European Green Transition (LSE:EGT) — Company Presentation

0:00 Good afternoon, ladies and gentlemen, and welcome to the European Green Transition PLC Investor Presentation. Throughout today's recorded meeting, attendees will be in listen only mode. Questions are encouraged. They can be submitted at any time just using the Q and A tab. On the right hand corner of your screen, simply type in your questions at any time and press send. Before we begin, we'd like to submit the following poll, and I'm sure that your response will be highly appreciated by the company. And I'd like to hand over to the team from EUROPEAN GREEN TRANSITION, Car Hill. Good afternoon. Thank you very much. Thank you, RB, for joining our call this evening. We've got a quite a good number. I think it's a very opportune time, and now many people are wondering that, are we up to? What are we doing? So, look, briefly, I wanna tell you, about our placing that we've just completed. Now it's subject to a general meeting in ten days or so, but it is a conditional placing. But I think given the large support there from existing shareholders, the general meeting outcome shouldn't be an issue. So really, where we are. When we IPO this company over a year ago, we said we wanted to build a high growth, really important, profitable, critical infrastructure platform. I said we wanted to buy assets that were revenue producing, that were services, and were profitable, and that's exactly what we did.

1:11 And really importantly, there's a lot of talk about wind turbines. We don't own any wind turbines. We bought a series of companies that services wind turbines and in that space. So wind turbines are very capital intensive, cost lots of money. I don't think that the small incomes are placed in the wind turbine. So you see the wind turbines, we service them so dense, we're a critical part of that. So that's really important to make that clear, and I think I'm gonna talk more about the exact deal, but let me tell you where we are. Let me take you to the next slide. And first of all, my name is Cathal Frail. I'm the cofounder along with my other colleague Jack Kelly is on the call here tonight. I'm the executive chairman and, it's my fifth IPO. It's taken a little while to get here, but I think when you see the deal we've just done, it has been well, well worth waiting for. Also on the call tonight is our new partner, David Broadband or bank.

2:06 Apologies, Dave. David, we've got to know very well. He basically runs Earth Mill, and he that's 80% of the business we acquired, and we're working really close, and we've got to know David really well in the last eighteen months. So what what have we now got within European Green? So we are building and almost one fell swoop, we've almost built it, a critical infrastructure business. What do we mean by that? One, critical infrastructure services are focused on established nondiscretionary services across energy, water, transport, and all the critical infrastructure such as data centers. The second most important thing, again, we have it, is recurring revenue model targeting business with long term contracted revenue, delivering streams, predictable cash flows. Basically, as in the front, we don't have the wind wind turbines.

2:55 There's been a bit of a gold rush across the world building out green, but we're selling the picks and shovels. So in gold rushes, people make the most money out of picks and shovels, and that's what we want to do in infrastructure. And by that, we've recurring revenue models. People keep coming back to us over and over again. Third one is capital light and cash generative. We don't like things that tie up lots of cash. The business generates strong free cash flow and is low capital intensity. Resilient long term growth with most of Dave's contracts at the moment, they're five year rolling contracts, and many of them are working for fifteen years. So that's really what we want. Critical infrastructure, you don't see people moving. The cost of the service is a fraction of the capital, in that infrastructure, so we we like things like this, their long term growth. Strategic m and a, there's a lot of talk about more bolt ons. Yes, we will do more bolt ons, but they will be very small.

3:47 You'll see in a moment with this one fell swip, this arena acquisitions, we can get the 50,000,000 revenue quite easy within two to three years, maybe sooner and with double digit EBITDA. But the bolt on will be small bolt ons, will pay three to four times EBITDA, two times upfront, and then one or two times EBITDA over two or three years, and we'll fund those out of existing cash resources and a debt facility that won't surpass too. So there will be no further places to do more acquisitions because we all know that every time we do a placing, that's, dilutive, and people don't like. We think this business we have can grow very substantially. We're copying a business called renew holdings, the name. It grows at ten, fifteen, 20% EBITDA, similar revenue growth, and it grows like a trading compounded every year. And that company has been five, six x market cap growth in recent years. That's up to about 800,000,000. That's our kind of target. Keep growing.

4:47 Progressive dividend policy. Again, we are profitable, will be profitable, and we are gonna commit to delivering shareholder returns through a progressive dividend policy growing at 5% per annum. Now correction, that is not we will not be paying 5%. We'll start with a very small modest dividend next year, and it will grow compound 5% per annum with the business. Now our team look. I'm not gonna bore you. My name is Carl Freyall. I had two good successes. Most of our investors made between five, six, seven x in Emirates, and we started that quite small as we like, starting small. It started at pre money '20, raised 20 in 2016, 2017 and two and a half years ago, we sold for 1,500,000,000 cash.

5:32 Only dollars, not sterling, but still 1.5, we built a substantial company. I then left it and got involved and set up open orphan. Jack was also involved then with some colleagues. It became h vivo and again, we did an IPO. We raised money like we've done now. In June 2019, we raised 6.4. Isn't that ironic? Almost the exact same amount of money. And at 5 p, share price, we did one small for the placing six months later at six p, and the shoppers went up to about 48 p, so it depends. You get nearly 10 x if you came in at that placing and sold out the peak. Now, most people don't sell the peak, but it stayed between 25, 30, 35 for a number of years. At that point, I would have sold half my stake and six months later, which is the obvious two years, sold the other half of my stake around thirty p. So if you see the founder selling, you're a see, and he's selling shares, that's a good hint to get out. But again, h v a vote depending you come in, people got between 10 x and five or six or seven x.

