Manx Financial Group (LSE:MFX) — FY Results

0:00 Good morning, and welcome to the MANX FINANCIAL GROUP PLC investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and could be submitted at any time via 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 it receives 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 I'd now like to hand you over to Douglas Grant, CEO. Good morning, sir. Thank you, Lily. Good morning, everyone. My name is Douglas Grant. With me today is the group finance director, James Smead. It's our pleasure to talk you talk you through the 2025 annual results. As always, there's a a disclaimer. I'm sure you've seen hundreds of these in the past, but, obviously, we need to show them.

0:51 And then there's nothing unusual about it, so let's move forward beyond the disclaimer. MANX FINANCIAL GROUP is a diversified group of financial services companies, both in the in The UK and soon to the end of The Republic Of Ireland. These are the main operating companies and center to all this, the three largest circles here, Coneste Bank Limited, MANX Ventures Limited, and Payment Assist Limited. I'll talk about those three and probably the other drivers later on in this presentation. The key stats from the bottom left of the slide that I pull out is the total net asset value per share of 22.232, and the the high normalized return on total equity of 30.9 percent. As you can see, there is a couple of there is a bank or two bank licenses in this group, so the total capital ratio is important, and that's significantly above any minimum of 15.8%.

1:51 And James will talk through the reported profit of 7,300,000, and by when normalized, that increases to 8.6. This is the board of match the listed entity, MANX FINANCIAL GROUP PLC. On the left hand side, we have Jim Miller, our chairman. Jim is well known as an entrepreneur that plays capital and equity markets globally. He is a very good supporter of MANX FINANCIAL GROUP. Indeed, he's the largest shareholder. The next agenda is myself. My background is in the electricity supply industry, petrochemical industry, shipping, and financial services. So there's a lot of various sectors that have been employed and employed in mostly in the finance in the finance role and also as CEOs.

2:43 And beside me is James. James is a highly qualified accountant who has twenty years experience and has been with this business through significant growth. On the right hand side, we have a mixture of entrepreneur and people who have got excellent governance and the listed entity. Obviously, we do need that governance, and that governance is incredibly important to me. I find it as a check sometimes because in this market in particular, you need to ensure that you're getting everybody's views. You're doing a three sixty step before you make any forward steps. So I would pull out there Jenny, who is our chair of ARC. Greg, I've heard below Jenny. He's the ex tax tax partner at KPMG.

3:33 So we're moving on from that onto slide five, at which point I'll hand over to James. Thank you, Douglas. So, yeah, for those new to the company, let me give you a quick orientation before we get into the numbers. MANX FINANCIAL GROUP, diversified financial services group, headquartered here on the Isle Of Man with a significant and growing UK footprint. At its core, we operate a specialist funding model. We provide capital to nonbank lenders who serve markets the traditional high street banks largely stepped away from. The structured gap is significant. Nonbank lenders now hold around 36% of the 15,700,000,000 UK SME lending market, and we're well positioned to grow within it. We fund that lending activity through large, stable deposit base, and we achieved 452,500,000 at the year end of customer deposits, which gives us that reliable and cost effective funding engine.

4:29 Alongside the core banking business, we have MANX Ventures, an entrepreneurial subsidiary, which gives us exposure to 13 operating companies and creates meaningful diversification of income. The headline return metric that we track closely is normalized return on tangible equity. That came in at 30.9% for, 2025, which we believe speaks to the quality and efficiency of the model. And we maintained our dividend paying 0.78p per chef for the year, significant signal of our confidence in the stability of the earnings. And I think it's worth spending a moment here just to explain the headline reported numbers, that need context.

5:15 We reported a profit before tax that came in at 7,300,000, and it was down from the prior year of 9,900,000. And we we need to be transparent for why that is. There are two factors that really drove that. One of them was the operating performance of Business Lending Exchange, one of our subsidiaries, and also the impact of nonrecurring provisions. These are not reflective of the underlying performance of the the wide business. When you strip these out, particularly the nonrecurring provisions, which are driven by DCA, the Isle Of Man sorry. Not the Isle Of The UK FCA review into the motor sector and the misselling and the inappropriate remuneration of brokers and disclosure commissions.

6:02 We put through this year a 1,300,000 provision. In And the previous year, we put a naught £200,000 provision bringing a total of 1,500,000 across the two financial years. And then also, when you consider the windfall that we had with Payment Assist last year that we were transparent in that record profit year of nine point nine when we said we had a £1,800,000 release, in last year's results to do with, bringing forward the model on the improvement in efficiencies and debt collection methods, etcetera. So when you when you strip when you eliminate these two things, you have you really see underlying performance of the group, and and what's pleasing to report is that it's it's up year on year. So 8,600,000 is a normalized result, and then prior year would have been 8,300,000.

