Autins Group (LSE:AUTG) — Full Year Results

0:01 Good morning, ladies and gentlemen, and welcome to the AUTINS GROUP PLC full year results investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged. They can be submitted at any time via the q and a tab that's just situated on the right hand corner of your screen. Please just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today, and we'll publish those responses where it's appropriate to do so on the Investor Meet company platform. Before we begin, we would just like to submit the following poll. And if you could give that your kind attention, I'm sure the company would be most grateful. And I would now like to hand you over to the executive management team from AUTINS GROUP PLC. Andy, good morning, sir. Good morning. Thank you very much. First of all, thank you for everyone attending and showing an interest in AUTINS as a company.

0:51 Today, we are going through our f y twenty five results and, usual disclaimers in terms of what we are going to present today are obviously in place. So today, what we wanted to do, first of all, for those of you who aren't familiar with AUTINS GROUP, we thought we would just give a very brief overview of what it is that we actually do. But then we wanted to, more importantly, get into our financials and our forecasts, talk through what we call our survive and thrive strategy, talk through how we are winning, and then, you know, a lot of that is talking through the past and and things that are happening right now. But we also wanna talk about what's next because we think we've got a very exciting future moving forward.

1:34 So what do we do? So our purpose is to make the world a quieter, safer, more comfortable place. We manufacture components for predominantly cars, but also off highway truck and bus, And we deliver to over a 160 customer locations delivering 20,000,000 car components every year. We've got four global facilities, for European based facilities, one in Tamworth, which is where we manufacture our proprietary raw materials. We've got a conversion site in Rugby where we convert that raw material into finished goods and set it before being shipped to the car OEMs. We've got a similar facility for conversion in Gothenburg in Sweden, and we've got a facility in Hilden, which is close to Dusseldorf in Germany.

2:25 The Swedish and German, business is obviously supplying into the European automotive industries. So what we do, we like to say that we solve problems. We manufacture a number of components, and predominantly, they are there for reducing noise and improving the thermal efficiency of vehicles. That is everything from a bonnet liner through a bumper through wheel arch liners, door blankets, dash mats, battery insulation, transmission under tray. One of the common myths about an electric vehicle is that it because they are quieter, because they don't have an engine, they need less noise attenuation material. They actually need more. People used to like to hear the sound of an engine. They no longer like to hear the sound of an electric, motor nor do they like to hear the the sound of the cooling systems and everything else that used to be masked by the engine. So, actually, our share on the need for our materials is increasing, as we move into the electrification age.

3:29 We have a proprietary material. We call it our Neptune material. It's a fiber based fleece material, and it is predominantly used for noise absorption, but also for thermal insulation. We are the only UK manufacturer of this type of material, and one of only a couple across Europe who can make a similar product, and ours is the best performing. It's, manufactured from construction of a melted polymer linked to, what we call staple fibers, and then they are sandwiched between two pieces of fleece to produce the product that you see on the right hand side. And this is one of the this is the best noise attenuation material used in car vehicles. It allows less noise to get through than any other material in use.

4:25 But we also take those materials and we convert them and create products that the end user see significant value. So our late two latest innovations are a product called AUTGT. So this is about taking a traditionally, ducts are manufactured out of a hard plastic, and they lose a lot of heat, generate a lot of noise, and can create condensation in hot environments. So we've created a material and a product that, effectively

4:59 solves those issues whilst adding in a recyclability to that material. There's a number of OEMs who are really interested in this product, and we have received our first sourcing in the last financial period for this as well. We also have AUTRIM. So more and more manufacturers are trying to remove the hard plastics from their inside of their vehicles. The users of cars don't like to see hard plastics, and not only that, they can make they create echo chambers which creates more noise in the vehicle, and therefore, you need more noise attenuation material. We've developed a material that effectively creates the best of both worlds. It gives you a surface that is durable enough for the lifetime use of a vehicle.

5:46 It has a soft touch feel to it, but it also has noise attenuation properties. And, again, we've received our first nominations for this product through the last financial period.