6:30 Now, unfortunately, people may have bought them at a peak as well when other people were selling. I then spun off pool bag and pool bag. We did a small play scene last May at two and a half p. It beat up around five four and a half or five p But recently, Poolbag is very much work in progress. And generally, in recent years, I've managed to run as exec chair two PLCs, small ones, with our core team. And I'm very excited. I'll tell you more about Poolbag as we get on tonight. But Poolbag, this is gonna be a very exciting year. So this year is going to be a great year for me to be working on both EGT and Poolbag, and I'm gonna spend a lot of time on those. Dave, you might tell the folks a bit about yourself, please. Yeah. Sure. So, started my career in engineering with Taylor Woodrow, then I moved into supply chain and procurement with the Ministry of Defense.

7:21 Later on in life, moved to Hayes, in talent acquisition and building successful teams. And then most recently or at least the last fifteen years, I've been with Earth Mill. Originally joined Earth Mill as the operations manager. We were building between 5070 wind turbines each year, handling, planning, grid connection, all the regulatory, bits and pieces such as the Ofgem accreditation. Moved through the business to general manager, director, and then within the last couple of years, I've been the managing director. Over to you, Jack. Thanks, Dave. So my name is Jack Kelly, CFO. So I'm a chartered accountant, worked in PLC, Ireland's m and a team for a number of years. About five years ago, joined in in Raglan Capital.

8:09 And in that time, been working across Hvivo, PLC, and Poohbae Pharma, and then helped cofound EGT with with Kahal and IPO the business in 2024. Jack, thanks for that. Okay. We'll move quickly. What did we buy? Basically, I spent 61, and I've done a lot of m and a over the years, but this acquisition from Arena Capital Partners is one of the most exciting and best deals I can ever do in my life. We've been, as David said, we've been stalking, trolling, monitoring this company for the last couple of years. Arena Capital Partners is an Irish pension fund. It raised a 170 in high yield loan notes. It went around Europe and invested those in relatively low yield wind farms and there was a kind of watch from a distance. We thought there would be a situation at some time if you're borrowing your money at 8% and you're only getting 4% yield, an issue may occur. Arena did go into Irish examinership spring last year, which is basically American chapter 11, and eventually that failed and we need liquidation late last year and we bought the assets.

9:15 We bought the assets. What did we buy? The assets are in the middle. Earth Mill, we've got a 100% of that. That's 80% of business, and Dave runs. That's the service and maintenance repair and remote monitoring. Earth Mill is two sister companies in Ireland. WEP in the South, we've got 85% of that. Silver Fort in Northern Ireland, have 85. The other 15 of those two are owned by Tom Carl, the founder of the company. Tom is a little older than me. He's 63. He's looking for an exit, and Tom is gonna exit over the next couple of years, and we're gonna buy that 15% off better. A sensible exit process with Tom, and Dave will be taking over and integrating and working closely with Tom and running the whole show. Over on the right hand side, the jewel of the crown, a fantastic little company that we got in, as well we got 52.

10:00 48% that's owned by the two founders. It's a Scottish AI, believe it or not, remote monitoring conditional analytics company. That's an upsell potential. Dave has been cultivating this team and, Dave and his team at can sell this software as an add on, an extra to the existing turbine providers. The great part of this is two things. We're gonna increase our stake, hopefully, over the coming months in conjunction with the founders, but we really we think this could be built out a lot. That remote monitoring applies to other sectors and the Animas team are currently in discussions with a shipping company, 38 or 39 ships. These are coasters, not the super tankers around Europe, they're around in Africa, and it is again remote monitoring and condition monitoring.

10:48 So animals has got potential to go into a lot of other sectors. What what do we get? Combined of those three four companies, sticky revenues every year, was $1,415,000,000, but we have certain very strong visibility and substantial increase and we'll come to that in the middle of twenty twenty six. The real EBITDA was the last audit EBITDA would have been December 2024 when it did 1,500,000 EBITDA. However, last year, despite it being in administration, in liquidation for most of last year, I still can't believe Dave still managed the ecard to guts of a million EBITDA, 900,000 last year, which is an absolute miracle. We are very optimistic we will increase the figure we've said and you've seen the deck, the EBITDA and revenue will grow substantially this year over next year. We'll be given proper guidance in the months ahead.

11:41 Comparable transactions, we said we paid 3,500,000, that was debt free, cash free with normalized working capital of 2.3. So really, if you think of it, we only paid 1,200,000 and we got an exceptional large quantity of stock. This business doesn't need stock, but because a lot of deposits come in for a reparing, we actually got 3,700,000 of stock thrown in free of charge on the back of customer deposits. So what we paid, we paid 2.3 times last audited EBITDA, now in anybody's books, that has to be pretty attractive deal. Yes. It was 3.9 times last year's EBITDA, but I'm it's a miracle. Think this business actually didn't make money last year. We say we're gonna increase the EBITDA and revenue very substantially next year, we'll come to that because on the back of the repowering opportunity.

