Haydale (LSE:HAYD) — Investor Presentation

0:01 Good afternoon, ladies and gentlemen. Welcome to the HAYDALE PLC investor presentation. Questions are encouraged. They can be submitted at any time via the q and a tab that's just situated on the right hand corner of your screen. Please just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and will publish our responses where it's appropriate to do so on the Investor Meet company platform. Before we begin, we would just like to submit the following poll. And if you'd give that your kind attention, I'm sure the company would be most grateful. And I would now like to hand you over to the executive management team from HAYDALE PLC. Simon, Patrick, good afternoon. Good afternoon. Good afternoon. Thank you very much, and welcome to this presentation from HAYDALE PLC. Today, we're going to provide an update to investors on the changes which have taken place in HAYDALE over the course of the past financial year, The progress that HAYDALE has made towards the commercialization of what was an r and d led organization into an advanced material and clean technology company.

1:06 We will touch on the recent, acquisition of SMCC, the role that plays in driving forward this commercialization. We'll explain the business, in SMCC, and we will talk to, the progress that we have made with integration. We will also be closing with the fifteen month period review, the results which were recently announced for the year through to September 30. So I'm Simon Turic, the chief executive of HAYDALE, and with me is Patrick Carter, our chief financial officer. I've talked through the agenda here, which you'll see us cover as we work through the slide deck. I'd like to start by talking about the scalable national platform that we are building, which is all about taking that core technology that exists in HAYDALE, that plasma functionalization HD plus unique capability, and how we are producing proprietary products as the primary vehicle for commercializing that technology.

2:11 This does reflect a change in strategy from HAYDALE's prior approach, which was much more service led consulting type revenue led business to one which is now very much focused on commercializing, productizing, and monetizing the technology through product introduced into market. You'll be familiar with the Just Heat brand as being the primary current primary products that we have introduced to market. And what's important to stress here is that the underfloor heating solutions that we have introduced over the course of the past year are the first step in both what will be a wider Just Heat brand of heating panel related technologies, but also the first step in a set of products that HAYDALE will be introducing to market.

3:04 Those just heat products in the underfloor heating context are now commercially valid validated, having completed trials and deployments into a wide variety of sectors of the market. There is proven performance in field, and we have focused on building out the supply chain and the manufacturability, the scalability of producing this product, in uniform. We have now, through the acquisition of SMCC, also brought to the group a national delivery capability. What SMCC represents is two important components. Firstly, in the lead generation context, a zero cost customer acquisition model through its embedded partnerships with major banks, utilities, and corporates.

3:54 That leads to a platform that is capable of taking customers on a full journey from initial inquiry through quotation, design, conversion, delivery, and ultimately, aftercare revenues. This puts the group the the combination of these two component parts now puts the group on a clear financial trajectory. We have contracted revenues that already cover 100% more than 100% of our h one expectations. The guidance that was provided by Cavendish to the market as part of the transaction and associated fundraise in December '25. We are targeting positive EBITDA within twelve months of that transaction.

4:41 That's the first quarter of our full year '27 or the last quarter of this calendar year. To expand on the efforts that we undertook last year, Full year '25 was very much a strategic reset. And as that chapter closes, I'd be very keen to stress that that year should not be seen the results which were published in the past three weeks should not be seen as a baseline or forward run rate indicator. We undertook a complete rationalization of the business, closing, exiting, divesting from the overseas operations and the non core operations in The UK. And by that, I mean those operations which were not associated with the HD plus functionalization technology, that core proprietary IP that defines HAYDALE.

5:35 We have refocused on that IP and the productization of it. So this saw us exit circa 80% of revenue generating activities, but these were structurally loss making activities. And what we have introduced is a structurally new revenue base associated with that product go to market. In exiting from those activities and consolidate dating, we reduced the run rate cost base of the group by 69% by the end of that full year period. The the balance sheet was materially derisked as a result, including the removal of those overseas leases, those pension liabilities, and those significant legacy intangibles associated with things like The US carbide tooling business that are no longer with us.

6:27 We raised at the end of the period 5,750,000 gross alongside the acquisition of SMCC. Importantly, as we look to that trajectory towards EBITDA profitability, that fundraise provides us with a fully funded position to take us through to and beyond that point, covering both the anticipated working capital and the CapEx, involved. To take us back to what HAYDALE represents, and it's important given that we are in the graphene space to remind that HAYDALE is not a graphene company in the sense that we mine or produce graphene itself. We sit at a different point in the value chain. Our technology enables us to take graphene of all forms, in fact, other nanomaterials in a wider context, to change their surface chemistry that enables them to be deployed into industrial processes, into materials, into products that can be delivered to market.

