Billington Holdings (LSE:BILN) — End of Year Results

0:01 Good afternoon and welcome to the BILLINGTON HOLDINGS PLC investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time by the Q and A tab situated on the right hand corner of your screen. Just simply type in your questions and press send. The company may help you in a position to answer every question received during the meeting itself. Have the company review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I'd like to submit the following poll.

0:27 I'd now like to hand you over to Mark Smith, CEO and Trevor Taylor, CFO. Good afternoon to you both. Good afternoon. Hi. I'm Mark Smith, Chief Executive of BILLINGTON HOLDINGS, and we're pleased to present to you today our 2021 final presentation year end.

0:49 Moving on to Page two. Just the executive summary there. BILLINGTON's the leading structural steel and construction safety solutions business. We're actually a group of companies based in Barnes, Leeshafield, Newark, Bristol and Leeds, all of which we'll come on to during the presentation to give you a backdrop of what the group consists of. We will explain going into it that the the turnover has increased in the year. The group's remained profitable despite its challenges through pandemic. And now, luckily, then what we're seeing with the challenges come as the Ukraine conflict. We're pleased then to reintroduce, after a couple of years, the dividend through pence a share to reward the loyalty of our investors.

1:36 The continued implementation of strategy, which is going to be a feature of 'twenty one and into 2022, delivering a range of machinery investments and improvements to increase efficiencies and profitability within the group. And despite all of these headwinds that have befaced us with the market, there are sectors within our construction market that we are actually very active in that we'll go on to demonstrate that will provide a good set of numbers hopefully towards the end of 2022 and beyond into 2023. If I pass over to Trevor now, he'll take you through the financial highlights. Okay. Thank you, Mark. I'll whisk through the highlights, and then I'll pick up a few pertinent and prominent points within results for the year.

2:28 Been a strong performance by the smaller subsidiary companies within the group, HOLDINGS, Peter Marshall's, and Easy Edge. Some of the smaller subsidiaries have a strong trading year. Turnover for HOLDINGS was up 20% in 2021. Our turnover for Peter Marshall's was up 10%. And Easy Edge continued to be extremely profitable for the group, realizing a margin of 14%. As Mark's mentioned there, we have approved a dividend of 3p per share on the underlying trading result for the year. That's covered 2.7 times earnings, which is the cover ratio that's consistent and has been the case in the past, and we anticipate we'll continue moving forward.

3:18 There is a set out strategy of capital investment for the next three years. We'll come on to that later and how we plan to fund that moving forward and the effects it will have on the trading results. The margin pressures have continued, primarily cost inflation noted in 2021 as a result of all the material price rises that have been noted, and that has had the impact on the results this year. Pleasingly, the cash has been maintained at a strong consistent level, 10,300,000 at the end of the year. That's been impacted by a number of factors, which I'll come to as we move through the presentation.

4:08 The pension scheme, the company does have a final salary pension scheme within the group. That was close to future accrual in 2011. The surplus, I'm pleased to say, has increased a further million pounds in the year. The trustees in the company have, taken the decision to capitalize on the growth of the investment equity markets in 2021 and assort to derisk the scheme through transferring their investments into UK government guilt and locking that surplus moving forward. Main contractors, their financial stability, remains under consistent review. There's been a few high profile failures again in 2021, and credit insurance in the market and attainable on our principal clients remains a prominent piece of work that we keep on the constant review.

5:04 You will see on the nonunderlying section of the p and l account that we have taken the prudent decision to provide for one contract specific date to the value of 1,100,000.

5:19 This is unfortunate. This is the first significant, debt that's been provided in my time in fifteen years, and it's not anticipated to reoccur. Now we'll come on to why we believe it's prudent, some of the discussions that are occurring with a view to retrieving some of that debt moving forward.

5:44 So the income statement there references turnover has increased 25.3% from 2020 to £82,700,000 and the underlying trading results operating profit margin of 1.6%. The operating profit margin moving forward is forecast to improve to 3.3% in 2022, 4% in 'twenty three and five percent in 'twenty four as we continue to invest in the equipment and the market further improvements and stabilization of input costs. The earnings per share on the underlying earnings of 8.1%, 8.1p as we've mentioned, dividend of 3p per share covered 2.7x earnings.

