Facilities By Adf (LSE:ADF) — Final results for the year ended 31 December 2024

0:00 Good morning, and welcome to the Facilities BY ADF PLC investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and could be submitted at any time by 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 all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. And then I'd like to hand over to Miles Proctor, CEO. Good morning, sir.

0:32 Good morning, everybody. So if we can start with the overview, please, Neil. Okay. So ADF continues to work with many of the world's largest film and TV companies supplying productions such as Star Wars Angle, Marvel's Fantastic Four, Apple's Slow Horses, and Netflix's The Gentleman. With a fleet of over 730 vehicles that include costume makeup, artist trailers, production offices, and technical vehicles. Our ambition is to be a one stop shop for film and high end television. And to support this, ADF acquired location one in December 2022 and also track portable roadways in September 2024. Next slide, please. So f moving on to f y performance. F y twenty four performance reflected a slow return to normal levels of market activity following The US strikes in 2023 and continued project delays with revenue of 35,200,000 versus 34,800,000 in FY 2023 and adjusted EBITDA of 7,200,000 versus FY 2023, 7,300,000.

1:37 The six productions that were delayed in q four twenty twenty four and with a reason for the profit warning in November 24 have all started production in q one twenty five. We supported a total of 87 productions in f y twenty four versus 84 in f y twenty three, including some high profile shows like ADF PLC, Mr Burton, Young Sherlock, The Diplomat, and Call to Life. We completed the acquisition of AutoTrac in September 2024 for up to 21,300,000 on a cash free, debt free basis. The acquisition was accompanied by a 10,050,000 fundraise. FY '24 was a very challenging year and continues to be so as production companies are faced with frozen budgets, reduced production spend and rising costs.

2:27 Additional revenue uplift consequently fell from 60% in FY '23 to 50% in FY '24. With the market becoming increasingly more competitive, we've implemented strategy combined with multi selling of location one and ultra track services. Until mister Trump's announcements on Sunday night, the underlying long term market outlook was looking favorable for ADF, buoyed by the sustained high levels of investment in The UK high end TV and film industry. We remain focused on our growth strategy through organic investment, acquisition and continuous improvements to operations. The board is recommending a final dividend of 0.9p per share. Next slide, please. An action slide. This slide gives you an idea of a typical unit base. It's a great example demonstrating the different products and services the group provide to the same end user.

3:21 ADF has an established reputation built over many years with key decision makers within the TV and film production supply chain. Where there are significant barriers to entry, the purchase of American Trader is the manufacturer of bespoke equipment like makeups, costume and production offices. Transport compliance, before you can even move a vehicle, you need to be in possession of an operator's license. To have a license, you need to provide VOSA with evidence that you have the finances available to service, repair, and maintain all your vehicles on the fleet. The industry contacts, are essential, it's a very insular industry and without established reputation and relationships with producers and production executives, it would be extremely difficult to secure any contracts in high end TV or feature film.

4:11 Our logistics and planning capabilities and infrastructure enable ADF to deliver across complex productions in The UK and throughout Europe with the ability to react to any changes in customer requirements. ADF has an established and enviable reputation been to over many years and consistently delivering a high level of service and quality vehicles. Quick look at our market, the market slide. The underlying the underlying market drivers remained strong despite a challenging eighteen months with The UK continuing to to receive substantial investment. Film and high end television production spend in The UK in 2024 was 5,600,000,000, up from 2 up from 4,800,000,000 in 2023. The total spend on features increased to 24% from 1,700,000,000 in '23 to 2,100,000,000, and a total spend on high end TV increased 11% from 3,100,000,000 in '23 to 3,400,000,000 in '24.

5:13 Across the total production spend in The UK, inward investment was up 30% and domestic production's down 26% compared to '23. The total UK spend on high end TV programs that started filming in q one twenty five was 990,000,000 from 39 production. This is an increase on 691,000,000 from 37 projects in q one twenty four. The government support remains very compelling with corporate tax and business rates concessions for the industry. Our competitive landscape, the facilities market continues to be dominated by three volume suppliers, ADF, Movie Makers, and Translux with with a one mid tier supplier onset.

