Activeops (LSE:AOM) — Full Year Results

0:02 Good afternoon, and welcome to the ACTIVEOPS PLC Final Results Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and they can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question received during the meeting itself. However, the company can review all questions submitted today and publish responses, which is appropriate to do so. Before we begin, I would like to submit the following poll. And I would now like

0:33 to hand you over to Executive Chair, Richard Jeffrey. Good afternoon to you. Thanks, Alex, and welcome, everyone. Thanks for making the time to be here today. Over the next forty five minutes or so, Emma and I will walk you through what's been a really quite strong year for ACTIVEOPS, but also exciting times in terms of the times ahead. We've I got a lot to talk about, so I'll crack straight on to the to the to the deck. I think in terms of the the headlines, the the the great thing is for ACTIVEOPS right now, the the organic growth engine is really humming. We've got strong strong activity across all our regions, and I'll talk more about that. And the underlying strength of the business model in terms of annual advance, SaaS based billing, huge revenue sort of assurance as we go into every good year continues to sort of deliver the the fundamentals of the business. And then just to cap it as a a word post of year end, but as an event that you may well have seen, we also completed, I think, what's a very exciting acquisition for the business as well. So an awful lot of things, a lot of moving parts in there, but overall, a business which we think a number of us sort of strategic levers which we've been working on for four or five years are really starting to come together. And creating such a great platform for really is what what happens from here on through.

1:52 In terms of just for those of you who perhaps not come across the business, a little introduction to ACTIVEOPS and what we do. We're a SaaS based enterprise software platform servicing the the information needs and the and the requirements for controlling large complex operations, particularly banking, finance, organizations with a lot of people doing a lot of complex products inside those in teams, which therefore implicitly needs an awful lot of orchestration for reasons of efficiency and a number of things. So we sell three particular products. One's a desktop analytics program, which which provides visibility of the use of actual applications of time at the desktop. We have Control IQ, which is our core planning and control system, and we have Casework IQ, which is the application which increasingly in the world of automation, but the things that are left getting more complicated, provides the control and visibility over work and capacity over those exceptions and and and more complex events. And essentially, what we're trying to do is make sure we're providing the visibility over all our customers' work and capacity.

2:54 We're geographically well diversified. You can see at the top there the the regional split by revenue by region. We we operate in three pillars, Asia Pacific, EMEA, South Africa, and North America. And there's a story to tell for each, but but the headlines actually for each is that for their own indifferent and some similar reasons, it's it's going very strongly. Alongside the SaaS software, we provide services primarily around the installation establishment of ACTIVEOPS as a methodology inside companies for running their operations, and that continues to be a profitable a very significantly profitable bit of the business. But it as you say in the in the in the donut there, it's it's a ref you know, it varies by year a little bit depending on what we're doing, but it can be sort of 20% of the revenues or so. And that model will continue, and there's more to tell you about that.

3:43 To try and bring that to life a little, there's this slide. And this is just one of our customers for whom they, like any large enterprise, are wrestling with the process of evolution, transformation, and change, regulatory requirements, customer expectations, potentially fantastic new tooling around AI, bringing automation and the potential for radical changes to the way they interact with their customers. But that's a big beast. That's a lot of complexity. And the role of ACTIVEOPS in this has been to completely change the the context and precision of data they have to make choices and to drive value from projects in flight and and so on. They have a myriad of products, as you expect, as a large financial institution. And and and and and in any one of those products, there's a there's the requirements, there's the customers, there's this the the the backlogs, and there's the people. And and, you know, that's like sort of lots of juggling going on. And ACTIVEOPS is is in the heart of that now, taking data and presenting it in the way that our our uniquely sort of powerful methodology does for their customers so that they make better choices. They know what's gonna happening happen. They can model more effectively. They can make better, you know, better choices. And in the middle of that picture, you can see a number of examples of how how they are using the ACTIVEOPS data beyond just running their business well to make choices. Where do we automate? How do we drive value? What benefit are we getting from those other investments?

