AUB Group Limited Annual Report 2023

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2023

20 ISSUED CAPITAL

2023 $’000

2022 $’000

Issued Capital opening balance Issue of shares, net of issue costs Issued Capital closing balance

608,520 337,167 945,687

266,659 341,861 608,520

Shares No.

Shares No.

Number of Shares on Issue (ordinary shares fully paid)

108,405,620

92,409,126

Movements in number of shares on issue Beginning of the financial year

92,409,126 6,875,102 9,018,974

74,403,507 17,950,069

Issue of shares*

Issue of shares- acquisition**

– –

Number of shares issued during period - options exercised

102,418

Number of shares issued during period - options exercised on 11 November 2021

–

55,550

Total Shares on Issue

108,405,620

92,409,126

Weighted average number of shares on issue at end of the year

99,836,672

76,545,637

* On 24 May 2023, AUB issued 6,875,102 shares at $24.00. Total amount raised less issue costs was $161.7m. ** On 30 September 2022, AUB issued 9,018,974 shares at $19.50 to the vendors of Tysers as part of the acquisition (refer to Note 7 for further information). The shares whilst issued are held in escrow for 2 years. Total amount raised less issue costs was $175.9m. Ordinary shares have the right to receive dividends and, in the event of winding up the company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary share capital is recognised at the fair value of the consideration received by the company, net of issue costs. Ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the company.

21. SHARE-BASED PAYMENT PLANS

The Group provides benefits to employees (including executive directors) of the Group in the form of share-based payments, whereby employees render services in exchange for shares or rights over shares (‘equity-settled transactions’). An Employee Performance Share Rights Plan is in place which provides benefits to executive directors and senior executives through the issue of both Performance Share Rights (PSRs) and Share Appreciation Rights (SARs). The performance hurdles relating to PSRs issued in previous periods remain unchanged. The cost of these equity-settled transactions with employees is measured by reference to the fair value of the equity instruments at the date at which they are granted. Details of the methodology to value of PSRs is included below. In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions linked to the price of the shares of AUB Group Limited (market conditions) if applicable. The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (the vesting period). The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects (i) the extent to which the vesting period has expired and (ii) the Group’s best estimate of the number of equity instruments that will ultimately vest. No adjustment is made for the likelihood of market performance conditions being met as the effect of these conditions is included in the determination of fair value at grant date. The Consolidated Statement of Comprehensive Income charge or credit for a period represents the movement in cumulative expense recognised as at the beginning and end of that period. It is included in Note 4(d) Expenses. The Share Based Payment reserve is used to record the value of equity benefits provided to employees and directors as part of their remuneration.

AUB GROUP ANNUAL REPORT 2023

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