7:33 And that's where our focus within the business is now. It's on a core set of applications of that functionalization of graphene. In particular, it's around energy efficiency. What we are producing are products that enable heat particularly to be conveyed into or out of settings more efficiently, therefore, at a lower cost base and lower carbon footprint than other approaches, technologies, and and applications. In the heating context, Just Heat, our graphene enabled heating panels, is the mainstay products that we have started. This has been launched in an underfloor heating context where it is being introduced into buildings being electrified as an alternative to forms of heating like air source heat pumps.

8:26 We are soon to be launching into market coving and skirting products developed in conjunction with NMC Group. These are focused on particularly the social housing sector, dampen mold applications, which are again about introducing heat efficiently into applications where it's needed. We launched towards the end of last year a subsequent product in the cooling context. This, again, is about using the properties that we can unlock in graphene to more efficiently transfer heat away from particular settings, in particular, server racks in data centers. Those products are currently in commercial trials and will form the second product that HAYDALE takes to market as part of this renewed focus on commercialization through proprietary products.

9:15 We do, however, continue with some of the advanced materials activities that we undertake for third parties, in particular, our partnership with Petronas. These activities continue to involve the, the manufacturing, of products here in Ammanford, which are then delivered to third parties for them to undertake the sales, the distribution as part of their own business strategies. We are moving, in particular, these activities from historical r and d led type revenue to manufacturing royalty based and leasing type revenue streams, where ultimately we will be leasing machines, r I HD plus reactors, to those third parties to deploy line side, which introduces new regular recurring subscription type revenue and royalties on the sale of end products.

10:15 To focus now on Just Heat and to start with the validation of that product, which has taken place over the course of the past year. So our underfloor heating product is one that we introduced to market from prototype through to commercial deployment within the course of six months last year. That highlights the intensity and the effectiveness that we've brought to the business in being able to generate and deploy commercial products. We focused on building the supply chain and the production viability and, importantly, the installation and distribution capabilities in those initial settings that we have targeted. We started with the social housing sector, focusing on relationships with housing landlords and local authorities.

11:01 What we have seen over the course of the past year is an increased recognition of the applications that this product can have by our customers in settings much further beyond residential. There's a set of residential adjacent markets that we are seeing unlock, in particular, student accommodation, care homes, hotel type industries. But beyond residential and residential adjacent, there are also important markets being unlocked in in sorry, in industrial and manufacturing type applications. You can see on the right hand side here a couple of images of deployments of Just Heat recently taken place. At the top, we have a manufacturing site, an essential oils business that needs to maintain a particular temperature within its facilities.

11:51 It's tested and selected Just Heat as the heating system capable of delivering that uniformity and that precision to the heat needed within its operating spaces. You can see at the bottom there an image from one of our partners in The US who has this winter been undertaking trials externally to validate Just Heat as a product for snow melt applications, both outside of buildings and within the roof space of buildings in that US market. This highlights the wide variety of applications that we're starting to see, and we're starting to build the capabilities to distribute into. Here are some further applications. Top left, we're seeing increased engagement from the agriculture and horticulture sectors, commercial greenhouses, garden centers, for example, who are seeing the ability to reduce energy consumption through the use of just heat as the heating source for those commercial greenhouse type applications.

12:54 You can see also images from some of the internal deployments in more traditional building contexts, whether that's residential garages, whether that's a a number of different types of installation too on the screen, under other types of floor covering. And this speaks to an important strategic partnership that we cemented towards August last year, starting with Indafloor. Indafloor, a large manufacturer of underlay materials, and that partnership is about introducing Just Heat as a combined product with their materials into the wide variety of flooring applications that they serve, pairing it with a number of different floor overlays. So rather than looking to work with a large number of flooring manufacturers.

13:47 Our partnership puts this right at the heart of the majority of flooring installations that take place across The UK and Europe. NMC is the partner that we're working with on the on the skirting and coving products. And, again, wide distribution applications. And an example of how we're commercializing products, not on our own balance sheet, but that r and d and that building of the commercialization is increasingly being driven through third parties as well. Recognition of our products towards the end of last year at the National Energy Efficiency Awards, where Just Heat was awarded national product of the year. This is important because that was focused on commercial and, in particular, compliance led applications, which positions the product well as we see grant funding schemes starting to focus on heating systems rather than, say, fabric based interventions.

