Carclo (LSE:CAR) — Interim Results

0:00 Good morning, and welcome to the CARCLO PLC investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time via 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 it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. And I'll now like to hand you over to chair, Joe Oatley. Good morning, sir. Good morning, everybody, and welcome to our half year results for the six months ended September 30. Just by way of introductions, I'm Joe Oatley, the company chair. To my right, nearest me is Frank Dorebosch, CEO, and to his right is Eric Hutchinson, the CFO.

0:53 Just a a brief introduction from me. I think my perspective is a remarkable set of results, remarkable in the sense that there's nothing truly remarkable in them. They are they are in line with what we expected. You'll see as both Frank and Eric take you through the presentation, we are delivering on the plan that we set out. There's still plenty to do, but we are on track or in some respects slightly ahead of track. You can see the margins improving as a result. You can see that we're maintaining our capital discipline, both working capital and CapEx, and that means you can see that driving up return on capital employed. So I think the message for me is very much we set out a very clear strategy and a very clear plan for the turnaround. Still work to be done on it, but we're absolutely delivering against it, and progress has been very, very good.

1:44 I'd like now hand over to Frank who'll start taking some of detail of the results. Thank you, Dan. So also good morning, everyone. It is a pleasure to present CARCLO's half year results for 2020, showcasing a transformative progress. We are delivering a great turnaround with strength with strengthened margins, reduced debt, and a clear strategy to drive sustainable growth in position driven markets. Over the past six months, we have sharpened our focus on excellence, operational excellence, leveraging asset revitalization, and capitalize on above GDP growth in the markets, which are core to our business. Today, we will highlight our progress from improved health and safety, financial resilience, and performance through strategic investments, positioning us for long term success.

2:34 This is more than just a recovery. This is a foundation for a long lasting value creation. So let's explore how CARCLO is reshaping its future.

2:45 CARCLO PLC is currently existing of two divisions, the CTP division and the newly formed specialty division, which is a combination of successful aerospace, which we always had, and the optics business, which was hidden into the CTP division but was more suitable within a our division focused on niche markets. We'll get to the details later.

3:09 Health and safety remains at the heart of our operational excellence. Over the past six months, we have achieved a 43% reduction in total incident rates, a testament to our commitment to creating a safer workplace and enhancing workforce resilience. This progress is not only improved safety protocols, but also a culture of continuous improvement, directly supporting sustainable operational success. By prioritizing health and safety, we are building a stronger, more productive foundation for CARCLO's growth. So we're driving growth in our core businesses while we exited the non the non short run, non scalable business. Our sales bridge reflects this.

3:55 We have exited the non scalable, non short run business, and this has allowed us to focus on growth in manufacturing solutions in the core markets being life science, precision tech, and errors and aerospace, which has achieved in the CPB business a like for like growth for 4.5% in line with the market. And the specialty division grew remarkable with a 9% growth year on year if you look at that eight trailing twelve months. The repositioning is intentional. It's enabling us to prioritize higher margin opportunities while preparing for the next phase of asset revitalization to sustain efficiency and drive future growth.

4:44 Our financial performance clearly marks a step change, with return on sales rising to 6.2% and the return on capital employed reaching 17.5%. This signals a decisive move beyond the traditional threshold of below 5% return on sales and 10% return on capital employed. These results reflect the disciplined execution of our strategy, focusing on operational excellence, enhancing margin, optimizing asset utilization, positioning us firmly on a path of sustainable growth. Our focus on financial resilience is also clearly reflected in the net debt to EBITDA ratio, which has moved from two by the end of our full year to 1.6 by the end of the first half.

5:31 This progress is driven both by the improved EBITDA and disciplined continued cash management, strengthening our financial position to support future investment and sustainable growth. I will now hand over to Eric who will provide us with a helicopter overview of the financials and walk us through the key highlights in more detail. Thank you, Frank. Yes. I'll take a high level view of the numbers, But just note that actually we cut the supplies, the cables for this aircraft. So it is our own product in the in the picture. I look at the key performance indicators that we think are most relevant to these sets of results here today. You can see as we forecast in year end that we expected the revenue to be down as we departed from site closures and focused the business on more profitable product lines.

