Journeo (LSE:JNEO) — Interim Results

0:00 Good afternoon, and welcome to the JOURNEO PLC interim results investor presentation. Throughout the quarter presentation, investors will be in listen only mode. Questions are encouraged, and they can be submitted at any time by the q and a tab situated in the right 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 in the meeting itself. However, the company can review the questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to CEO, Russ Singleton. Good afternoon to you, sir.

0:29 Good afternoon, and thank you, Alexandra. Good afternoon to, everybody. It's made time to, join us on this, this presentation and hear about our, h one results. By means of an introduction, I'm Russ. I'm the chief exec, and, I'm joined by Nick Lowe, who's our chief financial officer. We've both been with the company a fair while, and, also, we're delighted now to to to talk to you about our results. So, JNEO is about intelligent systems, for transport networks and infrastructure, if there's any new investors or potential investors listening. And what we're about is providing sort of fully integrated solutions sort of end to end in in in those networks.

1:19 We've delivered good results for h one, very strong results, got a a growing opportunity pipeline. We also have an acquisition pipeline which we've been working through over the last few years. And as some of you would have seen, we recently completed an acquisition at the beginning of this month of Chrome and Fire, and we've been building the senior leadership team and our, sort of back end software systems to create an organization that's capable now of working at a much higher rate, much larger footprint in the market. And we've been investing, considerably in our research and development. And what that's doing for us is it's, as we put in there, it's helping us to increase our profits, delivering a 11% operating margin and a strongly growing pipeline.

2:16 So, again, if there's, move to the for, anybody that's not familiar with us, we have four, operating companies at the moment. Our fleet systems business, which is really about fully integrated services end to end, in public transport and, some selected areas of freight market. We have our passenger systems, which is really about information,

2:42 delivery to members of the public, from sort of transportation applications. And Infotech is the market leading rail passenger displays, business in The UK. And we have JNEO AS in Denmark, which was formed from the acquisition of MultiQ Systems in September 23. We have a a growing and wonderful list of end users and customers that we work work with, and that's growing both geographically and segmentally. And at the moment, we have 31,000 assets connected to our cloud platforms on a concurrent basis generating, recurring revenue.

3:28 We've got about, 30% or over 30% of The UK bus network onto our cloud cloud platform. 2,000,000 journeys a day reliant on the Infotech, information systems. And I won't go through all of this, but there's just over two hundreds in in the company prior to the acquisition. I'll hand over to Nick to run through a summary of the interims. Okay. So I guess it was a very, very pleasing set of results. At the headline level, revenue decreased by 4%. As we go into a bit segments, we'll see why that was, but we had a £3,400,000 of revenue from a contract with the USMTA in H1 last year, which we didn't have in H1 this year. So if we remove the effect of that for us a lot on a like for like basis, revenue actually up by about 10%.

4:20 Gross margins were good, very good. We were up 3% across the group. As we'll see later on, we were up in every segment in the group. So overall gross profit actually increased by 3% to 9,200,000 despite the drop in drop in revenue. We had a small uplift in overhead, just just inflationary. So overall, adjusted PBT stayed level at $22,800,000. EPS was down at 12.51 p. The reason for that is the effective tax rate, for a very, very low effective tax rate last year. We still have a low rate this year because of the benefit of hourly tax credits, but, that's the the reason for the movement in EPS. Cash was phenomenally strong at the end of the half. We had £18,000,000.

5:06 Obviously, we spent some of that since since the half on the acquisition, but we still sit with just over £9,000,000 of cash today. We spent about £1,000,000 in r and d in the half. We we capitalized some. We expensed some, but capitalization is matched by amortization. So, basically, 1,000,000 did pass through the p and l. So the PBT is after writing off, 1,000,000 of r and d in the half. On to segments. So fleet systems had a had a stunning performance, up 46% for revenue. It's it's gone up by about two and a half times revenue highs in the last three years. Gross profit was good. 65% of that was driven by a 3% uplift in margin as well. So really, really strong performance from fleet.

5:56 But the contribution level, delivered 1,600,000, which is three times up on what it did in the same period last year. Passenger system, again, very good performance, up 17% on revenue to 6,100,000. Margins were 2% up. So overall GP was up by 21%, and that group delivered a profit or bottom line of about 600,000 for the group, which is about 50% up on last year.