5:59 So, obviously, that's a very short update on who we are and what we do, but this is a presentation regarding our FY twenty five results. So I will hand you to our CEO, Des, to talk you through those. Thank you, Andy, and, again, thank you thank you for your thanks everyone for the interest in our presentation. We will briefly go through our financial results for the eighteen month period that ended in March 2025. As if you have looked at our website and our latest market announcement, you'd have seen that we recently released the audited accounts for our extended eighteen month period, a period which allowed us to with the new leadership from Andy to review our operations and prepare for our the strategy and the changes that come back. So you can see there's the comparison on this slide is eighteen month figures to twelve month period to FY September 23. So they're directly comparable, but they can also see that on a pro rata basis. There's broadly similar with obviously, what's notable is our significant improvement on gross margin. And on the next slide, we

7:29 can we break that down a bit so we can introduce a bit more about the change in our performance. We have broken the eighteen month period into three six months period. And in the latest between October 24 and, March 25, you can see that our revenue was slightly below what it was in the previous period, but all remained stable. We recorded a strong gross profit at 3,300,000, but what was considerable notable about that period is that our gross margin improved. And that improvement comes from some of the changes that we have introduced in the last twelve months starting to bring positive impact into our business.

8:22 The significant integration of our German and Swedish businesses also contributed to reducing costs that form our gross profit. And the additional actions on rightsizing our business also meant that we have reviewed and massively improved our overheads, which is also quite visible in our strong EBITDA for the last six months of the eighteen month periods. We see EBITDA of 1,000,000. It is it is you cannot find that there was a low loss before tax and after tax in in the financial periods and in the last six months as well. But that was significantly reduced, we are

9:10 directing our focus more into net profitability, something that, unfortunately, AUTINS hasn't reported since 2017. And, see, we have business that's as shareholders, and we want to provide return to our shareholders. Hence, we are very much focused on that. And as we talk about the future and the forecast for FY '26, you can see that this is our target. What you can also see, we have maintained our strong cash operating cash generation throughout the eighteen month period, but more so in the last six months, which manifests the strength of our business model. We have continued reducing our net debt.

9:56 We have maintained strong cash flow headroom. Our cash balance has decreased. However, it is related to the repayment of long term debt, which we can also see on the next slide. So on on that one, you see a a visualized waterfall chart of our cash flow in that eighteen month period. Starts with, as it naturally does, with operating activities again, strong cash generation, proving the sustainability of our business model, especially as we introduce further improvements into that. We are also very much focused on maintaining strong working capital, which you can be is presented by the improvements on all of the aspects of that and mostly inventory.

10:52 We have introduced more stricter restricted controls on stock management and stock holding. We have improved our purchasing capability as we are now bringing stock from closer base suppliers rather than remote destinations, remote locations. And as I mentioned earlier, we have been repaying our long term debts, the business that we have accumulated debts in the beginning of the COVID period under CBILS and MEIF facilities, and that's largely remained unpaid until it was the beginning of the financial period that we are discussing.

11:43 We have commenced repaying that the the long term debt, and you can see that's trading 1,600,000 of our cash. We are forecasting to repay that fully by July 2026, which is what we are, of course, also focusing also that once we are largely debt free, we can maintain stronger flexibility of our business and adapt to changes and also invest for future growth. So in in a single line, what we could the way we could summarize that is that we have strong operating cash generation. However, in that eighteen month period, we have seen an overall net outflow, which is largely due to repayments of long term debt.

12:32 I was a bit quick on the, slides there. Market forecast. One of the things that we are really pleased with is the fact that as we've released these set of results, we are the market forecasts are now in the market for the first time since 2020. AUTINS removed market forecasts around the COVID period, and, obviously, due to the semicon issues, suffered to the automotive industry, they weren't in a position to, replace them. There's no I made it a priority when we took over as CEO and CFO to get these forecasts in, and we are delighted with the fact that they are showing that we will have a small net profit in f y twenty six, accelerating that net profit into f y twenty seven with revenue growth through '26 and '27 also.