6:28 So that is in line with our expectations. But we've concentrated, as Frank said, on how do we grow the profitability, expand the contribution margin. Contribution margin is revenue less the direct costs of production. And here, can see that's up by 3.2%. I'll take you through the bridge on that shortly. That's resulted in underlying EBIT before interest and taxes, about £1,200,000. Working capital has been maintained within the range of 9 to 10,000,000, So we've got a stable position there. And the end result of this period of activity is that we've reduced our net debt position from 29,500,000 to 25.2.

7:18 We track quite a number of KPIs in the business. We always look at the trailing twelve months. So these numbers are better indicators of the trends in the business. What you can see here is on the revenue that we saw the decrease in design and engineering as we've seen the engineering team concentrating on improving the production activities and new projects coming in. We expect it to be at a lower level this this period. But what you can see is the underlying manufacturing solutions product sales is pretty stable. So despite the fact that we moved away from number of sites, the underlying manufacturing included 10,000,000 compared to a 112.

8:09 Operating profits, as I referred to, on a on a twelve month rolling basis, is now up to 7,900,000. That certainly is the indicative of the trend in the business, but also gives us confidence in the expectations for the full year. So we're running in line with that plan. Return on sales, as Frank noted, expanding to 6.2%, so trending in the right direction and higher than it was in full year half year 2022, and that's also resulted in a positive earned per share in this period.

8:52 The other key KPIs that we look at, cash conversion. So it was extremely high as we had some exceptional receipts in the previous year, but an 87% cash conversion is a healthy ratio for the company. If I look at the net debt position, as you can see, it's down. Now we split this out into components of the net debt, so we've got bank debt plus cash, net 17,000,000. The 8,000,000 of finance lease creditors are split 4,000,000 on property, which is essentially capitalization of factory rentals, and then the plant machinery leases, which have got a shorter life. So that's coming down, and you'll see that in

9:45 cash flow that we are paying off those plant machinery leases. The property leases will vary as we renew factory leases around the world. So that could well increase, but it doesn't change the underlying cash flows in the business. Resulting return on capital employed, climbing steadily now over the last five, six periods. So we're now up to 73.5%, and the ratio of fixed assets to revenue, is now at a healthy 3.5 times. So, again, a positive trend in the business reflecting the increased utilization rates that we're achieving through the focus on factory specialization.

10:34 If I look at the income statement at the top level, you can see here the revenue changes which we've touched on. The increase in the contribution margin has maintained pretty much the contribution on reduced revenues, but we've also taken a million pounds out of the overheads year on year, and that's helped drive drive up that underlying EBITDA. At the operating profit level, there's a decrease in depreciation charges due to site site closures, but also strict control over capital spending in the period. The underlying profit up as I referred to and exceptional items down year on year and below the number that we were expecting it to be, and I'll touch on that in more detail.

11:29 If I look at the contribution margin bridge, you can see here prior year 34.6%. Our project Zelda program, which really focuses on driving out waste in the business in the broadest sense, has resulted in material cost savings, and other activities in our sustainability is improving our profitability. So a good alignment between sustainability and economics in the business. Factory specialization is enhancing the workforce productivity, so that's benefited the results by another 1.2 percentage points. And the improved mix as we move into the longer run, we can run, but longer run business, we produce better profitability, and that's a plus point 8%.

12:24 The headwind in this period has been the impact of increased energy prices, so that will be a feature for full year '25 in terms of the margin percentage. So we resulted at 37.8% of 3.2% increase.

12:49 By looking at the exceptional costs, this is mainly about the restructuring in the business that's going on, primarily in The United States where we've exited two two major locations in Tucson and very new Hampshire. What we can see here is that our cash costs of that restructuring at 663,000 was actually slightly lower than we thought it would be in cash terms. We've also seen through some very good negotiations on exiting the property leases and then having unwound the the assets there. We're able to reverse the number of provisions, maybe a million pounds.

13:38 And you can see that that is primarily on on the property lease, but also some adjustment on our inventories and tangible fixed assets. The biggest cost in the p and l is running the refinancing project where we have advisers in place, and that's that's running in the first half of $1,300,000.01 $1,212.08 £4,000. So the cash costs, except for us in the period, are 1,900,000. However, that is lower in cash terms than we're expecting to be on the restructuring activity.

