Annual Report and Accounts 2006 - Optos
Annual Report and Accounts 2006 - Optos
Annual Report and Accounts 2006 - Optos
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Directors’ Remuneration <strong>Report</strong><br />
continued<br />
Awards granted to five executives on 21 September 2005 contained performance conditions. The awards stipulated vesting as to one third immediately with the<br />
remaining two-thirds vesting subject to satisfaction of performance targets. Such targets are based on the Company achieving two successive quarters of positive<br />
operating profit <strong>and</strong> two successive quarters of positive earnings over the period from grant to 31 March <strong>2006</strong> <strong>and</strong> 31 March 2007 respectively. These performance<br />
periods were accelerated by 12 months due to the IPO <strong>and</strong> the conditions have been achieved.<br />
An award of 50,000 options granted to Ian Stevens on 21 September 2005 contained performance conditions. The award stipulated vesting over four quarters<br />
dependent on the North American business attaining certain performance levels. Such targets are based on the Company budget for the year ended 30 September<br />
<strong>2006</strong> <strong>and</strong> relate to targets for net installs, overhead expenditure <strong>and</strong> revenue per site. The conditions have been achieved.<br />
The outst<strong>and</strong>ing options to a number of non-executive Directors expired nine months after admission to the Official List <strong>and</strong> trading on the main market of the<br />
London Stock Exchange.<br />
The options numbers listed above exclude options reserved under the share save scheme which commenced in April 2002. Stephane Sallmard has a potential 20,688<br />
options priced at £1.00 <strong>and</strong> exercisable between April 2007 <strong>and</strong> September 2007. Ian Stevens has a potential 12,413 options priced at £1.00 <strong>and</strong> exercisable between<br />
April 2007 <strong>and</strong> September 2007.<br />
Aggregate gains made by Directors on the exercise of share options amounted to $979,837 (2005: $nil).<br />
The market price of the shares at 30 September <strong>2006</strong> was £1.85 <strong>and</strong> the highest <strong>and</strong> lowest market prices from flotation to 30 September <strong>2006</strong> were £2.84 to £1.62.<br />
PERFORMANCE GRAPH<br />
The following graph shows the Company’s performance measured by the total shareholder return, compared with the performance of the FTSE Small Cap <strong>and</strong> the<br />
FTSE All Share <strong>and</strong> Healthcare Equipment <strong>and</strong> Services (rebased) indices. The Board believes these comparisons are the most relevant for a Company of <strong>Optos</strong>’ size.<br />
110<br />
100<br />
90<br />
80<br />
70<br />
60<br />
Mar Apr May Jun Jul Aug Sep<br />
<strong>Optos</strong> PLC<br />
FTSE Small Cap – Price index<br />
Health FTSE All Share H/C EQ & SVS £ – Price Index<br />
Source: Datastream<br />
Dr John Padfield<br />
Chairman of the Remuneration Committee<br />
Signed <strong>and</strong> approved for <strong>and</strong> on behalf of the Board<br />
18 December <strong>2006</strong><br />
<strong>Optos</strong> plc <strong>Annual</strong> <strong>Report</strong> & <strong>Accounts</strong> <strong>2006</strong> 31