6:27 Infotech, so this is where we had a drop in revenue. So as as I I say, we had a £3,400,000 of revenue from The US contract in, h one last year. Nothing in H 1 this year. But moving forward, we won $5,200,000 of POs with the same customer in H 1, which we will get probably up 40% of the revenue in H 2 this year. So we expect well, I expect we will have a stronger h two and h one for Infotech. Within that, gross margin were up to 45%, which meant that GP didn't decrease by as much. And overall, we still had a good contribution out of Infotech, at about 400,000.

7:13 JOURNEO AS, so our Danish business, again, at the headline level, revenue was down at 1,500,000. Similar to Infotech, we'll have a stronger h two from JOURNEO IS. The benefit we have with JOURNEO IS is the recurring revenue. So JOURNEO S makes a profit just from its recurring revenue. So because we're predominantly recurring revenue in h one, we had a gross margin of 61%. So the 1,200,000 drop in revenue actually only resulted in the drop of the bottom line by a £100,000. So overall, although it dropped, it was it was less, and we'll have a stronger h two. So

7:50 so Fleet Ambassador did very well, and Invetech and JNEO would AS will deliver a stronger h two than h one. Recurring revenue, it was 16% of the group in h 13% of it last year, so we're up about 15%. For recurring revenue. Roughly 40% of it is SaaS, and the balance of 60% is is more your traditional traditional maintenance. But SaaS is the element, so we said before, that is growing, probably from about ten, fifteen percent two or three years ago up to 40% of total recurring revenue now.

8:25 Contract wins. So we have a we have an announcement threshold of a million pounds for contract wins. So anything below a million pounds, we we we don't announce. What we have here is a, I guess, success across the business. So we we we have multiple contract wins, say, the different segments. So the first two, Stoke and Cardiff, are in passenger systems, and they're principally hardware contracts but with a recurring tail of revenue for three to five years. The third and the last are the $5,200,000 of orders from The US for Infotech, which is why we will have a stronger h two from Infotech. So $5,200,000 across the two. The fourth one is a three year frame with the first bus, so that's the estimated value of about £10,000,000.

9:15 There's a two year option on it. So, ultimately, we would expect 15,000,000 plus from that contract over the five years. And the £4,200,000 is from Alstom, so that's within fleet systems for rail. Four The 200,000 is is a hardware delivery. What we will also have after delivery of that is a recurring income of £400,000, which isn't part of the 4,200,000, so there's additional future recurring revenue to come from it. Then lastly is operational highlights. This is some of the I guess, Russ has touched on most of you already, but we we had our first carbon reduction plan for the group in h one. We are now integrating all the business systems from the acquired business, our own business. So we have a new CRM system across the business. We have a new software development platform. As Russ said, the senior leadership team was strengthened at the end of last year and into this year.

10:10 K. Thanks, Nick. So really want to just to, sort of bring this back now to what it is that JNEO, is trying to build. What we're looking for, really, is to align ourselves with, some of those well known megatrends that have been, discussed really from the sort of original concepts of smarter cities where you have these themes of urbanization, climate change, shift in economic power, demographics, and also the technological breakthroughs. And JOURNEO has has really started, in the public transportation gathering market share both in terms of the onboard bus, train, coach, and the tram, but also in the sort of active street furniture about delivering, travel information or disruption information to members of the public.

11:01 And as part of that, we're seeing now, obviously, congestion that's driving all sorts of developments in terms of dynamic, traffic light signaling and some of the, highways and the ITS developments. From a climate change, we've seen moves to decarbonize public transport and also service vehicle, propulsion from diesel to either electric or hydrogen fuel cell. And these are, if you like, inflection moments where the previous sort of locking that suppliers and customers have have are breaking. And some of the very large or dominant players are finding quite difficult to move in these transitions, and these are opportunities for JNEO to come in with a potentially disruptive solution at much lower cost base.

11:53 And it's that kind of, tactic that we've been deployed that's been driving significant parts of our growth. Now inside the flight from the transportation point of view, what we're seeing is some very significant government backing through things like the bus service improvement plan, but also the city regional sustainable transport settlements phase one as 5,700,000,000 that was allocated in '22, which started to come through, really towards the end of '23 and '24. That runs till 2027. And they're now committed to a phase two of that, which is 8,800,000,000, and that will run from 2027 to 2032. And we are seeing lots of programs to pedestrianize in the parts of city centers and town centers, create park and ride systems where they got fully off grid bus shelters, signage, lighting, different sort of road surfaces, and these sorts of things along with the traditional, zero emission vehicles, some of which may become autonomous.

