Checkit (LSE:CKT) — FY results webinar

0:01 Good afternoon, and welcome to the CHECKIT 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 in the right hand corner of your screen. 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 will review your questions submitted today and publish responses where it is appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to Kit Kite, CEO. Good afternoon, sir. Hey. Good afternoon. Thank you very much everyone for attending this afternoon's presentation of our annual results for the year, financial year '23. So there's a little bit of ground to cover here. I'll start off presenting some of the financial highlights, and then we'll briefly touch on the why CHECKIT and then focus a bit more on our the pillars of our strategy before considering f y '23 in review. And then I'll hand over to Greg, to take a a deep dive in the financials before we open up for questions for the remainder of the session.

1:06 Okay. So we're pleased to announce our results for the year to 01/31/2023. So ARR coming in at 11,500,000 represents 28% year on year growth and is ahead of market forecasts. Recurring revenue at 9,600,000 and represents 41% year on year growth flowing nicely from the ARR that's being booked. Total group revenue at 10,300,000, up 22% year on year. And pleasingly, and for the first time, we're mentioning our net retention rate, which is a 116%, which represents the successful execution of our land and expand cross sell upsell program, particularly relevant in today's conditions. So why CHECKIT? And, again, appreciate most of us are now familiar with the story, but for those who may have joined for the first time, gonna give you a very quick overview. So it is the three things about CHECKIT that makes us differentiated and stand out in the marketplace.

2:02 So we have a real time workflow management, task management software platform sits on the cloud. And this specifically targets the digitization of deskless workers in the work that they do for large blue chip multisite multinational organizations, guiding them, tasking them through their work, removing the need for pen, paper, Excel spreadsheet. Surrounding that platform, we have a sophisticated Internet of Things IoT sensor solution that integrates directly into that platform, and that provides the automation and the removal of the need for human touch on all of the assets, be they fridges, freezers, vaccine storage units, buildings that deskless workers work in.

2:49 Okay. So once you then fuse those two pieces together, what we're then doing really is we're generating vast amounts of data, taking them from the analog into the digital world. And then we we represent that data to management, senior leaders, operational managers in a form of insights, analytics, and sophisticated dashboarding, which allow them to make further real time decisions on the efficiency, the productivity, and optimization of their distributed operations. This is all set against the backdrop of real need and real demand. Now this is a fragmented and evolving open market, but let's not forget that there's 2,700,000,000 deskless workers in the world, and that they actually represent 80% of the global workforce.

3:38 Okay? They're the majority of the workers in the large blue chip organizations that we target, and yet still 73% of them are still using pen and paper or Excel spreadsheets, which redundant and do not provide real time visibility into the work they do. This is still this is 2023, and this is a very underserved market. When you then factor in the rising cost of labor, supply chain inefficiencies, supply chain challenges and disruptions, the impact of inflationary pressures, this these will have a a direct influence on these large organizations' ability to deliver service to the to the standard required and improve customer satisfaction. And this creates a situation that we've often referred to as a dark operations environment effectively as a business leader, as an operational leader, as someone who's running a collection of sites and locations, you have very little visibility into what's happening underneath the hood. You cannot see. You cannot understand what your people and what your assets are doing in real time and how they interact.

4:44 You have very little visibility, and this is what the CHECKIT platform and ecosystem provides to business leaders and decision makers. Now let's review strategy and see what see how we're tracking. There's three pillars here. First pillar, convert CHECKIT into pure subscription business. We consider this pillar now complete with the wind down of the BEMS business unit achieved over the last year and recurring revenues now representing 93% of all revenues. We're now in a firm and clean position to scale as a business with all incremental business being recurring revenue based. Pillar two, building scale and global growth. So what we mean here is scale in the way that we position and upsell, cross sell our products across both the existing customer base and net new customers, and global growth being the target geographies that we're going after. K. As a reminder, we're predominantly centered around The UK and Western Europe, and then also North America with The US as our stated ambition to be one of the leading contributors there are to this business as a geography. We see massive opportunity there if we can accelerate the scale.