12:29 Finally, on this slide, comparable, the Dave's sort of joint market leader in The UK is a leads based company. It's called Full Circle. It'll do 25,000,000 revenue. I think Dave feels he can do more this year. And it got bought for 10 times EBITDA, 50,000,000 in cash October twelve months ago. So we paid 3,500,000 and when you paid 50, so I'm not saying that our company is worth 50,000,000, but goes to show you a similar company got bought for that, and you're kind of joint market leaders in this distributed power space. Jack and Mike, could you give us just few highlights, please? Yeah. So I'm gonna talk to you a number of the key investment and transaction highlights. So first point, I think Carl mentioned 14,700,000 f y '25 revenues. This is across a broad diverse client base, and these are multiyear contracts and recurring, repeatable, sticky revenue and and and and project work. And the second point, 19,000,000 worth of repowering heads of term signed. So repowering essentially is taking down an old turbine and putting up a new turbine, a more efficient and productive turbine, which generates more revenue for the owner.

13:39 So we have strong visibility signing over 50 heads of terms for repowering projects to be delivered in 2026 and 2027. Average contract value of those 53 repairing heads of terms is is £450,000. So that gets you to your 19,000,000 of revenue visibility on top of the existing sticky recurring repeatable o and m business. And third point, so I think we talked this was why is why is this all happening now? And so recent UK government policy changes, where, essentially, the labor government have removed the the de facto ban, which was in place for nine years on on onshore wind planning. And so that's been lifted. So that's created a huge backlog of and a huge opportunity and for repairing onshore wind turbines across The UK within our existing portfolio of 900 turbines, Dave and the team have identified 280 qualified repowering prospects.

14:45 And so these are high energy users that were that are already existing long term customers. And and if they were to repair, there's a potential revenue value there of 126,000,000. And the fourth point is is, the business we have acquired has a IP protected turbine technology and OEM parts access. So, essentially, what this means is they own the intellectual property to endurance wind turbines The UK license holder for Northern Power System turbines. So this creates a really strong market position for the business, enables the business to to resolve problems for their clients quickly and and and keep their clients' turbines spinning, which is obviously really important. And the fifth point, and Kaho touched on this briefly, and Dave will talk about it in a moment, is is the Animas condition monitoring platform.

15:34 And we're hugely excited by this. It's a predictive software technology and brings us potentially beyond onshore wind into other verticals such as transport and marine, which is really exciting for the business. And some of the figures over on the right hand side, so 900 onshore wind turbines serviced by the group as teams of 78 skilled professionals. Revenue, $14,700,000.20 25. 2024, that was 14,400,000. And mentioned adjusted EBITDA, 900 k in 2025. So an excellent performance considering the the ongoing issues and and solvency problems with the parent company, which we've acquired this from. And then in 2024, EBITDA was 1,500,000.

16:19 Strategic inventory, 3,950,000. So there's a lot of inventory on on on the balance sheet at the moment. We think we can reduce that, and that will provide further financing for us down the line. And and then networking capital of of 2,500,000. So we've acquired the business, has a networking capital position of 2,500,000. So it's in it's in a strong financial health. So we think we've we've picked up a good business and and and strong financial position at a at a good price and that has really good prospects into the future. Got, over to oh, right. Over to me. So in terms of, earth mill, our core business is the service and maintenance of distributed wind turbines.

17:08 So not to be confused with wind farms, these are single and wind, the occasional triple site, typically, connected into a farm or a small business. And we essentially, we we monitor these turbines twenty four seven, three hundred and sixty five days a year. We do all the scheduled servicing. If the turbine breaks down, we go and and sort the turbine out there. And then if there's any major component failures, we will also do that, so gearbox generator swaps. And we do that across four locations in The UK. I'm based in Harrogate, is which head office, which holds all the support services staff. So from remote monitoring, customer services, accounts, procurement, etcetera.

17:54 We've also got, office up in Bathgate, just outside of Edinburgh, Narberth down in South Wales, and then Perrinforth, which is just South of Newquay in Cornwall. As Jack mentioned, we've got the IP for the Endurance wind turbine, which is the lion's share of the business. That's about 550,600 turbines. And as I say, if if the turbine breaks down, the remote monitoring team will try and influence that turbine and try and fix it. If we can't fix it remotely, we send boots on the ground. Every time we send engineers to site, we charge the client, all parts, all labor, all chargeable. And it also mentions there the condition monitoring, which I'll I'll move on to shortly.

18:42 Next slide is with regards to repowering. This is the really exciting bit. So of the 900 turbines that we we maintain, we've identified a further 280 turbines on top of the 50 I think it's gone to 55 heads of terms now that we already have in place. What I mean by repowering is taking a turbine, an existing turbine out, putting a new turbine in its place. So we do all the planning as well. But to put some figures around that to make it easier to compute, we've recently taken out a 250 kilowatt machine, and which will generate 440,000 kilowatts of electricity per year and generate a £175,000 of revenue per year.