6:42 The balance sheet, a summary balance sheet there for your information. Within the announcement today, there was more detailed balance sheet. Some of the prominent points within there, the balance sheet is underpinned by capital assets. The properties within the group are principally owned or by one property. The properties are in the accounts at historical cost. The actual valuation of these properties is in 3 to £4,000,000 higher than that they are held in the accounts. The cash I've mentioned is still a strong consistent level of £10,300,000 giving the group flexibility to capitalize on either acquisitions or the ability to forward purchase some of its raw materials.

7:28 The pension scheme, again, I've mentioned, is in a gross surplus of 2,700,000. And work in progress worthy of a mention is high at the end of 2021, some 10,000,000, then £6,000,000 higher than the equivalent period last year. So as a result of two things, the company was extremely busy towards the latter part of 2021. Furthermore, we took the decision to purchase £4,000,000 of raw materials for specific contracts in advance of the end of the year to mitigate price increases. This material was brought in to preserve and enhance the margins for the contracts that we aim to manufacture in Q1 twenty twenty two.

8:19 The cash flow statement there, again, a summary cash flow statement shows a cash outflow of £5,000,000 in the year, a few principal reasons for that. The work in progress, the forward purchasing of steel that was paid physically by the end of the year accounts for 2,000,000 of the cash decline. The dividend paid in 2021 was 500,000. The company took advantage of the government's VAT deferral scheme, all things coronavirus in 2020 to the tune of naught 600,000. That was repaid in 2021 and impacted the cash balance in that year. And furthermore, HMRC implemented the reverse charge VAT accounting to the subcontractors in the construction industry, which means the company no longer receives its output VAT from its clients, which has resulted in a cash a one off cash usage of between 1 and 1,500,000.

9:24 That will be a permanent cash difference to the company. That reconciles the difference or the usage of cash in the year. As I've mentioned, the forward purchasing of steel will and has unwound in the first quarter of this year.

9:43 That's a cash bridge summarizing the cash movements. Okay. The forward order book you're seeing there that looking ahead, you can see that that's in a fairly robust condition. It is propped up by strong sector projects, mainly film industry as we're supplying and delivering through Billington structures for our sites at Shepperton and Pinewood. Data centers for one, if not the largest

10:14 Internet service engine provider, as well as other data center providers, energy from waste clients with sites as we're just wrapping up in around Loughborough and hopefully one in Leeds, and delivering for retail distribution, another strong sector in the market with clients such as Amazon, Gazely, Prologis, Panatone, as well as a number of commercial offices in the regions of which will come on most of those are Tier one contractor clients. The wider steel market, as you've probably seen in the press, has been under some stress. Q4, Q1 to twenty twenty two, we've seen price movements really initially started on the back of input costs into the steel manufacturers.

11:04 The severe escalation of iron ore and metallurgic coking coal meant that the steel manufacturers principally for us, Arsenal and British Steel, passed on those costs in a number of sharp increases throughout that year. Also affected it was the increase in scrap material. All of those are ingredients into the steelmaking process. Latterly, the effect of the Russia and Ukraine conflict has impacted a certain type of steel used within the industry, namely steel plate. A UK based Ukrainian owned company serviced the steel industry with the supply of steel plate. Fortunately, we've had to find a different route for that. So we have been under some supply issues and, cost issues, finding a resource around that. The industry is resourceful, and we now have a supply of plate. Our company wasn't affected too badly by that as we had a stock of plate within one of our group companies, Shaft and Steel Services.

12:13 We have, as Trevor has mentioned, forward purchase some input materials to mitigate price increases and stockpile. That has helped us again weather the storms of the cost increases. Most of these have been passed on through to our clients with through the tendering process. However, we have suffered some input costs in terms of of more consumables such as welding wire bolts as well. We've noted there that there has been a price increase on cold rolled products. They tend to be used in our business for permanent shuttering for concrete flooring called metal decking and for purlins and rails, which are members that are used in more warehouse and industrial buildings for support of

12:58 cladding materials. We've noted that British Steel is currently the dominant steel producer in The UK. Pretty much there's not a great deal of other imported steel coming in other than Arsenal and Mattel into The UK at the moment. So British steel is playing a major part in supply at the moment. As you can see there, that's just a snapshot of what's happened historically over the market sectors. You've noticed there that industrial, marked in red, That's interesting as high-tech manufacturing is becoming a very high volume, a good opportunity providing interest into the sector. When I say that, I'm really talking about what we now know as gigafactories, a lot of those providing

13:48 supplying material for the car manufacturing industry as we see the emerging need for electric vehicles and the need for car batteries. You'll notice there that the steel consumption is actually getting back to twenty ten levels in terms of the construction volumes.

