Implementation of LTIP and initial grant

SysGroup plc

("SysGroup" or the "Group")

Implementation of Long Term Incentive Plan and initial grant

SysGroup plc (AIM: SYS), the Managed IT Services and Cloud Hosting provider, announces the implementation of a new Long Term Incentive Plan ("LTIP"), together with an initial grant under the LTIP to Adam Binks, Chief Executive Officer.

The LTIP has been established to incentivise management to deliver long-term value creation for shareholders and ensure alignment with shareholder interests. The remuneration committee has granted Adam Binks 750,000 performance shares with an exercise price of £0.01 (the "Award").

Subject to achievement of the performance conditions measured over three years and set out below, up to 50 per cent. of the Award will vest following the announcement of the Company's results for the financial year ending 31 March 2021 (the "Period") with the balancing 50 per cent. vesting following the announcement of the Company's results for the financial year ending 31 March 2021.

The principal performance condition to which the award is subject is Total Shareholder Return ("TSR"). 25 per cent. of the Award will vest if the Company achieves 10 per cent. compound annual TSR during the Period with full vesting at 25 per cent. compound annual growth with straight line vesting for performance between 10 and 25 per cent. 

The Award is also subject to an adjusted earnings per share underpin whereby the award will normally lapse unless adjusted EPS growth over the Period is at least 10 per cent. CAGR from an initial Adjusted EPS of 4.18p (the "EPS threshold").

The Award represents 3.25% of the current issued share capital of the Company.

The Award is also subject to continued employment, malus and clawback provisions and will vest in full on a takeover of the Company.

About SysGroup

SysGroup is a leading provider of Managed IT Services, Cloud Hosting, and expert IT Consultancy. The Group delivers solutions that enable clients to understand and benefit from industry leading technologies and advanced hosting capabilities. SysGroup focuses on a customer's strategic and operational requirements - enabling clients to free up resources, grow their core business and avoid the distractions and complexity of delivering IT services.

The Group has offices in Liverpool, Coventry, London and Telford.

For more information, visit www.sysgroupplc.com.

Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them.