13:01 So, a wonderful opportunity there for for a business like JOURNEO. Our strategy really hasn't changed. It's all customer applied, research and development. We would love to do, ivory tower based speculative r and d. But by the moment, we don't have time. We talk to our customers. We try to, understand their needs and their wants and and what their, challenges are, and we apply our r and d to solving real life problems or next generation problems. And our goal, twelve months ago was to take JNEO from what it was then was, just under 50,000,000 revenue to a 100,000,000 in a sort of three year time frame with double digit operating margins. And the way that we're going to get there is through a mixture of organic growth and acquisition.

13:54 So the organic growth, as Nick's just demonstrated to you, very strong organic growth. There are opportunities for consolidation in the marketplace, which we are considering. And, obviously, acquisitions are something that we've been active on now for a couple of years or so. We're also focusing on the quality of our earnings through, very specifically targeting recurring revenue, and that doesn't have to be pure SaaS. What JNEO is is we're sort of like an end to end business where we we provide literally from the consultancy right through to the managed services, and we want to be with the customer for the long journey. So we'll we don't mind having a point of entry where we provide maybe just a slight taper of our solutions through maybe maintenance or through SaaS right through to the full consultancy.

14:45 And we found now as a result of the this kind of technological platform that we've built that we're able to enter adjacent markets where our core capabilities can actually lift the performance of businesses in those adjacent markets. And that's really been informing our m and a targeting. So we have about 30 businesses in our m and a pipeline at at any one time and six of them at various stages in completion. So as a result of the, acquisition of Crime and Fire, we're now well on the way to the 100,000,000, both revenue and market cap. The acquisition of Crime and Fire really does align with our strategy of taking our core capabilities into adjacent markets, and it strengthens our offering and broadens our reach. So it's given us an opportunity to differentiate the acquired businesses through our R and D whilst retaining their domain expertise and their intellectual property and their unique cultures.

15:46 So in due course, the group will change its reporting into these three, categories. And but, basically, we are expecting the revenue as we hit the 100,000,000 revenue in the next, twelve to twenty four months to be broadly equal. So, you know, typically sort of 30 to 35,000,000 in each of the three segments. And, our integrated services business is where, what we're delivering is effectively peace of mind to the customers that the systems are monitored through, new and condition monitoring, and we use machine learning and AI for predictive maintenance where we are providing that service. The information systems is both the image acquisition and the, the modeling of data broking to be able to deliver a kind of coherent, messaging, whether it's transport, it's disruption, or it's actually, logistics displays into the information services divisions.

16:50 And our infrastructure protection clearly is now based on the acquisition of Crime and Fire.

16:56 And and what that's about really is protecting initially the the the critical national infrastructure that they have, but also, those sites that JNEO has. We have nuclear power station, which is very complex park and ride systems, and we have similar park and ride systems at seven international airports, and shortly to become, extended into, our oversee first overseas airport in Copenhagen Airport where we signed a framework contract. Our acquisition pipeline is now firmly targeted at the intersection of this Venn diagram. So we are looking at businesses that, for example, will provide more of the solution in an infrastructure protection for the benefit also of the transportation networks market or similarly, businesses that are in the information services delivery that will take us beyond transportation.

17:54 And we've got examples of that at the moment in The United States, where we're providing for the first time, we will be providing, sorry, some some platform

18:04 displays, which is not, a media related sale into the New York City subway. We expect to see more of this in The United States, and we will shortly, open up JNEO Inc, based in The US. So, if I talk a little bit now about crime and fire. The crime and fire defense system is a business that we've known for twelve years. It's been in our acquisition pipeline for just over two years, and it was actually number three in our list, when we entered 2024. There were two acquisitions that were ahead of it, and then for various reasons, actually, we withdrew from one of them, and we lost one of them because we're unable to complete pre budget.

18:51 So,

18:52 CryoFire moved to the top in, February this year, and, it's a business that we like, very much indeed. It specializes in physical and cyber protection of critical national infrastructure. Predominantly, that's around, national grid gas and, national grid electrical systems, but it's also it's protection other, critical national infrastructure sites, where connections come into The UK. It has a full raft of certifications,

19:27 and it's a business that's actually being run strongly. It's been established over twenty five years. It deals with, most of the large utilities, and working in actually very challenging and dangerous environments where there's significant barriers to entry. Each range of capabilities span from the consultancy and design where it's working with the security services and the critical national infrastructure agencies, And it does the the design. It has the capability then to project manage and install these, installations, which are they can be quite basic where they are civil engineering sites in remote locations.