5:57 And the third pillar here is how we think about transforming the operating model of the business and factoring in the right levels of culture. Transforming the operating model means making it fit for enterprise level scale on a global basis. It also means introducing the necessary efficiencies to allow us at scale with reduced cost. In order to do all of this, you've gotta build a culture that's built around high performance. So let's consider what our growth ambitions look like. Firstly, continue to expand our US market presence and then double down on the rest of the world ARR growth. Pleasingly, we've had a successful year in The US growing the ARR by 91% year on year and reflects now a solid base from which to continue to expand into that market for what is a really significant opportunity.

6:48 Equal to that is is how we want to continue to execute and scale the business we have in UK and the rest of the world. Second pillar of equal importance now as we pivot towards profitability is how we will continue to drive and maintain operating efficiencies to accelerate that path to profitability, and Greg will be able to expand on that later when we get into the presentation. And by doing pillars one and two, we will be on course to become the market leader in this very open nascent space in what we would we refer to as augmented workflow, sensors plus software plus analytics in our target verticals. So let's look at the year review. Bit more detail on the annual recurring revenue bridge. So as I mentioned earlier, going from left to right, we did about naught 600,000 of net new business, and this reflects, I think, accurately, our land and expand strategy, where what we see in the market now, given the macro conditions that are affecting most organizations, we see that the willingness to commit budget at scale has been somewhat reduced, and the number of stakeholders required to make a big purchase decision elongates the sales cycle.

7:59 Therefore, what one wants to do is get targeted entry points into large budget customers from which you can then expand through cross sell and upsell, which which we've then done very successfully as you can see delivering 1,600,000,000 of ARR in the year. And then the final piece has been the final conversion of US contracts into pure recurring revenue basis. So this focus on this relentless focus on subscription revenues is what makes this business now very scalable. So we've delivered over 30% year on year growth in recurring revenues for each of the last three consecutive years. You can see last year, that was 41%. As I mentioned earlier, recurring revenues now represent 93% of the entire revenue base of the company. And then double clicking on The US, we said it's been a successful year. You can see that we grew those, ARR between, last year and this by 91%.

8:57 As you can see also, The US now represents nearly 25% of all ARR in the business, so it's on track to become the leading contributor of ARR to the business over the next couple of years. A quick mention on the pipeline and customer base, existing customers, and net new customers. You can see on the right hand side here, our pipeline just shy of as I reported six, seven weeks ago at the trading update, just shy of 14,000,000 at the start of the year. That's the annual value. So the total contract value is more like $4,142,000,000 because we do three year minimum terms on our contracts. The vast majority of that pipeline represents what we call large enterprises. So these are the very large BP equivalent customers, NHS equivalent customers, multibillion pound organizations.

9:48 The remainder of the pipeline is split up between what we'd call enterprise and midsize customers. So enterprise being about a billion pounds in revenue type customers, midsize being somewhere between 500 to a billion. And these are the kind of customers that we would we would constitute as contributing to what we call run rate revenue, and we we differentiate between bringing in run rate, land and expand entry point deals, and then the larger, more more difficult to predict large customers that we bring in off the top. Some of the customers you see on the left hand side here represent the successful execution of that land expand policy. For example, Just Eat, who were brought in last year and have since been expanded, or Compass Group, who we've traditionally had a very small footprint with and who we're starting to now expand at scale. All other customers are live in flight opportunities in the pipe as we speak.

10:38 So let's focus on a couple of those customers and just see how it comes to life. So we've had a well established relationship with the John Lewis partnership for a number of years. But to bring it to life, we delivered £28,000,000 of annual savings to the John Lewis partnership, split in the following ways. So it's about 3,600,000 in food wasted savings a year, 24,000,000 of repurposed staff time, and a naught 600,000 minimum, naught point 6,000,000 of optimized energy usage. As you can see, CHECKIT is very well integrated into the John Lewis partnership. We control everything from fire doors to lifts to HVAC systems, freezers, fridges. We collect vast amounts of data which helps them predict not just energy forecasting, but also asset optimization.

11:23 And this is a really good example of a large customer that we've built over over time for whom we're now very sticky inside the organization. On the other hand, we might look at, say, the biopharma sector where we have a number of, well known biopharma clients in The US. In this instance, if we think about Octopharma in The US, the key challenges they face, high cost inefficiencies around compliance in general, but specifically very, very specific temperature compliance for their blood plasma storage units. Heavily error prone and suffering from manual paper based process. Okay? So time wasted and introducing a lack of regulatory compliance into their system, maintenance and calibration issues across multiple vendors.