6:49 And so the earnings normalized basic earnings per share increased by 10% on that basis. And for those who follow us closely, 10% EPS growth is number we point to as the most meaningful indicator of progress. Net interest income at core revenue line grew 14.3% to 37,500,000 driven by both balance sheet growth and improved funding mix. That's a strong opposite operational result. The balance sheet itself is in good shape. Net assets increased 16,700,000 to 43,600,000, and tangible net assets per share rose to 22.2p. Our total capital ratio, which Doug has touched on, of 15.8%, while while slightly lower than last year's 17% remains comfortably above our regulatory minimum and also indicates how we're we're being more operationally lean in lending across the portfolio and not storing huge excess of capital reserves despite being well above our regulatory minimum. So in summary, the reported number is lower, but the underlying business is growing, and that distinction matters when we're communicating to you.

8:00 In terms of this slide, I think it's particularly useful, for new investors because it gives you the five year trajectory of the business at a glance across all four metrics, net interest income, normalized earnings per share, tangible net asset value per share, and normalized return on tangible equity. The trend is consistently upward. Net interest income has more than doubled since 2021 growing from 18,000,000 to 37,500,000. Normalized EPS has grown from 2.44p to 6.28p over the same period. That's compounding value creation. I think that's a real, meaningful metric to look at. Tangible net asset value per share has grown from 14.1p to 22.2p.

8:45 So the book value of the business is genuinely increasing, and normalized return on tangible equity has risen from 17.6% in 2021 to 30.9% today, and the trajectory shows the model becoming more efficient as it scales. In terms of the share price history, many of our existing shareholders will be familiar with the patterns here. One thing that we've been committed to is to improve communications to, the investor base, and, you can see the introduction of operational updates, the q three, q four, announcements that came through, the appointment of Shore Capital, our broker, and, yeah, and also director appointments that Douglas has mentioned, the FINANCIAL PLC strategic alliance that was announced.

9:37 And you can see the the the movement in the share price as we have been communicating. It's been oscillating around around these sort of levels that you can see on the on the graph here. But I think what's what we've what we've been pleased to see is how it's generally converging up, when you go back from January 25 and and how it's now where it's at at April 26. Obviously, we we see a lot of growth still yet, and, these results we feel will be a good, way to to build confidence in in the stock as we move forward into 2026. In terms of the group strategic highlights and moving on to strategy, I've highlighted three specific initiatives that we reflect our directing our focus this year, focused on disciplined deployment.

10:24 We're not chasing growth for its own sake. The, board are focused on direction of the right opportunities, allocating capital efficiently, and managing the business with the same prudence that's produced that track record. That discipline is what underpins the consistent returns you've seen. Second, we're developing a modular plug in overdraft capability within ComstaBank. In practical terms, it allows us to boost, flexible current account lending into our existing platform without need to redesign core infrastructure. It opens up product innovation and new distribution partnerships at relatively low incremental cost. And third, this is an exciting medium term growth opportunity. We're progressing preparatory work to enter The Republic Of Ireland buy now pay later market. It builds directly on the capabilities we've developed through Payment Assist in The UK automotive sector.

11:14 We've submitted our application to the regulator, and we'll be tracking that through 2026. So taking together these three things, disciplines, capital deployment, product extension, and geographic expansion represents a coherent and measured growth agenda. We're not trying to do everything at once. We're building on proven capabilities and entering in adjacent markets where we have genuine competitive advantage. Thanks, James. At the beginning of the presentation, I mentioned the three course subsidiaries being Max Ventures, Conestor Bank, payment assistant. I deliberately put Conestor Bank in the in the center that's in the middle of everything we do. I've got a history of our Conestor Bank. It's been going since 1935.

12:03 It has a class one deposit taking license on the, which is the same deposit taking license as back as HSBC, etcetera. The other man has about 44,000,000,000 of deposits, of which 22,000,000,000 are are a sweet spot, which is fixed term and notice account deposits. We've always got plenty of liquidity, and it's about deploying that liquidity. And as you can imagine, the island man with 85,000 people only need so much credit, so an opportunity is always in The UK, and we'll touch on that in a second. MANX Ventures Limited. It's it's, if you like, the the sector side of the business. It sits outside the regulatory envelope, and it's where we perform our PE. We look at buying businesses either than the entirety or in part. You can see it made a profit 8,400,000 last year.

