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Notes to the financial statements
continued
for the year ended 30 September 2015
152
Tiger Brands Limited integrated annual report
2015
COMPANY
GROUP
2015
2014
(R’million)
2015
2014
21 Trade and other receivables
continued
21.5 Collateral held
Fair value of collateral held
13,5
13,1
Collateral held represents hawker deposits which may
be applied against accounts which are in default.
22
Cash and cash equivalents
127,1
270,0
Bank balances
1 051,6
1 160,3
127,1
270,0
Cash and cash equivalents
1 051,6
1 160,3
23
Share-based payment plans
23.1 General employee share option plan
Certain senior employees are entitled to receive options based on merit. Options are issued annually by the board of
directors of the company.
Between January 2006 and March 2013 a cash-settled option scheme was applied by the company, which replaced
the previous equity-settled share option scheme. During March 2013, a hybrid scheme was introduced where
executives and managers of the company and its subsidiaries are offered a weighted combination of:
❍❍
Allocations of share appreciation rights
❍❍
Conditional awards of full value performance shares
❍❍
Grants of full value restricted shares (bonus matching and deferral element).
The hybrid scheme is regarded as an equity-settled share option scheme.
Refer to pages 80 to 89 for additional details regarding the schemes reflected below.
The total expense recognised for employee services received during the year to 30 September 2015 is R29,2 million
(2014: R105,4 million). No expense was recognised in the current or previous financial year relating to the previous
equity-settled share-based scheme. Of the total expense recognised, the portion arising from the share appreciation
rights, performance shares and restricted share option transactions amounted to R17,8 million, R18,1 million and
R9,9 million (2014: R11,5 million, R9,9 million and R1,9 million) respectively.
Equity settled
The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, share
options during the year.
2015
2014
Number
WAEP
Number
WAEP
Outstanding at the beginning of the year
106 600
75,13
458 400
59,54
Forfeited during the year
–
–
–
–
Exercised during the year
1
(106 600)
75,13
(351 800)
54,81
Outstanding at the end of the year
–
–
106 600
75,13
Exercisable at the end of the year
–
–
106 600
75,13
1
The weighted average share price at the date of exercise for the options exercised is R283,10 (2014: R272,41).
No options were outstanding as at 30 September 2015.
The observable volatility in the market was the basis upon which the options were valued.
Share options were fair valued using a modified Black-Scholes model.