5:59 And below this, there is a plethora of small family businesses. Next slide, please. So moving on to our customer base. ADF worked on 87 productions in f y twenty four, including Slow Horses, Adolescence, and Marvel's Fantastic Four. The average revenue per production was 381 k as opposed to 385 k in f y twenty three. Netflix remains the largest end platform with 20.4% followed by Apple at 19.1% and the BBC at 18.1%. However, we did see the level of diversification increase across broadcasters in the year with Apple and Amazon significantly increasing the share of the group's revenue.

6:45 FY twenty four saw a higher concentration of productions in the zero to 500 value bracket than in recent years and the booking lead time has reduced to circa two to three months. However, the f y twenty five order book continues to build, and we hope that in h two f y twenty five, the market will provide improved visibility of when there will be a return to more normal levels of activity. Next slide, please. So this is about Autotrack Portable Roadways. The purchase of ADF acquired Autotrack Portable Roadways in September 25 for $2.1300000 on a debt free basis.

7:31 Autotrack has accelerated ADF's diversification of product offering and customer base across multiple industries. One of the largest privately owned suppliers of panels to The UK TIFILITIES industry in The UK with a client base of a 165 plus customers built over thirty years. The temporary road market is seeing significant growth in infrastructure projects and events and festivals. The acquisition was is a further endorsement of ADF's aspirations of generating a 100,000,000 revenue in long term. Next slide, please, Neil. Moving on to growth strategy. ADF is committed to growth through ongoing investment in continuous improvements to operations at current levels of production in The UK TV and film industry. ADF has expansion without further significant investment in the near term.

8:24 CapEx will be prioritized for higher margin revenue streams, new complementary services and maintenance. And location one are now fully integrated into ADF systems and processes focused on revenue growth and operational efficiencies. Autotrack Portable Roadways, the leading supplier of portable roadways to the film and CV industry is providing diversification in new revenue stream, events and construction. And we've invested 2,000,000 in additional panels since acquisition, adding 12% to their total capacity as all track business model and cost base is delivering higher margins than the core group. We continue to assess other m and a opportunities in line with our investing criteria and IPO commitments.

9:11 I'll pass you over to Neil now who will run you through some of the financial slides. Good morning. So quick walk through the p and l for last year starting with h one. As we previously reported, first half of FY twenty four was affected by the reset of the industry after the strikes in 2023, which were obviously very disruptive to the industry. The first half of twenty twenty four, the work available was mostly smaller UK domestic productions while The US streamers realigned all their schedules of studio time, scripts, actors, availability, and funding.

9:48 It was very competitive markets, so we chased work very hard. And revenue in h one was 15,200,000, which was 17% up on the strike affected h two in 2023. Gross margin improved from 30% to 35% over the same period as the volume of work started to build. And we ran the business very tightly, still in sort of strike mode, and finished h one with an EBITDA of 2.5, up from 1.5 in the second half of twenty twenty three. So on to h two, revenue in the second half increased to 20,000,000, which is 54% ahead of the same strike effective period. But as we previously reported, this is below expectation after a number of larger productions unexpectedly pushed their start dates forward from q four last year and the start of twenty twenty five. You know, this was around the time with the US elections and the first labor budget, which led to some uncertainties in the market at the time.

10:51 The increased volumes in h two and less reliance on agency staff and more favorable locations of productions did improve our gross profit in h two on our EBITDA compared to h one. But the market continues to be very competitive with ADF having to do deals, you know, throughout that period.

11:13 As Miles mentioned, during the second half, we acquired AutoTrack. So the p and l includes 2,500,000 of revenue from them from the date of acquisition in September. And the p and l also includes the adviser costs of about a £500,000, which is shown as exceptional costs. The impact of strikes on location one during 2023 and 2024, which is very subdued, resulted in an impairment of the goodwill at the year end attributed to their original acquisition with actual profits, you know, lower than what was envisaged in their original valuation. So overall, the EBITDA on h two was 4,600,000, and overall for the year was 7,200,000, as Miles mentioned, with revenue of 35,000,000, which is almost identical to the previous year.

