Eurocell (LSE:ECEL) — Results for the six months ended 30 June 2025

0:01 Good morning, and welcome to the EUROCELL PLC Half Year Results Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged, and they can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question received during the meeting itself. However, the company can review your questions submitted today and publish responses where it is appropriate to do so. Before we begin, I would like to submit the following poll. And I would now

0:32 like to hand you over to CEO, Darren Waters. Good morning to you. Thank you, Alex, and, welcome, everyone, to our half one, results presentation. Alongside me, Michael Scott, CFO. And as part of this, our presentation this morning, we'll be updating you on our strategic initiatives as well as the progress we've made with the Alienet business since the acquisition in March. So let's start, with the headlines. And I think, first of all, look, against a tough market backdrop, we delivered a resilient performance with adjusted operating profit of 9% versus, half one twenty four on revenues that were up 10%. That was all driven by Alienet, which has performed very well during the first four months under our ownership.

1:21 Although we've seen a modest uptick in new build activity, demand in our core RMI market remains very subdued. And the penetration sector is being hit hard by a lack of consumer confidence, which is reducing spend on home improvement projects. We're therefore continuing to focus on driving operational efficiencies and cost reduction opportunities. As an example, in quarter one, we carried out a restructure of our branch network, which is expected to generate annualized savings of £2,000,000. We're also continuing to invest in the delivery of our five year strategy with good progress on new branch openings and door and window sales in the first half, and more on that later. We're also following through on our commitment to improve shareholder returns through further share buybacks and an increase in the ordinary dividend with returns of £7,300,000 announced so far this year.

2:16 However, with trading conditions remaining challenging, we are revising our full year outlook to reflect recent trading activity in quarter three, which is trailing behind our previous forecast. And I'm now going to hand over to Michael, who will run through our financial performance in more detail. Thanks, Darren. So I'll start by going through the financial highlights on page five. With subdued trading conditions, underlying sales volumes were below h one twenty twenty four. However, flat organic revenues do include further progress with our strategic initiatives, and total group sales were up 10%, bolstered by the acquisition of Alienet in March. Adjusted operating profit increased by 9% compared to h one twenty four. This reflects a strong contribution from Alienet and effective cost control, partially offset by lower organic sales volumes and labor cost inflation.

3:10 At the same time, we've also progressed further targeted investments to maintain momentum with our strategic initiatives.

3:17 Adjusted profit before tax down three percent includes increased depreciation and finance costs following the acquisition, and adjusted earnings per share up 7% reflects a lower share count following our buyback program. Cash generation remains good despite being down against a strong 2024, which included a benefit in working capital from falling raw material prices. Net debt at 29,000,000 reflects the impact of funding the Alienet acquisition through our RCF. And with leverage of point nine times, we have good headroom on our debt facility. Finally, on this slide, so far, we've announced shareholder returns of £7,300,000 this year, including the 2025 interim dividend of 2.3p per share, up 5% on h one twenty four, and our current £5,000,000 share buyback, which is expected to complete in the second half.

4:05 Thereafter, we intend to continue share buybacks subject always to maintaining a strong financial position.

4:15 Turning to the full p and l on Page six. I'll come on to the drivers of our sales performance and the other components of EBITDA in a moment. But first, just looking below that line. Depreciation and amortization was 13,100,000, up slightly on h one twenty four. And with our CapEx program, lease renewals and Alunet, we expect D and A for the full year to be in the region of £27,000,000. And just to note that I've summarized all of our technical financial guidance at the end. Finance costs were 2,300,000, up 1,000,000 on h 01/24, reflecting the utilization of our debt facilities to fund the acquisition. The tax rate for h one was approximately 24%, which is slightly lower than the standard rate due to the benefit of patent box relief. Looking down the p and l, basic earnings per share was 6 point naught pence, up 7% on h one twenty four, and dividends of 2.3p I've already covered.

5:05 Moving to the right of the slide, the first half non underlying charge of 4000000p includes 2,200,000 of implementation costs for our ERP replacement project, 1,400,000 of termination costs in respect of restructuring, and naught 400,000 of acquisition due diligence costs. Later in the presentation, I'll pick up the ERP systems replacement project and our cost reduction initiatives, which include restructuring. Lastly, on this slide, it is worth noting that excluding Alunet, our organic sales, gross margin percentage and overheads are all flat with h 01/2024, demonstrating resilience in the face of very difficult trading conditions and ongoing cost inflation. Moving on to our sales performance. Revenues were up 10% on h one or flat excluding Alunet with organic volumes 2% lower.