20:13 But because of the nature of them, they are highly secure. And it has some of its own products that it's developed over the next twenty five years, which, again, differentiate them from anyone else. And these have a potential third party resale, overseas. So some of the first tasks that we're doing with this business is actually, introducing the JNEO design center to some of those products so that we can get the certifications and the scale of capability so they can be distributed more widely. Its customers are, the ones that you would expect, some of the very large utilities.

20:51 It it it is able to offer a turnkey solution in very demanding environments. It has lots of the clearances, security clearances that you were expected to have, and it's just starting to enter now into doing work with directly with the Ministry of Defense. And we see this as a tremendous opportunity for JNEO PLC because we can deploy our research and development, our developers, software coders, and some of our quite advanced, network and cyber skills to assist CFDS as it tackles more sort of critical infrastructure programs and defense related works. Okay. So that's the sort of end of the high speed sort of run through the acquisition. So I'll hand over now to back to you, Alexander, to to to run us through the the next stage of the questions.

21:44 That's great. Well, Russ, Nick, thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions, and you can do so just by using the q and a tab situated on the top right hand corner of your screen. But just for the company, take a few moments to review the questions that have been 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 your investor dashboards.

22:06 As you can see, we have received a number of questions, both presubmitted and throughout today's live presentation. And now if I could hand back to you to read out the questions appropriate to do so, I'll pick up for you both at the end.

22:18 K. Thank you. Okay. Do you want to tackle number one? Or shall I do that? You have that one. Okay. Okay. So, number one, good question. Can you please outline how we're managing the scale up and size of the company and the channel the challenges of minimizing complexity, bureaucracy, and cost whilst ensuring customer satisfaction? It's a fabulous question.

22:42 And I wish I could say that we could do all that in one go. So So the the way that we've been, preparing JOURNEO for for scale up is that, over the last couple of years or so, we've been investing in the senior leadership team around Nick and I so that we can effectively hand over, you know, key areas of the business to very talented individuals. So, we've recently acquired a group, purchasing manager, a group sales director, a group HR manager, a group head of software. And, on the October 1, we're bringing in, direction of customer delivery, which effectively is a confusion of a of CX role and a PMO role.

23:34 And, what what this is enabling us to do is enable, if you like, the the company to scale up in terms of each of those disciplines. So we've been, I've got an active program to, build out a a unified, CRM system, which our new sales director introduced basically during the course of this year. We've introduced Jira for software development. Many of you might know this. And we have a number of other, sort of back end platforms that that we are using, particularly things like Peoples for HR. The next, thing that we've been doing is we also started an internal business called JNEO design center where we've been capturing all of the wish lists from the various sales channels and customers that the group is interacting with to bring them together to try and, unify things like operating systems, microprocessors, some of the AI tools, and and also some of the cloud and web systems, which we use in a mixture of AWS and Azure to try and get, obviously, scaling economies, but also to to to get much deeper into the development model and also reduce costs.

24:56 And that's that is working really well. So, obviously, there are challenges with growing businesses. You know, JNEO is a really exciting place to to to be. There's a lot of things happening at the same time, and there's a lot of international potential now, I think, for our inquiries, which are coming in through our Scandinavian well, basically, our Swedish and, Danish business, but throughout the Scandinavian area. Also, Intercontinental Europe and particularly into The United States. So, hopefully, that's that's answered your question. I guess one other thing is we are also conducting con continuous net promoter score for customer satisfaction. Okay. Can I take that one? Yeah. Yep. Okay.

25:43 So there's a question about out front media. So, question is the relationship seems be growing strongly. Are there opportunities to extend these commercial arrangements without Front to other North American markets, or is there enough to go for a New York City? So, yes, I I guess the the the the key thing is the two orders we have received from Outfront in h one are for are different than the original order. So so the first order is is for for spares to support the first order. So it's not it's not for new new trains. Although, again, we've said before, there are two potential further well, there are two two two more groups of trains that will, be going into service in New York City.

