Microlise Group (LSE:SAAS) — Interim results for the six months ended 30 June 2025

0:00 Good morning, and welcome to the MICROLISE GROUP PLC Interim Results Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and they can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. Simply type in your questions and press send. Company may not be in a position to answer every question received during the meeting itself. However, the company can review your questions submitted today and publish responses for it is appropriate to do so. Before we begin, I would like to submit the following poll. And I would now like to hand you over to CEO Nadim Raza. Good morning to you. Morning, everyone, and thanks for joining us today. My name is Nadim Raza. I'm chief executive officer for MICROLISE GROUP, and joining me today is Nick Wightman, our CFO.

0:50 Good morning. I think we'll we'll kick off and and really cover highlights. So you have seen these numbers from the RS this morning. So pretty happy with the results for h one with all of our key metrics upwards in a in a very positive direction. Couple of key points to point out. Churn still remains very low at 0.5%. And, obviously, we have a positive momentum in cash. And just to also note on that cash front, there was a a post period addition of another 2,200,000 from the sale of the track make shareholding and convertible loan notes, which all completed in July.

1:42 Moving on and just talking about h one, we have 216 new customers welcomed onto our customer base. We're pleased to report that we haven't lost any customer in Cyprus since last year. And on that Cyprus, then a couple of the points. One, we continuing well with our security plan for 2025. That's all on track. We've also had a external NIST 800 dash five three audit, which is kind of gold standard for for cybersecurity, and we've had a very good outcome on on that audit as well. So we're pretty pleased with progress that we're making there.

2:29 In terms of the actual cyber incident, you know, financially, it's pretty much been clear from our our finals in that we reported in April as to the the impact. We're not really expecting any further financial impact. All the claims are being settled through the insurance company. About one third have been settled so far. The other two thirds are being dealt with by the insurance company, and obviously, we're we're assisting through that process. We're also continuing to to invest in in product security as well as just infrastructure security and and head office security. And we're also done quite a lot of work in localizations for our international markets. So we've added TCA and EWD support in Australia and ECMR support in France.

3:28 Now sorry for the acronyms, etcetera, but but essentially, what these are are standards and partner relationships that we've implemented that allow us to go into the long haul markets in in in Australia and also in France. ECMR is is really to do with cross border trading in Europe. So, again, it opens up more of the market to us in in in Europe and in in Australia. Of course, we're we're continuing to to innovate with more AI and machine learning in our products. And and the final point, the third party hardware integration support. Again, we're continuing to integrate more and more into third party hardware.

4:16 That's that's telematics devices. It's handhelds. It's it's cameras and so on. And it's quite a key point in that that enables us to have a much larger market to go out where customers have already invested in somebody else's hardware, then, you know, that that isn't an obstacle to buying our software. They don't have to replace all of that capital investment and replace all that hardware with new hardware from us. We can actually just go and support their existing hardware investment and and just sell our software, which a, reduces that a lot of barriers to customers buying our software.

5:02 It means that, you know, there's a faster time to delivery because we don't know we have to go and install the hardware. And it also means that, you know, the margins are are impacted positively because margin on software is obviously greater than margin on on hardware. So that's some of the highlights for h one. I'm gonna hand across to to Nick to go a bit more of a deeper dive in the into the financials. Thank you, Nadine. Good morning, everybody. So this is just an overview of some of our key performance drivers. And, obviously, they're they're all showing a positive upward trend across all of those, so that that's obviously very positive. I won't dwell on all of them individually, but I'll I'll touch on a number of them as I go through the the rest of financial section in this presentation.

5:56 If you could just move on to the next slide, please, Nadim. So what what this slide shows is is the split of our revenue. So we we do consider ourselves a software business, but there are other revenue streams that we that we do have. And I'll go through those in turn in one moment. But an overall level, we've seen our total revenue increase by 12.6% to 44,100,000. If you just look at the graph on the right hand side, the colored bars represent the main segments of revenue that we have. Recurring revenue is represented by the dark blue bar at the bottom, which is currently at $29,500,000 which is an increase of 11.1% on the previous year, which reflects organic growth, and we've seen particularly strong growth in our direct customer base in h one. The next section, which is the which is hardware.

6:45 So that's currently at 10,100,000, and that's increased around 15% year on year. Obviously, what what you can see if you refer back to the previous period in h one twenty three is that we actually saw, you know, a reduction when you look at h one twenty four. So that's really due to the timing of of some rollouts of some large large projects that I'll I'll come on to in a little bit more detail shortly. The final station to call out is is services, which is currently sitting at 4,400,000. Services is is there's a number of different activities contained within there, and I'll just run through those briefly. One of first one is is installation revenue. So this is engineering installation. So this is normally attributable to our direct customer base because we we tend to retro retrofit to to customers' vehicles rather than in contrast to the OEMs that's tend tend to the hardware tends to be fitted either line side or a a predelivery inspection.