5:53 As you know, challenging macroeconomic conditions and weak consumer confidence have impacted activity levels in our key markets. Profile sales up 1% with volumes two percent lower reflects reduced RMI activity through our trade fabricators, partially offset by a modest improvement in the new build housing market. Overall, in the branch network, sales were down 1% with volumes 2% lower. This includes underlying RMI volumes down 5%, and we have continued to experience competitive pressure on selling prices in the branch network. However, set against that, we've made further progress with our strategic up 4,400,000 in the first half, including windows and doors of 8% and ecommerce activity up 41%, plus sales from new branches of naught 900,000. Alienet's performing very well with post acquisition growth of 36% over the corresponding period in 2024, driven by market share gains. And Darren will cover Alienet's performance and the other strategic initiatives later in the presentation.

6:58 On to adjusted operating profit on page eight. Profit of 10,100,000 represents an increase of 9% versus h $120.24. Moving left to right across the chart, the adverse volume impact of 1,100,000 reflects organic sales down 2%. The margin benefit of 1,500,000 has several components. Whilst revenues include the impact of selling price increases implemented to overhead cost inflation, increased competition for limited demand has put pressure on selling prices in the branch network. However, we continue to proactively manage our gross margin and cost base and have delivered stable raw material, recycling feedstock, and electricity prices this year. Alienet has made a strong contribution with post acquisition profit of 1,600,000, up 1.1 on the corresponding period in 2024.

7:46 Moving along the chart, labor inflation of 2,000,000 includes the annualization of our April 24 pay award of 4% our '25 award of 2%, plus the increases to employers NI and the national living wage effective from April this year, which have an annualized cost to us of approximately £3,000,000. Property costs were at 1,700,000 in the first half, including the impact of rent reviews at several operational sites. And variable labor costs are down this year with lower bonus and variable pay partly offset by higher share based payments charges. On cost cost reduction, our previously announced programs are expected to deliver annualized savings of at least £4,000,000, most of which should be realized in 2025. And I'll pick those up when I talk about business effectiveness later in the presentation.

8:33 The other caption to the right includes further targeted investment to maintain momentum in our strategic initiatives. This includes the short term profit drag of naught 700,000 from new branches, where the opening program will create long term profit growth. In summary, operating profit is up due to Alienet's ineffective cost control despite weaker underlying sales volumes and ongoing cost inflation.

8:57 Moving on to CapEx. Investments of 6,600,000 in h one includes 2,400,000 for the branch network, being a combination of new openings, refurbs and relocations, with the balance primarily maintenance CapEx. Our guidance for 2025 is for total CapEx, including Alienet, of approximately 13,000,000. This is below our previous guidance of 15,000,000, reflecting the focus on careful cash flow management. However, we continue to invest to drive the five year plan. The guidance includes £3,000,000 for strategic initiatives, such as new branches, refurbs, and relocations, plus racking for windows and doors. There's also 3,000,000 for facilities, welfare, and safety improvements across our property estate and 2,000,000 to develop our IT infrastructure, including ongoing cyber defenses, with the remainder largely maintenance CapEx.

9:44 As noted earlier, implementation costs for cloud based IT solutions are charged to the p and l rather than capitalized. Our ERP system replacement falls into this category with 2,200,000 charged to the p and l as a non underlying item in the first half, taking the total project costs incurred to

10:00 date to 4,400,000. We estimate non underlying costs on the ERP project will be approximately 6,000,000 for the full year, and I'll provide further detail on the project itself later in the presentation. Coming back to CapEx, the lower chart illustrates that we have manufacturing capacity in place well ahead of demand, which is an important component of being well paced to deliver on our strategy.

10:25 Turning to the full cash flow, which sets out the components of an increase in net debt of 25,900,000 in the first half on a pre IFRS 16 basis. This follows the acquisition of Alienet in March, which was funded from our debt facility. Moving left to right across the chart, cash generation has continued to be good. An outflow from working capital of naught 900,000 in h one follows a significant inflow across the 2324 period driven by stock reduction and includes June 25 stock and debtor days in line with the June 24 comparatives. Looking ahead to the full year, we're guiding to an outflow of approximately £3,000,000, including the impact of Allianet's growth. This is also better than our previous guidance of a £6,000,000 outflow with our continued focus on efficient working capital management.