14:08 That's a breakdown of the group. I'll come on to you'll see there on the left hand side a a one of the logos for SPC. We'll come on to that. That's a new acquisition we made at the beginning of the year. The group actually is based in in three sites for BILNINGTON Structures, two in Barnsley, one in Bristol. Easy Edge is based at Newark. Peter Marshall is our stair company based at Leeds, all of which I'll come on to as we go through. All the businesses supply internally for the group, BILLINGTON Structures, and they're badged up separately so they can also sell their services through to the wider construction industry and indeed some of our competitors.

14:52 Some of the divisional highlights, we've built into structures. You'll see there that the list of clients are all financially sound, Tier one generally. There's a geographical spread of contracts through there, and you're looking at some strong sectors. There are actually some in there, some commercial offices in there, although it's been in the press that that market is suffering. We're still seeing some commercial offices come through, particularly with the delivery there of NOMA and B 7 New Bailey Manchester. Both of those are our commercial offices as well as Thorpe Park Leeds. We have got Pinewood Studios. We've got further contracts to deliver at Shepparton, which we're on-site at the moment. Project Triathlon is a retail distribution warehouse.

15:38 And you can see there at the top, Newhurst Energy from Waste project for Hitachi. We are currently looking and reviewing further projects for that client as well. Interestingly, Samwell Aquatic Centre, we're hoping to see a bit of that building as it's actually the twenty twenty two Commonwealth Games swimming pool. So we're hoping we see a bit of that during the year. Peter Marshall's, I've mentioned there that they're a specialist metalwork and steel stair production company trading out of Leeds. They were acquired out of administration by the group back in 2010

16:16 and turnover approximately about 5,000,000. There's they're about 35% of that trade is supplied into BILLINGTON structures. The rest are sold out to our clients directly as well as our competitors. We're able to service the unique aspect of this. It's supported by the the group infrastructure, and we're able to service the larger clients for Stairs upwards of a million pound, which receives not a great deal of competition in that particular market.

16:53 Easy Edge Safety Solutions company. We have roughly about a 120,000 linear meters of of the orange safety barriers you can see in the pictures, providing edge protection for the structures in their construction phase. That that barrier is hired to our clients, not only, again, internally to BILLINGTON structures, about 20% of that, but the rest of that is then hired out to clients and, again, our competitors directly. And you'll see there the the wide range of projects that that Orange Barriers are servicing at the moment. They're based out of Newark. Turnover about 3,500,000. HOLDIT, incorporated in 2012 on the back of the need for a on ground hoarding system, hoarding being the timber barriers you, border a construction site,

17:52 on ground so you don't have to dig a hole and bury a post and concrete it in. It sits on the surface so we're able then to move the hoarding. This is either a sale or a hired product. And again, it's rapidly emerging. The group turns over somewhere in the region of 5 to 6,000,000. And we're pumping capital expenditure into this, company as it's, very busy at the moment. Once again, you'll see there that it's got a range of geographical spread and good tier one customers as its client base. Also, Brandit is a company we started last year on the back of the need to put the advertising and marketing material on boarding hoarding. And so we're providing those services as well.

18:41 Shafton Steel Services. Again, out of another acquisition of a new site in 2015, just outside of Barnsley, quite close to our other facility. We spied on the need for an expansion of Billington structures. And through 2016 after the acquisition, we started a series of capital expenditure, increasing and enhancing the machinery. The business was bought, as a steel processing business and had a a range of new high-tech steel processing machines already. We've enhanced that and are continuing to do that. That machinery was servicing the expansion needs of Burlington structures, but we spied that it had additional capacity. So we set up shaft and steel services so that we could sell that spare capacity to the wider steel industry.

19:32 Principally, again, to some of our competitors as well as end clients, but also to the oil gas industry as well. You'll see there there's a range of steel processes that are carried out. And I say that we have now some of the largest steel gas and oxy acetylene burning beds in the country. And so you can see there some of the material in the slides there that are being processed.

