HYR.L Regulatory News (HYR)

7 May 2015

Hydrodec Group plc

("Hydrodec" or the "Company")

Joint Share Ownership Awards

Hydrodec Group plc (AIM: HYR), the clean-tech industrial oil re-refining group, announces that on 6 May 2015, beneficial interests in 2,583,333 ordinary shares of 0.5p each in the capital of the Company ("Shares") were awarded to members of the senior executive leadership team as awards under the Company's Joint Share Ownership Plan A (the "JSOP") (the "JSOP Shares").

Pursuant to the Company's remuneration policy, annual performance bonus awards to members of the senior executive leadership team are made partly in cash at the time and partly through deferred interests in Shares held under the JSOP. As set out in the Company's 2013 Annual Report1, the senior executive leadership team agreed to defer fifty per cent of their respective annual bonus awards for 2013 into Shares to be held under the JSOP. The awards in respect of the JSOP Shares have been made in part satisfaction of this deferred element of the annual bonus awards for 2013. The reference price used in determining the number of JSOP Shares awarded is 10.8p per Share, being the average closing mid-market price per Share on dealing days in January 2014.

As part of the above awards:

· Ian Smale, Chief Executive, was granted a beneficial interest in 853,422 JSOP Shares for nil cost. Following this transaction, Ian Smale has a beneficial interest in 1,981,436 Shares (representing approximately 0.27 per cent of the issued voting Shares); and

· Chris Ellis, Chief Financial Officer, was granted a beneficial interest in 691,964 JSOP Shares for nil cost. Following this transaction, Chris Ellis has a beneficial interest in 2,038,802 Shares (representing approximately 0.27 per cent of the issued voting Shares).

The JSOP Share awards have been made in respect of unallocated Shares held by the Company's employee benefit trust (the "EBT"). Consequently, the award of the JSOP Shares does not alter the total number of Shares in issue or which have voting rights. 

Under the JSOP, the JSOP Shares are held by participants jointly with the trustee of the EBT pursuant to the terms of joint ownership agreements entered into between the EBT and each respective participant. If a fixed share price hurdle is achieved on or before 31 January 2016 (being two years after the original date of award of the annual bonus for 2013), the participants will benefit from the growth in value of their respective JSOP Shares. The participants also hold a nil cost option over the EBT's interest in the JSOP Shares which may be exercised in certain circumstances. All dividend and voting rights in the JSOP Shares are waived whilst the JSOP Shares are jointly held by the relevant participant and the trustee of the EBT. 

1 Available on the Company's website at http://www.hydrodec.com/investor-relations/performance-and-reports/financial-reports.

For further information please contact:

Notes to Editors:

Hydrodec's technology is a proven, highly efficient, oil re-refining and chemical process initially targeted at the multi-billion US$ market for transformer oil used by the world's electricity industry. Hydrodec processes spent oil in the US and Australia with distinct competitive advantage delivered through very high recoveries (near 100%), producing 'as new' high quality oils at competitive cost and without environmentally harmful emissions. The process also completely eliminates PCBs, a toxic additive banned under international regulations. Hydrodec's plants are located at Canton, Ohio, US whilst in Australia, Hydrodec's operations are outsourced to Southern Oil's Refinery at Bomen, New South Wales, Australia. In 2013, Hydrodec acquired the business and assets of OSS Group, the UK's largest collector, consolidator and processor of used lubricant oil and seller of processed fuel oil, with a national network of oil storage and transfer stations. Used oil is converted into processed fuel oil at OSS's plant at Stourport and principally sold on to the UK quarry and power industry. In April 2015, Hydrodec further acquired the business and assets of Eco Oil, a leading UK waste oil collector and supplier of recycled industrial fuel oil into the power and road stone industries. It is also one of four significant providers of waste management services to the marine industry in the UK, specifically oily-water slops or marine pollutant (MARPOL). In line with our stated intention to develop a base oil re-refinery in the UK, we have an exclusive licence agreement with California-based Chemical Engineering Partners (CEP) to develop the CEP wiped-film evaporation and hydrogenation technology in the UK as well as the basic engineering for a 75 million litre per annum capacity base oil re-refinery. In February 2015, we moved the Group's head office to more cost effective serviced offices at 6 Hays Lane, London Bridge, London SE1 2HB.

Hydrodec's shares are listed on the AIM Market of the London Stock Exchange. For further information, please visit www.hydrodec.com.