The company operates equity based share option schemes (EMI and an unapproved schemes) to certain employees and contractors which provide additional remuneration for those who are key to the company. 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.
In previous financial years, the company did not recognise a share-based payment expense as the amount was considered immaterial. However, in the year ended 31 December 2024, more options vested and new options were granted.
As a result, the full cost associated with all options has been recognised in the current financial year in accordance with FRS102.
A reconciliation of share option movements during the year ended 31 December 2024 is shown below:
Number - Weighted average exercise price - Total weighted exercise price
Granted prior to 1 January 2024 40,000 - £0.31 - £12,250
Granted during the year: 39,000 - £1.38 - £53,700
Forfeited during the year: Nil - £Nil - £Nil
Exercised during the year Nil - £Nil - £Nil
Outstanding as at 31 December 2024: 79,000 - £0.84 - £65,950
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: £25,331 (2023: £Nil)