20:00 Moving forward, we're focusing strategically this year on a number of measures that are going to be margin improvement and efficiency gains. A lot of them driven on capital expenditure that that are focusing on replacing machines that have come to end of life. And so all of these projects will be enhancing and provide clear efficiencies through principally to shaft and steel services as well as Billington structures. The objective, and again, there to increase the factory capacities and reduce overheads and cost per unit. And again, we are also looking at bringing in apprenticeship schemes, and, we have currently a apprenticeship scheme with a partner company providing, production staff and training production staff, for our welding, fabricating, and machine operating.

21:03 Okay. Okay. You've got continued CapEx. So as Mark has mentioned, capital investment is gonna feature heavily in 2022 and onwards. In '21, capital expenditure was 2,400,000, so no 400,000 greater than the depreciation cost. In '22 through to '24, we envisage that CapEx will be some £1,000,000 higher each year than the related depreciation costs. So plan on investing an additional £1,000,000 a year. So that's probably £10,000,000 over that three year horizon period. Again, as Mark mentioned, there to replace a number of aged machines, improve the capabilities, the efficiencies of the machines within Billingsons and to service the wider market.

22:06 I mentioned earlier SPC, and that's a company that we've incorporated this year, Specialist Protective Coatings. We had a a need within the group to take onboard a specialist application of treat of paint treatments, which focuses around intumescent coatings. This is fire resistant paint that we treat the steel with. We had BILLINGTON structures were sub subcontracting the a large proportion in this out of the business. And so now we have in house capability to be able to do not only this, but all other treatments as well. It provides the opportunity as well there, as we said, to take on in house painting treatments as well as other painting contracts in the widest industry, again, and gas. And the the business was purchased out of administration from Ormat Coatings. So their clients have been maintained, and we are then providing painting services for those guys as well.

23:17 We are going through a process of upgrading the facility at the moment. And so there is capital expenditure being placed there, enhancing craynage, training staff, bringing in new steel handling machinery. And we've now put on order an automated chop blasting machine that will then, again, enhance the facility as well, and that should be commissioned by the end of twenty twenty two. ESG. We established our ESG group within the business. And really, that's going to be the steering vehicle for the group's carbon reduction road map. And we're going to actually implement a number of genuine improvements throughout with the use of green energy, efficient lighting, gray water recycling, electric powered vehicles, as well as, a suite of offsetting measures.

24:18 So we can clearly put ourselves onto on the road map for for zero carbon offsetting. The social we we set up a a charity foundation in 2016 that supports local charities. We're very active actively locally in supporting any ventures to improve the locality and employment and enhancement of all of our local facilities. And so, hence, ticking our social responsibility box. As a PLC, governance insomuch as we're steeped in governance as a PLC. And so I think we tick all of those tick all of those boxes. So as a summary, we've seen there that there's an increasing demand for structural steelwork, and and the forecast is good for the use of steel. The the steel is the dominant material of choice in the sectors that are buoyant going forward.

25:19 There are a good number of large opportunities ahead of us for BILLINGTON Structures and the group alike, and that's where we spy our best opportunities. Some of the gigafactories, the larger retail distribution warehouses, energy from waste, developments. And so we're we're looking, forward to a good 2022, 2023, with these projects looming. Close monitoring of financial stability of the group's client base. In the main, all of our clients are credit insured. That market is under stress at the moment, but we closely monitor our our debt situation and the stability of our clients. Raw material input prices. Yes. We fix materials at contract award stage for the duration of the contract in the main.

26:08 And we are, as you can see before, aware and make strategic purchases of material in advance to save those price escalations. Continued expansion, I've mentioned there, the graduate apprenticeship scheme, and we have set up a welding school at our Shafting facility. And there is another model based upon that that we're looking at again in Bristol as well. Always mindful of potential acquisitions. So we're we're able then to keep an eye on what is available to us, and we we we will do to see what will be enhancing for the group, profit enhancing, and bring other facilities that the group would benefit and other group companies can achieve and help.

26:55 Robust balance sheet underpinned by cash and property assets. Yeah. As I've mentioned, that gives us the flexibility to to take advantage of, as I've mentioned, the purchase of raw materials, preserve enhanced margin moving forward as well as contribute to any acquisitions that we may feel appropriate. Currently, there is a pause to gain some confidence in the stability of raw material prices and the wider economic outlook before acquisitions will be considered again. Okay. So that brings us to a close of our roadshow presentation. I don't know if there's any questions. Mark, Trevor, thanks very much for your presentation. Ladies and gentlemen, please do continue to submit your questions using the Q and A tab situated in the top right hand corner of your screen. We just saw the company take a few moments to review those questions submitted today.

