Cosalt plc Annual report & financial statements 2008

Financial statements Notes to the financial statements
Notes to the financial statements
continued
23. Called up share capital continued
Share based payments continued
Reconciliations of share options outstanding during each period, under each type of share option is as follows:
Share options 2008 Share options 2007
Weighted Weighted
Number average Number average
of share exercise of share exercise
options price options price
Outstanding at the beginning of the year* 453,579 283.9p 647,500 270.9p
Granted during the year – – – –
Lapsed during the year (188,402) 289.5p (103,500) 288.0p
Exercised during the year (80,311) 228.6p (85,000) 179.5p
Outstanding at the end of the year 184,866 294.8p 459,000 283.9p
Exercisable at the end of the year 34,346 294.8p 279,500 285.2p
* Shares under option and price has been adjusted for the effects of the placing and open offer on 12 October 2007 in accordance with the Scheme rules.
The options outstanding at 26 October 2008 have a range of exercise price of 220.3p to 343.0p and a weighted average remaining
contractual life of 2.5 years.
2008
PSP
2007
Outstanding at the beginning of the year 55,458 –
Restricted shares issued during year 612,804 55,458
Forfeited during the year (55,458) –
Outstanding at end of year 612,804 55,458
The inputs into the Black-Scholes pricing model were as follows:
PSP Share options
2008 2008 2007 2007 2006 2005 2004
Grant date 13 August 21 July 26 October 17 April 1 August 1 August 1 July
Risk free interest rate 4.5% 4.5% 4.5% 5.9% 5.0% 4.9% 4.7%
Exercise price – – – – 292.0p 269.0p 309.0p
Share price at date of grant 244.5p 243.0p 368.5 378.7p 292.0p 269.0p 309.0p
Expected dividend yield 4.5% 4.5% 4.5% 4.5% 5.8% 5.8% 5.8%
Expected life 3.75 years 3.75 years 3.75 years 5 years 6 years 6 years 6 years
Vesting period 3.75 years 3.75 years 3.75 years 3 years 5 years 5 years 5 years
Expected volatility 30% 30% 30% 26% 20% 26% 26%
Fair value of option 206.5p 205.3p 311.3p 332.6p 33.17p 43.67p 49.22p
Expected volatility was determined by calculating the historical volatility of the Group’s share price over various timescales.
The expected life used in the model has been adjusted, based on best estimates to reflect exercise restrictions and behavioural
considerations.
In 2008 the Group recognised a total credit of £28,000 (2007: charge £55,000) in relation to equity-settled share-based
payment transactions.
66 Cosalt plc Annual report & financial statements 2008