12:03 Final point, in terms of dividends, we paid an interim dividend of 0.5p per share in October 24, and we're proposing a final dividend for FY '24 of 0.9p per share with a record date of the July 25. Onto the balance sheet. So starting with the fixed assets. In terms of fixed assets in 2024, we spent 3,800,000 on assets that actually went into service in the year, and that was split $22,600,000 to CAD core business and 1,200,000 to location one. We then spent another 1,800,000 on vehicles that were held as assets under construction at the year end that needed some further modification. The majority of of CAD's CapEx in the year actually related to a committed order of DAF vehicles made in 2023 that we deferred throughout the strike period while the revenue levels were sort of suppressed.

13:05 So by the end of the year, we've taken our fleet size up to 728 units, and we also capitalized 1,200,000 of property leases under IFRS 16 for some lease renewals and auto tracks main base in Oxford when we took over the took over the business. Further down the balance sheet then, you've got things of note. The higher purchase agreements at the end of FY '24 was 16,100,000. This is how we typically finance a portion of our CapEx, and that was down 16,300,000 at the end of twenty three. During '24, we added 4,400,000 of capital value of new high purchase agreements. And as I mentioned, these IFRS assets by the end of twenty four were 9,400,000, and the largest part of that is our main operational base in Longcross.

14:01 So net debt at the end of the year, including these IFRS leases, was 13,800,000, which is up from 12,800,000 at the end of the previous year. Other items in the balance sheet of notes, we the acquisition of WaterTrack resulted in goodwill and intangibles of 16,600,000 at the year end and a contingent consideration of 6,500,000 in relation to water track. And as I mentioned, the goodwill on Location 1 was reduced from 6,200,000 to £3,700,000 for the payment. Lastly, then the cash flow more briefly. So the our EBITDA EBITDA for the year, which you mentioned, 7.2, turned into net operating cash inflow of 11,500,000, which you can see in the table. However, that includes a one off working capital effect of 4,800,000 in relation to the assets acquired as part of the auto track deal. So excluding that, the cash generated for operations was 6,700,000, so close in line with EBITDA.

15:11 Repayments on high purchase agreements and property leases was 6,300,000. Cash CapEx in the year was 1,400,000. The rest of the CapEx was financed by high purchase agreements. Dividends paid, as mentioned, were 1,300,000. You know, there's one dividend before, a fundraise, and one after. And as a result of that, the fundraise in here, and the shares increased from 81,000,000 to a 107,000,000. Overall, therefore, there was a cash outflow of 1,200,000, and that meant that the cash balances at the end of the year were were 2,300,000. So that's a quick run through of the financials for last year. I'll hand you back to Miles now to summarize.

15:56 Okay. So to summarize, trading in the first three months of the year is in line with the board's expectation with Autotrack performing particularly well at opening new markets. We're currently working on 20 productions and are consistently in keeping our market share between 3336%, which is actually 40% at the moment. Timing of products continues to be uncertain as the market has remained relatively subdued as production companies face frozen budgets, reduced production spend, and rising costs. The UK film and high end TV industry continues to attract significant global investment with production companies increasingly choosing its world class studios, facilities, and high skilled workforce.

16:41 The group is well positioned to capitalize on underlying industry drivers and growing market opportunities in the midterm. Focused on growing organically through continued investment in in revenue generating fleet and appropriate investment in our healthy acquisition pipeline in line with our strategy and robust evaluation criteria.

17:03 So if we have any questions. Miles, Neil, thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab situated on the top right hand corner of your screen. Just while the company take a few moments to review those questions submitted today, I'd like to remind you that recording of this presentation along with a copy of the slides and the published q and a can be accessed via investor dashboards. Mars, now as you can see, we received number of questions throughout today's presentation. Mars, could I please ask you to read out the questions and give responses to our to do

17:34 so, and I'll pick up from you at the end. Okay. We've got a question here, which is probably on everyone's lips at the moment. Thoughts on Trump's tariffs comments and specifically how much of the ST impact, results uncertain could have on productivity activity in The US even if actual tariffs don't ultimately materialize. I think, you know, it's far too early to start really debating it at the moment. We've seen what Trump's done. He's throwing a