13:21 But we really do recognize that our group, and, obviously, this event is a a part of that, we need to reinvigorate interest in the route in our group. We need people to understand what we do, how we do it, and the the journey that we're going on. And we're working with, like, potential investors, including retail on what in order to ensure that we do that. So the question is talked earlier about something we call our survive and thrive strategy, and it really is the combined to get two together because, obviously, if we're not surviving, we don't have a business. But if we're not betting in those plans for us to grow, if we're not in those plans for us to be profitable, then ultimately, we'll continue in the in in the circle that we've been in. So we've been doing two things. So the first one is in the survive, We've been managing the cost base.

14:14 We've been rightsizing our business, whether that is through, the reduction of people from our organization, whether that is through looking at our facility spaces and how we utilize those and and any other cost within our organization from company cars all the way through to the way that we utilize and manage our stationary, system. We've professionalized and integrated the group. Des has introduced significantly better financial reporting across the business that's allowed us to make better decisions. When you've got confidence in your data, you've got confidence in the decisions that you're making. And we've also spent a lot of time sharing best practice. The group that we inherited was effectively three island businesses.

15:01 They had the Swedish business, the German business, and The UK businesses. And whilst they all manufactured similar things, they did them all slightly differently By looking at understanding and who did what in the best way and then trying to create commonization, we've really seen some of that step change in efficiency growth. And that then comes into that optimization of operations. Our Neptune production, we bought the production line in 2016, and it's been running since 2018. But it's only now as the new vehicles start coming in as OEMs start specifying our materials that we've got to that position whereby we needed our line to run efficiently.

15:49 And so we spent a lot of time, a lot of development hours in order to get that facility up, running, and operating at its maximum efficiency output. And our German business historically has relied on a flooring, selling some flooring business, some flooring out into the building construction market for its profitability. So we spent a lot of time on the automotive side of that business, making sure that they can return to profitability as their business grows. Des mentioned that meeting our obligations, meeting our banking covenants, repaying our loans. It's all very well doing all this activity, but if we can't meet our obligations with our bankers, then we won't have a business for very long. It's critical that we get to that position where we are long term debt free by July 26.

16:35 And then more importantly, probably for for the people listening on this call is that Thrive. How is it and what make sure that we are adding value for our shareholders and potential shareholders. So the first one is organic growth, selling more to those existing customers, growing our customer base, and we'll talk about that in just a minute. Product innovation, the AUTINO trim we've just talked about. And the really critical part with that is it increases our value per part. The Neptune material is brilliant. It's proprietary. It allows us, it has a lot of interest from the OEMs, but we have to manufacture an awful lot of components in order to generate our revenue. You will deduct an all trim material by, in comparison, genuinely, it has a high value per component and therefore allows us to sell those parts for more money and generate more revenue. And then the final one is the opportunity through m and a. As we've said, we are moving into that net profitability position. In fact, for the final three months of the the last financial year, we were net profitable.

17:43 And therefore, our customers are seeing that we've done the hard work in terms of rightsizing our company, making sure we are set for the the markets and the business as it is today rather than hoping that the volumes are gonna come back in the future. Some of our competitors, some of the other suppliers in those markets in our markets have not done that, and therefore, we believe that there are going to be opportunities for m and a in in the sort of, medium term. So how are we winning? It's no surprise. We are a UK automotive component manufacturer. We have a have in the past had a heavy reliance on JLR. We are working actively to reduce that reliance, to reduce our share, to reduce the percentage of our revenue that goes to to j l directly to JLR.

