FINANCIAL STATEMENTS
STRATEGIC REPORT
GOVERNANCE
10 EMPLOYEE BENEFITS continued Save As You Earn (“SAYE”) scheme
The Group operates SAYE plans for all employees, allowing a monthly amount to be saved from salaries over either a three or five year period which can be used to purchase shares in the Company at a predetermined price. The employee must remain in employment for the duration of the saving period and satisfy the monthly savings requirement (except in “good leaver” circumstances). Options are exercisable for up to six months after the saving period.
The options are accounted for as equity-settled schemes.
The number, weighted-average exercise price, weighted-average share price at exercise, and weighted-average remaining contractual life of outstanding options under the SAYE are as follows: Year ended 31 December 2021 Year ended 31 December 2020
Weighted- average exercise price £
Weighted- average exercise price £
Number of options
Number of options
15,516,003 1,149,350 (1,081,602)
0.41 0.74 0.42 0.45 0.45 0.84 0.44 0.60 0.93 1.66
Outstanding at 1 January
9,953,188 13,031,462 (603,970) (6,609,575)
0.56 0.38 0.57 0.54 0.52 1.03 0.41 0.46 0.60 2.56
Granted Forfeited Cancelled Exercised
(363,145) (408,488) (32,565)
(46,892) (208,210)
Expired
Outstanding at 31 December Exercisable at 31 December
14,779,553
15,516,003
278,130
58,930
Weighted-average share price at exercise
Weighted-average remaining contractual life (years)
The range of exercise prices of options outstanding at the end of the year are as follows:
2021 Number of options outstanding 11,119,351 2,443,437 1,079,922
2020 Number of options outstanding 12,476,881 2,870,402
£0.38 £0.52 £0.74 £1.07 £1.18 Total
–
66,166 70,677
66,166 102,554
14,779,553
15,516,003
During the year to 31 December 2021, awards of SAYEs were made on 21 April 2021. The weighted-average fair value and assumptions used to determine the fair value of options granted during the year under the SAYE are as follows:
£0.53
Fair value at grant date Option pricing model used Share price at grant date
Black-Scholes
£1.05 £0.74
Exercise price
56.62% 50.98%
Expected volatility – 3 year scheme Expected volatility – 5 year scheme
3.36 or 5.36 years
Option life Dividends
Nil
0.17% 0.36%
Risk-free interest rate – 3 year scheme Risk-free interest rate – 5 year scheme
5%
Saving forfeit discounts
Expected volatility has been calculated using historic volatility of the Company over the period of time commensurate with the expected term of the awards immediately prior to the date of grant. Volatility of the market in 2020 due to COVID-19 has been considered and it has been concluded that the Company’s share price was not materially affected and no adjustment has been made.
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