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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:

EMISAYEUnapproved
OptionsPrice
£
OptionsPrice
£
OptionsPrice
£
Outstanding at beginning of year560,0001.413112,1721.084180,0001.408
Granted during the year20,0001.725120,6731.050
Lapsed during the year(30,000)1.355(22,311)1.218
Exercised during the year(55,000)1.380(4,432)1.340
Open at 30th June 2015495,0001.432206,1021.041180,0001.408
Exercisable at the end of the year90,0001.55

The weighted average inputs into the Black–Scholes model at the time of grant were as follows:

EMI
Scheme
SAYE
Scheme
Unapproved
Scheme
Weighted average share price144p130p141p
Weighted average exercise price144p104p141p
Expected volatility53%50%56%
Expected life3.1 years3.1 years3.0 years
Risk-free rate0.5%0.5%0.5%

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 (2014: £nil).

The Group recognised a total charge in respect of share based payments of £139,000 (2014 : £152,000) within administrative expenses.

Long Term Incentive Plan

The Animalcare Group plc LTIP was introduced in June 2014 to provide an effective mechanism for senior executives to participate in the Company's equity at a meaningful level, aligning their interests with those of shareholders.

The Directors' interests in the LTIP, which was implemented via a subscription for growth shares in the capital of Animalcare Ltd, a subsidiary of the Company, are 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 (2014: £nil).