18:36 We focus a lot of effort on the tier one manufacturers because if you can sell a new kit to a tier one for one OEM, then often they will consider you and source you for the other OEMs that they supply to as well. So therefore, they are doing a lot of the hard work on your behalf, selling your material into the end users and the vehicle manufacturers. We've worked on becoming a trusted adviser to the smaller UK OEMs, so the Bentleys, the Aston Martins, the Rolls Royces of the world, making sure that we are there and able to support them. There is significant money to be made by supplying to those smaller UK OEMs. Yes. You need the volume of the larger car manufacturers, but the but the smaller OEMs can be be the icing on the top of that. And differentiating our product offering with AUTUCT and AUTRIM. AUTUCT and AUTRIM gives us a seat at the table with the OEMs. It makes them want to engage with us because it's something new.

19:30 It's something novel. It's something that they see real genuine benefit for. And therefore, by having, created and invented those materials, they are now engaging with us in a way that they haven't in the past few years. We've spent a lot of time reducing our costs, enabling us to compete in that tough environment. I'm a great believer that the price is what the market is willing to pay for your components. The cost is what you are willing to what you are able to manufacture those components for. And our job, mine and Desi's, is to make sure that our costs are significantly lower than the prices that we leverage. So we spent a lot of time working through that in terms of reducing our PLC costs. It's no secret. You can go and read it in our annual report. Both Desi's and my remuneration is significantly lower than our predecessors, but it's also things like taking out our PR company and finding more cost effective ways of doing that. It's about looking at our subscriptions and the way we do our legals, for an example, in order to ensure that we are making the best use of the revenue that's coming through the door.

20:33 What we've called an independent Neptune, so this is taking is changing the raw material sourcing for our Neptune material. It used to be sourced in the Far East at quite high pricing, and we found significantly lower priced options, based in Europe who which gives us both a price benefit in terms of the cost that we're paying for those materials, but also working cap benefit in terms of the fact that these suppliers now hold the stock for us, take on the risk of bringing that material in and holding it. So therefore, it gives us a double benefit. We've talked about the appropriate staffing levels, but also improving our efficiencies and and significantly reducing our our scrap material. We've also spent a lot of time transforming our German business. We've reduced the reliance on the volatile flooring business.

21:24 The flooring business was very important for us as we went through the COVID period and in fact, probably kept the group alive. But it's also since COVID has, reduced in terms of its value to us, and we needed to make sure that our, our German automotive business was was trading at a profit and and and moving forward. They won a significant project with Tesla, which was announced previously, and that is now ramping up to full, predictive volumes. And that's helping massively in terms of economies of scale and efficiency for them as obviously their overhead is spread over a significantly large portion of revenue for their automotive business. And then finally, a large premium OEM in Germany has specified that our Neptune material for their EVs. This has been critical. It's been about two and a half years in the making. And now that they've done that, we've won the first two projects with them, and we expect to win a further three whereby the OEM goes to a tier one and says, you should use this material.

22:30 And it's a very brave tier one who doesn't follow what the the guidelines from the OEM. So three pieces of three examples of business that we've won, recently. So the one on the left is what we just talked about. So this is our Neptune material. It's for an underbody NVH, starts production in November 26 with peak revenue at €694,000 per year. This is project two of five that we expect to be sourced on, all of which are a similar size and scale. The center one is our AUT duct material. So this is the first sourcing by an OEM. This was by Prestige UK OEM, for our AUTUCT product. And whilst it's not the prettiest picture, it's, it's very new in terms of these are our first off tool parts that are being supplied for prototype builds, and the start production of that one is April 2026.

23:24 And just to give the the scale, difference on here, you know, that revenue, which is for a very prestige UK manufacturer, is valued 440,000 per year and is a fraction of the volume in comparison to the the German project we were just looking at. And then in Sweden, Sweden have just won a project You see it for a UK manufacturer using j o five, which is our proprietary PE product, and that's for sound absorption under tray, and the annual revenue of that is £550,000 a year. So we've put these three examples, and they're not the only examples of business that we've won, but we put them on to show that we are winning with multiple materials in multiple markets to multiple customers, and that is really one of the key, elements of our survive and thrive strategy.

