Just Annual Report and Accounts 2023

174 | Just Group PLC | Annual Report and Accounts 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

13. EMPLOYEE BENEFITS continued During the year to 31 December 2023, awards of SAYEs were made on 18 April 2023. 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:

Fair value at grant date Option pricing model used Share price at grant date

£0.38

Black–Scholes

£0.89 £0.67

Exercise price

Expected volatility – 3-year scheme Expected volatility – 5-year scheme

47.78% 50.32%

Option life

3.37 or 5.37 years

Dividend yield

1.95% 3.65% 3.62%

Risk-free interest rate – 3-year scheme Risk-free interest rate – 5-year scheme

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.

14. EARNINGS PER SHARE The calculation of basic and diluted earnings per share is based on dividing the profit or loss attributable to ordinary equity holders of the Company by the weighted-average number of ordinary shares outstanding, and by the diluted weighted-average number of ordinary shares potentially outstanding at the end of the year. The weighted-average number of ordinary shares excludes shares held by the Employee Benefit Trust on behalf of the Company to satisfy future exercises of employee share scheme awards. Earnings for the purposes of determining earnings per share and diluted earnings per share is calculated by adjusting the profit or loss attributable to ordinary equity holders of the Company for amounts in respect of the RT1 notes. This is based on the judgement that the rights associated with the RT1 notes are similar to preference shares. Adjustments include coupon payments and any gains/losses on redemption.

Year ended 31 December 2022 (restated)

Year ended 31 December 2023

Weighted- average number of

Earnings per share pence

Earnings £m

shares million 1,032

Earnings £m

shares million 1,032

129

– –

Profit/(loss) attributable to equity holders of Just Group plc Coupon payments in respect of Tier 1 notes (net of tax) Profit/(loss) attributable to ordinary equity holders of Just Group plc (basic)

(362)

– –

(12)

–

(14)

–

117

1,032

11.3

(376)

1,032

(36.3)

–

Effect of potentially dilutive share options 1

–

Diluted profit/(loss) attributable to ordinary equity holders of Just Group plc

117

1,049

11.2

(376)

1,032

(36.3)

1 T he weighted-average number of share options for the year ended 31 December 2022 that could have potentially diluted basic earnings per share in the future but are not included in diluted EPS because they would be anti dilutive was 23.3 million share options.