27:46 I'd like to remind you that the recording of this presentation along with a copy of the slides and the published q and a can be accessed via investor dashboard. Received some pre submitted questions from investors, and I want to start off the q and a session with these. The first one reads as follows. I see that you have appointed a new managing director of BILLINGTON Structures. Could you please give me an overview of his role? Oh, right. Yes. We have. It's not mentioned in the presentation, but we have just recently appointed a gentleman called Kevin Campbell to the company as managing director of Billington Structures. Kevin was started his he had his career with Billings a good number of years ago where he was he he got himself to production director and then left us and joined one of our competitors, Seberfield.

28:34 And he's more of a machinery process specialist. He's got very good experience in the implementation of machinery and lean manufacturing. And so he's been employed with the group at a time where services are very well required with the implement of of new machinies machinery inefficiencies across the group. So, again, that's all gonna be in the interest of margin enhancing projects. So, yeah, Kevin's joined the group at a good time. We're welcoming him back, and he'll be a great addition to the company. Thank you very much for that. The next question asks if you could just tell the investors a little bit more about your historical trading in Europe and what further opportunities the European market offers.

29:21 Okay. In the last six to seven years, I would guess, we've done some substantial works in Finland, Holland, and our largest ever contract was a large data center contract in Belgium that we completed in 2019, a few remaining works in 2020. We are mindful of future European works. We've mentioned that in the presentation. We have done some background work about where we might look to set up a European entity to further target the works that we see emerging in the varying European countries. We will look to do that upon the successful award of the next European project and establish and staff an office within Europe.

30:14 Thank you very much for that. And the final pre submitted question, Regent HOLDINGS PLC. It's been publicized about steel supply shortages over the last year. How has it affected you? And is there any further impact as a result of the Ukraine conflict? I think we touched a little bit on this as we went through. Yes, initially, we had some concerns. I mean in terms of steel sections, British Steel are our main supply partner and have been for a number of years. And so we've always had good supply of steel sections through British Steel. We did have some shortages in terms of and concerns over steel coil, which, again, cold rolled coil, which is used for metal decking and purlins and rails. But that is now in ready supply, and we're able to fix those prices.

31:05 Again, the steel, pretty much upon contract award, we are able to fix our steel prices, so it takes away that risk. And I did mention on the back of Ukraine, there was initially a shortage of of steel plate into the industry. We're seeing now, again, we're resourceful. We are getting a ready supply of that as the industry gets used to new suppliers. And we have recently purchased a delivery of of steel plate that we're expecting in July through into the country. So that will that will service the group's needs pretty much well through 2022.

31:53 So, hopefully hopefully, that wouldn't be shouldn't be a concern for us. There has been challenges, and it was surprising to us all, just the range of materials that were supplied through Ukraine. However, we are managing to find a way around most of these challenges. Thank you very much, Mark. Trevor, that actually concludes the pre submitted questions. And as you can see, we've received a number of questions throughout today's presentation. So thank you to all the investors for submitting those. Could I just ask you to read out those questions and give responses where it's appropriate to do so? Then And I'll pick up from you both at the end. Okay. Thank you very much. Thank you, John. First question, what competitors have exited the market entirely through bankruptcy or administration? I've announced this already today.

32:43 More recently, one company by the name of Cleveland Bridge, really the premier UK bridge manufacturer, has recently exited the market, whereas we don't compete directly or didn't compete directly with Cleveland Bridge. That capacity has been absorbed by others in the market, which, you know, provides an ancillary benefit to BILLINGTON's. There is a another specialist steelwork contract to turn over about £20,000,000 by the company of Conda Allslide. They went into administration early twenty twenty one. We have been surprised of how few companies have ceased to trade throughout the pandemic, and we cannot we do have inside information through our credit insurers that, as with a lot of industries, there are a number of companies out there struggling. And, sadly, I think we expect to see that number rise in 2022.