26:29 The second PO was, as Russ said, is totally different. This was for on platform displays. So so what what we are doing is developing a very good relation with out front media. It's it's it's a growing relationship, and they do operate in other North American cities. So the relationship's good. So there's always will always be potential there for other stuff. K. You probably wanna take that one about the r and d spend. Yeah. Where are we? So R and D spend. So we talk about 6,000,000 spend of R and D. Do customers also contribute to development costs? Yes. They they do. I think, Russ, we we don't do suddenly. We we we we don't do development that we don't see the market for.

27:17 We've got lots of developers that would like to. Yeah. Yeah. So so so so development is is always focused on on a sale that we can always usually focus on sale that we can already see. So so by default, the customers are often contributing to it be because the the sale is already there. I'll I'll tackle that one. This is a question, from, Oliver b. How viable is The US operation? Well, at the moment, we actually don't have a a US operation. As I mentioned to you, we have, about five and a half thousand of our displays at the moment on, the first 500 trains that they've replaced in the New York, metro.

28:06 And our customer has a contract that runs to twenty thirty, exclusive, marketing rights to, for the media on on the subway there. And as a result of the sort of vandalization that they, unfortunately have, we they've been collecting the displays and returning them back to us for rework if it's possible to rework them. Obviously, in many cases, you can't rework them, and they've they've used up their their replacement hot spare displays. So they we we had the the $2,500,000 order was to build another transship displays for replacements. But we've had, one of our engineers working in our customer's base just outside New Jersey, for twelve months, and we have two engineers now working on rotation.

28:59 And that's really helped, both us as the manufacturer, but also our customer, triage things and get the displays back into service. And as a result of that, it's that that's really led led us to the point where we think that if we form a JOURNEO Inc, a US based subsidiary, then we'll actually be able to supply more directly into The US. So we would be carrying out the design of the microelectronics assembly in The UK, but the final products will be, commissioned, and made effectively in The US, which would enable enable us to, supply more into the into into our customer, but also into other DOTs throughout North America.

29:47 So, but at the moment, we don't have any cost base at all. It's a profit generator. But given the length that our customer has of its contract and the number of displays that he's responsible for, it will be profitable from day one for us. Hopeless. And that's okay. I'll pick this one up. Yeah. So RW has asked for just more clarity on where we talk about full year expectations. So the question is, so in our pre close statement on the July 29, we said revenue is is expected to be approximately 52,000,000 in line with current market expectations. And then on September 2, Cavdish upgraded full year expectations to 56,000,000 and 5,600,000 PBT.

30:40 In our statement, we said JOURNEO is on track to deliver another record set of full year results in line with market expectations. So what our objective is, ones are we referring to? And it is the September 2 expectations, which is 56,000,000 revenue and 5,600,000 PBT. My question here, would we consider earnings dilutive acquisitions? Simple answer to that is no. We do have a number of, particularly in the AI arena where there's a number of, very nice, businesses that are pre revenue. They've got some fabulous groundbreaking technology. But as you might imagine, they have, very high valuations attached to them that clearly, don't make any sense for us.

31:35 And as I said, JNEO actually is is really about the solution. We don't just want to provide part of that. We actually want to be there for the, you know, for the long haul with with these customers and build very strong foundations with them. So, there are lots of opportunities for early enhancing, acquisitions, so we're focusing on them. So hope hope that answers your question. Okay. Difficult to read. Have we got any what's that one about JDC? Have any generic prod okay. So this is one, from Patrick. Are we any generic products being launched from the JDC?

32:23 The answer to that is no. We've got some well, in fact, products is probably a difficult one. We we we we're not making anything that's really just a me too. There'd be no point in us reinventing the wheel. So if if we can build the solutions that satisfy the customer with things we can buy off the shelf, we will do that. There's no point in us, investing in something that's me too. The developments that we carried that are being led by the JDC are all next generation things where they outperform either in terms of brightness, performance, resolution, longevity, power consumption, or recyclable or sustainable nature. And and the first sort of physical products of that are actually have been released.

33:13 Some of them actually gone to paying customers in sort of like a paid for beta trial application. And some of them at the moment are so new that we are, trialing them, and just basically just going through the sort of final shakedown before they move into production. There there's several products, actually. It's not just one. But we we don't actually ever intend to make that generic product. That would be that would be pointless. Okay. You want to drop the. That one? Yeah. Okay. Yeah. So the question, how advanced are the companies at the top of the m and a pipeline shop? I will assume he's asking how far are we with our discussions with them.