5:03 I hope that sort of brings to life a little the effect of having ACTIVEOPS for this as an as an organization where it makes it such a difference to, if you like, know what's going on more than just running at things well as we move to that strategic change. And in that particular customer, as the graph on the top right shows, is the level of improvement in the in the in the ARR, the the the revenue we drive from that because we're giving them such great value. In terms of the fundamental strengths of the business, those don't go away. We have a the world's not getting any less complex. The sort of issues I've described are pretty universal. The volatility of various world events just makes the decision intelligence, the requirements to know what's going on ever more you know, essential for some of these customers. Their ability to respond in an agile manner is so fundamental.

6:00 So so what we have is a is a growing market. The the the the the the benefit for ACTIVEOPS in recent times and one of the reasons that we're very positive at the moment if people's sense of awareness of need is growing. You know, we don't necessarily always have to sort of show people the size of opportunity. They they come in bound with problems with that they we know we can solve. We've had two very good significant sales of the nine low nine big good sales this year of new customers, and that's up from three the previous year as a as an indicator. One of the you know, two of those

6:31 were were very much regulatory driven. Regulator in their different context required greater assurance over how things were being run, and ACTIVEOPS provides the visibility and transparency not only to run the business well, but to provide an external stakeholder regulators of of of of of their quality, of their control, and that translates into quicker sales cycles, which is which is just just just great. And and our we'll have a stat later on, and Emma will take you through it in terms of when you land those new deals. It's not so much the the headline amount for you to start working. But once we're in an organization, people see the value, and we have that land and expand profile of a of a of a group. You know? Typically, when people have active ops, they start using it. They they they want more, and it grows across the estate.

7:16 So all those sort of underlying value and the and the brands at the bottom is is such a sort of foundation of why this you know, as as a as a as a business, whether it's regional diversification, security of revenue, even the solutions we provide being in the back office of operations, which don't easily change, gives us great sort of fundamental confidence in the in the product and the proposition. So so geographically, some pictures there. We wanted to give that sense of sort of that that that that progress being consistent. Australia has been a better offcoat the business for many years but has had a cracking year with with new customer acquisitions. ARR up by 18% as you see there. Canada, we've we've we're expanding and growing in the few in in lots of activities around the Canadian market. We have five of the six banks. The example I just gave you, for example, and and that itself is is a huge growth region.

8:11 North America, overall, back in The US, we've we've had some great wins in in in in the in The US market as well. So overall, the the the story is not so much of a a a particular point. It's more a number of elements in the in the elements of product proposition, price positioning that are just coming together for ACTIVEOPS right now. We'll talk some more about investments we've made around sales, but even the sales expansion in terms of quota carriers is just, if you like, the culmination of of of a number of elements that requires that sales team to to service the need, which, of course, the great thing is you can add more petrol to the tank to increase the rate of sales as as we build that pipeline and that marketing demand. But I think time for a change of voice. Emma, do you wanna pick up pick up some of the story? Perfect. Thank you very much, Richard.

8:58 Okay. So firstly, from a total revenue perspective this year, we've delivered a 15% year on year growth rates. That is underpinned by two things. So firstly, the new logo momentum that we've seen in f y twenty five. So in the previous year, we secured three new logos. In f y twenty five, that increased to nine. So we're really starting to see the uplift in professional services revenue coming through off the back of those implementations. So from a professional services revenue perspective, we're seeing an uplift in revenues of 23%. And then from a SaaS perspective, our existing customers and the new ones continue to trust us in their in their transformation agenda, supporting our 14% SaaS revenue growth on a constant currency basis. From an an adjusted EBITDA perspective, we've delivered 2,500,000 in the year. In the previous year, that was 2,400,000.

9:46 This is something that we trailed last year. So in f y twenty five, we we have gone through a change of our, resourcing capacity. So we started the financial year with eight quota carriers, and we've ended the year with 14. We've also, onboarded two more additional ones so far this financial year, and there's one or two extra heads factored in for the rest of this financial year. So that's ultimately what has led to the adjusted EBITDA remaining broadly in line with the previous year. From a cash perspective, we've ended the financial year with just under £21,000,000 on hand in on cash on hand in the bank at the end of the year. This was an absolute increase in cash of £3,000,000, which is a 17% year on year uplift. We do continue to deliver a healthy cash conversion at an EBITDA level of 200%.