12:09 By bringing in CHECKIT and having CHECKIT scale with them, we're now driving hundreds of hours worth of repurposed staff time, a significant reduction in management audit time, and also an increase in management visibility, reduced costs from systems consolidation, and indeed, and really importantly here, minimizing the potential for spoilage inside the system. And this is a common use case across all of our biopharma customers, and it, again, points to the stickiness of the product to check how to play here. And another one within the health care sector, but back over here in The UK and outside of the NHS, I think, which is well known that we serve so well here, is private care homes. K. These are high margin businesses, but they suffer from a lot of the same problems. So very time intensive manual checks across multiple different teams, heavy reliance on paper based processes, field managers, and leaders having to drive all over the countryside all of the time to be able to turn up and check and understand what's actually happening. It's completely inefficient.

13:10 A complete lack of visibility on what's happening in the organization. By implementing CHECKIT, which we did last year and have since upsold again this year, they're driving 10 times faster maintenance issue resolution, 40% reduction in audits, completion rate to a 100% of all checks. Management now has visibility across the spectrum. I spoke to the head of innovation at Hallmark Care Homes, and he said, you've given us a real headache. I was like, why are we giving you a headache? And he's like, because we thought we were we thought we had it organized. We thought we knew what was happening, but you've shown us where the improvement areas really are. But this is now important because we can properly drive a digital transformation in this organization with clarity. So it's a good example of a customer benefiting and reciprocating value back to us.

13:57 I'll touch finally now on some of the areas we're investing in the product and the platform before handing over to Greg. Really, there's a few areas. We've talked about the IT ecosystem. And for me for us here, the key is integrating best in class third party IT providers into our platform. This will enable us to sell additional complementary use cases to both existing and net new customers that are fully integrated into our platform benefit from the data collection and the insights analytics that come off the top. Moving customers towards predictive insights. So how we fuse that sensor data and the data that we gather from the workplace to move people from just being organized and tasks into guided in the way they do their work.

14:45 Enabling customers to do more rapid self-service on lighter weight versions of the platform, the product in order to adopt its scale, and also invest in the cloud platform as we seek seek to scale on a global basis. This becomes fundamental. And where do we see the future here? So, really, there's three different areas that we're starting to think about. It's a not not exclusive. But firstly, given the data that we gather, which is vast amounts, how do we monetize that data? How do we sell insights as a service, data as a service? For example, we we monitor thousands and thousands of different assets in certain current locations. Could we provide a service to those customers that helps them to predict whether or not those assets are going to break, when they're gonna break, or indeed whether those assets are burning through energy, which has been pressing at the moment, in a way they don't need to be.

15:39 So are your freeze are your freezers five degrees colder than they should be on average, and what would that look like across 1,000, 2,000 assets across an organization? These are the kind of incremental adjustments that we see employees wanting to make. Attrition of retention amongst employees is the single biggest cost factor in the industry because you're looking at 75, 80% attrition rates. So can we help organizations recognize when employees need targeted training and indeed whether or not they may become a flight risk, a churn risk? How do we implement humans more into the process? In that, a human, in this instance, is much like a very sophisticated sensor. So how do we also fuse their own observations outside of workflows with sensor data to generate new workflow tasks in real time?

16:31 And then how do we also, as a as a as a organization, as a product, move towards high value processes? And what we mean by this is certain industries, for example, manufacturing or chemical manufacturing, have high value product and, again, high value employees even though their desk is doing the work. So you can imagine the inefficiency which they suffer from is even more painful from a margin and p and l perspective. And this is an area that we see, CHECKIT starting to want to expand towards. And how do we provide additional asset based guidance for for for the desk as workers? Like, how do we in integrate augmented reality? How do we bring machine vision into place? So these are some the exciting areas that we see the product developing over the next few years. So I'll hand over to Greg now, and we'll do a double click on the finances.

17:18 Thanks, Keith. There are two key themes I'll talk to you today, growth and efficiency, growth to become the market leader in augmented workflow, and efficiency to accelerate our path to profitability. Today, I'll explain our top line growth and how the transformation of our business into subscription model gives us a high degree of confidence in our future revenues. I'll then cover how we're finding the balance between investing in the business and driving operating efficiencies to enable us to reach breakeven. So in terms of our highlights, all that I've said just now is reflected in our full year results, which we've announced today and which were all ahead of market expectations.