33:46 We are we are, beset with those concerns, obviously, because our smaller group companies, actually supply services into some of them. So in the main, if we can't get them credit insured, we won't be working with them. And so we do get that information, be it just because of the way the group is set up with the other trading companies. Okay. Next question is how confident are you of the margin progression that we've mentioned there from '22 to '24? As I've mentioned, the numbers there within the WHO and brokers now, so the margin will progress from this year's 1.6%, 3.3% to 4% to 5% in 2024. Just to put that into a bit of context, back in 2019, the margin level was just short of 6%.

34:37 We are forecasting that progression as the stability of raw material prices comes. We have seen improvements in the tender levels of margins for new contract works, specifically at the larger end, which, again, as Marks mentioned, the quantity of those inquiries at the larger end gives us that confidence that we'll see some of that margin progression. Furthermore, energy, someone asked me this morning. We took the decision to fix our energy prices, both gas and electric. One of those is to mid twenty three. One is early twenty four, but they expire at preincreased prices. That should give us a competitive advantage for 2022 and into 2023 also.

35:29 Okay. Next question. What's happened to the European business? Are we winning contracts there? The answer is that I guess I guess what we're seeing now is the potential boom that's beset on in The UK. We're also seeing in Europe. However, we completed strategically, we completed a very large data center project in in Belgium just at the close of Brexit. And as everybody was getting concerned about all of the Brexit implications and and us trading over there, We've completed that project timely, you might think. Now that it's more established, the requirements and the governance in terms of trading over there, I say that with regards to an employment of people and the creation of European based entities to trade over there.

36:31 We are now looking and seeking those opportunities again. Now we are currently tendering a number of those and have those ahead of us. And I think as Trevor has mentioned that upon securing the next considerable project, we will actually incorporate a company over in Europe and begin properly trading from there. All of the sectors that are strong in UK appear to be strong in Mainland Europe. So we spy that as a very good opportunity looking forward. We will only go over there if the project is worthwhile and it looks as though it's it's profit enhancing. There is no benefit for us to go over there and compete. So we if somebody wants our services over there, then then great. And we usually trade over there with a UK based partner company, be it that they too have got a a European entity trading from there.

37:28 Okay? Okay. I think that concludes the questions that are ahead of us. Thank you very much, Brian. On. There's a further one just appeared. What product areas are you looking at for further potential acquisitions? I guess the principles that we've spoken about before and we've seen borne out in SPC. We look at the bolt on acquisitions that we spend significant quantities of money on subcontract trades, painting, you know, just being but one. The other one's principally decking activities. We did look at we did look at decking. And we've looked at that in the past, although internal volumes wouldn't really allow for us be competitive in that market.

38:13 So I guess to answer that question is we are open minded when a good value opportunity comes along that we feel as a group, we can add some value to the opportunity. There are a number of sectors that we're not active in infrastructure being one. We're not readily active in nuclear either. They would be areas that we would possibly look at acquiring to enter those sectors. Infrastructure is a little under stress at the moment because of the dominance and the requirement for plate. And of course, as we've mentioned, if thick and heavy plate is under some stress at the moment in terms of supply.

38:58 We're okay, but the the the larger end for bridges and the like, that that market is still under some query in terms of of regular supply. So it's not something we want to enter into at just this time, but we're mindful to have a look in time. We have a steel processing business that is able to, and we are, as a group, qualified to be able to enter that and carry out that work as well as we are locally. Okay? Thank you for that, Mark and Trevor. I think you've addressed all the questions from investors. And, of course, the company will review all questions submitted today, and we'll publish those responses on the Investor Meet company platform. But just before redirecting investors to provide you with their feedback, which I know is particularly important to you both, Mark, could I just ask you for a few closing comments?

39:48 Yes, Barmind. Thank you very much for the interest that's shown. As I say, we're we're in our seventy fifth year as a as a group, and we're looking forward to better times ahead. We've had a few challenges along the way with with pandemics and wars, neither of which I've had the experience of of managing a company through. But, getting together, we seem to be weathering the storm quite well at the moment. We're looking forward to return to to 2018, 2019 numbers and beyond. We're a a good financially sound company, and we have the resources, to actually weather this storm and then see us returning profitably out of it. Okay? Thank you. Thank you very much. Trevor, thank you very much for updating investors today.

40:36 Could I please ask investors not to close the session as you now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations? This will only take a few minutes to complete, and I'm sure it'll be greatly valued by the company. On behalf of the management team of BILLINGTON HOLDINGS PLC, we'd like to thank you for attending today's presentation, and good afternoon to you all. Okay. Thank you.