14:21 Pension deficit, not a lot to report in this period. The valuation under accounting standards base is fairly steady, and we are seeing that we

14:38 that the drive on that is really to do with gilt yields. The triennial valuation is still in progress. Unfortunately, I'm not able to update you on the results of that today, but we expect to get to a final position by the thirty first of March next year.

15:00 However, there is an improved financial position, so we're expecting that to to be a positive report when we get to that. Focusing on the balance sheet. Here you can see we're looking just as we strengthen the balance sheet on the next step position, but you can also see that the reduction in the tangible fixed assets reflecting our factory specialization primarily in The US and also the fact that we're depreciating the assets and not replacing them with new capital spending in the period. And so that's down to 35,700,000. Inventory is pretty steady, around about 12,000,000 level.

15:46 So 11.7 against 11.3 prior year, and from year end position of 12 and a half. Other working capital, again, small variations, but as I said, net working capital in that 9 to 10,000,000 range. That's means that the assets employed in the business down to 54,100,000. Then on the right hand side, you can see that the drive in the increases in capital employed with fixed asset utilization referred to working capital as a percentage of revenue in that seven to 8% range with the net debt down and an improvement in the net debt to underlying EBITDA, as Frank referred to earlier. So very positive position from from the company's perspective.

16:35 And this is demonstrating both the performance and increased efficiency in the business. In terms of the cash flow, sustainable cash flow is what we're aiming to achieve. It's really been driven by the underlying operating profit growth. There is there is a help from changing working capital in the period, but now we've got got that to a sustainable position. Capital capital spending, as we noted, we curtailed since £300,000 in the period compared to 1,900,000 in the prior year.

17:17 And the lease repayments, as I mentioned, reducing the finance lease creditor as we go through. So free cash flow in the period, positive £900,000. First half of last year was an exceptional boost to the unwind of contract closures where we compensated for that, but certainly a better result from a free cash flow perspective compared to second half prior year. Bridging on the net debt reduction, we can see that that's mainly been driven by the profit improvement in EBITDA, also from the benefits on strict working capital control and the outgoings limited on CapEx and potential obligations have gone through slightly lower than than planned. There was a cutoff period which meant that one contribution of about 225,000 fell into the the next period.

18:25 These are charges in line with the expense. So without the exceptional activities, net debt would have been 23,300,000. The 1,900,000 cash outflows on exceptionals ended up resulting in 25.2. Still a very good position with a much improved leverage ratio of 1.6 times. With that, I'll hand back to Frank. Thank you, Eric. So as the picture shows, we're gonna make it take a new deep breath to explore the strategy going forward. As

19:07 we showed last time, the strategy pyramid is is clear and simple. The focus was and will stay on the financial resilience where we build financial strength through reducing debt and enhancing long term stability, and, of course, continuation in the operational excellence where we have made major strides in all the regions where we still got a long way to go to call ourselves really excellent. We're now currently focusing ourselves on the expansion program, accelerating growth to capturing high value opportunities in expanding markets. The markets in which we operate do have growth above GDP, and we are currently capturing that growth. The additional use of the assets allows us to capture the growth without excessive capital expenditures.

19:57 And the top layer, which is the long term position, is the innovation incubator, which will drive long term sustainable growth in proprietary technology, products, and materials. So this slide show highlights the tangible results of the first layer of our strategy, the financial resilience and the operational excellence. We've achieved stronger financial resilience while we're improving our debt to debt ratios and we have a stable working capital efficiency, staying around to targeted 7%. Operational excellence is evidenced in our enhanced contribution margin, as Eero just alluded to, and a better utilization of our fixed assets. So as we like to say, the net debt declines, working capital efficiency improves, the profit efficiency climbs, and our assets are working harder.

20:50 All of them together underlie our commitment to a robust foundation of sustainable growth and long term profitability.

21:00 On the expansion part, we have achieved in the manufacturing solution, excluding the 6,000,000 of short term business, we we deliberately exited a 4.5% like for like growth. We're staying aligned with our core markets. Specialty division has has advanced significantly, and we have more later in that in the presentation. You see in the different regions, have different growth rates. We had a which we'll go through in two phases. In innovation, we are beginning to an exciting journey on longer term growth. We're laying the foundation of further advancements and focusing ourselves on developing new processes, technologies to enhance efficiency, advancing sustainability through eco friendly materials and recyclability, and we're exploring in-depth the opportunities in what we call connected care by processing digital life cycle technologies with applications in the markets.