14:41 To just remind the rationale for us entering this particular space as the vehicle to commercialize HAYDALE's proprietary technology. It being that heating is a significant source of energy consumption, carbon emissions in The UK's built environment. There are millions of buildings that are transitioning that must transition away from fossil fuel heating. And in a lot of those retrofit environments, it is difficult to deploy other forms of of technology. And Just Heat has been both specifically designed and is seeing take up for these very reasons. Its thin profile, its ease of installation. An example being that it can be installed in a three bedroom house in the course of a single day. To a house builder, that matters where they would typically allocate five to seven days for the installation of a full wet radiator system.

15:33 For a hotel that is seeing room occupancy as a core driver of the materials that are put into its its properties, The ability to introduce a product with no moving parts, no fluids, low maintenance is increasingly attractive as compared to other forms of underfloor heating with the trace and access issues where things go wrong. Well, importantly, we are now at the place where through the SMCC impact partner programs, we are embedding this in national programs that will touch on all of those customer sectors. The point that we're currently at is what I'd call a structural inflection because having brought the product to market validated and now the distribution capacity, we are seeing increased revenue visibility.

16:22 Historically, that r and d led approach to commercializing HAYDALE resulted in in lumpy and less predictable revenue streams. Just mark Just Heat, as we introduced it to market, didn't have the infrastructure, the talent, the emphasis around it to be able to drive it to market in the way that it needed. And so what we did in bringing SMCC into the group is bring a national sales organization, a program management and accredited installer network that enables us through its impact partner program, which is all about low cost customer acquisition with major banks and utilities to drive the demand, to drive the lead generation for our products starting with Just Heat and what will subsequently follow in the form of thermal fluids and beyond. But importantly, once we have those leads, it's about the ability to convert them, the ability to put the infrastructure around taking those leads right the way through to delivery and ultimately to being able to service simultaneously across the country the volume of interest that we were starting to see going into the last part of twenty twenty five.

17:40 With this platform, we're now in a position to deploy at the scale that the product has the potential to enable HAYDALE to achieve. What this has resulted in and what we announced as part of the results recently is that we have contracted revenues that cover our expectations for this half. But it's important to note that that's not where it ends. Moving beyond h one right the way through h two and beyond, we have now partner led pipeline programs, which are multiyear, have repeatable revenues involved, a number of cross selling opportunities, and enabling us to deliver higher quality forms of revenue as a result. We're developing that infrastructure and and subscription based models to sit around these products and their deployment to, again, enhance forward visibility, predictability, and the quality of revenue that the group delivers to shareholders.

18:40 I'm going to explain the SMCC model because this is the part of HAYDALE which is new to most investors. And it's important to understand those component parts and how they fit together because SMCC operates at several levels. I'm gonna start with the front end and the lead generation, those impact partner programs that we've referred. So what SMCC has established is partnerships with a number of UK high street banks, with utility companies, particularly in the water sector, and with manufacturers like ABB and Smartbad. And what those partnerships do is they drive prequalified b to b leads to the SMCC platform.

19:29 The service that SMCC is providing to those partner organizations is as an extension of their business, a vehicle for taking customers through their water and energy efficiency journeys, starting with the consulting, starting with the advisory to help them understand the interventions that would best suit their businesses. Then being able to bring the technical capabilities, the business units to drive the installation and delivery of those components as they're selected by the customer. But more importantly, because SMCC is sitting right across that that journey for the customer delivering every part of it, there is increased cross selling opportunity.

20:18 We've seen a number of instances of those customers arriving for e mobility EV charging installations and leaving with renewable energy, water efficiency, and increasingly interest in just heat installations as well. From the perspective of those partners, what they are receiving back is not only the ability to offer a value added service in energy and water efficiency to their customers, but the data the data around the impact that their customers' energy and water consumption reduction is having on the scope three emissions of that bank, the ability to demonstrate to the water regulator the impacts that the interventions that water companies are increasingly required to deliver are having.

21:07 There's three types as mentioned, and it's important to perhaps pick up on a tangible example around how this works. And let's let's take ABB, which is an exclusive distribution partnership that SMCC has for EV charges with ABB in The UK. What this brings to SMCC is a pipeline of customer interest, those who have approached ABB to have ACDC charges installed. They're referred through to SMCC to take the customer all the way through the journey to completing that installation. And these are high quality engaged leads as they are from the banks and the water companies as they're referred across to SMCC.

21:53 The the introductions are often at finance director, CFO, managing director level, and that sees high rates of conversion circa 50% plus from the leads that SMCC is delivering. And because those impact partners pay for the provision of the services that are offered, that initial consultation advisory piece, this is zero cost customer acquisition for SMCC, the ability to talk to their perfect customer without the need to spend on sales and marketing to go out and find them. The customer then makes its way through those business units across those various different products that SMCC represents, in the market. Circa 40 manufacturers are on SMCC's platform using it to deliver their product like ABB into The UK market. And that's where Just Heat now sits. What we have achieved over the course of the past two months is a full integration of our sales and marketing capabilities from HAYDALE across into the SMCC platform.