12:55 And, again, I'll touch on that in a lot more detail. And Payment Assist is a business which we funded from the beginning. We bought it. We took a shareholder, and then we know, I think, 2024, we took a 100% shareholder in that business, and we'll touch on that in a lot of detail in a moment. But let's focus back on Coneste Bank. So calling us the bank, as you can see, it's it does 84% of its lending in The UK. Most people in The UK would not have heard of us, but that that's acceptable because we're not a retail bank. We bank and we provide liquidity into the SMEs. So we raise liquidity in the Isle Of Man, deploy it in The UK. To help that deployment, we've got our banking license in The UK, branch bank license in The UK back in autumn twenty four.

13:47 So that allows us to raise UK deposits as well as Isle Of Man deposits. So we can have a transfer between the two jurisdictions to wherever the cheapest cost of funds are and deploy those funds into the markets that we want to deploy them into. We have facility sizes between one and a 100,000,000. James touched on it earlier. The market size that we're looking at in the SME market is 15,700,000. And the interesting point here, and this is where a slight history on The UK bank, and there's 350 licensed banks in The UK, but there's over 3,000 nonbank lenders. So those nonbank lenders are getting the liquidity from one of two sources, either banks such as Coneste or from high net worth.

14:33 So what we do is we have an analysis of these 3,000 nonbank lenders, and there are certain sectors that we are interested in. And these again, James touched on it. We're not scarred. We're not just in growth for growth's sake. The sectors that have proven resilient since two thousand sixteen, seventeen. So those are the sectors that we're actively engaged in. So what we do is we look for businesses, these non bank lenders that are in these sectors. We put liquidity into them, and that we would gain more exposure, market share into these sectors. We also look at sectors we want to be in, but we don't want to disrupt the market. So we find a non bank lenders, and those sectors provide liquidity, etcetera, etcetera. So where the model becomes very interesting is if you've got a high net worth that's put in see, the balance sheet making it easier for myself is £10,000,000, and they're putting that in at eight, nine, 10%.

15:31 Our cost of funds is about 4%. So straight away, we can improve the bottom line of that business by £600,000 without actually doing anything. That business has not had to change its strategy, its management, any of its distribution. All it's done is plug in our liquidity into their business model. But why would we do that? How do we give that business an extra £600,000 worth of bottom line? Well, we would we'd want something back. So we take shares in these businesses, and that's what's key about our business model, and that's where MANX Ventures kicks in. So that's the opportunity for Bank. The the growth of the bank, as you can see, we've we've we've grown the loan book. The loan book for the bank itself grew just over 11% last year. For the group, the loan book grew 10%.

16:20 We're hugely liquid, which is a reflection of our access to deposits. We're always running about 90 plus million of liquidity, and it's all about deploying that liquidity safely into sectors that we have positive credit experiences within. Payment Assist, and we've touched on that that we we we bought the remaining shareholder of that back on September 24. Payment Assist is The UK's largest buy now pay later than the automotive industry. It has over one and a half million unique customers. It has 8,000 garages on its roster. And what it what it what it's kind of plan of of the way it actually lends is it lends very short term. It's ideally, it's less than three, four months. So you go into the garage. You can't use four new tasks to pass it then with tea. It's a thousand pounds. You won't expect to pay a thousand pounds. You pay $2.50 on the day, and then you pay $2.50 next month, $2.50 next month, and $2.50 the following month.

17:24 So from a consumer duty and customer perspective, this is a great product. There is no interest on the product. The gets its money up front from payment assist less a less a fee. So the gets what it wants. It really just wants to be servicing the vehicles and getting paid for it. We, the lender, are taking the credit risk, and that's where the the that credit risk should rightly lie. So everybody in that cycle is very happy and very appreciative of how we all relate to each other. So it's no surprise to see that the lending and for payment assist increased by just under 29% last year to just over £219,000,000. It's a very lucrative sector for us because at the moment, bank as well as the same in The UK bank and deposit taking industry as a whole.

18:13 Everybody's truly aware that in these troubled times, interest rates are gonna rise, whereas six months ago, they thought interest rates would drop during 2026. So what we are finding is that all deposit customers are putting their money into one year money because they're quite right. They're saying, why would they lock it up for three years and forego some future, interest income? So they're they're locking themselves in for one year. So you tied up one year deposit, which is costing me 4% into payment assist, which has got a three, four month product, which call it the four month product and say that's yielding 11%. That's a net interest margin of 40% on that one one year deposit. So the financial, experience of that is incredibly good. So PIM Assist is a very good model, which backed by the liquidity that we can generate for it as great growth potential.