18:05 bomb out there, hasn't he? Which raises a lot of questions. You know? He's only talked about film at the moment. You know? What's the definition of a movie? Does it include TV series? Does it include unscripted? What if it isn't a theatrical release? What's the definition of made in foreign land? Is it all film, part of a film? What about if it's only post production? Is there a threshold? A 100% applied to what? Entire budget

18:36 production budgets below or below the cost line? What about residuals and revenues, shares? So I've read quite a bit of it from production

18:46 people involved in the legal side of stuff, and it's an absolute minefield because of how our industry is run. But seems that since that statement on Sunday night, the White House has backtracked. And their last statement they issued yesterday was the White House has since clarified that no final decision on foreign film tariffs have been made, though they are exploring all options to fulfill the presence directed of Make Hollywood Great Again. This is a walk back. This walk back suggests that the administration is grappling with the complex legal and practical challenges of implementing such tariffs on what a service is essentially rather than a physical good goods. So I think, you know, for the for the near future, there's just gonna be a lot of conjecture out there with nothing.

19:35 On a on a positive note,

19:41 we think or I was thinking yesterday that if there are gonna be some tariffs at some stage in the future, it's not gonna be imminent. They're not gonna be, you know, in the next three to six months or maybe ten years to get through. In the interim, are the studios gonna want to take advantage of that and actually try and get as much made and take advantage of the tax incentives that we have in The UK and Europe and get as many films done prior to any tariffs coming in line. So there's a there is an up upside to that, positive side to that. From an ADF perspective, we've just gone through the strikes where all productions that had American actors and writers stopped, which predominantly films.

20:38 There's a few television series, but not many. So the the films actually stopped for that period of time. It did hinder us, but we generally operated, on 20 productions at any one time, which is what we're doing at the moment. You know, the television film industry in The UK is very buoyant. You know, we're working on some huge projects at the moment. They're hugely popular, things like the gentleman, rivals, the witcher that sell around the world. So if that was to be the case and there wasn't any films, we just carry on doing what we did in in the striking period and just adapt accordingly. But I think it's just I think it's far too early, really. And we'll see how that how that develops over over a pay over the coming months, I think.

21:29 Current thinking on pursuing other complementary acquisitions, which areas available opportunities and vendor value expectations. So we have a strong pipeline of potential acquisitions that we've been that we've been involved in over the last twelve to eighteen months, and we continue to do so. One thing that has been prominent with all of those acquisitions is that having gone through the striking period, those all those businesses have suffered to the same extent as ADF. So their their turnover and EBITDA has been hit, their performance has been hit. And these businesses, when they're wanting to sell their business, want to obviously send them at an optimum level, which means that they want to sell them with, you know, high EBITDA levels and high valuations.

22:17 So, conversations have been with them that they want to carry on in communicating with us, but want to try and get their EBITDA levels up to a place where it would be a give them a satisfactory return on their invest investment.

22:35 Okay. Next question. Is the original auto track CapEx plan reduced? No. It's the answer to that. We've invested £2,000,000, as I said earlier in the presentation this year, on 2,000 more panels, which is at 12%, to their stock. They are probably working at a maximum utilize utilization level even with the new panels, and they're still cross hiring stuff in. So now we we we won't be changing our investment plan with them. We're gonna see how this year pans out. We've obviously, you know, conscious of what's been happened in the last forty eight hours.

23:22 So we'll just see we'll just keep our heads down now for the rest of this year and keep working, to deliver on the objectives of the and hit our figures this year. A question here. Why do customers choose you over competitors? That's a good question. I think I think there are, multiple reasons for that depending on which production it is. We are there are a lot of customers in terms of high end television who are very keen on sustainability, accessibility, and inclusion. I think we're the leading supplier in that area, and for that reason, we get, a lot of work. Our competitors wouldn't because we're so advanced in terms of sustainability.