23:00 So Just Heat is now sitting in the energy efficiency business line alongside those other products that SMCC delivers to market. This is providing us with that infrastructure, the resources, and the capabilities overnight that HAYDALE did not previously have. Here on the slide is the flywheel that SMCC represents. It starts with that referral, goes through that advisory, that identification process for the customer. There is then a provision of the measures back to the bank to arrange the financing. Then there is the delivery of the project finally through to the measurement, the verification, and the provision of the impact data.

23:45 What we can see from the way in which those impact partner programs have developed through their pilot stages is a rapid uptick in lead generation as those have been turned on. Right now, partnerships are in place with three major banks, two water utilities, and several manufacturers. Over the course of last year, a lot of those partner programs were going through pilot phases. And in fact, over several years prior, there was a long piece of work that SMCC went through with the likes of Barclays to take what was initially demonstrated to be so successful as a pilot that a full regulatory process was needed in order to be able to plug the SMCC platform into the bank's off customer offering in the way that it is. That close level of integration required a regulatory process to enable nonfinancial products to be introduced to bank customers in the way that SMCC does. And now over several years, having gone through that full process and being accredited to provide those services with several other banks coming on stream, rapidly thereafter is demonstrating the value that that impact partner program, offers to enable products like Just Heat, like thermal fluids, and the wide range of other products

25:15 on the SMCC platform to be driven into market at scale. And in the course of the two months since the integration with SMCC, we are rapidly seeing those partner programs expand, driven at level of those partners themselves, wanting to see them go faster as a result, of the rapidly, delivered early engagement. At its core, the reason why clients approach and engage right the way through that process with SMCC is because there is an increased motivation when it comes to energy and water efficiency. That's why, as we talked about earlier, we focused on commercializing HAYDALE's technology through energy efficiency products.

26:00 Energy costs are now in the top two for most businesses, typically right there on the people. So there's a drive to engage with this activity, but it is a very fragmented space. Businesses struggle to bring together all of those component parts that are needed in order to take a product like Just Heat all the way through to deployment within their chain of hotels, within the schools that they operate within the hospitals or what have you. It is a complicated process to put a full solution wrap around a product, and that is what SMCC offers to both the manufacturer and also to the customer. A one stop place, you know, to be able end to end to take the customer from interest right the way through to large scale deploy programs. And the types of programs that SMCC is delivering is everything from single orders right the way through to multimillion pound programs nationally across several years.

27:00 And it's ultimately all about saving those clients time and which from a Just Heat perspective is exactly the proposition that the product offers as well. It's all about geofission reduction and in, like, current economic one. Delay with the slide there. This is the next slide, and it's about how we have integrated the SMCC business within HAYDALE over the past two months. What we have done is define a new operating model for HAYDALE. HAYDALE PLC represents a a group that now has three core operating pillars.

28:08 There is what we call the production and innovation pillar, which is all about the proprietary technology HAYDALE. It's about our ability to deliver the products at scale that we have completed. It's about the r and d involved in taking the next set of products to market. Those coving and skirting products, those thermal fluids, and that which will follow thereafter. It holds the IP importantly that sits around and protects the products that HAYDALE represents. SMCC is what we call the go to market pillar. And as I said, now having fully integrated the Just Heat sales and marketing initiatives into that platform, It is both that impact partner program, that national distribution network, and increasingly, a digital marketplace and and program management infrastructure that's focused on improve improving the quality of revenue through, as I mentioned before, longer term recurring multiyear channels.

29:07 Platform acceleration is the third part of our focus, and that is about expanding those partner ecosystems, those strategic relationships. As I said before, already starting to see impact partner programs expand. That's the work driven there along with those those focuses on how we turn product deployment into higher quality revenue streams. So where are we in the value creation cycle? Well, having completed the reset, validated technology in market through productization, we are now very much in that embedding of the route to market. That will lead us through to revenue inflection. And we're seeing that already with the more mature business lines on the SMCC platform.

29:53 Just heat will follow. Thermal fluids is earlier in its development stage, but will come through thereafter. The business lines are at different stages of maturity, and that's important because that gives us a diversification of revenue stream as well. So while thermal fluids are beginning and undertaking their commercial validation and revenue starts, Just Heat is further along, and some of the business lines on the SNCC platform are are particularly mature. I'm now going to hand across to Patrick who's going to take us backwards to the fifteen months through full year '25. Yeah. Thank you very much, Simon. So I wasn't going to spend too much time on the financials partly because, as Simon said, this reflects a historic business that we no longer have.