10:35 In the previous year, that was a 175%, which is very much supported by the annual in advanced bidding cycle that we operate here within ACTIVEOPS. From a gross margin perspective, we are reporting a consistent gross margin year on year at 84%. There is a slight mix in the margin between SaaS margins and t and I margins. The SaaS margin, we've seen a slight improvement from 87 to 88%, which talks to some of the infrastructure changes that we've made during the year that's driving that margin higher. The t and I margins we've delivered at 58%, which is still a strong margin. From a t and I perspective over the years, we would recognize from margin point of view anywhere between 5060%. From an operating cost point of view, we've seen a £3,000,000 increase year on year, which is very much talks around the investment we've done in sales. So just over half of that increase directly is driven from the increase in sales in investment during the year.

11:33 So profit before tax. So last year, we labeled our PBT as our maiden year for profit before tax. We're demonstrating here that it is sustainable. So this is one of the things that we trailed last year. So we're very happy to be able to report that we are sustainably generating an increase in profits year on year.

11:54 In terms of the strength of our SaaS model, so from an ARR perspective, we've delivered a 15% year on year increase on a constant currency basis. This is also supported by our net revenue retention rates. So we've consistently reported around a 110% on a constant currency basis for the last few years, and this year, we're reporting a 108%, which we as a business are delighted with. In terms of progress within our product offerings, our casework IQ ARR has grown by 38% this year. And then also our Control IQ ARR growth overall is 11% year on year, which is supported by the uplift in series from series three to series four. On here, this is a similar slide to what we showed last year. So last year, we shared with you what we mean when we talk about land and expansion land and expand. So here, what you can really see is the benefits of the product innovation coming through from a revenue growth per se perspective, and you can really start to see the acceleration in the ARR.

12:56 Here, we've got two customers. So just on the left hand side, what we're demonstrating here is the impact of the uplift to series three, which you can see in f y twenty five. And then also what you could see in in series f y '23 and f y twenty four is actually confidence from the customer to further expand within their current existing user base as we could see expansion across a number of departments. On the right hand side, what you can see is a UK retailer bank. And what you can see here, again, is expansion within their current user base, and as you can see, the growth and the acceleration in that ARR number. Now from this perspective, there is far more to come. So what we did at the start of this calendar year is we released series four. So far, in terms of what we've done with service four is we've sold this to six customers. So three of those were existing and three of them were new logos.

13:48 We are in the early stages to be able to release what's the overall average increase in ARR is from service four. We hope to be able to report that later on this financial year. From the series three perspective, so last year, we reported an average uplift in ARR of 23%. What we've been able to do is maintain and actually grow that slightly. So what we're seeing at the moment is an uplift of 24% in ARR growth from users moving from 2.5 up to series three. In terms of the new logo wins from last year, so as I mentioned, we secured nine new logos last year. What we're doing here is demonstrating to you the future value that we have from those wins that we've secured. So of the nine new logos last year, there's five here on the screen. And what we're demonstrating here is the amount of penetration that we are have left yet to go within these customers.

14:40 The total increase in ARR for the new logo wins last year was 1,800,000. Based on our estimates of the TAM within these existing customers, we believe we can grow that 1,800,000 to 18,000,000 just within the five just within the nine new logos we secured last year. So the opportunity to grow just within our existing continues to grow. Last year, we reported a TAM within our existing customer base of 90,000,000. With the addition of the nine new logos from last year and also the Enlighten acquisition, which we'll come on to talking about shortly, the TAM within our existing customer base has grown to a 130,000,000. So based on the exit ARR for FY '25 of being just over 28,000,000, we've got a huge opportunity ahead of us to farm our existing customer base.

15:30 From a cash generation perspective, we as a business remain highly cash generative. So from an EBITDA cash generation, we're reporting generation of 200%. In the previous year, that was a 175%. We ended the year with just under £21,000,000 worth of cash. We remain debt free as a business. Earlier on this week, we announced the acquisition of Enlighten. Post the completion of that acquisition, we as a group were still sat with £50,000,000 on the balance sheet at the end of June. So it's highly achievable within our existing cash position that we have. So at the end of the financial year, we've got a healthy strong balance sheet. We still do today. A high level of our revenues is recurring, so 90% of our revenues comes from SaaS revenues, which gives us a high visibility into the revenues that are come ought to come in that financial year.

