THE UNITE GROUP PLC Annual Report and Accounts 2024 202 FINANCIAL STATEMENTS 6.3 Share-based compensation A transaction is classified as a share-based transaction where the Group receives services from employees and pays for these in shares or similar equity instruments. The Group operates a number of share-based compensation schemes allowing employees to acquire shares in the Company. 6.3a) Share schemes The Group operates the following schemes: Long-term incentive plan (LTIP), comprising the: – Performance Share Plan (PSP); and Details can be found in the Directors’ Remuneration Report – HMRC Approved Employee Share Option Scheme (ESOS) Save As You Earn Scheme (SAYE) Open to employees, vesting periods of three years, service condition 6.3b) Outstanding share options The table below summarises the movements in the number of share options outstanding for the Group and their average exercise price: Weighted average Number of Weighted average Number of exercise price options exercise price options (thousands) (thousands) 2024 2024 2023 2023 Outstanding at 1 January £2.49 1,942 £0.19 2,083 Forfeited during the year £5.15 (170) £2.01 (765) Exercised during the year £1.20 (201) £4.91 (176) Granted during the year £2.84 810 £2.95 800 Outstanding at 31 December £2.53 2,381 £0.18 1,942 Exercisable at 31 December £9.65 84 £5.80 78 For those options exercised in the year, the average share price during 2024 was £9.35 (2023: £9.40). For those options still outstanding, the range of exercise prices at the year-end was 0p to 1,121p (2023: 0p to 1,121p) and the weighted average remaining contractual life of these options was 3.9 years (2023: 2.9 years). The Group funds the purchase of its own shares by the Employee Share Ownership Trust to meet the obligations of the LTIP and executive bonus scheme. The purchases are shown as Own shares acquired in retained earnings. As at 31 December 2024, the number of shares held by the ESOT was 203,898 (2023: 209,954). The accounting is in accordance with the relevant standards. No further information is given as the amounts for share-based payments are immaterial. Section 7: Post balance sheet events The Group has reviewed events up to 25 February 2025 and have determined that no material post balance sheet events have occurred. NOTES TO THE FINANCIAL STATEMENTS continued