30:40 What's important to note in terms of the results we've just reported for the fifteen months is we've recorded a group revenue of 2,510,000, but of that, 700,000 is really what relates to, the ongoing business parts, of which roughly just under 50% is just heat related in one form or another. Through this period, we've maintained the gross margins. It's worth noting as the SMCC business, comes on board. And to be clear, these numbers do not reflect any part of the SMCC business because this is pre acquisition. But we do expect those margins to drop slightly, just due to that, due to that mix. And, yeah, and we've also got our adjusted operating loss is quite is is at 4,000,000, but that does include transitional cost base during the reset, during which point point we were taking a lot of cost efficiencies that, Simon's referred to before.

31:40 On the next, slide on the balance sheet, again, you'll notice there's a very big difference between the balance sheet we had at this time in June 2024 compared to the end of September twenty five, and that represents our exit from The US in particular and also some of these other operations that, Simon alluded to. Within that balance sheet also, you'll note that the loans element has come down significantly, and that's the conversion of the convertible loan note. And we've got post post this balance sheet. So in January of this year, we raised a further 5,750,000 and, as part of that SMCC acquisition. Because we're looking now to generate, EBITDA positive from the start of, next financial year, so the end of this calendar year, we do have tax losses across the two businesses of roughly 50,000,000, just over. That allows us to shield those profits from actually having to pay tax free for a while. So that's, that will be helpful going forwards.

32:44 And we certainly have the existing resources needed to support the operations for the anticipated, EBITDA breakthrough that we've talked about. I'm handing back to Simon. Thank you. I'd like to conclude by summarizing, the investment case for where HAYDALE is today. So having completed that structural reset, you've seen, as Patrick has highlighted there, the improved balance sheet and position, the reduced, fixed cost base. We have increased cost as we've brought the SMCC business in, but it is structurally different cost to that which we were carrying in the past. We have validated, products, HAYDALE's technology in the market through productization and are now seeing commercial uptick, significant partnerships secured, and and transaction now happening through the SMCC distribution mechanism.

33:41 From a national delivery perspective, what HAYDALE was lacking as we first entered the market with Just Heat has now been secured through that acquisition. And this gives us, you know, with colleagues working across The UK each day under the SMCC platform, the ability to service those leads which are increasingly with pace being generated through the impact partner programs. And finally, it's that revenue visibility. It's the fact that we have a more stable outlook and also increased quality of revenue through those multiyear contracts through those recurring and cross selling opportunities. So for us, the focus very much now is on execution. It's on executing those partnerships and scaling the SOCC platform both in its own right and the HAYDALE product through it.

34:32 It's about executing on the delivery of Just Heat to the market to fulfill its potential and on delivering the next set of products that will provide the growth which follows behind it. It brings us to the end of the presentation today. We'll happily turn to questions. Perfect. Simon, Patrick, if I may just jump back in there. Thank you very much indeed for your presentation this afternoon. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab that's situated on the right hand corner of your screen. Just while the team take a few moments to review those questions that have been submitted already, just like to remind you that a recording of this presentation along with a copy of the slides and the published Q and A can all be accessed via your investor dashboards. Simon, Patrick, as you can see there, we have received a number of questions throughout your presentation, and thank you to all of those on the call for taking the time to submit their questions.

35:23 But, guys, at this point, if I may just hand back to you to read out those questions and give your responses where it's appropriate to do so. If I pick up from you at the end, that'd be great. Thank you. Certainly. So taking the first question here, as an investor since 2020, what will change in future compared to the operations of HAYDALE in the past? How can you reassure me that you're going to make a difference, and how will you compete outcompete other graphene companies? I think taking that last part first, as I started with, HAYDALE sits at a different point in the value chain to other graphene companies. Not manufacturing the graphene itself, but having the process to take any graphene or nanomaterial and position it for use in any particular application.

36:15 And so we don't see graphene manufacturers as as the competition for HAYDALE. It is the products that we're introducing to market that are the are the area that's that we are most focused. Because, again, when it comes to the core technology, our approach is globally unique and IP protected. And so when those third parties come to us for our help in developing their products, it's because HAYDALE represents the only in class technology approach for achieving those outcomes. And, obviously, what's going to change about HAYDALE from the sort of period since 2020?