19:08 And as you can see, we entered into some, key partnerships last year, And in the pie chart, we're right just under 80% of the of the businesses through the automotive industry in one way or another. So we were what we're looking to do with Payment Assist is we're fully aware that that there's a real cost of living hardship for both SMEs and individuals out there. So we've tightened up the back end collection system of that portfolio, which is which in itself will generate income. We're looking to enter the Irish buy now pay later market with payment assist. It's ordered to go all the model. Some of the competitors we see in The UK are not present in the Irish market. And the other key thing about the Irish market for us, once you've got a consumer credit license in Ireland, you can pass further into any of the 22 European states.

20:01 The only uniqueness in the other states is consumer duty. So we'll get the license, which hopefully should come through in summer twenty six. We'll start deploying it before the end of the year, and then we'll look at further international expansion if the market's right and the risk is acceptable for us. So going back to that Max Ventures, the non sexist. So Max Ventures over the last dozen years has made a living investments in the whole or in part of companies. The investments in the investments include the likes of Payment Assist, which is on the top left there below. It's paid monthly, which is another buy now pay later business that will have a 30% stake in. Paid monthly doesn't compete with Payment Assist. It's in other aspects of the buy now pay later market.

20:49 Then we've got structured finance customers and business lending exchange, which is in in the subprime GROUP, sector. We've got RIVAS, which is in the SME sector. We've got MFX and which are the FX businesses. BlueStar, which is a broker that we really liked that was in software. Software is a good software as a service is a good product for us because of of constant renewal. So we like that business. We bought the broker, and we now fund that broker. It it also funds other other customers as well because we have we're quite we're quite careful on that appetite that we have credit risk. Some of its customers fall outside our appetite, but rather not make a fee out of it, they brokered it to fund us. We are happy to play in that area of the credit risk appetite.

21:40 Calm Wealth is interesting. That was a manage a wealth management company that we bought in February 22. I was looking for sorry. February 25. I was looking for a wealth management business that had a very lightly used FCA license, so we went by legacy. So I found this company, a couple of £100,000. We've upgraded its licenses to include general insurance now. And what it'll do is start servicing. Initially, we'll test upon the Payment Assist customer base. I said earlier that Payment Assist has over 8,000 garages on its roster. Every one of those garages needs employee liability insurance, public liability insurance, balance insurance, contents insurance, machinery insurance, shareholder insurance.

22:25 So if we can take all the admin and bundle it in one for them, then not only will we be able to allow them to focus on what they really want to focus on, which is servicing vehicles, but also we'll put some premium finance behind it. Premium finance by its nature is another short term lending product. It's less than twelve months, so it falls into that category of the type of lending that I want to be doing at this point in the economic cycle, and it's the type of lending that consumers want to have at this point in the economic cycle. So there's a great opportunity for growth through that investment as well. And so just before we leave, Max Collections, when Boris became prime minister back in 2016, we could see there was gonna be a recession coming based on Brexit was definitely gonna happen.

23:14 We pivoted the portfolio accordingly, but we're also aware that those 3,000 non bank lenders have only ever seen decent times that never went through a a true recession. So we set up a collections company to not just help ourselves, but also to be able to take on third party debt and collect that out for them. So we're not fighting to set businesses up. We've got a business called MNCIAL, which I haven't touched on. MNCASI is the business two down four from the from the left. That was a a business case where two jets came into my office. They had just, been released from their deferred consideration by close brother breweries. They wanted to set up a fermentation type business for microbreweries in The UK.

24:07 We like the story x number years on. We had options. We took our options. We now own 95% of that business. It's the largest the less sort of fermentation tax in The UK, and it's now moving into the Benelux countries. So we're not trying to start businesses up, but when we start businesses up, we know that our debt is important, but the return that we need will be greater than the return that debt itself can give us. So we'll always be looking for equity. And a lot of these founders are looking for excess at some point, so we build in options to protect us and to protect ourselves and to allow the founders to see light at the end of the tunnel as they achieve pre agreed financial metrics. So we buy young businesses.