16:21 We've got multiple expansion opportunities. So the opportunity to move customers that are currently still on 2.5 up to series three and then ultimately up to series four. And then also we're sustainably profitable. So we're delivering strong PBT of 1,300,000 as we exit FY twenty five. And that's everything from me at the moment, Richard. Thank you, Emma. So just diving then into slight more detail about the I Enlighten acquisition. A year and a half ago or so, ACTIVEOPS, we we had quite an important sort of review of how we how we, you know, in strategy terms, make sure we we sort of continue to be relevant and important to to our customer base and indeed who entered we targeted as customers.

17:07 And one of the things that we recognized is that our traditional audience, if you like, had been on the kind of supply side of the business. It's the delivery factories. It's the ops leaders. It's the people who own the p and l. But they very often were the sort of they were the beneficiaries of the the transformation and change, and that sometimes put made it difficult for us to we needed to address a broader audience. And ACTIVEOPS' data and and as you've heard already today, is so relevant to helping organizations at the enterprise level make better choices. So what we we we really look to do and what we decided to do is focus much more on the kind of transformation agenda. We're not losing our focus about what our software does, but we need to bring it to life and provide functionality to support the the the things about how they plan and manage change, how does the HR side of the business articulate and develop the skills and the and the capabilities of of the organizational, sort of human resources, human capital. And, similarly, from a finance management perspective, how does our software help and kind of give the the finance community within a within an organization the the control they're looking for over change?

18:07 So that, ultimately, what we end up with every stakeholder in this sort of c suite level has a real interest in having ACTIVEOPS in place. And and the way we sort of developed that was the picture you see on the left there with a with our traditional focus around the the human performance optimization and the the management process optimization, which has traditionally been our heartland, but also looking to develop our visibility of a process in terms of what actually the work consists of and and and and enter into the world of of of the process process mining, but also organizational structures, spans, layers, and and so on to provide help and decision intelligence around those issues. This time last year or so, we we became aware and through our our contact with, Enlighten. Enlighten is a company that we've known for many years. They they're they're a competitor directly in Australia. And in many ways, they were, you know, in in the most similar organization to ACTIVEOPS. They have a a transformation approach underpinned by a software tool, more consulting led, but fundamentally a lot in common.

19:06 They'd also got a very similar geographic footprint in Australia and The US and and some parts of the world and and and India and the like. So so it was also territories we both understood. Now for for for their reasons, they they they'd come to the market, and, essentially, we saw a really good opportunity because in the Enlightenment product, as the as the graphic in the in there in the bottom left hand bottom shows, is they actually had a more broader ops offering, which included many of those sorts of functionalities from an intellectual property perspective that we were looking to develop. So it's a really good fit in terms of things we'd already decided we wanted to do. But in other ways, it was also really exciting because, firstly, with us and them, we we were together. There was no question in Australia. We were the two players in the game, and that gives us an opportunity to really own the the Australian market. But in The US, it was equally helpful because in a way that we haven't actually directly competed, they'd actually got they have got, and and now we do have, a number of really good quality major enterprise brands.

20:06 So the, you know, the challenge for ACTIVEOPS in such a global footprint for a relatively

20:11 small number of people is is is economies of scale and and and having to have presence in the company. Suddenly, with Enlighten, that's giving us a huge amount of opportunities to to sort of leverage our existing capacity, give us a little bit more critical mass, and ultimately solve some of those problems more quickly. You know, we're buying at least, you know, two years worth of growth from the core business here at and and picked up a whole load of new really quite quality customers.