24:20 So what else have we been doing? We don't wanna ignore our traditional business whilst we want to reduce our reliance on JLR. We have to continue winning with them. We have to continue trading with them. We have to continue making sure that we don't lose share. And we've won business through the tiers for the new JLR platforms, EMA, which is their Velar and Evoque sized electric vehicles, and JEA, which is the new architecture. Our share at The UK Premium OEMs continues to increase as we offer them the support, we offer them guidance in terms of what we're doing. They are sourcing more material directly from us. We've got opportunities from our competitors from running change business, which gives us revenue now. Our support and technical ability is being viewed as superior to to the competition.

25:09 That coupled with our relative financial security means that people are looking at us as a as a really good option when they have got concerns about some of our competitors. And similarly, as we go through and as we add value per part, we are offering more value add solutions to our customers. This increases the price per part. It increases reliance on AUTINS capabilities. It also offers us additional revenue streams because you can charge for the engineering. You can charge for the assembly. You can charge for, the additional activities that we are doing for those. In Germany, as we've already said, we were specified by a premium German OEM for a part that's fitted to a vehicle.

25:55 We've continued to win an in final quotation on a number of OEM opportunities. All duct and all trim have been presented to customers. We have approval to bid at several OEMs, and we have several active RFQs that we're waiting up that we are working through and believe that it's only a matter of time before we win our first significant or ductile trim contracts in Germany. And we are diversifying the flooring portfolio. We talked about that business and the fact that we'd seen a drop in the market, and we're looking to diversify our product in the building and construction market to allow us to access to have a larger addressable market and to access more, more revenue in that area. To be clear, we are an automotive manufacturing, focused company, but we want to ensure that this part of the business, which has been so valuable for us, you know, starts to recover and continues to add value for us into the future.

26:53 So that's what we're doing, and really important is to talk about what's next. We talked about the fact that we've got forecasts in the market. You don't get forecasts without a robust budget that signed up for f y twenty six. We have an achievable budget agreed and in place for f y twenty seven. Really, really important. And one of the things Des and I believe and are pushing as hard as we can is that return to net profit in f y twenty six. Again, the group has not returned a net profit since 2017,

27:23 and it's absolutely our aim, our goal and our strategy for us to get there. And then as we pay off those loans mentioned in the bottom part, the next section, we will start to see that net profit increase and accelerate into f y twenty seven because we will be paying off our outstanding loans and move to be long term debt free. Our MEIF loan final installment is January 26. Our CBILS loan final installment is July is July 26. We are going to launch a new website. I suspect that several of you on this call have done a little bit of research about AUTINS as part of this, gone on to our website and been incredibly underwhelmed. We are too, and so therefore, we have commissioned a new website.

28:10 That will be that's due to to go live in September 25. And as part of that, we we are creating a section to help drive that retail investor engagement where it's difficult to get information about AUTINS trying to be to be able to share more information within that. We've also, we're also working to increase that engagement with the markets analyst, part of what this call is about today, to increase the awareness of AUTINS more broadly. And then business growth side, first, Neptune r, so our new fully recyclable version of Neptune. We have nominations for that product imminent, and we hope that during the next update, we'll be able to announce that first nomination. We expect to receive continued nominations for AUTINO or TRIM, continuing to increase the average part per price.

28:59 And as we've already talked about potential M and A activity, the opportunity the right opportunities have got to be available. We are not going to go and do M and A for M and A sake, but we absolutely believe that m and a is our path to creating a robust sustainable business moving forward. And that ends the formal part of the presentation. Perfect. Andy Des, if I may just jump back in there, thank you very much indeed for your presentation this morning. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab that's situated on the right hand corner of your screen. But just while the team take a few moments to review those questions that have been submitted already, I'd just like to remind you that a recording of this presentation along with a copy of the slides and the published q and a can all be accessed via your investor dashboard.