11:11 Non underlying costs result in an outflow of 3,800,000, and tax payments of 1,300,000 are offset by share based payments and other noncash items. The cash consideration for Alunet net of cash acquired is 20,200,000, and CapEx payments of 7,000,000 include the asset additions covered earlier plus a small reduction in our capital creditor. After financing charges of naught 900,000, share buybacks of 3,000,000 and dividends paid of 3,900,000, this results in a pre IFRS 16 net debt of 29,000,000 at the end of June. IFRS 16 adds 70,000,000 to debt, which you can see in the reconciliation table is up 10,000,000 compared to December 24. This reflects the impact of leases acquired with Alunet, branch openings, and lease renewals, a total of seven of £19,000,000, less cash payments on leases of 9,000,000, which are accounted for within net cash from operating activities on the left of the chart.

12:03 Overall, this leaves us with a strong balance sheet and liquidity position with leverage at 0.9 times EBITDA on a pre IFRS 16 basis and good headroom on our £75,000,000 debt facility, thereby providing security, flexibility and options for the future. Turning to capital allocation. We'll continue to drive shareholder returns through a combination of an of an increasing ordinary dividend and share buybacks. Moving left to right across the chart, our approach to capital allocation is to prioritize organic investments in line with our strategic plan, supporting initiatives to drive profitable growth in the branch network, continuous improvement in operations, and to upgrade our IT systems. On dividends, our policy recognizes the importance of the ordinary dividend. We believe an increasing dividend is right for this business, providing a predictable income stream for our investors with this year's interim up 5% on h one twenty twenty four.

12:55 The board has also taken the decision that employee incentivization by equity should be through shares acquired rather than issued, And our target is to hold sufficient treasury shares to satisfy employee share options expected to vest over the next two years. Moving across the chart, we believe Alienet demonstrates our disciplined approach to acquisitions with a very clear strategic fit and a compelling financial justification. Thereafter, we intend to enhance shareholder returns through share buybacks. The £15,000,000 buyback launched in January 24 was completed earlier this year, and the additional 5,000,000 buyback announced in March 25 is expected to complete in the second half. Looking further forward, we intend to continue the buybacks subject always to maintaining a strong financial position with net debt not to exceed one times EBITDA unless there's a clear short term deleveraging plan in place.

13:48 So to sum up, a resilient financial performance with adjusted operating profit up 9% in the first half. We continue to focus on cost reduction and cash flow management, and cash conversion remains good. The business is well positioned to successfully deliver our strategy with well invested facilities and available operating capacity. We have a strong balance sheet and good liquidity with shareholder returns of £7,300,000 announced so far this year, and we intend to continue the share buybacks into the future. With trading conditions remaining subdued and sales through the summer falling behind our forecast, our full year outlook is below previous expectations, but we are convinced that the medium and longer term prospects for our sector remain attractive.

14:26 Finally, to the right of the slide, there's a summary of our technical financial guidance, which I hope is helpful. And with that, back to Darren to update on progress with our strategy. Thank you, Michael. Here we've got our five year strategy summarized in the EUROCELL house that we launched last year, where we set out the initiatives that will drive us towards 500,000,000 of revenues, 50,000,000 of operating profit, the operating margin of 10%. I'm gonna start though by talking about Alunet and, really just a reminder of the acquisition that we announced in March and the rationale, which was primarily driven by the need to gain a foothold in aluminum, which now accounts for 36% of the residential fenestration market by value.

15:15 However, as part of the deal, we acquired two important product adjacencies, solid timber core entrance doors and aluminum garage doors, which are both highly complementary to our home improvement proposition. We valued these businesses at £29,000,000, representing at a six and a half times multiple of Alunet's 2024 EBITDA, with an initial payment of 22,000,000. So since we acquired the business back in March, the the Alunet group has, performed very, very well under our ownership and in line with our acquisition model. Sales in the first four months across all three product categories were up significantly versus the same period in 2024. On aluminum profile, sales increased by 30% driven by market share gains with 10 EUROCELL fabricators committing to switch to the Allianet ALUNA profile.

16:10 The launch of the new ALUNA plus window system and roof lantern provides a full residential solution to fabricators and installers with fewer components and faster fabrication and installation times.

