The company operates an equity based share option scheme to certain employees which provides additional remuneration for those employees who are key to the company. The options are granted under approved and unapproved EMI option plans, with the exercise price varying per each employee agreement. The options expire ten years after the date of the grant. Employees are not entitled to dividends until the shares are exercised. All options granted have performance conditions relating to the relevant employee remaining in the employment of the company at exercise.
A reconciliation of share option movements during the year ended 31 October 2023 is shown below:
Number of options - weighted average exercise price
Outstanding as at 01 November 2022: 11,008 - £152,629
Granted during the year: 14,034 - £447,124 (2022: nil - £nil)
Forfeited during the year: nil - £nil (2022: nil - £nil)
Exercised during the year: nil - £nil (2022: nil - £nil)
Outstanding as at 31 October 2023: 25,042 - £599,752
The company is unable to directly measure the fair value of the share options. Instead the fair value of the share options granted during the year is determined using the Black-Scholes model. The model is internationally recognised as being appropriate to value share option schemes similar to that of the company.
Equity settled schemes - charges arising: £375,995