During the year the Group operated the Animalcare Group plc Executive Share Option Scheme, the Save As You Earn (SAYE) Share Option Scheme and the new Long Term Incentive Plan as described below:
Animalcare Group plc Executive Share Option Scheme
Under this scheme, options may be granted to certain Executives and senior employees of the Group to subscribe for new shares in the Company at a fixed price equal to the market value at the time of grant. The options are exercisable three years after the date of grant. Once vested, options must be exercised within six years of the date of grant. The exercise of these options is not subject to any performance criteria.
SAYE Option Scheme
This scheme is open to all UK employees to encourage share ownership. Share options are granted at an option price fixed at a 20% discount to the market value at the start of the savings period. The SAYE options vest and are exercisable three years after the date of grant and must ordinarily be exercised within six months of the completion of the relevant savings period.
Details of the movement in all share option schemes during the year are as follows:
|Outstanding at beginning of year||676,600||1.392||138,845||1.084||308,400||1.292|
|Granted during the year||105,000||1.524||—||—||—||—|
|Lapsed during the year||(106,600)||1.575||(26,673)||—||(28,400)||1.618|
|Exercised during the year||(115,000)||1.258||—||—||(100,000)||0.975|
|Open at 30th June 2014||560,000||1.413||112,172||1.084||180,000||1.408|
|Exercisable at the end of the year||5,000||0.975||—||—||—||—|
The weighted average inputs into the Black–Scholes model at the time of grant were as follows:
|Weighted average share price||135p||144p||121p|
|Weighted average exercise price||137p||115p||125p|
|Expected life||3.1 years||3.1 years||3.1 years|
Expected volatility was determined by calculating the historical volatility of the Group's share price over the previous three years. The expected lives used in the model were estimated based on management's best estimate for the effects of non-transferability, exercise restrictions, and behavioural considerations.
The aggregate estimated fair value of the options granted during the year was £nil (2013: £nil).
The Group recognised total expenses of £152,000 (2013: £149,000), £152,000 (2013: £110,000) within administrative expenses and £nil (2013: £39,000) within exceptional and other items as disclosed in note 4.
New Long Term Incentive Plan
On 20th June 2014, the Board approved the Company’s new senior executive Long Term Incentive Plan (the “Plan”). On 27th June 2014, Iain Menneer, Chief Executive Officer, and Chris Brewster, Chief Financial Officer, subscribed for growth shares in the capital of Animalcare Ltd, a subsidiary of the Company, under the Plan as follows:
- Iain Menneer – 31,955 A Ordinary Shares of £1.00 each (“A Shares”) for a total cash subscription of £31,955, representing 5.2% of Animalcare Ltd’s issued share capital; and
- Chris Brewster – 19,173 A Shares, representing 3% of Animalcare Ltd’s issued share capital and 11,800 B Ordinary Shares of £1.00 each (“B Shares”), representing a further 2% of Animalcare Ltd’s issued share capital, for a total cash subscription of £30,973.
Further details of the Plan are provided in note 7.
The charge for the year to the income statement in respect of the Plan is £nil.