16:23 Alienette fabricators are also being recruited onto our door and window initiative, which has already generated 1,200,000 in orders through the branches. Com door sales are up 56% with the brand really starting to build a strong reputation in the trade for innovation, quality and service. The new Slick Skin door launched earlier this year is already proving to be popular and now accounts for 15% of door sales. Garage door sales are up 20%, and the new premier line sectional door is, is gaining share with installers. So a strong start, and we're confident that the business will continue to take share as we win and onboard more customers. Turning to the branch network next, and, again, a reminder of the ambition behind this initiative, which is to grow the network to 250 sites by 2028, as well as relocating a number of branches to better locations as leases expire.

17:21 And over the last nine months, we've added nine new branches and carried out six relocations. All the new branches are in the Southeast where we were underrepresented, and these are trading in line with expectations. The relocations are all performing better than the previous sites. Our new Croydon branch, we are trialing an alternative trade counter format, which based on early evidence will become the blueprint for all future openings. In June, we launched our new power reward scheme. This scheme gives members a range of benefits, including savings on big brands and points on every pound that is spent through the branches. It also allows us to tailor promotions with different customer types with extra points on specific product categories to drive improved share of wallet.

18:10 To date, we signed up 4,300 customers with an encouraging sales uplift across this cohort of early adopters.

18:19 Next, on our door and window initiative. Well, we've completed the rollout across all branches by the end of June. Door and window sales in the first half were up 8% across the network in the market that is down. However, if you compare that against the 2023 baseline, that was the year before we kicked off this initiative, we're up 17%. And that differential has increased in the last two months to 25%. So whilst progress has been a little slower than we'd originally expected, there are some regions who are performing very strongly, like Yorkshire, where we're up 49% against 2023. And we therefore remain confident in this initiative and our ability to deliver on our strategic target as we spread best practice across the network and achieve consistent levels of performance across all regions.

19:09 Quote conversion remains high at 44%, which I'm sure you'll agree is very strong.

19:17 And next on to web sales. So digital sales continue to accelerate with half one sales up 41% versus twenty twenty four, with the bulk of this coming from new accounts, 65% of which are trade customers, driven by a 39% increase in organic traffic. 45% of our online sales are click and collects, which is a one hour service that we introduced last year, and that's proven to be very popular. Return on sales remains healthy at 34%, and we will therefore continue to invest in developing this platform.

19:53 On extended living, garden rooms and extension sales were at 50%, but our return on sales is still below our 10% target due to the high cost of lead generation and sales overhead. We're therefore exploring a variety of options to improve this product category, including raising selling prices. On people first, we're continuing to focus on in improving the culture of EUROCELL by improving safety and raising employee engagement. Our new employee forum launches this month with 60 representatives elected across the whole business. Our new careers website and applicant tracking systems resulted in a significant increase in direct hires, which are now running at 90%.

20:35 While safety performance has slipped in the first half, we're still 40% better than we were in 2023, and we remain focused on getting to world class. Now I'm gonna hand back to Michael, who's gonna cover off business effectiveness and ESG leadership.

20:54 Thanks, Darren. With business effectiveness, we're embedding a continuous improvement philosophy, which is highlighting opportunities for improved efficiency. Our previously announced cost reduction initiatives should delay £4,000,000 of annualized savings. They include restructuring the branch network by removing a layer of regional management and reducing the size of the sales force, and in parallel, upskilling branch managers to drive greater ownership for branch performance. This restructuring was completed at the end of q one and will generate annualized savings of £2,000,000. We've also identified further overhead cost reductions of £2,000,000 that will be realized in 2025. Looking forward, we're targeting more cost savings and working on initiatives in operations such as scrap reduction and process innovation to drive material efficiency and yield benefits. We're also looking at improved labor utilization and better use of our operational footprint.

21:43 As you know, under the business effectiveness pillar, we're also replacing our ERP systems. The first part of this is a new trade counter system for the branch network. IntactIQ will transform the way we interact and transact with our customers in the branches, including simplified processes and the use of electronic point of sale functionality. The second part is a new ERP system to support all of the functions of the business. With IFS, the objective is to improve efficiency via the automation of standardization of business processes and deliver better management information for faster decision making. The project is progressing on time and to budget with the next nine months critical to its overall success. As previously reported, we estimate total costs will be approximately £10,000,000 over the twenty twenty four to twenty six period with a 4.4 with 4,400,000 incurred to date, and we expect transition will take place around mid twenty twenty six.

22:35 We'll continue to manage risk on this very carefully with board oversight and a highly experienced IT director in place. With ESG, we want to be recognized as a truly responsible company. EUROCELL is already a leader in PVC recycling, preventing 3,000,000 waste windows being sent to landfill every year. We're working with a specialist consultancy on the development of our ESG objectives and data collection and disclosures. We're targeting net zero carbon emissions by 2020 2045. So far this year, our targets have been validated by SBTI, and we've published our net zero transition plan. We've also received a CDP climate disclosure rating of b at first submission and an MSCI double a rating.