24:52 We'll start businesses. We'll buy start into established businesses. This is all what MANX Ventures does. But it's all about with MANX Ventures, and if we go into the next slide, James, with Max Ventures, it's all about how do we monetize it. We'll get an increase in NAV, which will come through, obviously. We'll take dividends from the businesses, which we can deploy elsewhere in the group or or leave it within Max Ventures to build up a war chest of future investments. And we're also currently looking at and I've mentioned this in the probably before, payment assist will come as of a size. And if the market is right and it performs as expected, then we'll look at a partial IPO of payment assistance 2028 that that is the market isn't there at the moment for payment assist.

25:41 We will have to look at the Klarna experience post listing for that. But we have ideas how to grow the business where we're not just a buy, build, and hold. We're happy to buy, build, hold, and then dispose of and return that back into shareholders. So the penultimate slide, it's really just going back through a lot of what James and I have just spoken about. We there are certain segments of the SME market that we're very keen on. We're not scargum, but then we're laser focused on them. That's where we see growth opportunities. We see the current market, with this war in The Middle East and inflation predicted it could touch 6%, interest rates rising.

26:30 We see a a great need for short term lending, so we will be cautious, but we will also make sure we have the right products in the market for the customer base. What we are seeing is that big banks do what big banks always do in this type of market. They contract credit. They do it stealthily. They look at withdrawing overdrafts, whether it's from SMEs or individuals. They increase the credit criteria and increase their rates. The last two are not bad, but I'm happy to follow to follow that. Mhmm. So we've got we're we're small, but we're nimble, and we're focused as to what we're going to do. So I think the rest of that slide was touched on, so I'm quite happy to take questions, if there has has been any.

27:17 So thank you very much for your attention. That's great. 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 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 your investor dashboard. Simon, if I could just hand back to you to read out the questions to share with the team, and then I'll pick up from you at the end. Thanks, Lily. Let's give shareholders and potential shareholders time to log some questions. Let's start with the first one that we've received. Douglas, is the current capital base sufficient to support both organic growth and potential acquisitions?

28:08 How much excess liquidity is currently available for deployment into higher yielding lending opportunities? Yeah. That's a good question. The capital base is the excess cap capital is down at sorry. That's yeah. So the total capital ratio is 15.8% at the year end. And it's a mix, and James alluded to, well, do you bring the capital in? It sits in. It's costing you money, and you're not deploying it. Or how efficient can you make bringing the capital in and deploying it? So that's where we are. So we have got excess capital at the moment. We're more efficient this year than last year than deploying that capital. And so we're in a place which we're quite comfortable with. And then in terms of liquidity and deposits and lending, we're set at that at between 9094%.

29:01 It's the kind of the spot where we're really comfortable. We've we're we're sitting there at the moment. We have access to liquidity. We've never been short of liquidity. Going back to 2077, we've actually been over liquid. So the iron demand markets, as I said to you earlier, we've got 419,000,000 of deposits. Think of the number there, isn't this 22,000,000,000. So there's plenty of to liquidity. Again, you don't wanna bring that liquidity onto your balance sheet too early. You need to bring it and and deploy it quickly, and that's where that 90 to 94 loan deposit ratio is really important for us. It shows shows us how efficiently we are bringing in the raw material and creating the finished product and getting it out to the marketplace.

29:47 In terms of how much excess liquidity we have, we've probably got at this point in time that the number was over 90,000,000 in in terms of liquidity. We're probably running with about $4,050,000,000 of excess liquidity at this point in time. Thank you, Douglas. You've said in previous statements that your FINANCIAL overdraft product is due to launch sometime this year over the summer. Can you tell us what your expectations are for that product and what what your hopes are? Yeah. If I take one step back, I'm very keen on short term lending for the reasons that I've already stated.

30:34 An overdraft product in its nature is a short term lend. So I want more exposure to that market. We have some exposure to the overdraft market in The UK already through our structured finance counterparties. What the the the finial relationship would provide us would be an opportunity to to have direct exposure into that market. So we're gonna be cautious about it because it is direct and it is unsecured and it is overdraft, etcetera. But if we get the credit criteria right, which we believe we have, if you get your yield right, your yield can therefore allow for some erosion to deal with any arrears that come through. This will be a very profitable product for us. Because of its short term nature, you don't actually have to deploy a significant amount of liquidity to it because it turns so quickly.

31:23 So it's got all that attributes of what we want. We're not gonna deploy until we're a 100% confident that it's got hence the reason I've been happy to not do it in quarter one. I don't think we'll do it in quarter two. I'm pretty confident we'll have it in quarter three. But this market that we're coming in in my mind is gonna be around 2027, 2028 and beyond. It's more important we deploy this product safely with proper governance around it than rush to the market, deploy it, and get an abnormal amount of arrears. Thank you. So turning to the DCA issues.