22:01 These initiatives mark the first steps in the strategy to shape the future of driven industry, but will only deliver a longer term growth. We talked a few times about the new division, the specialty division, which is a combination of aerospace and optics. You see the little graph where showing that the total of the business is 13,000,000 and of which two thirds is aerospace and one third is optics. Aerospace had expertise and leadership in the industry, and they were very known for their operational efficiency.

22:41 Optics have complementary solutions. Both businesses do short series, value added, and are approaching themselves in niche parts of the markets. The two businesses are now strategically aligned, and you see on the graph on the right hand side the internal components of that grid. The cables and wires, which we have seen the growth after the air travel picked up after COVID. You see the optics, which is we call light and motion, which in the new division has regained growth, which is a testimony to the success of the new division. The machining part becomes a more and more important part of that division. We're investing in new equipment in the two sites, and they have achieved 33% cumulative ever growth rate over the last three point five years, also, of course, helped by the strong supply chain improvement in the aerospace steel industry.

23:37 The other business we do, trading products to complete the offering to be a complete solution supplier to our customers in those niche markets. We will go through the sales in the regions. Design engineering revenue declined as projects are transitioning into manufacturing solutions, and the focus currently is on asset revitalization to enhance efficiency for the next years.

24:05 Manufacturing solutions in the EMEA regions grew by 0.5 0.7% and supported the stable sales and continued process optimization to improve profitability. Manufacturing solutions in the APAC region has increased by nearly 9%, which is driven by a rebound in regional demand and operational improvements, allowing us to serve the broader part of the market. In this region, we do understand that geopolitical shifts are impacting the regional developments in the future. In The U. S, the sales, which was hurt the most by the decline of sales, has now rebalanced, rose by 6.9%, reflecting a strengthening core of our operations in Pennsylvania and a mark to total market recovery we see in the region.

25:01 This slide highlights our progress on maximizing CARCLO's global footprint through operational optimization and factory specialization. In APAC and EMEA, factory specialization has boosted capacity, efficiency and customer satisfaction, laying the groundwork for future growth. In The US, we have completed the Tucson facility closure ahead of schedule and below cost, while ongoing optimization in Pennsylvania is aligning operations with global standards. These efforts reflect our commitment to enhancing efficiency, leveraging automation, and delivering value to strategic focus and specialization across regions. In the design and engineering, we are tailoring our focus to deliver maximized value in each region. The regional focus, which we do in EMEA on new technologies, materials, and products in APAC, focusing on back end automation development and in The US, delivering major project validations will help us to create a solid foundation for long term growth and innovation to because as an organization, you have to be able to not only get the price, but also be able to deliver it sustainably to your customers.

26:22 So CARCLO's transformation is delivering the results today. We're positioning ourselves for sustainable long term growth through targeted investments and operational excellence. And if you look in the three time horizons, in the short term, we continue to reinforce resilience by focusing on financial stability and operational efficiency, creating a robust foundation.

26:44 In the medium term, we're expanding with our core markets. And on the right hand side, you see one of our core markets being the IVD market is expected to grow by between 45% over the next years. We will leverage our operational capabilities and strategic automation investments so we can follow that growth without excessive capital expenditures. For the long term, we're embassist on driving growth through finding new customers, new opportunities, and innovation and leadership in life science precision components and specialty to ensure sustainable success. This balanced approach enables us to deliver immediate results while positioning CARCLO for future opportunities and value creation.

27:33 So let me summarize. We've delivered financial strength. Our return on sales rose to 6.2%. ROCE climbed to 17.5. EBITDA ratio came down to 1.6, and working capital efficiency stabilizes at 7%. We've done this through operational excellence. Our health and safety improved by 43. The factory specialization benefits are coming through and bringing a stronger margin in FY 2025 and will have annualized effect in FY 2026. The US revitalization process is on plan.

28:11 And to show our ability to execute, the factory closures in The US have been completed, all of them, ahead of plan and below the projected cost. We can't save ourselves to glory. We're going to build market leadership. We're optimizing our strategic sales portfolio, and we're exited the non scalable business. The newly formed specialty division grew by 9%, and we're currently working on projects with new and existing customers to find a broader base for our business. And on the long term, the innovation pipeline will be expanding, delivering the long term growth. What's the outlook? The outlook I have is that we're positioned for growth and long term success. In life science, we have medium term growth, which outpaces GDP.

