SENWES ANNUAL FINANCIAL STATEMENTS 2022
16 . EMPLOYEE BENEFITS 16.1 Short-term incentive bonuses
Balance at the beginning of the year Increase in provision during the year
GROUP |
|
COMPANY |
|
2022 R ' m |
2021 R ' m |
2022 R ' m |
2021 R ' m |
126 |
24 |
68 |
23 |
143 |
126 |
88 |
68 |
( 2 ) |
( 1 ) |
( 1 ) |
- |
Over-provision previous year |
|
|
|
|
Utilised during the year |
( 124 ) |
( 23 ) |
( 67 ) |
( 23 ) |
Balance at the end of the year |
143 |
126 |
88 |
68 |
The group has a short-term incentive scheme for employees and an equity-settled share-based payment scheme for senior management . It is aligned with the objectives and remuneration philosophy of the group in that a portion of the remuneration is subject to risk . Provisions are created in accordance with the rules of the schemes .
The short-term incentive scheme is paid each year to qualifying employees . The calculation is based on the performance of the group , the division / entity in which the employee is employed as well as an individual evaluation of the performance of the employee .
16.2 Long-term incentive scheme
Senwes grants shares to its senior management . These shares are acquired and held in a trust for the last three years of the vesting period . The scheme is a forfeitable share award scheme , where shares are forfeited if future service and performance conditions are not met .
The fair value of the shares granted are determined by using the market value of the shares on grant date adjusted with the present value of dividends not entitled to . The grant date is the date on which the entity and the participant agree to a share-based payment arrangement .
The total group expense recognised for the year amounts to R18 million ( 2021 : R7 million ). The accumulated group equity-settled reserve amounts to R37 million ( 2021 : R36 million ). Refer to the table below for more details :
|
GROUP |
|
COMPANY |
|
|
2022 R ' m |
2021 R ' m |
2022 R ' m |
2021 R ' m |
Opening balance |
36 |
47 |
36 |
47 |
Vested during the year |
( 17 ) |
( 18 ) |
( 17 ) |
( 17 ) |
Expense ( group and company ) and contribution recognised ( company ) |
18 |
7 |
18 |
6 |
Initial shares granted |
14 |
5 |
14 |
5 |
Increase in shares granted / new participants |
5 |
6 |
5 |
5 |
Under /( over ) -provision previous year |
1 |
( 2 ) |
1 |
( 2 ) |
Forfeited during the year |
( 2 ) |
( 2 ) |
( 2 ) |
( 2 ) |
Equity-settled share-based payment reserve |
37 |
36 |
37 |
36 |
17 . TRADE AND OTHER PAYABLES
|
Number of shares |
Fair value price per share |
|
Tranche |
per tranche granted |
on grant date |
Vesting date |
6 |
1,849,482 |
R |
8.05 |
30 June 2022 |
7 |
1,963,189 |
R |
11.05 |
30 June 2023 |
8 |
2,810,867 |
R |
11.65 |
30 June 2024 |
Total |
6,623,538 |
|
|
|
The first five tranches vested on 30 June 2017 , 2018 , 2019 , 2020 and 2021 . The performance conditions were not fully met relating to vested tranches . Respectively , 30 %, 51 %, 90 %, 100 % and 100 % of these shares vested for employees still in service on date of vesting . The next vesting took place on 30 June 2022 , subject to performance and other conditions being met .
|
GROUP |
|
COMPANY |
|
|
2022 R ' m |
2021 R ' m |
2022 R ' m |
2021 R ' m |
Trade payables |
869 |
1,408 |
123 |
437 |
Members ' funds |
11 |
11 |
- |
- |
Audit fees |
9 |
7 |
8 |
7 |
PAYE |
9 |
10 |
4 |
3 |
Sundry payables |
191 |
366 |
166 |
143 |
Leave and thirteenth cheque accrual |
51 |
53 |
19 |
21 |
Total trade and other payables |
1,140 |
1,855 |
320 |
611 |
Terms and conditions in respect of trade and other payables : * Trade payables are payable on different terms from 30 days after date of statement and are not interest-bearing . * Sundry amounts payable have varying short-term payment dates . * Leave and thirteenth cheques payable are accrued on a monthly basis . * Trade and other payables at amortised cost approximate the fair value .
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