32:12 Do you expect this is finally the end of provisions, or do you think that you might be making further provisions in future? Do you have a choice? Yeah. I mean, we we put something in the chairman statement on that about the that we feel it's got to the a level of being fully provided in light of where the scheme guidance is is finalized. We note that it is being challenged in the courts at the moment, particularly second down scheme, which is going back from 2014 to 2007 prior to the FCA's inauguration. So anything that comes from that, we expect to be favorable. So we we we need to administer the scheme now and fully pay out all eligible complainants and and and make sure they receive their compensation.

33:04 But the expectation is we publish the results as that it has been fully provided, and there's nothing further to come out. And if anything, it could be favorable depending on where the final guidance finishes with some of the challenges going through the court. Can I can I just add? I am so pleased that the FDA have founded it around to getting this screen up and running. It takes away a level of uncertainty to our numbers that gives us clarity of where we're going going forward. In my mind, it's everything James just said, plus it's about putting the customer into the correct position that the customer needs to be in so that we can move forward, and we don't have any other conversations or cloudiness about the numbers. The numbers are clear as clear can be.

33:51 Thank you. You've very clearly demonstrated that you are now communicating with retail investors kind of in a new way. Can you tell us what your plans are for the current year and whether you'll be making any further presentations in particular to retail investors? Yes. We've got well, James is gonna be attending Melo. I think that's the June 4. So It's the third, Douglas. June 3. Yeah. Thank you. So on the June 3 and making two presentations that day. We Of second. Sorry. My apologies. I was even further, though. Thank god it's not me that's attended.

34:39 So James is gonna be there on the June 2. We're gonna be putting out we'll continue with our quarterly operational updates through the RNS system. We are hap we'll also have the AGM. We're happy to have we're happy to actually meet investors in any small groups. We've had lunch. We had a lunch last year with some investors. We're happy to be out at this. I did a conversation with investors in the Northwest Of England last month. So we're happy to be anywhere in The UK where we can actually talk about this business with existing or with the investors. And if anybody out there has got any ideas where we could attend that's not on our schedule, then please please let us know that the tab stock email address is on that final slide.

35:31 Thank you. Question on The UK GI market. Do you expect that this will grow to be a significant part of MANX, or will it always remain a small part of MANX Ventures? It has the opportunity to be significant. We all we've talked about at the moment is we want to launch it to make sure the product works into those 8,000 garages that are in the Payment Assist roster. But at the same time, Payment Assist has got one and a half million customers, and it's increasing its customer base about 20,000 a month. So we've got a lot of in house data that we can use to ensure this product's right. But, ultimately, we want to externalize this product.

36:21 So I think it's got a it's got a great chance to be something far larger than it's currently envisaged. But what we want to make sure is we have great we don't have concentration on anything. So we want to make sure that we have great diversity of our ventures in the portfolio. And final question from the floor. Can you tell us what milestones and catalysts we should be looking out for in the remainder of the year? The milestones that we should be looking for the remainder of the year. On the nonfinancial ones, we should be looking out for the consumer credit license in The UK coming through in the summer.

37:09 We should be looking out for a thin new product going live in the summer, and we should be looking out for the the rollout of the GI product into the internal customer base, which we'll update shareholders on, and that will be before the end of the year. Thank you very much indeed, Douglas and James. I'll now hand well, let me ask you if you'd like to summarize the presentation this morning, and then we'll hand back to Lily to close off. Well well, interesting to say, what was going through my mind was to actually just reiterate what what's coming down the tracks for the for the investors. Also, we've got the AGM in the middle of June.

37:56 We've got these three new products, which are gonna come out before the end of the year. And just to reiterate that this current economic environment, whilst dreadful for most people, for us, it's actually an opportunity, and it's an opportunity to lend short, garnish deposits. You saw that with, lending increasing 10% year on year, deposits increasing 12%, and our net interest margin increasing 14%. So there's a lot of good signals out there that operationally we're in there with the right products of the right market. So that would have been my conclusion. That's great. Thank you for updating investors today. Can I please ask investors not to close this session? I shall now be automatically redirected to provide your feedback in order that our management team can better understand your views and expectations.

38:44 This may take a few moments to complete, and I'm sure be greatly valued by the company. On behalf of the management team, we'd like to thank you for attending today's presentation, and good morning to you all.