Financial statements Notes to the Consolidated Financial Statements continued For the 52 weeks ended 26 June 2021 22 Share-based payments continued RESTRICTED STOCK AWARD (RSA) These awards are granted to particular individuals and are dependent on continuing employment. There are no performance conditions attached to these awards. RSA options are also accounted for as equity-settled awards under IFRS 2. The following table summarises the movements in nil cost RSA options during the year: 2021 2020 Restricted Stock Award No. of options No. of options Outstanding at beginning of year 34,200 24,800 Granted 44,479 12,200 Dividend equivalent awarded in the year 4,932 – Exercised (8,944) – Forfeited (6,564) (2,800) Outstanding at end of year 68,103 34,200 Exercisable at end of year 1,456 – Exercisable at end of year refers to all share options not exercised which have passed their vesting date, but not yet reached their expiry date. The weighted average remaining contractual life of these options is 8.7 years (2020: 8.4 years). BONUS DEFERRED SHARES AWARD The Bonus Deferred Shares Award provides options over shares in Dunelm Group plc for colleagues of the Group as a discretionary bonus. This is an equity-settled share option scheme and there are no performance conditions attached to these awards, they are only dependent on continued employment. Under this arrangement, colleagues are awarded a number of options which is based on the cash value of the earned bonus award, determined by their achievement of a mixture of company and individual performance metrics, divided by a share price value of 1,189.00p which was approved at the November 2020 AGM. The deferred shares awarded vest in September 2021 and/or September 2022, depending on colleague level. The Bonus Deferred Shares Award is structured as nil cost options and the following table summarises their movement during the year: 2021 2020 Bonus Deferred Shares Award No. of options No. of options Outstanding at beginning of year – – Granted 509,927 – Dividend equivalent awarded in the year 9,889 – Forfeited (25,396) – Outstanding at end of year 494,420 – Exercisable at end of year – – The weighted average remaining contractual life of these options is 0.7 years (2020: n/a). FAIR VALUE CALCULATIONS The fair values of all share options granted are calculated at the date of grant using a Black-Scholes option pricing model. Expected volatility is determined by calculating the historical volatility of the Company’s share price over a period equivalent to the expected life of an option which is aligned to its vesting period. 214 DUNELM GROUP PLCANNUAL REPORT & ACCOUNTS 2021