37:00 I'd I'd suggest that what we have have run through today in terms of the focus now on productization as products in as a means to commercialize HAYDALE's core technology rather than being service led is is very much what's different. And it's that that aspect of bringing the distribution capability, the lead generation capability into HAYDALE rather than relying on third parties to to to sell and distribute the product for us is a core differentiating feature of our approach to the energy efficiency market. Where do we think the stock price will be in the last quarter of twenty twenty six? What I'm gonna say in response to that is to to note as we announced in the results recently that we are anticipating undertaking a share consolidation at the right point in time.

37:58 That will most likely be after we have achieved EBITDA positive profitability, but to flag to to shareholders that that is something which we do expect to undertake. Shall I pick up the next one? So which graphene do we use in our products and why? So I think it's worth saying that actually we are graphene agnostic, but what we have done is categorized about 400 types of graphene from various other suppliers. So we understand what applications they're good for, and and they all vary by density, by their surface chemistry, by a whole number of factors. And what we do is we try to choose the best graphene for the product that we are that we are making and actually second sourcing or third sourcing, other competing graphemes in order to have that robustness of supply. So it will vary by the application. It will vary by what, end result we want from the graphene. So we don't actually specifically buy from anyone in particular.

39:02 And what is the approximate cost of installing just a three bedroom semi? So it very much depends on the particular aspects the the of the the property itself, its starting point in terms of of energy efficiency because heat loss calculations will drive the amount of material which is needed. But what we have done is to position Just Heat in the market as a competitive alternative to both other forms of underfloor heating, whether they be wire based or hydronic underfloor heating systems, and as a competitive alternative to the installation of a wet radiator gas boiler system.

39:51 And, of course, there's two elements to consider to this. There's there's the the CapEx and and the operating costs. And so competitive from a CapEx perspective, but then real savings materializing from an ongoing operations cost perspective. Of course, when comparing to a heat pump, we're seeing the cost of a Just Eat installation as somewhere around half the cost of of that type of technology. So in terms of the next question about what's expected uplift in cross selling from the integration of Just Eat and SMCC, I think it's worth just reflecting on the fact that as part of SMCC's process, they are paid to do an un to do an audit of the client's premises or locations through which they will identify various curated products that they can bring to that client in order to solve and improve their energy efficiency or water efficiency.

40:52 So whilst they might go in through Wave, for example, on an a water efficiency audit, as part of that, they will also identify, energy efficiency products that we can bring to bear that actually improves both sides. So, therefore, we expect there to be significant cross selling opportunities in all of this because, actually, what we've got is the entry point, and then we're able to own that client to make the most of that through the various solutions we have. And Just Heat is applicable to a number of different vertical markets. How is individual, market focus achieved, organizationally? So the way that the business is organized within the go to market pillar is into a set of business units focused on particular types of technology.

41:47 So energy efficiency, water efficiency, immobility, and the like. And and so those business units serve customers of all geographic and also all different segments. So the team that's focused on energy efficiency where I'll just heat products sit will be coordinating the sale of the products to everything from those residential applications, residential adjacent right the way through to industrial applications and and what have you. So there isn't a distinction within the the way that we operate between different segment types, but we have specialists in those technologies.

42:34 And that's quite an important part of the model because when the customer comes to the SMCC platform, after that initial appraisal, that's that that survey, that advisory piece that is undertaken, They are then passed to the respective business units who are the specialists in that type of technology, and it gives us the ability to have a deep domain expertise in the technology that is being recommended and installed, provisioned for, and ultimately maintained. And and within those business units, there will be those who have colleagues who have experience in different sectors. But, again, all coming back to the domain of the technology itself.

43:24 How does SMCC qualify and monitor national installation network? So SMCC HAYDALE PLC does not retain the majority of the installation staff that are that are undertaking that work in the field. What what the model that we operate is is to drive the project management. So projects will be managed by a a HAYDALE, an SMCC colleague, but often the install undertaking the work is part of a highly vetted and accredited network that we maintain.

44:10 And there is quite a significant amount of process that goes into validating due diligence, onboarding, accrediting, and monitoring the compliance, behavior bonds, what have you, of those who are undertaking the work in the field. Training. Just Heat is a great example of a product where we have put considerable stead into the training of installers who go into the field to deliver the product so that we know, as the manufacturer, the quality is there each time the product is installed. And, you know, what's important is we haven't had any instances of where that has has not been upheld in the installation state. And that is is one part of the monitoring we're talking about here.

44:59 It's it's also important to pick up on the types of frameworks that SMCC delivers under. So the sort of national frameworks with a number of hotel brands like Radisson and Hilton a mainstays of the SMCC business. SMCC has been providing services as the the the main energy efficiency provider to Hilton for over ten years, and that speaks to the level of quality embedded within its systems and processes. How does the SMCC digital platform license work financially? So you're referring here to a new part of of the offering on the SMCC side, which is about introducing to the customer base a set of services which are provided on a long term basis and for which subscription type recurring revenue is being introduced.

