|239,990,000 (2013: 239,990,000) ordinary shares of 10p each||23,999||23,999|
|1,000 (2013: 1,000) redeemable shares of £1 each||—||1|
|Allotted, issued and fully paid|
|202,799,432 (2013: 201,299,432) ordinary shares of 10p each||20,280||20,130|
|980 (2013: 980) redeemable shares of £1 each||—||1|
|180 (2013: 180) deferred shares of 10p each||—||—|
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:
options 2012/13 grant
options 2011/12 grant
options 2010/11 grant
options 2009/10 grant
|Expected life of options based on options exercised to date||3 years||3 years||3 years||3 years||6 years|
|Volatility of share price||67%||67%||76%||69%||40%|
|Risk free interest rate||2.05%||2.05%||2.05%||2.11%||1.96%|
|Share price at date of grant||32.5p||17.5p||18.25p||16.5p||45.0p|
|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:
|Outstanding at 30 June 2012||4,720|
|Granted during the year||550||32.5p|
|Lapsed during the year||(100)|
|Outstanding at 30 June 2013||5,170|
|Exercised during the year||(1,500)||18.25p|
|Outstanding at 30 June 2014||3,670|
|Exercisable at 30 June 2014||2,815|
|Exercisable at 30 June 2013||1,315|
At 30 June 2014 outstanding options granted over 10p ordinary shares were as follows:
|Share option scheme||Option|
|Company unapproved||50.0p||710,000||28 March 2010 to 27 March 2017|
|Company unapproved||16.5p||605,000||17 December 2012 to 16 December 2019|
|Company unapproved||18.25p||1,500,000||22 November 2013 to 21 November 2020|
|Company unapproved||17.5p||305,000||25 June 2015 to 24 June 2022|
|Company unapproved||32.5p||550,000||18 June 2016 to 17 June 2023|