended 30 June 2018.

Based on the above, the remuneration committee is of the view that overall performance over the three-year performance period has been exceptional, in particular given the impact of the coronavirus pandemic. As such, after consulting with key shareholders, the remuneration committee determined that the LTIP awards made during the year ended 30 June 2019 should vest in full. This exercise of discretion was considered appropriate to reward the executive team for the outstanding performance over the past three years and the value they had created and delivered for the Company and its shareholders.