18:06 ARR at £11,500,000 increased by 28% versus last year and was ahead of analyst forecast of £10,800,000. Our EBITDA and cash performance were also ahead of market expectations with EBITDA at a loss of £6,400,000, up 200 k and cash of £15,600,000, up 400 k. And all of these numbers exclude BEMS as we close that division. So BEMS is reported as a discontinued operation this year. I'll talk more about our cash and p and l performance shortly. But first, I'll go into a bit more depth on revenue. Group revenue from continuing operations was £10,300,000, up 22% versus last year, with recurring revenue up 41%, partly offset by nonrecurring revenue, which we expected to decline as we converted more US customers from maintenance contracts to subscriptions.

19:09 This means recurring revenue was 93% of the total for the year, demonstrating our transformation into subscription business. This transformation provides us with strong visibility of future revenue. ARR doubled over the last two years from £5,700,000 to £11,500,000. As you can see, ARR provides visibility of the following year's recurring revenue. So ARR in FY 'twenty one of £5,700,000 converted into recurring revenue in FY 'twenty two of £6,800,000 And then in FY '22, ARR of £9,000,000 converted into recurring revenue in FY '23 of £9,600,000.

19:56 This is also a reflection of our high retention rates with a good return with a gross retention rate of 99% and a net retention rate of a 116%, as Kit said before, demonstrating the stickiness of our customers and ability to upsell. So I've talked before about the two key themes underpinning our strategy, growth and efficiency. And in our p and l summary here, you can see how we're balancing these strategic pillars. Strong top line growth and careful management of our cost of sale equals 41% year on year growth in our gross profits. This is then offset by increased operating cost. We're investing in the business, both in our sales team and our platform.

20:44 We're very careful on how we invest in the business. I'll talk more about our gross margins and the operation efficiencies we've achieved this year in a second. First, a quick note on nonrecurring items of £4,800,000 shown here. This relates to the impairment of goodwill on the closure of our BEMS business. It's a noncash item and, as such, has no bearing on our trading performance. Moving on to our cash performance and with a year end balance of £15,600,000, cash remains strong. And we agree with the market analysts when they said this morning that they estimate that CHECKIT currently has sufficient funding to reach cash breakeven. Our strong top line performance has allowed us to invest in the business, both in terms of operating activities, which you can see here was 6,300,000, an increase of 1,400,000 versus last year, and CapEx, which at £2,300,000 is the same as last year as capitalized development cost increased or was offset by lower CapEx spend elsewhere.

21:54 We are very focused on balancing the investments we make in the business with achieving cost efficiencies. This year, we've been able to improve our gross profit margins from the 47% reported last year to 63% this year. The closure of our BEMS business contributed seven percentage points to this, but nine points came from our cost efficiencies. We've been able to reduce the cost of delivery, which is how we install sensors at our customers' sites, as well as achieving given savings in our platform costs. As well as this, we've seen efficiencies in our operating costs as we brought software development in house and through targeted headcount reductions of 10% in our operations.

22:42 The combination of strong growth in our top line and operating efficiencies in our cost base gives us a lot of confidence that we can accelerate our path to profitability. I'll break this down for you here. So in h one, our revenue of £4,800,000 increased by 15% to £5,500,000 in h two. At the same time, our EBITDA in h one of £3,700,000 reduced by 27%. So our losses reduced by 27 to £2,700,000. The combination of growing top line and reducing losses is what we see will allow us to improve the path to profitability, and we expect EBITDA to breakeven in FY '26.

23:33 And now I'll hand you back to Kit for more on our outlook. Thanks, Greg. Look. So the board the board expects to meet market expectations for FY '24. As Greg mentioned, we've got strong visibility in our future revenue streams, and we continue to execute against our growth strategy whilst simultaneously progressing operating efficiencies and accelerating our path to profitability. We're excited for the year to come. And with that, I'd like to hand over to Alex and the team to open up for some questions. Okay. Greg, thanks very much for your presentation. What I'll do is I'll just bring your cameras back up. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab, which situated on the top right hand corner of your screen. 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 via your investor dashboard.