19:32 We've replaced that turbine with a 660 kilowatt machine, which will produce just shy of a million, kilowatts per year, and 388,000 of revenue. So 200 and something pounds more, in revenue each year. So that that turbine installation, full fully turnkey operation was installed for £730,000. So three and a half years that turbine has paid for itself. Not only do Earth Mill benefit from the revenue from doing the repower work, but we also tie the client into a five year o and m agreement, which is about 80% more revenue than the old turbine. Essentially, they've got a bigger turbine. We charge more for a bigger turbine to be, for the service and maintenance.

20:22 But we're using the same support staff, the same engineers, the same process, the same system. The 280 turbines that, are on top of the 55 heads of turns, Those are typically big energy users. So it could be chicken farmers, pig farmers. They might have a huge demand for cold storage, potato farmers, etcetera. So that those are the ones that are gradually we're chipping away to convert those into heads of terms, which will go into planning. We've got 23 out of planning, so we just had a new planning decision today, a positive planning decision today, which is great. So that means we've got 20 war 21 more due out of planning before the end of the year quarter two.

21:11 We've got a 100% success rate so far. Yeah. So it's it's, and as Jack mentioned, the the tourists didn't like onshore wind, so they put a de facto ban in place. Kirstjarma came along, and he lifted that van. I think that was July 2024. We wanted to see what that actually meant in real terms and what the repowering opportunity was. We followed the regulatory advice and guidance from Ofgem. They are the immovable objects, so what they say, we do. And, yeah, we we are we're we're full steam ahead. This week alone, we have built a new turbine a client who's who's been with us since October 2011, had a an 80 kilowatt Endurance e series, and they've replaced it with a Vestas v 29. So it's gone from an 80 kilowatt to a two two hundred and twenty five kilowatt.

22:07 So yeah. Essentially, our our pipeline is done for 2026, and it is looking likely that we've got at least the first half of twenty twenty seven nailed on. There's, yeah, great opportunity in in REAPower. WEP and Silverford, so Wind Energy Partnership and Silverford, a mirror image to Earth Mill. We we we major on endurance wind turbines, Northern Power Systems turbines, Vestas, and WTN. So across across The UK and the North Of Ireland, we've got over, I should say, 900 turbines. We work very, very closely with them. Got a great relationship. And as as Carl mentioned, Tom, the existing MD, is looking at his exit strategy and a succession plan for for the guys and the team over there at the moment.

22:59 And, yeah, we'll yeah. We will continue working closely together over the coming years. In terms of the opportunity in Ireland, so there there there's there's a lot of major food producers across rural Ireland. We've identified circa 100 of them. So these are big energy users. They're rurally based. They are employers of local, of the local community. So when it comes to things like planning, that's a great story. You know, as I say, from from employing the locals, to being a high energy user and being rural so that there there'll be limited objections to the planning.

23:45 It also offers them energy security. They can plan ahead. They know what their energy costs are going to be. We all know right now, in particular with what's happening in The Middle East, things get so volatile. Whereas if they are, independent, with their own turbine, their own battery, it gives them that that that security that that, well, just will go on for for many, many years to come. And then the prices have come down of of the cost of wind turbines. Mainland Europe has got a huge process at the moment where they're doing something similar to what we're doing. They're taking smaller turbines down and putting large turbines into place.

24:31 Only the smaller turbines in Mainland Europe are actually the turbines that we want to install in in in the place of the smaller turbines in The UK and and and and and Ireland. The turbines are we're majoring in is is Vestas. Vestas are based in Denmark. So the turbines come down in Mainland Europe, go back into Denmark, they get fully refurbished, come out with a two year warranty. That's what we'll be installing. There's over 50,000 of the Vestas wind turbines globally. They are the workhorse of wind. They're, you know, pretty much bulletproof. So that twins with a battery, you know, we're looking around about 1,700,000 installed for a turbine and a battery. So that would have been circa £5,000,000 even five years ago. So, yeah, there's there's huge opportunities across Ireland.

25:23 Touch very briefly on Animas. This so this is a secondary set of sensors. That measures, vibration. It measures proximity, and it also can measure the particulates in the oil of the gearbox. It can also measure temperature and other bits, but the how we've scaled this solution down, as I say, vibration proximity and oil particulates. We've got it on about a 100 turbines at the moment. We're gonna be rolling it out to another couple of 100 across the across the the rest of the fleet. It's essentially an early warning system. It will tell us if there's a bearing that's starting to fail, if there's an alignment issue.

26:09 And what that will do is it will alert us to this. We'll get boots on the ground. We'll identify the issue. We'll fix the issue, and the turbine's back in operation. Whereas if this system wasn't involved and installed, the the bearing would fail or the alignment issue would lead to the consequential damage of other major components, leading to very expensive, repair costs. Whereas if you catch it early, you can address it without the without the huge cost. It also leads us into another, revenue stream, which is the major components. So bed frames, shafts on the Endurance turbine. Other thing, it can go on any machine. So regardless whether it's a turbine, it's just we're using it on turbines.