23:21 The transition plan includes a near term target to reduce scope one and two emissions by 67% by 2034, primarily through a transition to a 100% renewable energy, the conversion of our commercial fleet to HVO, plus moving company cars and vans to EVs. Medium term scope three actions include optimizing the use of recycled material in production and over the longer term, engaging with our suppliers on their own science based targets, which we hope will support switching to a commercially viable low carbon alternative to traditional PVC resin progressively over time. Finally, we've also made progress on the other initiatives we have to drive carbon reduction, including further investment in on-site electricity generation through the installation of solar panels at our largest operating facilities and using a lower carbon PVC resin in the production of our MODIS profile this year.

24:13 With that, back to Darren to wrap up. Thanks, Michael. So in summary, a resilient performance in the first half despite the market headwinds. The real positive, of course, has been Alienet, where revenues are up 36% versus 2024. As we navigate weekend markets, we will continue to focus on self help through effective cost management and operational efficiencies to further optimize the business and mitigate against an anticipated delayed market recovery. We remain committed to driving shareholder returns and therefore expect to continue with our program of share buybacks after completing our current scheme in the second half. In the near term, we're not anticipating any seasonal help from the market, particularly in RMI. We therefore expect our full year results to come in below previous expectations.

25:01 However, medium and long term growth prospects for The UK construction market remain attractive, plus we have good momentum on all of our strategic initiatives, including Alienet, which we expect to continue to outperform. The group is therefore well positioned to drive sustainable growth in shareholder value. And, with that, that concludes our presentation, and, we will move to q and a. So I think we've got, some questions already been submitted. First one is about the, share price and it being, well, it looks like it's being increasingly disconnected from broker forecast profitability over the next few years. Do forecast need to come down? And if not, should the company get more aggressive with share buybacks at these levels? I'll pass that to you, Michael.

25:56 Yeah. So fair observation. Forecasts did come down yesterday. There was a reduction of £3,000,000 in profit for 2025 and £5,000,000 of profit for 2026. So that disconnect is no longer there. This was all about market recovery and when if and when a market recovery will take place. And our basis for planning at the moment is is assuming flat markets for for here for at least the next couple of years. In terms of the share buyback, yes, absolutely. I understand the point there. As we've said in the presentation, our intention is to continue to drive returns through share buybacks.

26:43 I note that the brokers have included a forecast that we continue that at £5,000,000, over the next few years. The the the the key point here is that we we recognize the benefit, particularly at this level of share price. It's a it's a good investment in ourselves. We do need to make sure that we always maintain a strong financial position, and I would define that as maintaining net debt below at or below one time to EBITDA on a pre IFRS 16 basis. And I think as long as we're, in that place, you know, subject to any other circumstances that might exist, we would be keen to progress with the the share buybacks. But there's a couple of questions here on a on a very similar theme around broker forecasts and whether we can be more specific on our ranges in in terms of you know, yesterday's r and s referred to our expectations being lower than previously, and you you've heard us say that during the course of the presentation today.

27:46 Yeah. I think that's that that's a reasonable question to ask, particularly when when you don't have access to to the research. So we'll we'll take that on board, and we will we will look at that. One of the challenges with that is the the huge amount of uncertainty we have at the moment in terms of predicting where things are going to land. I think what the brokers have done is taken our first half performance, which represents a a flat performance in the organic business plus the benefit of Alienet and assume that that continues into the second half. So where they've landed is is exactly that, assuming we have a flat second half and then building the benefit of Alienet in on top of that. And I confirmed on the call yesterday that that we believe that's a reasonable place to to pitch things.

28:38 So but we we will take away the point around around ranges, and we will take away the point around giving where where you don't have access to broker research, you know, can we engage with with third parties who'll make research available to retail shareholders? That's a fair question to ask, and we need to look at that. So we'll that, and we'll see if we can make some progress in that area. Question here from Toby. Reference Alunet. Saw a strong revenue performance in half one. What is the annualized run rate now? You'll have that, Michael. So Yeah. Well, look, I think and Alien Alienette's gonna deliver sales probably at around about 45 to £47,000,000 of this year. That's what's I think the brokers have built into their guidance, which is just a little bit up on what we gave them when we made the acquisition. So, again, they've looked at the first half performance and and increased that a a little bit. And then, you know, the run rate of that, if if you just assume that that run rate continues into 2026, you you you're going to get, you know, decent growth into 2026 as well, you know, somewhere probably fifty five to sixty million pounds based on the current performance of the business.