20:34 So so we we're we're genuinely excited about really what this will bring, our ability to capture some of that in terms of the the operational gearing. It'll it'll bring forward some of the in a in a macro level of the business. We'll have a period of transition. But but because of, if you like, the the way that both the the businesses are similar in some ways and also the financial model we put in place with the buyout process being very much linked to delivery of renewals, you know, we've also engineered it to be very low risk in terms of the sort of the economics of the deal. So overall, we we think this is a this is a very, you know, great opportunity for us to sort of amplify the group and step forward. What's remaining, and this is the key point for me as as as chair and the message to the team, is the engine room, the ACTIVEOPS business is going so well. Let's not do anything to destabilize that. This is a way of amplifying accelerating, not not really, you know, not you know, I don't want to to mess with the the underlying elements. In many ways, it's the strength in the ACTIVEOPS business that gives me a lot of confidence about our ability to to take in the, enlightened business.

21:35 As you'd expect with it, there's a kind of phasing to to to set, like, set to plan around how we will realize gains and ultimately sell more software through this channel as well or through to the customer base as well. We we we we're taking our time to learn and understand because there are, as ever, with these things, there's there's that they have strong products, and they have strong customers, and we need to make sure they're excited about the opportunity, not worried. Equally, from the staff perspective, we need to understand strengths and and and also opportunities for for consolidation and savings, you know, in some of the usual places, but also some of the unusual places. How much services do we wanna do and so on through? But the broad plan, as you see on the screen there, is to is to take our time in the next six months to to do some obvious things, but fundamentally get our head around it and then start to really play through. As we exit 2000 the our next this financial year, I think a lot of those savings will be starting to play through, but we'll still see the full benefit in terms of the operational gearing of the business in the next financial year.

22:33 And what that does is essentially not take us to strange new lands, but intrinsically improve the penetration and the opportunity within our existing territory, which is which is a good place to start. Again, risk is operational risk, our own ability to be confident of our outcomes is fundamental. If you buy an ACTIVEOPS share, what you've got is a hugely important offer around revenue assurance. You know, we don't go out there and have to find every piece of revenue next year, and and we manage the variability very tightly. And we didn't wanna do anything to fundamentally change the profile of that. What it does do, though, is give us more scale. It gives us a larger top rate target operating model within those customers, and, ultimately, it just gives us more potency to go after and scale the the, you know, the fuller market opportunity. So, again, really good fit, really good opportunity, but but, you know, in a sense, expansion of what we know well rather than something completely different, which which for me, personally, I think represents a a much, much better opportunity and and lower risk.

23:32 And that takes me sort of more generally into the the the broader strategic outlook for the business. We are continuing to do what we do. The the in some ways, the the strategy is boringly the same. We've created a product that is incredibly relevant to the challenges of the moment. We've got a product development factory, which is turning out new capabilities in response to those challenges at an unprecedented rate. Our capability to exploit and deploy the the the potency of AI into solutions for customers, you know, takes my breath away. I mean, this this year alone, we're we're converging the the WorkIQ product onto the Control IQ code base, which will unlock huge value because now the visibility of the desktop data intrinsically in the Control IQ, it it makes the deployment of WorkIQ to a new our existing Control IQ customers as a toggle switch rather than just a major new separate infrastructure.

24:28 It creates a depth to the data that means that process mining, process discovery just falls out of what people are doing for their day job. So no need to deploy big, expensive separate tools or bring in extra big consultancies to do those kind of diagnostic devices because it just comes as a byproduct of having ACTIVEOPS. So we will be continuing to sort of build out on that. Yes. More sales. We've got a sales capacity. We've got huge opportunity in South Africa, so we've already we're on the path of having a new VP of sales in South Africa. We've never had regional sales presence in South Africa. We supported it from UK before, and and then also compounding the the Canadian opportunity with more capacity there. But it's about balancing the line. We also need to make sure that the product you know, along with the product, the product marketing, and then the the the value, you know, bringing the brand and making people see it as the as the as the sort of being aware of it. So we're working hard on our marketing and our product product placement as well.

25:23 So nothing in that is essentially new. What we've got to do, of course, is to successfully land the the enlightenment as part of that story, not not create something that just creates noise and and chaos in the business. So an awful lot of of of of very, very exciting things, but effectively acceleration and amplification of what we currently do and are doing well. Just giving some feedback about q one. The the the statement, it says, in line with board expectations, which is code four is going well. And, certainly, I think as we as we sit here today, we just finished our first quarter. Emma and I are feeling pretty positive in the sense of that momentum that we we you you if you if you look at the team last year in two halves, the first half was okay, but the second half was really, really strong to give us the results that you've seen. More importantly, the first quarter continues that trend. So we we've we've we've actually got five new logos now.