28:59 In specialty, we have a much better division, which is set for growth for the future and additional market gains. The operational process, we have accelerate and the ability to execute, we showed by accelerated D2s and closures and The US restructuring, which will boost performance. So we will have confidence that FY '25 targets and the long term goals remain firmly on track. Thank you very much for your attention. Frank, Joe, Eric, thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab situated on the top right hand corner of your screen. Just while the company take a few moments to review those questions submitted today, I'd like to remind you that recording of this presentation along with a copy of the slides and the published q and a can be accessed by our investor dashboard.

29:52 As you can see, we have received a number of questions throughout today's presentation. Can I please ask you to read out the questions and give responses where appropriate to do so, and I'll pick up from you at the end? Thank you. I'll I'll read out the questions and then hand them across my colleagues where appropriate. First of one from Andrew. Andrew, what does the competitive landscape look like? Frank, can give us a high high level overview of that? High level. I think we're positioning ourselves as a kind of a boutique organization which focuses very on on service and full service to our customers. In the market and the competitive landscapes, there are a there are players who would get who are extremely very big and getting bigger. We do see that they feel further away from from the customers. I think people who are in the plastics industry have seen the acquisition of of Berry by Amcor making a very big player.

30:47 But we're focusing on the elements of being a global player, being a player which is focused to whose customers dedicated, and by regionally delivering and regionally having all our factories, we are able to supply our customers regionally and react quicker. So we we don't see currently a big increase in com competitiveness from competition. We do see that our position is currently improved. Thank you. I'm I'm gonna roll the next two questions into one because they're somewhat linked. There's one from Alex asking what steps we're taking to mitigate the customer concentration risks that we have. And then there's one from Ben asking or basically saying with with restructuring going well both in The US and Europe, could we share our growth targets for these regions in the coming years? And and as I say, the two are somewhat interlinked because, obviously, dealing with the customer concentration risk, there are two elements. One is making sure you're looking after your big customers, which, of course, we are doing and doing an excellent job of.

31:56 But the other is growing other customers so that one is less dependent on the large customers one already has, which talks to where is your growth coming from. I think we we don't publish our growth targets, so we don't intend to. And I think we also don't think of it as a growth target for individual regions. We we choose where we manufacture our product. We think of growth globally rather than individual regions. And maybe, Frank, if you could talk to a little bit about we said in the medium term, we expect to grow at a higher than GDP rate. Correct. What things we're doing to achieve that? That's that's in general. Yeah. So there are two things. Of course, you have to be able to follow your customers and be with the successful customers in the market. The overall growth as we show, and we put in the appendix some of the some more more market data or growth in the area with the growth in on global growth, which base for life sciences, both for aerospace will be above GDP.

32:56 And our current focus is, of course, to get additional customers onto our platform, which we're working on, and those are the projects there. But as I said in earlier presentations, we will talk to you about it when we deliver, not when we not when we're talking to those customers at this moment. So I'd rather say when we've done it than currently talk about what we do. Thank you. Can question mark and make our screen scroll up by removing those two? It's still showing up here. Thank you. This this is gonna be one for you, Eric. I'm not entirely sure they understand, but I'll read it out nonetheless. Pension benefits paid are down around 10% to 4,800,000.

33:44 Why is that the case? Can we argue that wearing very high inflation, the peak is clearly behind us, and we expect it to continue to decline. That is quite a detailed pensions question, which I'm not sure whether we have the detail around this at the moment to answer. Yeah. That's that's very much a question for pension trustees. The I mean, the actual payments to pensioners are not down. If that's what we're getting at with this question. And we focus on our obligations to the pension fund. It was the pension fund's job to worry about what gets paid out to its members.

34:30 Exactly. And that will vary with with the demographics of that pension The the impact in the company is how much do we put into the fund. In gross terms, we've been putting in 3,500,000, which includes paying for the administration cost of of the funds. I would expect that that would actually trend up over time because that was repairing the pension fund deficit over a fifteen year period. And, ideally, they want to repair it over time. So from a company perspective, the cash that we'll be putting into the fund will actually slightly increase in the future is my expectation.