24:11 We have a product called EcoBase, which was helped developed in conjunction with location one. So we're able to supply a whole unit base with multiple products. So everything from battery power generators to EcoPods, which are basically a trade with three waste streams, one for paper, one for plastics, and one for food. Food is is by far one of the biggest wastes on a film set. And not only do we provide these products, we provide the reporting that goes with it. So with the with the generators, it's all data driven, and we give the production a login to the generators so they can follow how much battery power is being used, the saving on fuel that would have been supplied, so they can actually monitor that and get the feedback, and that helps them do their reporting. And likewise, with the other waste streams with the EcoPods, that the food goes to, an anaerobic digestion center and gets turned into power, and we can reply the reporting for So that's really important for productions. And productions that don't have a lot of money to spend, they can even have things like, I don't know, solar powered tower lights. You know? There's lots

25:44 of options there. So depending on their attitude towards sustainability, we can give them as much more or less of that as they require and the reporting, which is very important to them. And then accessibility as well. A lot of productions have either crew or, cast that may have, require, vehicles and equipment that's accessible. So that's whether it's a physical impairment, so whether that's where people are in a wheelchair or you're working with people with, they may have site issues. We basically adapt. We have equipment that we can adapt for them. We recently well, not recently.

26:33 I'm sure everyone's familiar with a series called sex education. So when we do series like that, one of the actors in that there's a young actor in that who's unfortunately paraplegic, but he's of an age where he wants to be the same as his contemporaries, and he has a trailer the same as everybody else's. And we actually just sit down, and this is really important. At the beginning of shows, we actually sit down with the production, and we speak to those productions, and we speak to the people involved to find out what it is they exactly need and and want. So rather than just presuming that people are, I don't know, in a wheelchair and handicapped, and this is a ramp, and this is what you get, we actually, interact with them to find out what it is they need and listen to what they've got to say, which helps develop the relationship and and gives them that inclusion that they're looking for.

27:26 So there's those reasons. The others the others are compliance. We are as a public company, we are very compliant in terms of not just in the in in in the financial sense, but in terms of our vehicles. So all our vehicles are of the high standard, but all our trailers that we supply the actors with, they're all IVA approved and MOTed. There are companies out there that don't have that accreditation, which is really important, which means that the production has peace of mind knowing that all the vehicles that are supplied are are a 100% legal. So compliance is important. And the other thing is the infrastructure. The infrastructure is hugely important to production. So when we're doing productions like, I don't know, Star Wars and or you're filming on a huge Lucasfilm project, a big Star Wars project, and it has multifacets to it. It it we have to be very, be able to react quickly.

28:29 They have multiple units, so they might have two lots of 35, vehicles in different places, and they also want to move those around, and they may want to go abroad. So when we did the last series of Vandor, we actually moved one of the units. It was filming in Pinewood Studios, and they finished filming in Pinewood Studios on the Friday evening, and the crew went got in their cars and went home. We then packed the vehicles up, moved them to Valencia, to the big science park in Valencia over the weekend, set the vehicles up, crew jumped on a plane on Sunday afternoon, got to the to their hotels, had a night in their hotel, came into work on Monday morning, and their vehicles were set up as they left them on the Friday night in Pond Studios.

29:15 So having the capability and infrastructure to able to move things around Europe, as I've just just explained, is hugely important to these large productions of films who have fast budgets, and it's it's obviously important for them to have security knowing that the facilities provider is able to accommodate all their needs. So that's they're they're the main reasons for that. How does the current situation affect competition and competitors? The market's competitive like most markets. So our competitors, we're all trying to competing for the same work. We will have our own customers, and then everything else is up for grabs. So it's a very it's a very competitive market, and it can be for some of the reasons I've just mentioned that you get it or more more often than us about being able to negotiate and try and put together a package deal that fits within the brand budget for those companies.

30:28 Any short term industry headwinds helping you take share from weaker players? No. Not really. The only effect the only thing I would say is that there is an advantage to some of the weaker smaller businesses regionally based because they don't have the overheads and the cost base that the the ourselves and transcripts and movie makers have. Local supplier, you know, would be able to do, I don't know, production up in Manchester, a small band set band two production for the BBC that doesn't have a very big budget. You know? That that that that's perfect for for one of those small regional suppliers that can manage to do that at at at at cheaper cost.

