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Boohoo Group - New incentive plan rests between 95p and 395p

March 2023

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • BOO
  • Price:
  • 55p
Boo has unveiled a new incentive scheme for directors and management. The payout is based on BOO’s share price reaching a series of 5 90-day average share price hurdles. The first tranche of shares, worth £17.5m, vests based on a hurdle price of 95p. The remaining 4 tranches require the market cap to reach £2.0bn (158p), £3.0bn (237p), £4.0bn (316p) and £5.0bn (395p), with the award value increasing with each successive hurdle achieved. The maximum payout on the Growth Plan is £175m, representing a total shareholder dilution of 6.1%, and would equate to a >700% increase in the current share price. I said last month this was one to start buying and that remains my view. ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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