29:49 Guys, as you can see there, we have received a number of questions throughout your presentation this morning. And thank you to all of those on the call for taking the time to submit their questions. But, Andy, there's at this point, if I may just hand back to you just to read out those questions and give your responses where it's appropriate to do so. If And I pick up from you at the end, that'd be great. Thank you. No problem at all. So the first question came from Charles, and it said, Andy, what's your background? How did you come to develop survive and thrive? And can you provide an example of successfully implementing the approach? So I started in the automotive industry. So my very first job was working in the Jaguar Land Rover press shop at Castle Bromwich in Birmingham, and that's where I got a love for manufacturing. And I've never left, and I genuinely don't intend to leave manufacturing within my career path.

30:36 I like making a physical product. I like being able to go on the shop floor and see what it is that we're doing on a daily basis. I spent a number of years working through various commercial opportunities and in the automotive space. So I worked for a small company called JFL Automotive. I moved from there to Denzo, which is the largest component manufacturer in the world. From there, I worked for UniPark Group in their manufacturing division. I decided to leave the automotive industry for a little while, and I went to a UK FTSE two fifty company called Morgan Advanced Materials, and I spent nearly ten year just over ten years working for Morgan Advanced Materials, starting in commercial roles, moving into general manager roles, and then my I had the global automotive manager role where we combined all of our the automotive business globally.

31:34 And then finally, I was sales and marketing director for our thermal products division for Europe, Middle East, and Africa. And that's when AUTINS came and asked me if I'd like to take over as CEO. How do we develop survive and thrive? So that was a it was a team activity in terms of really looking at where the business was. I think if you being really honest, if you go back and look at some of the announcements from sort of late twenty three or late twenty twenty two and into 2023, there was an overoptimism in terms of where the organization was. There was an overoptimism in terms of the performance of the business and where they were.

32:20 And so, therefore, when I came into the organization, it became very quickly apparent that we not only needed to thrive, which is what I was brought in to do, which is what, you know, to leverage my automotive connections, my business development skills, and my general management skills in terms of sort of trying to drive the business, but we also needed to put those fundamentals in place. We needed to make sure that those building blocks, were there. And we needed to ensure that everybody understood that whilst we were looking to grow the business and and do the thrive part, we needed to make sure that we were, you know, we were stood on concrete. We have the the the foundations below us really to be able to do so, and that's why we created the Survive and Thrive strategy.

33:07 And in terms of successfully implementing the approach, I've got a long track record of business growth in terms of within the organizations that I've worked. I've been, you know, happy to have a much longer conversation, but this isn't about me. This is about AUTINS. But that's why the AUTINS board of directors chose to bring me in was my track record of growing business, grow winning business, and really developing, developing from that side. Tom d asked the question, excuse me, what is your current sales pipeline in terms of potential annual revenue? So right now, our sales pipeline sits at around £26,000,000 per annum. That excludes business that we've already won. We take it out of our pipeline once we believe that it's won.

33:58 And the but, obviously, that is a per annum business. When you win business in automotive, you're winning for a five to seven year period. So actually, that that that's worth sort of north of a £100,000,000 in terms of total revenue to us as a business. Our new sales hire hires are they're they're on their journey in terms of being successful, and converting leads into contracts. And the reason I say they're on their journey is it takes time in automotive. You don't convert business overnight. Some of the businesses business that we are winning now, we first quoted on eighteen to twenty four months ago, and it's taken that long to get to that final nomination stage.

34:44 We've been really, really encouraged by what they're doing, where they're working, how they're working, and the opportunities they've brought to us. And that links into another of your questions, Tom, about adjacent sectors beyond automotive targeting more aggressively as part of those diversification plans. So one of the things AUTINS hasn't worked on previously is the truck bus off highway, yellow cab goods, that type of market. And one of the people that we bought in was a very, had spent a significant portion of their time working in those market more so than any of our existing salespeople. And we've really put a lot of time and effort and and working that person has been working on, first of all, creating, but, opportunities within that market sector, but now moving into the, the execution and the conversion and the winning of it.