26:57 Carl said about the, the shipping company that has got 50 odd vessels, bobbing around the the Irish Sea and around around Europe. It can go on, hydro schemes. The the the guys at the at the, Salimos have got track record in hydro, also in refrigeration. So even down to putting some monitoring on a very remote generator to say you need to top us top this fuel top the fuel up. So it can be rolled out across many, many different platforms. So it's, yeah. It's it's it's that's a really exciting platform. Jack? Thanks, Sandeep. Yeah. Over to me now. So, look, I'm just gonna, give an overview of of of EGT's new medium term targets of hitting 50,000,000 revenue and then double digit EBITDA margin. So if you look over on the right hand side of the screen, we have a number of strategic growth pillars and and growth drivers to help achieve that. So first one being organic growth and and and service expansion. So really expanding our existing offering across our new clients and and our existing clients.

28:09 And the repairing opportunity, I and Dave has really articulated it well earlier, but we have over, I think, 53 heads of terms signed providing 19,000,000 of repairing visibility for 2026 and into 2027, and then quite a robust pipeline, 280 qualified leads to continue to grow that from 2027 onwards. And from an m and a perspective, I think Carl mentioned this earlier, but really focus on a number of small bolt ons across the critical infrastructure space in The UK and Ireland and really copying that renew model and looking at water, energy, transport, and the the data center space. For margin expansion, so point four, look, we do see scope for margin expansion within the business, and there will be a focus on operational improvements, further integrations across the group, and also efficiencies to to drive margin expansion across existing operations.

29:06 And then cash flow generation is gonna be a key focus. A reason we really like this business is it's very capital light. And look, we're gonna really focus on on on generating strong free cash flows from this to fund small bolt ons, but also to fund a progressive dividend policy targeting annual dividend growth of of 5% per annum. And to talk you through some of the the trading history and and scope for future growth, so I I think we've touched on a number of these points already, but revenue $20.25, 14,700,000, 14,400,000 in 2024. I think of that 2025 revenue, it's it's important to highlight that about 87% of it, so just under 13,000,000, was from the core o and m business. So that really recurring, sticky, repeatable revenue across the the core operating, maintenance, repair, and remote monitoring side of the business.

30:02 Adjusted EBITDA margin, as we mentioned, 900 k in 2025. And then for financial year, 2026 and and and beyond. And with the and then we're confident we can continue to to grow the business significantly from where it was in in in in 2025. And, look, the reasons we're confident of that is there is that robust core o and m business, a sticky recurring repeatable revenue and that just rolls on $12.13, 14,000,000 every year. And we do have that repowering pipeline, 19,000,000 visibility for '26 and into '27. I think Dave mentioned, we are delivering on that already, and so it is live. And that gives us, you know, confidence in in how this year will turn out. And then for 2027 and beyond, the 280 qualified repowering prospects from our existing portfolio, it gives us visibility on continued growth into 2027.

31:00 Jack, thanks very much for that. And, Dave, thanks for that. Folks, conscious, we we don't wanna drag on too long. This deck is up on our website. And so finally, I know many of you has come in with IPO, and share price is done a little bit, but we are very more than optimistic where we'll see a substantial uptick in the share price from where it is today. And even since the deal was announced, think our share price is about 5.7 p and it's touching off 8 p, so I think the market does like this deal. However, we don't wanna forget about it. We have some always had non core assets. Think for many of you know me, I don't like mining assets. They were opportunists, the green economy ones, and the jewel in the crown was our Swedish asset, the awesome rare earth asset. We have a a non core copper project that we've already announced. The market's under option. It's it'll be a non material small transaction, but the the real one is our ultimate. We did spend decent amount of money on but under 1,000,000, we did a drilling program, 1,600 meters, and the exciting part is the rare earth acid is probably Europe's only rare earth mine that's gonna come out of the ground in the next couple of years. It has been proven on the back of the work we've done between a district scale, not just a one off mine. It is in the middle of a forest owned by the Swedish government in an area of mining district. It's there in the South Of Sweden and the Swedish government have got very involved and got excited about the potential, and they have now designated this project belong by us and you, the shareholders,

32:30 as a project of strategic national significance in Sweden, which is pretty cool. The Swedish government are very involved with the Estonian government right across for our trip across those little coaster ships that the animos team will be putting monitors on to Estonia. A neo performance material is Europe's first rare earth concentrate and processor. So the interesting part of it is these rare earths don't get carted halfway around the world, certainly not to China, four across the Baltic, right on the coast of Estonia, there's a rare earth processing. The mine is not really a mine, it's actually a relatively low cost, it's between 30 and 40,000,000 to develop. It's not going underground. It's open pit within a forest. So really, to be honest, it's a glorified quarry.

33:17 What we want to do, no more money being spent on it. We always said we were not in the mining business. We do want to monetize it. We haven't overhyped it in the last six or nine months. Other rare earths people went bananas and moved their share price five, six, seven times. We wanted to get into the business of getting real assets with recurring revenue, recurring profits that we now have. But this asset, will monetize it by that, we will sell it. And we're looking for a decent sum of money upfront, not huge sum, a number of millions, single digits, low single digits. We would like to get some milestone payments as the new owner develops the mine. It is about three years from production and really what we want is some form of juicy royalty because concentrates will be coming out of that mine in less than three years as they shipped across Estonia, so we're looking for a royalty.

