1st Nov 2007 15:58
FOR IMMEDIATE RELEASE 1 NOVEMBER 2007
EXERCISE OF ENTITLEMENT UNDER THE CHEMRING GROUP PHANTOM SHARE OPTION
Chemring Group PLC (the "Company") was notified on 31 October 2007 that Kenneth Charles Scobie, a director of the Company, wished to exercise his entitlement under The Chemring Group Phantom Share Option, an entitlement which would have otherwise expired on the 16 December 2007.
The Chemring Group Phantom Share Option Scheme was established in 1997 to secure Mr Scobie's appointment as Chairman of the Company at a difficult time when the Group was undergoing a fundamental reorganisation. Mr Scobie, who is the only participant in this scheme, acquired a contractual entitlement on his appointment in 1997 to the grant of phantom options over 141,025 ordinary shares in the Company at a notional exercise price of 78p per share. Exercise of the phantom option can only take place at least three years after the date of grant and is subject to performance conditions linked to growth in earnings per share, which have been met. Upon exercise Mr Scobie has become entitled to a cash payment from the Company, which will be made during November, equivalent to the difference between the market value of the ordinary shares at 31 October 2007 (‚£22.11p) less the notional exercise price (0.78p). The cost of the phantom options has been accrued throughout the ten year life of the scheme. The total cash payment, before tax, is ‚£3.0 million of which ‚£0.9 million has been accrued in the financial year to October 2007. No further awards will be made under this scheme and there are no further payments outstanding.
Enquiries:Paul RaynerChemring Group PLC01489 881880
CHEMRING GROUP PLCRelated Shares:
Chemring