31:24 So one lot I got one other question. Apology for the major list, but did you just say that ADF is currently 40% of the market and you are planning to maintain a 33, 36% share of market demand returns thereby aiming no. You do misunderstand that. It's generally averages out throughout the year that we'll be somewhere between 3336%. It's just that when we checked this week ahead of our market release, there are tote at the moment in The UK, there are 50 productions filming, and we're supplying 20 of those, which gives us 40% of the market. That market that figure can change in the next couple of weeks.

32:21 Question for you, Neil. How much of your debt is at a fixed rate? All of it, in effect. Yeah. So those high purchase contracts yeah. That's all we have is is high purchase contracts so that the rate is fixed at the time we take out the agreement. So we've been sort of a financing, as I said, equipment on high purchase for five, six years. So over that time, the interest rate's gone up. It's come back down or slowly coming back down again. So whenever you take out those HP agreements, you agree a rate, you agree the term, you agree the repayment amount, and it that sort of just runs on in the background. Got a question here from John. A lot of talk about a company being taken over.

33:15 Please comment. I don't know. There's been a lot of speculation lately that Netflix are buying us, which is really exciting. But, unfortunately, there's no truth in those rumors. Well, they haven't contacted me anyway. So I'm aware of stuff in the out there about that, but I I think that's I think it's just wishful thinking, really. So I don't know any I can't comment any further on that. Question here. How much work do you turn away, and how strict are your margins? Well, we don't turn any work away. Certainly not in the current market. The last time we were turning work away was post COVID.

34:09 But for the last two years, we haven't turned any work away. The only work the only work that we haven't taken on would be things that would we wouldn't be certain of that being financed independent stuff that's the finance isn't in place. So zero on that. And how strict are your march how strict are you on your margins? Well, we we have to be physically responsible, and we have to manage the business just, you know, sensibly. So in terms of our margins, what what I can say is that since the strike, when the strikes happened, we batten down the hatches, and we implemented a strict fiscal control.

34:54 We we stopped CapEx. We we put a hold on recruitment. We stopped all nice to haves, and we managed up the business accordingly to our work streams and the volume of business that we've got coming in. And we haven't come out of that mode, if I'm honest, because the market hasn't fully returned. So we've been sensible in doing all things I've said, and we've mothballed a a certain percentage of of our fleet, which it means that we don't have to service every 12 weeks. And it it because that obviously costs money, and it's creates work for our, maintenance teams and mechanics, etcetera, etcetera. So we've just been sensible in in in managing our finances on that.

35:52 What is the current risk of high debt levels during this week trading period, Neil? Say that again. Sorry, Lars. What is the current risk of high debt levels during the this this week trading period? Well, you know, we've gotta carefully manage our cash flow. I think that's, you know, the what's that's priority for this year is really making sure that we've got adequate work capital, but also managing our our debt levels in line with our commitments. So that, obviously, is a huge focus. And, obviously, we don't know, as Moss said, what's gonna happen with the Trump and his his plans for tariffs. But currently, you know, we're we're sort of kind of managing our cash flow kind of in line with the guidance that's in the market.

36:45 Thanks, Neil. Quite good question here. Very pertinent from Lars. Do you consider conserving cash for future acquisitions instead of paying a dividend? Well, that's that's a very good question. We have, and it's something we get asked constantly when we go to do our investor roadshows because we have a number of our investors that that are invested for the long term and are not necessarily interested in the dividend and would like to use that money, to grow our business. But equally, we have half of the other half of our investors that have invested on that basis to get a return on the dividend. So, unfortunately, we've have committed to that at the IPO to offer a progressive dividend, and it's something that we have to, we committed to and have to follow through.

37:40 But a good question. Do you think it's wise hey. Very good. Another good question. Do think it's wise to be paying a dividend considering the uncertainty around the tariff and the industry and the profit warning back in March? I think I've just answered that. We've made a commitment ahead of that, so we have to follow through with that. Okay. Based here's a good question. But from Matthew, based on your response regarding your superior service and the competitive nature of the industry, why do you appear not to work with the larger productions that occur in The UK, Europe, Mission Impossible, Fast and the Furious, Wicked, Barbie, The Avengers, I'm seeing are all made on these shores to name a few. But as far as I can tell, these are being serviced by your competitors.