34:06 So that's the real non core asset. You'll see us talking more about in the months ahead, but the focus really in the business focus, we have a very profitable, fast growing, sticky business, it's a fantastic business to have our name, as Dave and Jack proved, it does $1,415,000,000 on the core business. You have this repowering opportunity that'll go on for years to come, and now you can see why our RNS two weeks ago, we were so confident that we can get the 50,000,000 and beyond. This business will keep growing. And again, our fundraising, which is now completed, subject to a general meeting at the end of the month, we did we did go out and say we want to raise 5,000,000. We had to upscale it to 7,500,000 because we got three x, we got over 15,000,000 of orders from quite a few institutions.

34:54 We didn't raise it any more than 7.5 because we don't need the money. This business does throw off cash. So what I might do now is see a good few questions are coming in and I've got a good few questions here. Actually, a lot of people sent in pre submitted one. So we'll we'll try and run through these reasonably quickly. Let me see. Let me take the pre submitted ones a month together here. Okay. First one here. You've built a strong platform through recent acquisitions, this acquisition. What does next twelve to twenty four months look like in terms of scaling into a market leading o and m business? Well, we are. Dave Dave and the team are the joint market leaders with with our friends Full Circle and Leeds, and they got bought for 50,000,000. So I think what we'll see, we're delighted to purchase these assets. We got them at a great price. That's what happens when you buy out of administration.

35:41 I do like buying administration. Amrit, we bought out of administration. We bought Birkin in Germany at 10 p in the invested pound, and Open Orphan bought HVIVO again at less than 10 p. This time we bought at five p on the invested pounds. So yeah. The next to answer the question, we wanna get that 50,000,000 revenue. The quicker, the better, double digit EBITDA, and then when we get the 50,000,000, we keep growing. So that's where we see this going, but we're really excited about it. Next question, how big can this roll up strategy realistically come in terms of revenue and EBITDA? We're very confident getting 50,000,000. I gave him Dave the smile and Jack is that all we can say is last year, it's, like, 14,500,000, and this year, it will be substantially bigger. We've asked brokers to do no research notes until May, June when Dave and the team will know better. I will be issuing market guidance around May, June. So that's but I think you can take it as read by our expressions, and Dave's saying he's now got 22 contracts signed for repowering, and those repowering are 450 to 500,000 apiece. So we're gonna have a fun year. How big can we grow?

36:47 Let's get the 50,000,000. We'll tell you then. I think we can keep growing $50,100,000,000. This is a good sector. The renewables is not going away, but the picks and shovels is where the money is. I provide in the services to renewables, and that's what we're in. Are you still seeing attractive acquisition opportunities at sensible valuations in the current market? Yes. This is an industry full of small bolt on companies. We're not gonna go out to any more big acquisitions. Even there's a very big acquisition, it was only 3,500,000. But we do little bolt ons, and I think Dave and the team are gonna be looking actively with little bolt ons where we bring skills and expertise to the table. Yeah. Fourth question, with over 900 turbines now under management, what are the key drivers to increase margins in the O and M business? Jack, maybe let you do that one. Yeah. I think I think I mentioned earlier there's lots of scope for growth. So first of all, I suppose there's the economies of scale getting into the bigger turbines. I think with the repowering, you're putting in larger turbines. Those contracts are are are are bigger, and and and I think Dave mentioned earlier, you're able to increase the the the revenue by up to 80% on some of the follow through O and M contracts on the back of that. I think additionally as well, this business had suffered from a number of cash sweeps from the parent company that was struggling for cash over a number of years. So there's there's a number of opportunities we're looking at in terms of just increasing the efficiencies and and and and the level of integration across the business that we feel there's extra margin to be to be squeezed out of the existing business. So we're confident we

38:17 can deliver that. Chuck, thanks for that. Next question here. How scalable is the current model? Can this double without significant cost? Folks, not long can it double. We're we're targeting a tripling the business from 15,000,000 to 50 within, I think, two years, maybe three maximum. So it's very scalable. I'm already starting to grow. There's a number of bigger players in the sector. I think we can grow and just look at my favorite company and name by shares every now and again is renew holdings. It grows 15% EBITDA revenue every year. It's a five x market cap increase in recent years. That's 800,000,000. So that's the target, I think. We know we've never we're way behind renew, but, like, renew, and it's in not just wind turbine service, it's in infrastructure. Bear in mind, that's where we're targeted. And ANYMOS brings us into transport, brings us into energy in other sectors.

39:08 Six, you've highlighted repowering is a major opportunity. Can you quantify the potential pipeline from 50 can you quantify the potential pipeline from the 50 agreements already signed? I think, look, Dave has made it very clear. There's fifty fifty three, and each is worth about 500,000. So the repowering is a huge opportunity. We wouldn't be saying we're getting the 50,000,000, purely organic growth without the repowering opportunity. And then that, as Dave says, when he puts in the repowering, the basic recurring revenue increases by 80% because the turbine is generating more power. How quickly do you expect repowering to translate into meaningful revenues? I think Dave's made that clear in that. The repowering is here. The deposits are coming in. And, Dave, you're gonna deliver quite a few this year. Is that right? Yeah. So 2026 is the target.