35:42 And and somebody somebody once told me hope is not a strategy, but, obviously, other people are involved in decision making as well. So we really do hope we'll have updates on that within our next update. But what I will say is we are working towards ensuring we have updated more updates within that period. So George t asked a question about what percentage of group revenue do you expect to come from European customers in the next two to three years? Over the next two to three years, we expect that share to continue to grow. I would go probably slightly longer term and say within the next five years, we expect our European operations to be were to be more than 50% of our organization.

36:30 So the next two to three years, that's dependent on the timing of projects coming in, and and and we can't always control that. If an OEM decides to delay the launch of a vehicle, it's quite hard to see. But with the pipelines that we've got, with the revenues that we already know that we've won, we can see that within the next five years, our European operations will be bigger than our UK ones. And then the final question that's on there at the moment, can you give an example of the type of business which would make an an attractive strategic acquisition? Yeah. Absolutely. We can. It's not a problem. So right now, it's no secret. Our share price is depressed. It's fairly illiquid, and so therefore, us raising significant funds from a share issue is not particularly an option.

37:20 We've also said to you that we are look that we are working incredibly hard to pay back our long term debts because they have been sat as a millstone around our organization for far too long, and we need to get into a position where we are we're to that long term debt free or certainly sustainable debt within the business. So the types of acquisitions we're looking at certainly in the short term are the distressed asset, whether that is with OEM support helping our you know, to giving us support in order to to acquire a business, whether that is business from administration, whether or or that type of, that type of deal. The reason we're looking in there is because we've done the self help. We've done the work that we know need is needed in order to take a business that's not profitable and move it into the profitable sphere. And then the final sort of aspect of that is what type of business is it we're looking for.

38:21 We're looking for manufacturing businesses in the automotive or adjacent spaces predominantly who either have similar processes to us or whose processes are vertically integrated to ours. So as an example, we could look at somebody who manufactured raw materials that we can convert, add value to those, and then sell them onto the to the end users. We could look at plastics manufacturers who are taking our type of material and assembling them onto their components to then sell those onto the end users. Or we could look for people who do similar die cut type, you know, finishing assembly operations as we do that would allow us to integrate those into our business. So I think predominantly, it would be, certainly for the first couple, it would be in the automotive manufacturing and similar spaces.

39:15 And we whilst we would look at we absolutely will look at different different processes, sort of the products need to sit in the same kind of basket as we've got or certainly within the same tight areas of a vehicle as ours do because that also allows us to leverage our commercial skills and our commercial teams in order to increase the revenue for the business that we might take on as well. I think that is the last of the questions unless, you've seen any others come in. Absolutely. Andy Des, if I may just jump back in there. Thank you very much indeed for being so generous of your time there, addressing all of those questions that came in from investors today. Of And, course, if there are any further questions that do come through, we'll make these available to you immediately after the presentation has ended. But, Andy, perhaps before, really now, just looking to redirect those on the call to provide you with their feedback, which I know is particularly important to yourself and the company. I could please just ask you for a few closing comments just to wrap up with, that'd be great.

40:11 Yeah. I think the first thing that I would say is thank you everybody for your time and your interest in AUTINS as a company. I think it's no secret that AUTINS has had a difficult few years and since flotation has not performed necessarily in the way that that people would have wanted or expected. But I think you can see from the presentation that we've made today that we are on the start of a new journey. We're on the start of something that we believe is exciting. We're at the start of something that we genuinely believe will add significant shareholder value over not just the next sort of year, two years, but but further and further on beyond. And we'd really like to thank those of you that are gonna come along on that journey with us because we genuinely think it's gonna be very exciting.

40:57 Thanks again for everybody's time. We do recognize that time is valuable, and so thank you very much. That's great, Andy. Des, thank you once again for updating investors this morning. Could I please ask investors not to close this session as you will now be automatically redirected for the opportunity to provide your feedback in order the management team can really better understand your views and expectations? This will only take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of AUTINS GROUP PLC, we would like to thank you for attending today's presentation. That now concludes today's session. So good afternoon to you all.