Covea sets aside £15m to pay Swinton executives

Covea subsidiary MMA Holdings UK has set aside £15.1m to pay Swinton executives for share options agreed in 2009, latest accounts reveal.

According to MMA Holdings UK’s 2011 accounts, certain executives acquired ‘C’ and ‘D’ shares in subsidiary Swinton (Holdings) Limited in 2009. The shares granted their holders the right to sell them back to MMA Holdings UK.

Although the accounts do not reveal which executives held the ‘C’ and ‘D’ shares, the share options were agreed when former chief executive Peter Halpin led Swinton.

Halpin and his executive team, including marketing director Nick Bowyer, finance director Anthony Clare, operations director Jackie Ordish and IT and business change director Adrian Hazeldine, were sacked last year after a dispute over performance-related share scheme payments.

However, Halpin and colleagues later obtained an undisclosed settlement from Covea. Halpin says his reputation has not been tarnished and he is potentially exploring teaming up with private equity.

Buy-back deal

The accounts reveal that MMA Holdings UK agreed to buy back the ‘C’ and ‘D’ shares in 2011 and 2012.

The purchase price is related to the Swinton Group results in 2011. 2011 was a bumper year for Swinton (Holdings). Turnover shot up 18% to £329m and after-tax profits increased to £34.3m from £28.1m.

The accounts show that MMA Holdings UK transferred £9.7m to Swinton (Holdings) to cover the share scheme and that a further provision of £5.4m related to the scheme was recorded on the balance sheet of Swinton (Holdings).