24:29 At this time, Alex, perhaps maybe I can hand over to you just to share the Q and A, and what I'll do is I'll pick up from you at the end. Brilliant. Thanks, Alessandro. So, yes, the questions are open. If you do like to want to ask a question, please type it into the chat box on the side of your screen. We'll try and cover as many questions as we can. Let me start here. One, it's a question about cash burn. Should I worry about cash burn? Are there still legacy costs that will drop out as you transition to a fully recurring revenue business model, and can you quantify any of those costs? Yeah. Good. Okay. Let me top this off, and then I think Greg could go back and restate what he just stated. Yeah. So, look, the transition to recurring revenue business is is complete as as as we as we've been mentioning with the wind down the Benz business with recurring revenues now representing 93% plus of all of all revenues, we've made that transition. We've taken the decisions of the cost that were necessary to achieve that already.

25:32 They've been baked in. And as far as cash burn goes, I can only iterate what Greg's just mentioned, which if you look at the analyst consensus, they are confident that we will hit, breakeven in FY twenty six with plenty of cash to spare. But, Greg, perhaps you might wanna elaborate a bit further. Yeah. Sure, Kit. So I think what I would add to that is that we see further opportunities for cost efficiency. So whether that be improving our gross margins further. So if you look at the analyst guidance from this morning, you can see that our gross margin will improve from the 63% we reported now to the mid-60s and then in FY 'twenty five up to the high 60s. And then we see further opportunities in our operating costs as well, and those actually decrease next year. So important to bear that in mind when you're thinking about cash burn.

26:26 Okay. Second question here. Are you getting any r and d tax credits? And if so, can you give some idea of the amounts for last year and the year ahead? Yeah. So I'll take that one. So in terms of r and d tax credits, we we do absolutely see some r and d tax credits each year. It's about 100 to £120,000 a year, typically. We expect that to continue in the next year roughly at that sort of level. Okay. Thank you. Moving on here. Looking at your customers, how easily and quickly can you onboard new clients, and are you resource constrained in your efforts to add scale? Okay. Two parts to that question.

27:13 How quickly and easily can we onboard new clients? I mean, the answer is it's pretty efficient, and there's a couple of reasons for that. Our platform is a no is basically a no code platform, so it doesn't require it it it does not get customized on a on a per client basis. Now where we do do any configuration work because other customers don't have the time or the bandwidth or it's just something that we sold in as an added service, we call that professional service fees. But, again, it's not time intensive. Probably the more intensive component of what we do is when we're implementing our IT center network across clients. But, again, these are designed to be self installed. And, again, with our further third party IoT sensors that we've already incorporated in the system are very, very, very simple, look like a scrabble ship and can literally be taken out of a box and just stuck on the relevant assets. So these things are designed for scale by customers where needed. So short answer, it's not it's not a rate determining step for us, not a blocker. Are we resource constrained in our efforts to add scale?

28:19 I suppose every organization is resource constrained in some respects in their efforts to add scale, but not from from my perspective, it's not the rate determining step. So for us, it's all about the quality of the customers, the quality of the pipeline that we create, and then how well we convert that pipeline that will have a much stronger bearing on on where we where we add scale rather than, for example, whether we choose to continue to throw more bodies at the problem. It's much more about focus, clarity, and execution. Thank you. You talked about becoming profitable in FY twenty six. Is a question related to that? What ARR equates to the breakeven result? And broadly, when do you see that occurring?

29:06 Yeah. I think we've highlighted the past, and I'll let Greg speak more. But we see somewhere between 18 to 20,000,000 of ARR being the breakeven trajectory for us. That's all I can really say. Greg, is there anything you wanna add to that? No. That's right, Kit. So the only thing I would add is is that, obviously, as we see how our growth progresses over the coming years, we will dial up or down the amounts that we invest in the business to make the most of that growth. So there's no hard and fast rule on it. But, yeah, at the moment, we would say 18,000,000 to £20,000,000. Okay. Thank you. Coming back to some of your customers again. Can you give us an idea what percentage of customers take workforce management combined with sensors as opposed to just the workforce management?

29:58 The majority of our customers take the bun what we call a bundled offering. So, again, we either lead with the platform workforce management solution or we lead with the IT solution, but more often than not, it's complemented with the other product. So I would say greater than 60% of our customers have that type of solution when we sell in. Where we do have success in, say, The US in biopharma companies, more often than not, we're leading with the the sophisticated IT solution we have there because it's very specific to their industry, and then we look to upsell the workforce solution beyond that. Okay. Thank you. This is a sort of a a topical one at the moment. How are CHECK GPT and other AI systems impacting your operational efficiency and technology development?

