INVESTOR RELATIONS

Corporate News

Directors' Dealings

07 April 2010

The Company announces that the following awards over ordinary shares of 0.1 pence each in the Company ("Ordinary Shares") have today been granted in the form of nil cost options ("Awards") to the following Directors under the STM Group PLC 2010 Long-Term Incentive Plan ("Plan").

Director Number of Ordinary Shares subject to the Awards
Colin Porter - Chief Executive Officer 1,666,667
Alan Kentish - Chief Financial Officer 1,500,000

Following the above Awards, the interests over Ordinary Shares of the two directors are as follows:

Director Number of Ordinary Shares held % of current issued share capital Total number of Ordinary Shares held under any option or Plan
Colin Porter 277,613 0.65% 1,666,667
Alan Kentish 2,877,500 * 6.7% 1,500,000

* Clifton Participations Inc, as trustee of the Perros Trust, of which Alan Kentish is a potential beneficiary, is interested in 2,850,000 Ordinary Shares, representing approximately 6.64% of the current issued share capital of the Company.

Overview of the Plan

The Plan is designed to retain and incentivise the Group's key staff to deliver significant sustainable profitable growth and increases in STM's share price during the three financial years ending 31 December 2012 ("Periods"). Each of the participants to the Plan will relinquish all existing bonus arrangements (if any) during the Periods.

Each Award is divided into three incremental tranches, one for each Period. The first tranche is for performance in the year ending 31 December 2010 and is for up to 1/6th of the Award ("Tranche 1"); the second tranche for the year ending 31 December 2011 is for up to 1/3rd of the Award ("Tranche 2"); and the third tranche for the year ending 31 December 2012 is for up to ½ of the Award ("Tranche 3").

Each Tranche is split further such that:

  • 50% of each Tranche will be triggered if STM's three month volume weighted average share price ("VWAP") exceeds certain fixed targets ("Price Hurdles"); and;
  • Up to 50% of each Tranche will be triggered if the Group's audited annual earnings per share ("EPS") exceeds certain fixed targets for each of the three Periods ("EPS Hurdles").

Price Hurdles

The three Price Hurdles have been set as follows:

  • 50 pence for Tranche 1;
  • 75 pence for Tranche 2; and
  • 100 pence for Tranche 3.

Accordingly, it is only once STM's VWAP has exceeded 100p for a period of at least three consecutive months that the maximum of 50% of each Award will be made. Each of the Awards under the Price Hurdles is also subject to retention periods by the participants.

In the case of Alan Kentish, the Price Hurdle for Tranches 1 and 2 is 75 pence.

EPS Hurdles

The EPS Hurdles for each Period are as follows:

  • 3.0 pence for the year ending 31 December 2010;
  • 4.3 pence for the year ending 31 December 2011; and
  • 6.2 pence for the year ending 31 December 2012.

The EPS Hurdles have been designed to incentivise sustainable growing profits and therefore underlying shareholder value. As such, increasing proportions of each Tranche will be issued if the Group exceeds the EPS Hurdles set out above.

Should the Group only meet each of the EPS Hurdles set out above, then no Awards are made. The Group must exceed the EPS Hurdles set out above by at least 10% in each Period for the first 1/3rd of each EPS Hurdle Tranche Award to be made. Should the Group exceed the EPS Hurdles by 15% in each Period, then a further 1/3rd of each EPS Hurdle Tranche Award will be made and should the Group exceed the EPS Hurdles by 20% in each Period, then the final 1/3rd of each EPS Hurdle Tranche Award will be made. Accordingly, for the maximum Awards to be made under the EPS Hurdle, then the Group needs to exceed the EPS Hurdles set out above in each of the designated Periods by at least 20%.

It is intended that further awards will be made under the Plan to other senior directors and employees of the Group in due course.

 

For further information, please contact:

STMGroup Plc
Colin Porter, Chief Executive Officer Tel: 00 350 200 42686
[email protected] www.stmgroupplc.com
Evolution Securities Tel: +44 (0) 20 7071 4300
Jeremy Ellis / Chris Clarke www.evosecurities.com
FinnCap Tel: +44 (0)20 7600 1658
Tom Jenkins / Marc Young www.finncap.com
Media enquiries:
Abchurch
Henry Harrison-Topham / Mark Dixon Tel: +44 (0) 20 7398 7702
[email protected] www.abchurch-group.com

 

Notes to editors:

STM is a multi-jurisdictional financial services group listed on the Alternative Investment Market of the London Stock Exchange. The Group specialises in the delivery of a wide range of financial service products to professional intermediaries and in the administration of assets for international clients in relation to retirement, estate and succession planning, and wealth structuring.

Today, STM has trading operations in Gibraltar, Malta, Jersey, and Spain. It has also recently opened satellite offices in South East Asia, the Middle East, and South Africa. The Group continues to expand through the development of additional products and services that its ever-more sophisticated clients demand.

STM has, for example, a dedicated international pensions division which specialises in Qualifying Recognised Overseas Pension Schemes (QROPS) and Qualifying Non-UK Pension Schemes (QNUPS); it also has a Gibraltar Life Insurance Company, STM Life Assurance PCC PLC, which provides life insurance bonds - wrappers in which a variety of investments, including investment funds, can be held.

Further information on STM Group can be found at www.stmgroupplc.com

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STM is a multi-jurisdictional financial services group listed on AIM, a market operated by the London Stock Exchange.
The Group specialises in the administration of client assets in relation to retirement, estate and succession planning and wealth structuring.

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STM Group companies are regulated where required in their host jurisdictions.

STM in the UK (London & Colonial and Options UK): Financial Conduct Authority - STM in Gibraltar: Gibraltar Financial Services Commission - STM in Malta: Malta Financial Services Authority - STM in Spain: Director General de Seguros, Fondos y Pensiones: STM Nummos, SL figura inscrita en el Registro Mercantil de Cádiz, Tomo 1612, Hoja 6697, Libro 0, Folio 14. CIF B-11301199.

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