A. Description of share-based payment arrangements
At
31 July 2022
, the Company had the following share-based payment arrangements
- Share option programmes (equity-settled)
On 17 June 2022, the Company established a share option programme which entitles key management personnel and other senior employees to purchase shares in the Company.
Under this programmes, holders of vested options are entitled to purchase shares at the market price of the shares at grant date. Currently, this programme is limited to key personnel and other senior employees.
The key terms and conditions related to the grants under this programmes are as follows; all options are to be settled by the physical delivery of shares.
Grant date: 17 June 2022
Number of instruments: 635,429
Vested conditions: 12 months of service from grant date
Contractual life of options: 4 years
B. Measurement of fair values
The fair value of the employee share options has been measured using the Black-Scholes formula. Service and non-market performance conditions attached to the arrangements were not taken into account in measuring fair value.
The inputs used in the measurement of the fair values at grant date of the equity-settled sharebased payment plans were as follows.
Fair value at grant date: £0.62
Share price at grant date: £0.69
Exercise price: £0.69
Expected volatility: 35%
Expected life: 4 years
Risk-free interest rate (based on government bonds): 2.83%
Expected volatility has been based on an evaluation of the Company's age and operation in a high risk industry and high growth sector.
The expected term of the instruments has been based on the contractual life of the options.
C. Expense recognised in profit or loss
Details of the related employee benefit expenses are disclosed in the profit and loss account as Other staff costs - Equity-settled share-based payments.