Moa employees get access to new share scheme

See also: Clear plan in place as Moa board ruffles its feathers

Craft beer maker Moa Group [NZX: MOA] will give workers another chance to get shares in the company, with a long-term employee option scheme issuing up to 1.2 million share options.

Chairman Ashley Waugh told today's annual meeting in Auckland that the company would offer 2.5% of its stock to employees at today's share price of 29c. The options will vest with Moa employees at the end of the first, second and third years of employment, and staff will have two years after vesting to pay at today's price, Mr Waugh said, without providing more details on who would be able to participate.

"This scheme encourages employees to contribute to the profitable growth of Moa as well as to stay with Moa throughout the journey," Mr Waugh said.

When Moa floated in late 2012, its executive team and certain agents and distributors were given limited recourse loans to buy 1.75 million redeemable shares at $1.25 apiece if certain targets were met. The loans didn't accrue interest and were secured against the relevant shares.

In the case of chief executive Geoff Ross, the share price needed to beat the offer price by 2.2 times, or $2.75, for his $1.1 million of stock to vest, while other executives' incentives were tied to the company's 2014 revenue beating prospectus forecast by 12.5%. Head brewer David Nicholls' $125,00 of stock would vest provided he met performance objectives for at least two years after the offer closed.

Since then, 1.65 million of those shares have been cancelled, with just Mr Nicholls' option to buy the shares and pay the loan available, according to Moa's 2015 annual report.

At today's meeting Waugh acknowledged the share price wasn't "what you signed up for, so thanks for staying with us. We intend to reward your support with results."

Mr Ross told the meeting the slump in share price was due to distribution changes two years ago and the poor performance that triggered, and that the company's new operating systems will provide wider margins.

"We are demonstrating strong growth, in a growing category, and are progressing well through the core steps required to build a beverage business," Mr Ross said. "Our view is that continuing to deliver on these growth rates, and continuing to improve the financial metrics, to be a leader in a high-value category will have to create a higher value in our share price."

Moa overhauled its business strategy in late 2013, changing to a direct distribution model, shifting focus to the New Zealand and Australian markets, and outsourcing much of its beer production to McCashin's Brewery in Nelson while making its higher-margin speciality brews at its Blenheim site.

In May, the company reported a smaller annual loss of $5.58 million in the year ended March 31 on a 33% increase in sales to $6.1 million.

(BusinessDesk)