26:15 There was three when we did the r and s. We've had a couple more drop most recently. So the underlying acquisition of new customers, again, you can see that trend continuing. But alongside that, just this trading activity in terms of people on the ground deploying and the expansion opportunities. We put an extra RNS out earlier because we felt the along with the new logo messaging, we wanted to reassure and and demonstrate that the expansion opportunities that we talked about earlier are really coming through in a lot of forms. So all in all, as an outlook, we're definitely seeing a good market. Lot of good good progress in in the the seeing a market. That's great, Richard. Emma, thank you very much indeed for your presentation.

27:04 Ladies and gentlemen, please do continue to submit your questions using the Q and A tab situated on top right corner of your screen. While the company take a few moments to review those questions submitted today, I would like to remind you that a recording of this presentation, along with a copy of the slides and the published Q and A can be accessed via your investor dashboard. And Richard, as you can see, we have received several questions throughout today's presentation. And Richard, if I may now hand back to you and kindly ask you to read out the questions where appropriate to do so, and I'll pick up from you at the end. Thank you. Thank you, Alex. To save a change, do you want me to pick up some Richard first? Go on then, Emma. Give a change of voice. You go for it. Perfect. So, Adam, I'll just pick up your point around the cash, £20,000,000 of cash. So at the end of the financial year, we did. We had just under £21,000,000 of cash on hand. Following the acquisition that we did earlier on this week, I currently have 15,000,000.

27:54 In terms of the future looking capital allocation, there are earn out payments associated to the acquisition we've just done. So our immediate priority is around the funding of that. We intend to fund those earn out payments ourselves.

28:07 So that is our ultimate priority in the short term. And and where we are in a kind of trading sort of working capital perspective, probably, you know, we work to a pretty conservative level. So we, you know, we we the trading activities, business, the scale we are, I think, for Emma's peace of mind. And also the fact we're quite global, so we have to move capital around the money around the world to the different payroll. Our our sort of working cash is is kept at least at 10,000,000. So there's a there's a there's a that'll give you some sense of the the funding requirements of the business. But as Emma says, we're in we're in a great place. I'm picking up, Paul, your points, though, about the, sort of inflection point about, operational gearing and and ultimately cash changing it more to EBIT. I think as ever with the type of stock we are, we do have a real choice here because the business is intrinsically profitable. We could make it very profitable indeed, and the Enlighten acquisition and Sentry sort of, convert that to the bottom line gives us even more power there.

29:03 I think it actually is linked to the second question you I think so another question somebody asked. Oh, no. It was, Paul. Yes. Your question around the, the partnerships. In a sense, it's going to be a choice in the coming time about our opportunity to exploit the market and therefore invest further in sales and so on and, essentially, the the the profitability. At the moment, if you like, as a business model, way ACTIVEOPS is is, you know, the the management team are thinking in that sort of rule of 40 to to dichotomy, the balance between growth and profit, we're we're still working towards a kind of 30% growth, 10% profitability model. Because I think the the market's there and there's a you know? I I'm proud of us being a publicly listed UK market, you know, technology company, and I think we have the capacity to be globally notable.

29:49 And to that extent, whilst I think maintaining our level of profitability and control over profit absolutely is is is is is critical, I also don't wanna miss the opportunity to do something significant here. This has the business, have the capacity in period of time to be a 100,000,000 ARR over a period of time. And, therefore, I think there's always gonna be that balance. And it does link to the second question about partnering. We we can pour more petrol in the tank and ultimately direct sale you know, direct increase our direct sales for some time to come. But one of the important underlying initiatives we're currently kicking off is is our approach to indirects. So in in you know, within three years, I want to have a well well developed and and at least clear model for indirect sales. Now we've already started this process. So some you may have noticed we did a partnership with Rulesware in The US, and they're a specialist PEGA workflow type, integrator.