40:00 So Earth Mill alone, I've I've targeted myself and the business 26,000,000 turnover revenue, with 2,600,000 EBITDA. So And I say, folks, that's an internal out of mill target. So I think it is very clear where we're guiding is that there's a lot of growth and the real hardened opportunity. And I thought I'd never say in my life, god bless Boris Johnson as a young lady, but they banned him and his buddies banned onshore turbines for nine years. I thought it was only three or four for nine years, and the issue with the repowering, Dave, is 900 odd contracts we managed. A third of them want to be replaced, but people don't wanna replace a turbine with the same one because they're bigger, more modern, more powerful. It's a more powerful one. But if you put up a more powerful one, you need planet mission. So that's what happened there. So the repowering is upon us as a huge opportunity.

40:50 And as we go along, we're bringing this into other sectors. So, yeah, this business can grow in a very meaningful and a very profitable way. Question, I think, back to you, Dave. This distributed wind generation sounds like a huge opportunity. What when do you expect to see the first meaningful projects delivered? I think you've already said that, but you're in progress. Is that right, Dave? Yeah. Yeah. We've we've built a turbine this week. Started it Monday, hoping to get that commissioned by Friday. So, yeah, they're they're they're coming through thick and fast. Quarter to four oh, sorry. Quarter to five, we had a planning permission granted. It's, yeah, it's just it's rolling nicely. It's, we're seeing the, the fruits of the labor already. Okay. Just checking, Jack. Can you hear myself and Dave okay? Something flashed up so they couldn't hear us. Is that okay? Yeah. I can hear you both. Yeah. I can hear you both. Can hear you. No. No. Just some digital thing. Some grandma cropped up on the screen, said can't hear you. Okay.

41:47 So the folks here, Dave is already in. And, Dave, just out of curiosity, be like, you have the capability. Most of the expertise, you outsource the repowering. Correct? You use civils, externals, so you don't have to hire a whole team to put up these new turbines. Is that correct? Correct. Correct. Yeah. So and and these are long term relationships with specialist subcontractors. You know, it's a a couple of the civil engineering contractors to do the foundations are turbine owners as well. So they they understand the importance of of turning things around very quickly. Cool. Thanks a lot, Dave. Another question. Are you exploring partnership with corporates, landowners to accelerate? Absolutely. Look, we're we're looking at corporates with large wind turbine owners. We're very much focused at the moment on distributed wind, that's singles and twins, but the big growth area is Vestas, and the previous owners couldn't invest in scaling up investors.

42:43 So I think Dave and the team going forward will be getting better investors. So not alone will be doing single turbines, they'll be in the business of servicing the big turbines where there's forty and fifty on the side of the mountain, and that's where it gets juicy and interesting, and that's where we could take us to the hundreds and millions of turnover when you get into that space. So, yeah, partnerships all around talking to large, wind turbine owners and originally OEM equipment owners as well. At ten, the recent raise was oversubscribed. How far does this funding take you in your ex execution strategy? That's it. We're three times. We'd to raise five, and God bless Oak Securities and Jerry Keane's teams that we thought in the current market, we're almost a bit wobbly, and you you don't breathe, well till you know it's in and not alone. That first went from five, then six, then 10, then 15. Said, Jerry, stop taking the orders because we've got to scale people back and people got scaled back hugely.

43:36 We did increase from five to seven and a half, but even that, we're still two times oversubscribed. So, yeah, we don't need to raise any money. That's more than enough to say. All that repairing that Dave says, he gets deposits up front, a 100,000 first, then a 150,000. So the cash comes in in advance. This is a kinda cash flow positive business. You're not building them and hoping to get paid after. You're getting paid upfront because the new turbine owner has to pay a deposit to turbine. Turbine's gotta be ordered. It's gonna be delivered every step of the way. The cash has gotta be paid before any moves. Next question. I think some of these are repetitions. Should investors expect further rises and accelerated growth or raises, sorry, places in the country? Or or can expansion be large in sorry. What I'm saying here is just, can we expect more places or raises? No.

44:31 The business is self funding as we go forward. We have more than enough money, to bring us to 50,000,000 turnover and away beyond that. So now the the beauty about I've learned the hard way of year is if you get a business making profits with no big assets, it just if you run a property, it's like a little perpetual motion, it keeps going and going and going, and Dave's looks after the customers a critical part. His customers come back for fifteen years. What does the path to strong cash flow look like from here? Again, look look at renew holdings. It has minimal debt, like a new point fraction of EBITDA and debt, and it keeps growing like a trend, and that's what we would like to create another renew holdings. Okay. They're a bit bigger, They're 800,000,000 market cap, but it has gone up five x market cap in recent years, and that's something nice to target.

45:19 With energy security, now a major factor and focus in Europe, how much inbound demand do you seeing from governments in the last car? Yeah. Look, first of the fundraiser was way oversubscribed. Super say, wow, with the nonsense going on down The Middle East and Iran and everything else, having guaranteed, energy is a big one. So yeah. And, yeah, we see I think we'll see lots more in this space, so that's that. How do you define a successful year for EGT in 2020? Doubling of the share price would be nice, tripling would be even nicer, so double or triple. Look, we're starting from a very low base, and I emphasize we are down. Anybody who bought at IPO was 10 d. Okay. We're now down only two p, but that we would like to see a double or triple on the share price. If you don't aim for that, it won't happen. And I think you hear about our tone, we are optimistic of getting there this year.

