NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 MARCH 2026
30. Share-based payment plans continued
30. Share-based payment plans continued Outstanding LTIP and DSBP A summary of the awards that have been granted under the LTIP and DSBP and remain outstanding is given below: At 31 March 2026
b) DSBP In accordance with the Remuneration Policy, 20% of the bonus awarded to Executive Directors for FY2025/26 was deferred and provided in the form of LTIPs with no performance conditions. Awards are valued using the Monte Carlo model and Black-Scholes model. No non-market performance conditions were included in the fair value calculations. The fair value per award granted and the assumptions used in the calculation are as follows: Awards granted in the year ended 31 March 2026:
Outstanding at 31 March 2026
Granted during the year
Forfeited during the year
Exercised during the year
Outstanding at 1 April 2025
Exercise dates 2023–2027 2023–2028 2024–2029 2025–2030 2026–2031 2027–2032 2028–2033 2029–2034 2030–2035
439,280 312,508 502,479 465,643 285,383 191,437 458,552 664,927 749,337
452,990 312,508 510,654 503,030 286,124 560,455 477,633 701,475
– – – – – – – –
– – – – –
(13,710)
11 June 2025 No performance conditions
–
(8,175)
11 June 2025 TSR
11 June 2025 EPS
11 June 2025 EPS/Local
(37,387)
(741) (719)
Grant date
(368,299) (19,081) (36,548)
Share price at grant date
£6.71
£6.71
£6.71
£6.71
– – –
Exercise price
nil
nil
nil 32
nil
Number of employees Shares under option Vesting period (years) Expected volatility Option life (years) Expected life (years) Risk-free rate of return Expected dividend yield
13
13
12
–
787,314
(37,977)
272,869
272,869
197,965
43,611
3,804,869
787,314 (461,905)
(60,732)
4,069,546
3
3
3
3
36.95%
36.95%
36.95%
36.95%
At 31 March 2025
10
10
10
10
Outstanding at 31 March 2025
5
5
5
5
Granted during the year
Forfeited during the year
Exercised during the year
3.92%
3.92%
3.92%
3.92%
Outstanding at 1 April 2024
Exercise dates
nil
nil
nil
nil
£4.45
£6.71
£6.71
£6.71
Fair value 1
5,500
– – – – – – –
– – – –
(5,500)
– 2022–2026
452,990 312,508 614,531 506,328 358,925 574,015 488,500
– –
452,990 2023–2027 312,508 2023–2028 510,654 2024–2029 503,030 2025–2030 286,124 2026–2031 560,455 2027–2032 477,633 2028–2033 701,475 2029–2034
1 The TSR and EPS FV for the two Executive Directors where the holding period is applicable are £4.11 and £6.19, respectively. Awards granted in the year ended 31 March 2025:
(103,877)
(2,619)
(679) (345)
12 June 2024 TSR
12 June 2024 EPS
12 June 2024 ESG
12 June 2024 EPS/Local
(72,456) (13,560) (10,867)
– – –
Grant date
Share price at grant date
£7.17
£7.17
£7.17
£7.17
–
701,475 701,475
–
Exercise price
nil
nil
nil
nil 36
3,313,297
(99,502)
(110,401)
3,804,869
Number of employees Shares under option Vesting period (years) Expected volatility Option life (years) Expected life (years) Risk-free rate of return Expected dividend yield
15
15
15
235,229
235,229
52,273
178,744
The weighted average remaining contractual life for the share options outstanding at 31 March 2026 is 5.5 years (2025: 5.9 years) and the weighted average share price for the exercises during the year ended 31 March 2026 was £6.53 (2025: £6.85). The range of exercise prices for options outstanding at the end of the year was £nil (2025: £nil). c) CSOP The Group operates an approved and an unapproved executive share option scheme, the rules of which are similar in all material respects. The grant of options to senior management is recommended by the Remuneration Committee on the basis of their contribution to the Group’s success. The options vest after three years. The exercise price of the options is equal to the closing mid-market price of the shares on the trading day prior to the date of the grant. Exercise of all options is subject to continued employment. The life of each option granted is ten years. There are no cash settlement alternatives. Options are valued using the Black-Scholes model. No non-market performance conditions were included in the fair value calculations. No options under the approved and unapproved executive share option scheme were granted during the year ended 31 March 2026. The expected volatility is based on historical volatility over the period of time commensurate with the expected term immediately prior to the date of grant. The expected life is the average expected period to exercise. The risk-free rate of return used in the valuation is the rate of interest obtainable from government securities over a period commensurate with the expected term of the equity incentive. The total charge for the year relating to the approved and unapproved share option schemes was £30,000 (2025: £35,000).
3
3
3
3
39.36%
39.36%
39.36%
39.36%
10
10
10
10
5
5
5
5
4.37%
4.37%
4.37%
4.37%
nil
nil
nil
nil
Fair value
£3.81
£6.56
£6.56
£6.72
The expected volatility is based on historical volatility over the period of time commensurate with the expected term immediately prior to the date of grant. The expected life is the average expected period to exercise. The risk-free rate of return used in the valuation is the rate of interest obtainable from government securities over a period commensurate with the expected term of the equity incentive. The total charge for the year relating to the LTIP and DSBP schemes was £1.4m (2025: £2.0m).
194
195
discoverIE Group plc Innovative Electronics
Annual Report and Accounts for the year ended 31 March 2026
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