30:54 Very, very tough one. I'm a big fan of the big fan of the opportunity that presented here. And I've but I think I think from the question, it's how does it affect our operational efficiency internal to the company? In other words, can can can we do more or less? And I think I I think the answer there is that this I see the capability of GPT as a force multiplier in a number of different areas, and it's actually not just associated with technology, though. Obviously, you know, coding, it's it's helpful. But, actually, you can look at it in terms of content marketing. You can look at it in terms of data analysis, pipeline analysis, conversion rates. This stuff becomes a force multiplier for a company like us. So I think what's great, unlike the big tech companies who have, you know, tens of thousands, if not hundreds of thousands of of employees, because we've got a lean base anyway, we can actually augment that lean base with this this kind of technology to then start to produce outsized gains. It's I see this as a real advantage for us.

31:54 Okay. Thank you. Look. And just as a a reminder, if you do want to ask a question, please type it into the chat box on the right hand side of your screen. Question here going back to BEMS. Has the BEMS division now been completely closed, and will be will there be any closure costs in the current year? I'll hand over to Greg for that one. Yeah. Sure. The BENS division was completely closed last summer. We've incurred all the costs that we expect to see for that. So there there'll be nothing further from here. Perfect. Thank you. Question here. Given the IoT sensors have a finite lifespan, how have you allowed for this in terms of future CapEx and maintenance planning, engineering time costs? Yeah. Good. I mean, look. We we everything we sell is on a recurring revenue basis is and, actually, the IT convert, we sell on what's known as a peace of mind contract. So we bake in the maintenance cost, the calibration, the swap out costs as part of the contractual cycle that we have with customers, and we run that on a sort of three year well, we have three year minimum term over two year swap out basis.

33:03 And so, actually, it's covered by the customer and the cost that they already they already spend. But, Greg, perhaps you might want to elaborate a bit more on how we drive efficiency there as well. Yeah. Sure. I think the thing I'd say first on that is that we invest in our capitalized development spend. So we capitalized £1,800,000 of development cost this year, and that would relate to projects such as looking at our IoT and how we keep that current. So on top of what Kit was saying already, I think it's important to know that we are investing in the future as well as the current. Okay. And I've got one final question here, unless other any others come in. But for the time being, can you talk a little bit about the the current pipeline and how you're progressing clients through that pipeline?

33:54 Yeah. Well, I mentioned I mentioned the pipeline at the start of the presentation. So at the start of this year, it was just under 14,000,000 on an annual basis. I think the the way that we we are viewing the progression, the evolution of pipeline needs to be needs to be made quite clear. And and I said, it's all about the quality, not necessarily just the quantity of what's in that pipeline. It's the quality of the opportunities that represent the right targeted customers on the back of a very focused go to market plan that will make the difference. And then that allows us to drive up the conversion rates, which we will expect to then see follow following flowing through in terms of booked ARR. So that's how we're looking to continue to progress the pipeline. I think the other area that we can you we are now starting to move towards is how we incorporate channel third parties and partners to become a amplification element of our pipeline generation activities.

34:53 Because at the moment, everything we're doing is is on an organic sales basis. But I think increasingly, as we look to start to hit at scale, the input from partners and channel alliances will become a material difference to the way our pipeline evolves. Brilliant. Thank you, Ketan. And Greg, that comes to the end of the questions that we've received. And so I'll hand back to you, Alessandra. Yes, Kitt, Greg, Alex, thank you very much. I think you've addressed all those questions from investors and of course the company will review all the 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 is important to the company, could could I just ask you for a few closing comments? Yep. Thanks. And I I I just reiterate my my words from prior to q and a, which is that we're, you know, we're very excited about the year to come. We do expect and the board expects us to meet market expect expectations for the year. And, really, for us, it's balancing sustainable and scalable growth along with the accelerated path to profitability, and that is our preeminent focus for this year and next. Thank you very much.

35:59 Perfect. And thanks once again for updating investors today. Could I please ask investors not to close the session as you'll 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 moments to complete, but I'm sure we'll be greatly valued by the company. On behalf of the management team of CHECKIT PLC, we'd like to thank you for attending today's presentation, and good afternoon to you all.