2014
£000
2013
£000
Authorised
239,990,000 (2013: 239,990,000) ordinary shares of 10p each23,99923,999
1,000 (2013: 1,000) redeemable shares of £1 each1
23,99924,000
2014
£000
2013
£000
Allotted, issued and fully paid
202,799,432 (2013: 201,299,432) ordinary shares of 10p each20,28020,130
980 (2013: 980) redeemable shares of £1 each1
180 (2013: 180) deferred shares of 10p each
20,28020,131

The Company currently holds none (2013: 1,325,000) of its own shares in treasury. During the year 1,325,000 ordinary shares held as treasury shares were sold on the open market at a price of 44 pence per ordinary share. The excess over the price originally paid for the shares has been credited to share premium.

During the year ended 30 June 2014 1,500,000 shares were issued as a result of Stephen Wicks exercising share options at a cash consideration of 18.25p per share, generating a premium of 8.25p per share.

The Company operates a long term incentive plan as part of the remuneration packages of the Executive Directors. During the year the 2007 Plan was cancelled and replaced with the 2013 Plan. The redeemable and deferred shares were redesignated as 9,800 valueless deferred shares of 10 pence each. Further information can be found in the Directors' Remuneration Report.

The Company operates an unapproved share option scheme. Awards under each scheme are made periodically to employees. Share options vest three years after the date of grant and have an exercise period of seven years. The schemes are all equity-settled. The Company has used the Black–Scholes formula to calculate the fair value of outstanding options and deferred shares. The assumptions applied to the Black–Scholes formula for share options issued and the fair value per option are as follows:

Share
options 2012/13 grant
Share
options 2011/12 grant
Share
options 2010/11 grant
Share
options 2009/10 grant
Growth
shares
Expected life of options based on options exercised to date3 years3 years3 years3 years6 years
Volatility of share price67%67%76%69%40%
Dividend yield0%0%0%0%0.6%
Risk free interest rate2.05%2.05%2.05%2.11%1.96%
Share price at date of grant32.5p17.5p18.25p16.5p45.0p
Exercise price32.5p17.5p18.25p16.5p45.0p
Fair value per option£0.14£0.05£0.09£0.05£0.17

The charge calculated for the year ended 30 June 2014 is £171,000 with a corresponding deferred tax asset at that date of £34,000.

Volatility was assessed using the closing prices on the first business day of each month over the period since the shares have been listed.

A reconciliation of option movements over the year ended 30 June 2014 is shown below:

Number
000s
Exercise
price
pence
Outstanding at 30 June 20124,720
Granted during the year55032.5p
Lapsed during the year(100)
Outstanding at 30 June 20135,170
Exercised during the year(1,500)18.25p
Outstanding at 30 June 20143,670
Exercisable at 30 June 20142,815
Exercisable at 30 June 20131,315

At 30 June 2014 outstanding options granted over 10p ordinary shares were as follows:

Share option schemeOption
price
pence
NumberDates exercisable
Company unapproved50.0p710,00028 March 2010 to 27 March 2017
Company unapproved16.5p605,00017 December 2012 to 16 December 2019
Company unapproved18.25p1,500,00022 November 2013 to 21 November 2020
Company unapproved17.5p305,00025 June 2015 to 24 June 2022
Company unapproved32.5p550,00018 June 2016 to 17 June 2023