46:02 So if we take, for example, the needs of a customer that comes to the SMCC platform is often around their ability to understand their energy consumption and emissions footprint to be able to account for that in in order to deliver against requirements within their business. For example, to be a supplier to a lot of of major corporates to win tenders now requires businesses, SMEs all the way through to have a handle on their energy and carbon efficiency. There are tools which SMCC now provides both digital tools and supported tools to those customers. And those that are provided under licensing arrangements, which provide an ongoing revenue stream to the business as along with abilities to capture and validate the energy reduction and emission reduction that is taking place so that that information can be fed into, whether it be those those tender applications that can be monetized and used with the financing alongside the financing of the products themselves so that that can reduce and increase uptake of the underlying products. There's a big focus that we're putting onto facilitating the the CapEx

47:33 of of products for those customers so that there can be an increased pace of adoption of this the products that the group offers. And that's both through working on the ways in which we integrate with financing providers to facilitate that CapEx, but increasingly, the introduction of novel and new forms of finance, particularly those tied to the energy and carbon performance of the assets, which have been brought to customers to the platform under that digital model. So the next question's around recurring revenues and how our business model's going to create those. And there's a number of forms of these. You have got the impact partners whereby the banks themselves, for example, will refer leads to us. So we will get new customers coming through, but it's recurring revenues from the point of view it's of where it's originated from.

48:28 Those clients, once they've been referred across, actually become our clients. And as as we have with the Hilton, it's then for us having got the introduction to be able to maintain those relations to go back to those customers year after year with new innovations and things that might help them once we understand what their business is. For others, so for example, with the care not the care homes, the social housing providers where we're doing things there, there are contracts there where they have a number of properties, and every time there's a void property, they're looking to install Just Eat. So this is a framework effectively over a number of years, sort of three years, whereby over that period of time, we will eventually go through all of our housing stock, but only as the void properties come up. And then the final item is more around care packages. So aftercare around the ABB charges, for example, or these other solutions where we are offering continued support for those installations that we're doing, which again brings more touch points with those customers to stay stay on board with them and to understand their ongoing needs at various points. So that is very much, at the forefront of what we're trying to create here.

49:43 And where can customers see Just Heat in action? So several places. We have a set of demonstration rooms that are now live around the country, starting with our premises here in Aminford in South Wales down in SA 1 at the University of Trinity Saint David, currently being installed over in Boris and Edmunds at the SSTC site, and and also at the National Renovation Self Build Center in Swindon. Interfloor has been installing and trialing our products at their premises in the in the North towards Yorkshire as well. So in terms of how's the validation process is going for other products like the fluid, it's worth saying with things such as our work that we're doing with NMC about the coving, and it's really an iteration of the existing product.

50:39 So it is the heat map just in a different format or different size and and width, etcetera, so it fits behind the coving. So the product actually is up and working, and we are just testing it now and iterating it to work properly with the with those with those partners that we have. And with the thermal fluid, it's currently in commercial testing. And at the appropriate point, we will be making the appropriate announcements to the market, but it is out there and and, subject to being trialed in real life situations. ReData centers, how are we planning to work with third parties? So we have established an approach to trialing to the commercial deployment of the transfer fluid, which is very much in partnership with those who are in the space of building, designing, operating data centers. And this follows the approach that we have taken since introducing the underfloor heating product. So the underfloor heating product was largely developed on our own balance sheet, but then increasingly in conjunction with strategic partners as we took it to market. From the perspective of the follow on products, coving, skirting, thermal fluids, it's increasingly developed under development agreements with third parties.

52:08 Funding is brought to those initiatives, and then those distribution channels are sitting there, are activated as a result to begin the initial commercial deployment, following which, of course, we introduce those products onto our go to market platform to SMCC to drive to scale into the market. So the next question is around, will there continue be a continued focus on researching and pioneering new and emerging technologies or simply build on what we currently have. I think this is a matter of time scales. So in the short term, we are very much focused. We are actually trying to get ourselves to be EBITDA positive. We need to build on what we currently have and, therefore, very much leveraging our existing r and d that we've already done around the Just Heat and, in particular, heat or ink technologies and thermal fluid technologies.