38:39 Why is this? And is there a plan to move into this sector, and how is the order book looking this year? So I'll answer that question. That's a great question, Matthew. Translips and Movie Makers predominantly work in the the high end or the feature film industry. We've probably been in the high end TV and film, so they're contacts in there. They've traditionally done movie makers have traditionally done all the, fast and the furious, and Mission Impossible, and, likewise, translates on the the other productions. Their relationships are with those producers and those transport captains. They also provide them with, some, a type of single artist trailer called an exec or a fifth wheel trailer or an executive single artist trailer, whichever term you like, that the actors requiring those. So, you know, for the for Avengers, for instance, the the two of the leading artists in that require it's in their contracts that they have trailers far superior than the other trailers for the rest of the cast, and they can facilitate that, Translux and movie makers, and we can't because we don't have those vehicles.

39:54 We have planned to get those vehicles, to have them made. We've had a prototype built for one, and we would have carried we'd have had 10 of those this year, but we put that on hold because of the, CapEx involved in getting that done at the moment and the the insecurity of the market. So the simple reason that our customers work in the in the high end TV and film market, and we've preferred that market over the last six or seven years because that is repetitive business. You know, we did six series of, I don't know, picky blinders, six series of the crown, etcetera, and they're the same kind of expenditure as films. The the the the spend levels are the same, and we just prefer the high end television film. Seeing if we've got any other questions.

41:02 Is it UK okay. Is The UK film production market stagnated, or is it a global film industry? No. It hasn't stagnated. I think the honest answer to that is that post COVID when the market was booming and there was a huge, huge demand, the demand outweighed the supply in every sector, not just in our sector, but in light in with the lighting, with the studio space, with crews in every facet of the industry, We took advantage of that. We, you know, filled our boots and made a lot of money, and we could we put our prices up, continue to put our prices up, and so did the crews, and so did the studios, and so did everybody else, which makes it unrealistic and unsustainable, doesn't it? So I think all that's happened now is, post strikes is that, streamers, films, studios, all the people that that finance and make television and film have had to adapt.

42:03 And I think I think that just the rates for everyone from cruise actors and everyone has just plateaued out now. It's just getting back to a normal reasonable level where people come back business. The demand is there. It it demand is still huge. All the streamers you know, there's huge competition between the streamers. Netflix are still leading the way, but Apple Apple, Amazon, Disney are all catching up. The problem for Netflix is that those other businesses have multiple revenue streams and huge revenue streams, so they will catch up eventually. But Netflix is still, you know, ahead in that market. Netflix that was spending big on series like The Crown, you know, spending a £100,000,000 a series on The Crown, £10,000,000 an episode have clicked onto that, and now they're getting gonna get they're getting the same £100,000,000 they're making to two different series and getting that, you know, double for their money or or even three.

43:03 You know? So they hit series things like The Gentleman. They're, you know, they're selling worldwide. They're they're you know? And they're not spending anywhere near the same amount of money. So I think they've just the as I said, I think that the industry has just plateaued out, and they're just we're we're getting back to what we would call normal levels of, of rates for for cast crew, and suppliers. Okay. And that's it for questions. Miles, Neil, thank you for answering all those questions you can from investors. And, of course, the company can review all questions submitted today, and we'll publish those responses on the investor meet company platform. Just before redirecting investors to provide you with their feedback, which I know is particularly important for the company, Mark, could I please just ask you for a few closing comments?

43:55 No. What I think the only thing to say is we'll we'll obviously wait and see what mister Trump does, but I I don't just to reiterate, I don't think there's anything gonna be, I don't think there's anything imminent. It will create some uncertainty, but I I think that's, you know, across every sector of industry at the moment is with what's going on in in in The US. So, you know, from an ADF perspective, we shall just, focus on our business and our industry and our people and continue to to do what we're doing and, look to be positive and to hit our figures this year and then to and then start again next year. So thanks for your time, everyone, today, and speak to you again soon. Mars, Neil, thanks for updating investors today. Can I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations?

44:47 This will only take a few moments to complete, and I'm sure it'll be greatly valued by the company. On behalf of the management team of facilities by ADF PLC, we'd like to thank you for attending today's presentation, and good morning to you all.