46:06 What excites you most right now, but the market, might still be underestimated. Yeah. Look, I think the market, most people still don't know. We didn't really understand this business six, eight weeks ago, even though we've been stalking and talking to it. I think the repowering is a phenomenal opportunity. The more nonsense is on The Gulf, the more people want reliable, predictable. Dave's customers, the payback is two, three beers, some occasionally one, four years. The lifetime of these turbines are fifteen, twenty years, so you have free power for ten or fifteen years after that payback. So what's not to like about that? I think this one is for you, Dave. How large is the addressable market distributed wind in The UK at the moment? That's huge. So there's a circa 10,000 onshore wind turbines in The UK.

46:55 So we we've got somewhere in about the sort of 10% market. So, yeah, the for us, the and, the the growth area would be there's 47, onshore small onshore wind farms, which are sub two megawatt turbines. So there's there's 516 turbines across 47 wind farms. They're out of their original ten year OEM agreement, service maintenance agreement. Those are the ones that we're gonna go for next. That's what that's that's the that's the goal. And if you get onto their their service agreements, their their five, ten year o and m agreements, So it's, it's it's it's getting us in front of those people.

47:44 So, yeah, that that's the that's the growth area for us. Dave, thanks. I'm just conscious of time. We're just trying to wrap up the last couple of I was trying to like to answer as many questions as possible. Two more ones. Hello, Colin. Team, congratulations. Very exciting deal. Does the current high energy and electricity price bode well for knock on effects from wind generation companies, Arthur? Absolutely. It's a no brainer. It's a great space to be in. It has been and will continue to be if you can get basically free electricity and the high energy price. And Dave's gonna confirm 80% of the energy used by the distributor is used by the existing customer, the farmer, the energy user. Only 20% gets sold into the grid, but it gets sold in a very nice price. So, yes, high energy prices is good. But even low energy prices, the farmer or the high energy wants predictable energy.

48:34 And the wind, once it's up, the turbine's spinning, it's basically for free, so it doesn't get any better. Vestas closed in The Isle Of Wight and the factory closed. Do you think you could bring back any manufacturing jobs to The UK? Yeah. I think that The UK certainly, believe it or not, like, we I my British passport and my Irish passport, I said, us British were very bad at underselling. Is up there as one of world leaders along with Denmark in offshore wind. The Tories didn't like they were like, Don Quixote tilting at windmills, so Boris was run run as high horse gallop run, get away your windmills like Don Quixote. And we know what happened to Don Quixote. We know what happened to Burr El Boris that ended up in the same place. But yeah. But don't forget, wind, think you'll see a lot more onshore wind. But Britain is a world leader along with Denmark. They're way ahead of anybody else.

49:25 Britain and Denmark are the two world leaders in offshore wind. So I think let's catch up and get that onshore. And, yeah, there will be more jobs as a result of that. Finally, just a couple of inbounds earlier because I know quite a few are also shareholders and other companies. I said I always intend and always like running two public companies and executive chairman, and there's some question with Poolbag. Like, it's not a Poolbag call, but it'd unfair not to answer. People are asking, well, how are we doing in Poolbag? What's happening? Yeah. For any of you in Poolbag, the sharpest is not where we want it, but like EGT, it's gonna be a great year. There's a trial underway in Christie's Hospital in Pillbank. It's underway in Royal Malston. It's underway in UCL Hospital London. That trial can transform the way cancer treatment the issue with cancer treatment is these new wonder therapies that bispecifics, that CAR Ts, they cure cancer. It's binary.

50:18 Unfortunately, we all know about people getting an adverse reaction to chemo, the adverse reaction to these new wonder drugs, the immunology drugs, is even nastier. So you get this thing called CRS. CRS is a cytokine storm. We heard about that during COVID. It's the same thing, your body fighting back. If a trial works, and we're very optimistic because we have tested the pool bag product in an already a challenge study in the LPS trial, it means instead of when you want these expensive drugs, you don't have to go to the Royal Mall, you don't have to go to Christie's, you don't go to UCL because you're brought there because you've been monitored carefully. You take our pill for a week in advance and then the drug can be delivered in the local setting, the community hospital, your GP practice, or the holy grail of cancer treatment is to take your therapy at home. So, yeah, exciting year for Poolbag, that trial is up and running and underway, and also there's a few other things going on in the background of Poolbag that we we think we hopefully will surprise the market positively. So this is the year, this is Poolbag's year, but it is also EGT's year. It took us a while to get here. So I think, look, as regards to Poolbag, I'm the largest shareholder and similar to the largest shareholder of EGT. I'm extremely happy. I think we're gonna be very busy across both companies and we're gonna have a very exciting year. So I look forward and Dave and Jack are very keen to do regular updates on EGT.

51:38 Jeremy and Ian and myself do regular updates on pool bags. So, yeah, I really appreciate everybody for taking the time to listen, really appreciate the shareholders who have borne with us and hopefully, I say the target in EGT is a two or three x, this year and let's see can we deliver that. So thank you very much. That's great. Car Hill, thank you very much indeed, Jack. David, thanks for updating investors this afternoon. Could I please ask investors not to close the session as we'll now automatically redirect those on the call to provide their feedback? On behalf of the management team of EUROPEAN GREEN TRANSITION, we thank you for your time this afternoon. Pleasure.