34:00 I think, Russ said, we we are we've always got a number of discussion discussions ongoing, and and we would like to be in a position to do one, early next year. So, yeah, we we are we are at a good stage in discussions with with with multiple potential acquisitions, Okay. Can just scroll down. Got it. Pretty difficult to read. Oh, the other one here. Are the MOD opportunities magnified by the RAF breaking this year?

34:56 The the answer to that is yes. Definitely. The, this obviously would be through the, crime and fire business. They have the, security clearances to to do that sort of thing. And and discussions are actually underway not about that specific location, but other sort of military bases as you can imagine that following it's probably not nothing. Following following that, there's a lot of work going on now to harden up the they call it PIDS perimeter intrusion detection systems, and both from a physical point of view, but also from a cyber and drone point of view. So there's a lot of work going in here. And, this is actually something that JNEO r and d team, will be working on very closely indeed with the crime and fire team over the next sort of twelve, eighteen months or so.

35:51 Okay. Think probably got time for one more. Can we just scroll down? I think the the this question really is okay. So from James, good question. We've been doing well winning business in The US of late. How important could The US be for JNEO and our reputation, for opening more doors doors over there? It's a really, really good question, James. What we know is under the Biden administration, they talked about $3,000,000,000,000 spend in transportation infrastructure. Also, that would include the highways. The systems in The US and the sort of downtown areas, a lot of there are lot of metros, but the sort of public transport, because of the geographic size in the place, tends to be more sort of intercity track.

36:49 We we we believe there's a tremendous opportunity for the suite of capabilities that JNEO possesses. And a number of the acquisition targets actually we've been working on have been businesses in North America, I. Mainly in The US, but also in Canada. We we, it is difficult moving into The US market. It's very big, so you need to be very focused. On the on the moment, the way that we're going about that is that we're we're doing this very, very closely with our customer who are, embedded within the, New York City, sorry, the MTA. But they are active in a number of other, cities. It's a $2,000,000,000 media and marketing specialist business.

37:39 And we are talking to them about programs in other metro areas. So, we are this is really why we're going to form the, JNEO Inc, shortly so that we we've actually got a US foothold, in order to then, start to capture some of the it goes back to that slide about the, sort of megatrends. They equally apply slightly different emphasis in different countries, but they equally apply the you know, in terms of the congestion. Maybe at the moment, The US has a different view on the decarbonization and climate change. But, nevertheless, the public transport and the infrastructure, particularly in the highways infrastructure, is is something that's set to grow very strongly.

38:30 And JNEO's in a good position to capture part of that. If you could Not much. We're probably out of time, actually. So do you wanna take any? No. One question, and I can't get an exact answer. How how much of the growth to a 100,000,000 is organic versus acquisition? We we can't get exact numbers on it. It it will be both. I guess we we've done we've we've already done done a good chunk of the organic growth already, but there is more organic growth to come. You know? Particularly, there's more to come back from tech there's more to come back from Denmark. So it will it will be it will be a mix. So yeah. And we're well on the way. So our goal is to, get to the 100,000,000 and with double digit margins, and we're well on the way now to do that.

39:20 So I think, probably hand back to you then, Alessandro. That's great. Well, thank you very much for answering those questions from investors. Of course, the company can view the questions submitted today, and we will publish out the responses on the investor meet company platform. Just before we do redirect investors, provide you their feedback, because that's particularly important to you both. Ross, could I just ask you for any closing comments? Sort of, really, it's just a summary that, at the moment where we are in our development, we still conceal a lot of things that we want to do to, to strengthen the positions that we have in our core markets, and we are doing that. We've created a fully scalable cloud, application that's that's now transcended from, public transport in terms of the on vehicle now actually into the active street furniture and the information delivery systems.

40:13 And we're now going to be taking that into areas within the critical national infrastructure and, in due course, defense related markets. These are all applications that are not unique to The UK, so they're things that could be scaled up either directly through startups or through third party resale in other territories. And we see now some really attractive growth areas, particularly in North America and also in parts of Asia for some of the things that the group has developed. So, thank you very much for for making time to hear our story. We are grateful to you, and we've enjoyed answering your questions. That's great. Well, thank you once again for updating investors today. Could I please ask investors not to close the session as you now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations.

41:06 Half the management team of JNEO PLC, we'd like to thank you for attending today's presentation.