Notes to the Company Financial Statements

For the year ended 31 March 2023

Continued

M. Share based payments Options over shares held by the Employee Benefit Trust

Certain employees have been granted call options over ordinary shares of the Company held by the Cambridge Innovation Capital Limited Employee Benefit Trust. The terms provide that shares may be acquired at a fixed price in tranches commencing one year from the date of employment and expiring on the earlier of six months after an Initial Public Offering and ten years from the date of the award. If an employee leaves, there is no impact on vested tranches but unvested tranches expire on the leaving date.

Movements in the number of options outstanding and their related weighted average exercise prices are as follows:

During the year, it was determined that call options over shares held by the Employee Benefit Trust would be cash, rather than equity, settled via share buybacks based on the net assets per share as approved, from time to time, by the Board. As a result, a share based payment charge of £1,372,000, that had been expensed to the Statement of Comprehensive Income prior to 1 April 2022, was transferred from equity to liabilities in the Statement of Financial Position. At 31 March 2023, the aggregate liability, including employer’s National Insurance contributions, for these options was £1,561,000.

Options over shares issued in accordance with the Company’s incentive schemes

Certain employees have been granted options over ordinary shares of the Company in accordance with the Company’s incentive schemes. The options provide that shares may be acquired at a fixed price in two equal tranches that vest two and three years after the date of the award and expire five years after the vesting date. If an employee leaves and is considered a good leaver, vested tranches expire one year after leaving and unvested tranches expire one year after the future vesting date. If an employee leaves and is considered a bad leaver, vested and unvested tranches lapse on the leaving date.

Movements in the number of options outstanding and their related weighted average exercise prices are as follows:

It has been determined that options over shares issued in accordance with the Company’s incentive schemes would be cash, rather than equity, settled based on the net assets per share most recently approved by the Board. The liability for cash-settled options assumes an annual leavers rate of 10% and is prorated for the extent to which each option has vested. At 31 March 2023, the aggregate liability, including employer’s National Insurance contributions, for these options was £727,000 (2022: £828,000) and during the year a charge of £5,000 (2022: £346,000) has been recorded.

N. Operating lease commitments

The Group leases its office and the future aggregate minimum lease payments under this non-cancellable lease are as follows:

Within one year

Later than one year, but not later than five years

O. Related party transactions

The Company’s related party transactions include transactions with: the University of Cambridge and its subsidiaries; its subsidiary companies and associate undertakings; and entities in which the Company, or one of its wholly owned subsidiaries, has made an investment. Related party transactions for the Group are disclosed in Note 19 to the consolidated financial statements. The exemption from disclosing transactions and balances with wholly owned subsidiaries has been taken.

P. Post balance sheet events

Following the year end, the Company purchased a further £0.4 million of investments.

Q. Controlling party

There is no ultimate controlling party.