53:03 There are a number of other products that over the past five, ten years, we have developed that's actually we will be looking at again to bring forwards, as we move forwards, which is leveraging again the HD plus underlying technology. And therefore, it's not that we're not continuing to do r and d. We are but actually, in the short term, it's all around iterating these products and variations of these products to get them into market with the very much the intention that we will come out, as Simon has said, with additional products as we move forwards. So is the present geopolitical situation impacting on our supply chain? And and it's not. We we did quite a lot of work last year when tariff is were introduced particularly at the point where we had exposure to suppliers in The US.

53:54 We did quite a lot of work to diversify the supply chain to second and third source and to ensure that we have access to the ingredients, the raw materials that we need sufficiently in advance for the demand we're serving. So we have quite a sophisticated strategy now and supply chain management around the the products that are in production, our on floor heating and and cooling and skirting panels, but similarly as we introduce the products onto the platform. And from, importantly, looking at the SMCC platform side, the manufacturers that it works with deliver products that are are other than the proprietary HAYDALE ones, there are no there are no issues there with regards to to stock and access and ability to deliver on contracted revenue as a result of of trade disruptions.

54:52 And there's a related question around supply chain in respect to graphene sourcing. Now graphene is increasingly becoming a commodity, product, byproduct of other processes, and there's a wide variety of suppliers in the market, each of whom's graphene is slightly different. But we are at the point where due to our process, we can take graphemes of the right density and the right sort of, type and hone them to work with our applications, which is why we are able to second source or third source graphene for our underlying technologies. And therefore, we don't particularly have a supply chain issue with graphene. So Octopus is a shareholder. Is there any collaboration with Octopus Energy? So, yes, indeed. You're you're right. Octopus is is an important and collaborative shareholder, and and we engage engage closely with them.

55:47 At this point in time, our Just Eat products not distributed through any of the energy utilities. But as we've seen on the SMCC side with the water utility industry, utilities are can be important important impact partners, and we do expect to continue growing the impact partner program as we move forward. How does your CE Mark approval relates to the different uses and types of graphene? So the CE mark is product focused. So we have a CE mark and a UL mark for the North America market on our underfloor heating panels and the and that is focused on the application of, obviously, our graphene technology into the the product.

56:46 So it doesn't depend on our use of a particular type of of graphene. It doesn't depend on particular recipe for its functionalization. It's all about the the the product itself, its performance against safety and and technical standards for those given markets. So will we need to raise more money from shareholders? And if so, when? There are no plans to do that at the moment. We believe we are fully funded to get ourselves to EBITDA, positive and therefore cash generative. If we do come back to market, we expect it will be in respect to, growth opportunities, and we will do the necessary at that particular point in time. I the next question is, is largely the same. So the final question here on the list, we were collaborating with a vehicle manufacturing company in The US.

57:43 How is that evolving? Yes. Indeed. And that was related to our thermal fluids product. And as said, the thermal fluid is in commercial validation in the market with a number of parties. We're focused in the conversation today on data centers, on the applications around server racks particularly, and that isn't the extent of of the applications that we see for the fluid. Very much as we are seeing increased sector interest, a wide variety of applications for just heat, we expect that our thermal fluids will have similarly wide applications. In this particular context, automobile manufacturing production lines, and we continue to to test in those brands.

58:33 Perfect. Yep. This is the end of the questions. Simon and Patrick, if I may just jump back in there. Thank you very much indeed for being so generous of your time there and addressing all of those questions that came in from investors this afternoon. And, of course, if there are any further questions that do come through, we'll make these available to you after the meeting. But, Simon, perhaps before really now, just looking to redirect those on the call to provide you with their feedback, which I know is particularly important to yourself and the company. I If could please just ask you for a few closing comments just to wrap up with, that'd be great. Yes. Thank you very much. Well, you know, thank you everyone who has joined today and the the very engaging questions that you have posed. We very much enjoy hearing from and engaging with our our shareholders, and we look to undertake this exercise on a regular basis going forward.

59:23 We will be back with our half year results towards the latter part of May, and and would like to to present you with further updates at that point in time. Thanks to our shareholders for the support through this reset period and in the business that that we have now built and are taking to market going forward. There was a question around engaging with us in the form of the Just Heat product. We very much would encourage shareholders who and from a consumer perspective, those who are interested in a Just Eat product to visit one of the sites that we have for demonstration or to get in touch, and we'll be very keen to engage with you around your own projects. That's great. Simon, Patrick, thank you once again for updating investors this afternoon. Could I please ask investors not to close this session as you will now be automatically redirected for the opportunity to provide your feedback in order the management team can really better understand your views and expectations?

1:00:22 This will only take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of HAYDALE PLC, we would like to thank you for attending today's presentation. That now concludes today's session. So good afternoon to you all.