RNS Item

Flowtech Fluidpower PLC (AIM.FLO) announces the grants set out below under the Management Incentive Plan established at the time of Admission.  Of the original grants that were made on Admission, those to Sean Fennon and Bryce Brooks remain and vest in 2017.  These are detailed in the Annual Report and Accounts for the year ended 31 December 2015.  The new grants provide management incentivisation to 2019 and deliver value to the holder above a 150p Company share price (compared with 130p for the original grant).

On 1 June 2016, the following new shares in the capital of Fluidpower MIP Limited (formerly Flowtech MIP Limited, the intermediate holding company that is a subsidiary of the Company) were issued for nominal value:

(1)   3,000 voting C Ordinary Shares of £0.01 each to Nick Fossey, Managing Director of the Power Motion Control Division, who was appointed on 1 March 2016;

(2)   5 non-voting D Ordinary Shares of £0.01 each to Sean Fennon; and

(3)   5 non-voting D Ordinary Shares of £0.01 each to Bryce Brooks.

The C Ordinary Shares and the D Ordinary Shares substantially adopt the rights attaching to the A Ordinary Shares and the B Ordinary Shares in the capital of Fluidpower MIP Limited, as described in the Company's admission document dated 9 May 2014 ("Admission Document"), save that:

(a)   the holders of these shares may require the Company to purchase the shares at any time between the third and seventh anniversary of the date on which they were issued (subject to earlier transfers if the Company is the subject of a takeover offer (when the shares shall be sold for fair value)) or if the holder ceases to be employed by the Company, at which time they will be sold for the lower of their fair value and their cost, unless the holder is a Good Leaver (as described in the Admission Document) when they will realise their fair value (in the case of a Good Leaver the sale of the shares at fair value is deferred until the end of the three year holding period if that has not expired);

(b)   the aggregate fair value of the C Ordinary Shares shall be 1.74102% of the amount by which the market capitalisation of the Company exceeds £65,067,696, (which is 4.35 per cent. above the Company's market capitalisation as at the close of business on 31 May 2016, being the latest practicable date prior to the issue of such C Ordinary Shares); and

(c)   the aggregate fair value of the D Ordinary Shares shall be 2.92898% of the amount by which the market capitalisation of the Company exceeds £65,067,696, (which is 4.35 per cent. above the Company's market capitalisation as at the close of business on 31 May 2016, being the latest practicable date prior to the issue of such D Ordinary Shares).

The Company may satisfy the awards to the holders of such shares in cash or by an issue of new ordinary shares in the capital of the Company that are equal to that market value.