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 an approved EMI option plan, with the exercise price agreed by The Board. The options expire ten years after the date of the grant. Employees are not entitled to dividends until the shares are exercised.
A reconciliation of share option movements during the year ended 30 June 2024 is shown below:
Number of options - weighted average exercise price
Outstanding as at 1 July 2023: 101,545 - £327,426
Granted during the year: nil - £nil
Forfeited during the year: nil - £nil
Exercised during the year: nil - £nil
Outstanding as at 30 June 2024: 101,545 - £327,426
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: £200,363 (2023: £511,305)