30:01 Yeah. In terms of cost synergies, so this question here, other one of four that Toby asked. Are there any cost synergies, or will any margin improvement be down to revenue synergies and positive operational gearing? I think we do see some opportunities, absolutely, as the business scale scales up in terms of sales. We're not anticipating that we will need to add in any significant additional overhead. So, yes, the the the margin, we think, will improve. Will the only net continue to be reported as a separate division? I think it will in the medium term as we go through the earnout. But but, look, it doesn't mean that that will always be the case, but it will for now.

30:47 Can you describe the aluminum frame market, market value, shares, number of players? Well, look, there's about a dozen aluminum system companies operating in The UK today. The market is in terms of residential, which is the part that we play in. We don't currently service the commercial market, which is always traditionally being dominated by aluminum. So residential, we think, is about a 250,000,000 market. We, at the point of acquisition, had a 6% share. That market share is obviously increasing in line with the sales. We think it's feasible to get to a 20% share of the market. So, you know, sales of, you know, heading towards 50,000,000. You know, we're we're obviously on a that kind of trajectory with the the customers that we're acquiring, and we've got new products that have come to market. So one of the key factors this year has been the launch of the new Aluna plus window system because prior to that, Alunet really didn't have a competitive window system offering. Now that we've got that, that will give a further sales boost, and we've got more products coming through in the pipeline next year.

32:00 So, so a lot lots of lots of growth opportunities. And, you know, being honest, I wouldn't rule out as looking at the commercial market in in due course. It's in equivalent in size to the residential aluminum markets, and, you know, certainly, it's something we would aspire to break into. But right now, our focus is all about residential. That's the that's the space we play in, and we think there's plenty of growth there for us. So, hopefully, that deals with those, Toby. I think that's it for now. At the moment, that's it. Yeah. So I I just just to follow-up as well on the on the broker forecast points, I should also have said that the the the headlines of those broker forecasts are available on our website, but I do appreciate.

32:50 That's very different to having research available. So, yes, absolutely, we'll look at that. That's great. Darren, Michael, if I may just jump back in there, and thank you for addressing those questions for investors today. And of course, the company can review all questions submitted today, and we'll polish those responses on the investment company platform. But, Darren, before I redirect investors to provide you with their feedback, which in this particular important to yourself and the company, Could I please just ask you for a few closing comments? Sure. Thanks, Alex. Well, look, these are challenging times. I'm not gonna try and sugarcoat it. The market is is challenging, particularly, yeah, the RMI market. But I think we're doing a good job of of navigating that. If you look at the core business, so excluding Alienet, you know, based on flat sales, we've maintained overheads at a flat level versus 24.

33:43 And we've also held our margin, which is no mean feat in what is a very competitive market. So I think in terms of the things that we can control, we're doing a really good job. The Alienet acquisition has not overly stretched the balance sheet. You know, we should finish this year below one times leverage. And as I said, the acquisition has has bedded in well and performing if you know, ahead, I think, of our expectations in terms of the acquisition model. And we're confident that that will continue to outperform, as I've said. So look. And also, I think on the strategic initiatives, again, as you can see, we're making good progress, and, we're absolutely focused on on, you know, delivering our strategic targets, the ones that we set out in EUROCELL house in terms of 500,000,000 of revenues, 50,000,000 of operating profit, it's 10% operating margin.

34:40 Yeah. The business is behind that. We're improving the culture. And, yeah, we're just we're looking forward to the day where we see some green shoots in the economy. We're not expecting that anytime soon, as we said, but we are working hard to further optimize the business. And when we do emerge the other side, I'm confident that we'll be in a very, very strong position and, you know, our earnings should see a boost because of that. And yeah. So other than that, thank you very much for your attendance. It's much appreciated. Thank you for your questions, and we look forward to catching up again soon. That's great, Darren, Michael. Thank you once again for updating investors today. Could I please ask investors not to close this session as you will now be automatically redirected to provide your feedback in order that the board can better understand your views and expectations?

35:31 This will only take a few moments to complete, and I'm sure will be greatly valued by the company. On behalf of the management team of EUROCELL PLC, we would like to thank you for attending today's presentation, and good morning to you all.