The company operates a share-based compensation plan granting share options to employees (including directors). Share options granted to employees of the company are under the Enterprise Management Initiative ("EMI") scheme and vest over a 4-year period. Other options have been granted to employees of subsidiary companies and selected consultants under a non tax-advantaged scheme on similar terms.
During 2022, options over 126,349 shares were granted at a weighted average exercise price of £0.475 per share, with 7,602 options being cancelled. During 2023, no options were granted, 6,756 options were exercised and 15,409 share options were cancelled. As at the balance sheet date a total of 263,231 options over shares were in existence (2022: 285,396) at a weighted average exercise price of £0.475 per share.
The total amount to be expensed over the vesting period is determined by reference to the fair value of the options granted, excluding the impact of any non-market vesting conditions. The fair value of the awards granted is measured using a Black Schemes model. Non-market vesting conditions are included in assumptions about the number of options that are expected to vest. At each Statement of Financial Position date, the Company will revise its estimates of the number of options that are expected to vest, and any changes in estimate will be recognised in the income statement, with a corresponding adjustment in equity as per FRS 102.
The share-based payment charge calculated was £442,245 (2022: £433,479) and has been recognised in these financial statements as an other operating expense in the profit and loss account.