30:43 They picking up on ACTIVEOPS because they see the opportunity to their existing customer base to have some new product to sell, which is preconfigured that solves a particular issue in that kind of ecosystem around visibility of data and work of management capacity. Now using that, if we can provide point solutions that are relevant to a particular sort of ecosystem like some of these big other software platforms our customers typically use, Pega, ServiceNow, Workday, then we can create a channel that has a product that they can sell well. As soon as it has to require a lot of effort and effort from ACTIVEOPS, then you're just into the balance between direct and sort of, you know, co supported sales. Whereas what we really want to hit the touch paper will be that indirect channel. So the short answer is we we we're maintaining that balance towards profit between group balance towards growth, exploring the channels so that we can then create an organization truly capable of of of of of of exploiting that full you know, the wider target operating model.

31:43 In terms of that question, so Craig asked, is the strategy to move enlightened customers from their existing software product over to Control IQ, or is that too early to know? There is no question we'll end up with a single platform. The question is is timing. But, also, these are there's you know, it's being respectful for the journey. There are people who've got some enlightened, feel like, capabilities they value. So the onus is on us as you sort of intimate to take our time, think, to really understand that. Look at the feature set they actually do use. The enlightened product is more like a workbench of of lots of different tools, which you get all in when you buy their service. In reality, very few customers use everything. I don't think there's any customers doing that. Most customers have some of few things that they actually use. We need to get our head around that. But our production capacity and technology sense to replicate or indeed enhance that, I think, is huge. So what now what now we're embarking on is, as you can imagine, a sort of get to know and indeed to get excited tour with the enlightened customer base to bring them on board and and and and reassure them that this is the best group of ops excellence in in intellectual property on the planet.

32:52 We understand the challenges of managing complex operations, and more importantly, we're investing in solving the problems thereof. And that won't go away. In fact, if anything, it's only gonna go up through this thing. So it's a really positive story we're taking out there. I'm looking for other messages. Is that all the all the questions? Oh, George, thanks for the presentation. Can you give more color on the new minority interest? So this is a ACTIVEOPS also took a minority, small interest in a company called Contactweb. Contactweb is a is essentially a BPO, a an outsourcer, and they take on excess work around specific requirements for large enterprises. So they service a very similar customer base. And what I what we really liked about them was it provides a brilliant model office for us. ACTIVEOPS is a development, but sometimes you need to be able to show customers or you need to have a a a test environment. So Contactweb is a is a is a tactical investment to presenter to give us a real environment where we can we can do stuff. We also think they've got a great business model with some cutting edge tools. So as a business, I think they've got a lot of exciting opportunities.

33:59 So although it's a you know, it is a very small sort of minority investment, we think they're relevant for us for a number of requirements. It it is good. I mean, just to expand, because they deal with big customers that we also interact with, I'm able to use them to illustrate the power of ACTIVEOPS across the supply chain between customers. But, you know, I think it's got a lot of potential. But, you know, the enlightenment and all that sort of stuff is is is far more resonant. And and back to the point, this is an organic growth play. We we we wanna do everything we possibly can to drive volume and and performance out of ACTIVEOPS. That's great, Richard. And if I may just jump back in there, and thank you for addressing all those questions for investors today. And, course, the company can review your questions submitted today, and we'll publish those responses on the investor meet company platform. But, Richard, before I redirect investors to provide you with their feedback, which I know is particularly important to the company, could I please ask you for a few closing comments?

34:52 Things are coming together really well. I think one of the analysts said, I love it when a plan comes together. That's horribly simplistic. There are so many threads to back the delivered performance, but the point is those are things which are continuing today. And I think as you will have jammed the tone, I think there's a great opportunity ahead of us to really knock the ball out of the park. Fantastic. Richard, Emma, thank you once again for updating investors today. Could I please ask investors not to close this session as you will now be automatically redirected to provide your feedback in order that the team can better understand your views and expectations? This will only take a few moments to complete, and I'm sure will be greatly valued by the company. On behalf of the management team of ACTIVEOPS PLC, we'd like to thank you for attending today's presentation, and good afternoon to you all.