TIDMBOO
RNS Number : 8962A
boohoo group plc
17 September 2018
For Immediate Release 17 September 2018
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
boohoo group plc
("boohoo" or the "Company" and together with its subsidiaries
the "Group" or "the boohoo group")
Appointment of CEO and Board Re-alignment
Positioning for next phase of growth
The Board of boohoo group plc is delighted to announce the
appointment of John Lyttle as Chief Executive with effect from 15
March 2019.
John is currently the Chief Operating Officer of Primark Stores
Limited, a division of Associated British Foods and one of Europe's
fastest growing and most profitable retail businesses. During his
eight-year tenure at Primark turnover has grown by 158% to over
GBP7bn and operating profit has grown by 116% to GBP735m (to the
year ended 16 September 2017). John's earlier career involved
senior roles at Matalan and the Arcadia Group.
John's appointment is a key constituent of the Group's
positioning for its next stage of growth and will be accompanied by
a number of changes to the existing main Board roles, all of which
are designed to support the journey of the Group through its
further international expansion.
Mahmud Kamani, currently Joint Chief Executive, will become
Group Executive Chairman of the Company with effect from 15 March
2019. Mahmud's focus and responsibilities will evolve more towards
the long-term strategic direction for the boohoo group and away
from the day to day running of the business.
Carol Kane, currently Joint Chief Executive, will remain on the
main Board in an executive role and will assume the title of Group
Co-Founder and Executive Director with effect from 15 March 2019.
Carol will continue to lead the vision for the Group's creativity
and multi- brand strategy focussed around the positioning of the
boohoo group's brands (boohoo, boohooman, PrettyLittleThing and
Nasty Gal) and overseeing the development of the product
proposition.
Peter Williams, who as non-executive Chairman has successfully
overseen the Company's transition from an unquoted company to one
of the leading companies on AIM over an important period in the
Group's development will be stepping down from his role with effect
from 15 March 2019.
The Board intends to recruit a further independent non-executive
Director and will commence a search process for this role
imminently. A further announcement will be made on appointment of
the successful candidate.
Mahmud Kamani and Carol Kane, Joint Chief Executives of boohoo
group, said:
"We are thrilled to have secured a candidate of John's calibre
as our CEO. We have got to know John over a number of years and are
convinced he has the necessary skills to complement what we already
have and take the Group on to its next stage of growth. Both of us
remain totally committed to the business and will ensure a measured
and careful handover.
This is a hugely exciting time for the Group as the fast fashion
market continues to shift online and more and more customers across
the globe are joining as customers of our brands. The Group has
experienced exceptional growth over the past few years, with
turnover increasing 24 fold from GBP24.5m in 2011 to GBP579.8m for
the year ended 28 February 2018 and we believe John is ideally
placed to guide the Group through the next stage of its growth;
whilst he was COO at Primark, turnover increased from GBP2.7bn in
2010 to GBP7.1bn in 2017. Our next priority for boohoo is to ensure
we have world class infrastructure and technology in place and we
believe John is the right person to lead that journey.
We would like to take this opportunity to thank Peter Williams
for his great contribution to the Group during his time as
Chairman. His wise counsel and years of retail experience have been
invaluable during this period."
John Lyttle, CEO-designate of boohoo group said:
"I have known Mahmud and Carol for a number of years and have
watched the growth of the boohoo group with admiration. I am hugely
excited to be joining the Group at this key stage of its growth and
capitalising on what is a global opportunity"
Peter Williams, non-executive Chairman said:
"Like Mahmud and Carol, I am delighted to have secured the
services of such an experienced international retailer as John
Lyttle. The boohoo group is at a key moment in its development and
combining John's skills with those of Mahmud and Carol will enable
a step change into a new era for the Group. I have very much
enjoyed working with Mahmud and Carol and wish everyone at the
Company every success for the future."
Remuneration
John Lyttle's remuneration package will be heavily related to
creating premium growth in shareholder value over the next five
years:
-- Annual salary of GBP615,000
-- Annual Bonus of up to 150% of annual salary
-- Pension of 5% of annual salary
-- Growth Share Plan ("the Plan") to be implemented relates to
the compound annual growth rate ("CAGR") in market capitalisation
over the five year period starting on the date John joins as CEO.
The starting market capitalisation will be based on the closing
share price on the date of this announcement. CAGR of less than 10%
yields nil value. The Plan is capped at GBP50m of gross value
before tax at the end of the performance period in the event of
achieving CAGR of at least 23%. For example, if the starting market
capitalisation was GBP2bn it would have to increase by at least 60%
or GBP1.2bn to GBP3.2bn to create any value at all for the
CEO-designate. To achieve the maximum GBP50m (before tax) the
market capitalisation would have to increase by GBP3.6bn or by 180%
to GBP5.6bn. Such an outcome would mean the GBP50m represented
approximately 1.4% of the increase in the market capitalisation.
Provisions have been made to make the adjustments for increases in
market capitalisation arising from corporate events such as issuing
shares for acquisitions so that the benefits derived from the Plan
only arise from organic growth.
The following additional information is provided in accordance
with paragraph (g) of Schedule Two of the AIM Rules for Companies.
John William Lyttle (aged 51) holds or has held the following
directorships or partnerships in the past five years:
Current Directorships Previous Directorships
or Partnerships or Partnerships
Primark Stores Limited None
Enquiries
boohoo group plc
Neil Catto, Chief Financial Officer Tel: +44 (0)161 233 2050
Alistair Davies, Investor Relations Tel: +44 (0)161 233 2050
Clara Melia, Investor Relations Tel: +44 (0)20 3289 5520
Zeus Capital - Nominated adviser and
joint broker
Nick Cowles/Andrew Jones (Corporate Tel: +44 (0)161 831 1512
Finance)
John Goold/Benjamin Robertson (Corporate Tel: +44 (0)20 3829 5000
Broking)
Jefferies Hoare Govett - Joint broker
Nick Adams/Max Jones Tel: +44 (0)20 7029 8000
Buchanan - Financial PR adviser boohoo@buchanan.uk.com
Richard Oldworth/ Sophie Wills/ Maddie Tel: +44 (0)20 7466 5000
Seacombe/
Gemma Mostyn-Owen
About boohoo group plc
"Leading the fashion eCommerce market"
Founded in Manchester in 2006, the group started life as
boohoo.com, an inclusive and innovative brand targeting young,
value-orientated customers. For over 10 years, boohoo has been
pushing boundaries to bring its customers up-to-date and
inspirational fashion, 24/7. boohoo has grown rapidly in the UK and
internationally, expanding its offering with range extensions into
menswear through boohooMAN.
In early 2017 the group extended its customer offering through
the acquisitions of the vibrant fashion brand PrettyLittleThing,
and free-thinking brand Nasty Gal. United by a shared customer
value proposition, our brands design, source, market and sell great
quality clothes, shoes and accessories at unbeatable prices. This
investment proposition has helped us grow from a single brand, into
a major multi-brand online retailer, leading the fashion eCommerce
market for 16 to 30-year-olds around the world. Today the boohoo
group sells to over 9.8 million customer accounts across all its
brands in almost every country in the world.
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END
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