35:15 Thank you. A question on CapEx from Alex, which to paraphrase is asking how sustainable the the low CapEx that we've got at the moment is and whether we're guiding on meeting term CapEx to sales ratio. I think the answer on guidance is we're we're not providing guidance on that. But in terms of sustainability of CapEx, obviously, it's very we we have kept it very low in the current period. Frank, do wanna make a a short comment on that? The short comment is on that is that we have in the specialization what we've done. We have taken a lot of the the older machines out, the hybrid machines out. We've taken, of course, enormous amounts of energy per kilogram to run. So we've taken those out. All the machines we have are running more hours.

36:03 That means we needed less machines. Also, new projects and growth we had on it, we're now putting on standard machines. One of the capital demand for CARCLO in the past was always that every new project needs a new machine. And we now have a different approach that machine platform we have, we will exploit to use for the current equipment. So the asset utilization is going up, so we didn't need a lot of new machines for the additional additional work we're getting. And that was the biggest reason for for that. The additional machines always also needed the new rooftop. So a lot of the investments in the in the years before were not only about machines, but also about auxiliary equipment about and and buildings and rebuilding of buildings to put the new machines in. So we now have lesser machines, machines run faster.

36:52 So we don't have any infrastructure cost investment this year. We don't have any additional capacity need this year because we're just exploring the capacity we're having. So a different totally different strategy allowing us to run it at the long term. Of course, when we get more sales in, we get higher grossing, we will get we will get to new investments in machines, but all we'll say within our manufacturing sites. I think the other thing to add to that is that where we where we are looking is other investments we can make that will drive much higher efficiency so that Yeah. On which the payback would be very, very rapid. And then we we do see that we're starting to see opportunities for that, so there may be some increased investment for that. It's not we don't expect to be huge numbers, and the returns will be very significant. But that will be more on the back Yeah. On the back end automation. Yeah. It's also has to do with availability of labor in different regions.

37:46 One for Mark on the refinancing. Is there an expectation that the finance refinancing will result in a lower cost of debt? I think just before I hand it to Eric to make a comment on that, we're not we're we're not gonna publish any numbers in terms of what we think expectations or anything might be, but it will be what it will be. But any other comments to add on top of that, Eric? We're in process. We're in process. It will be what it will be. I think holding an expectation would be a lower cost. It's probably unrealistic. Yeah. Thank you. And last one, another one from Alex asking about essential costs, which are are high relative to the division's profits.

38:34 I think I've removed the wrong one, but I can remember it. It doesn't matter. Costs are relatively high for the business. Part of that is because we are main market listed business which has associated costs. We are always looking for can we become more efficient? Can we control our cost better? So if we if we see opportunities within central cost, we will take them use. You can see they have come down a little bit period on period. Yep. And if we can see further opportunities to do that, we will do. Anything more any more, Eric, on that? No. Just just to note that that costs include the cost of administrating the pension fund, and we are looking at ways to reduce that revenue cost. Yeah. Thank you. I think that is all the questions that we have had. So thank you for your questions. They were fair number, and they were good. So thank you for those. Thank you for listening.

39:30 We will see you again in six months time for the full year results. Frank, Eric, Jay, thank you for answering all those questions you have for investors. And, course, the company can review all questions submitted today, and we'll publish those responses on the Investor Meet company platform. Just before redirecting investors to provide you with their feedback, which I know is particularly important to the company, Frank, can I please just ask you for a few closing comments? I think we're very proud of what we've done. I'm very happy that in the two years, we're now working on the transformation of CARCLO PLC. This is result. I want to thank all the employees for all their great efforts because it's not the three people around this table who've done it. It's the currently 950 ish people in the organization who are working every day motivated to get things done.

40:15 Change is done by the team, not by a person. I'm very happy we're going in the right direction. We're happy to see the results. We're happy to see the attitude of the organization going. And the winner mentality is back. We're we're ready. We restructured, and we're ready to grow. Frank, Eric, Joe, thank you for updating investors today. Can I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback in order that the management team could better understand your views and expectations? This will only take a few moments to complete, and I'm sure be greatly valued by the company. On behalf of the management team of CARCLO PLC, we'd like to thank you for attending today's presentation, and good morning to you all.