7:46 So in installations activity is is is one aspect to it. Professional services in the which relates to project management. So we we have a number of project managers within the organization that that do various different things amongst which is help coordinating these large direct customer projects that we have. We also have a number of project managers assigned to some of our key OEMs, namely namely JCB and MAN. And the the final one is to call out from a services point of view is is we have integration services, which is obviously where, you know, where we're integrating our systems in into customers' back office systems. So it could be their ERP system, could be their billing system, etcetera. So, again, we've seen we've seen an increase year on year in that, which is, you know, driven really by the the increase that we've seen in direct customer hardware shipments.

8:39 ARR has increased by 8.7% to 58,700,000, all of which is is organic. If you can just move on to the next slide, please, Nadim. A key theme that we really want to call out that we've spoken about before is our drive on margin enhancement. The graph on the right hand side shows the progression that we've seen over the last four periods. Gross margin remains around sixty sixty five, 66%. I'll come into that in a little bit more detail when we look at the p and l. But EBITDA has grown to 14.1% from 13.4% in the comparative period. On the left hand side, that that lists a number of the activities that we are pursuing to help drive margin enhancement.

9:25 I won't go through them all in detail, but I'll pull out a few key ones to emphasize some of the activities that we are undertaking. This list isn't exhaustive. There are a number of other things that we are doing in addition to these. But some of the things that we're looking at are the growth in direct sales versus our OEM clients. So we recently recruited a new chief revenue officer in back end of twenty twenty four. So he's made a number of changes within the within the sales and marketing organizations that he's helping drive direct sales further. So the reason why that that drive margin enhancement is the margins with our direct clients tends to be significantly more than with OEM clients, more mainly because, well, one from a volume point of view, volumes with the OEMs tends to be significantly higher.

10:13 And the features and functions tend to be much higher and much more higher priced in terms of our direct customers' requirements. So, you know, where where OEMs would tend to focus on fleet performance, as we call it, which is tracking telematics and engineering data. Our direct customers tend to require a lot more deeper and richer functionality to help run their operations rather than just engineering data. We've done a number of things around our products, our hardware products. So this will be introduced newer low cost units that we manufacture and design ourselves, also increase margins with our existing products. So that's looking at the bills material engineering changes that we can do to reduce bill of material costs, etcetera, as well as commercial negotiations with our supply supply base.

11:05 I think the other two kind of key things I'd like to call out is cost reduction programs across the business. So we we are looking at every area of the business in terms of how we can drive cost to make us more efficient. So this is about, obviously, as I've mentioned, driving cost out of products, driving cost out of back off back office operations. So this will be utilizing third party systems. So, for example, our ERP system, which is IFS. We use a sales system called Salesforce, CRM system called ServiceNow. And these are all things that we can drive more efficiency out by using the enhanced functionality that the that they offer to us that we are investing and rolling out as a as a business. We also have a number of lean programs going on. So this is really to focus on how we deliver solutions to our biz to our customers. So we we've done a number of things in terms of changes in the designs of some of the hardware, particularly some of the consumables that accompany the hardware.

12:09 So we we've made a significant a significant change in in in the cabling solutions as one example, whereby there would have been a number of different part numbers that would support the multiple different variants that that the vehicle manufacturers have. We've really consolidated that down to a very small number of variants. And why that benefits is is because when you are planning a big rollout with a customer, so they may have a thousand vehicles, customers surprisingly, don't actually know what vehicles they have, so it's quite difficult to plan and schedule the rollout for for those large projects, which means the time taken to plan them in and schedule them, it can be quite elongated. What we've managed to do with this is really streamline that process and taken an awful lot of time out of that process to roll projects out, which which effectively means that we can consume the order book much quicker, deploy the projects quicker, which mean that we can recognize both nonrecurring and recurring revenues a lot quicker.

13:10 If you could just move to the next slide, please, Nadim. So this is the adjusted profit and loss account for the first half of twenty twenty five. So as I've called out on the previous slide, we've seen revenue total revenue growth of 12.6% year on year. Gross margin has increased nearly 13%. And just on the gross margins, what we have seen is increases in recurring gross margins by circa 1%. Activities going on there to to increase that margin. So that'll obviously reflect the increased revenue, but there's also been a number of cost saving activities that have that have gone into that. On the previous slide, we did call out specifically focus on hosting environments. So the company that we acquired last year, Enterprise Software Systems that we bought in 2024, they have their own hosting provider via a third party. That is significantly different to the the legacy MICROLISE hosting systems, which we host ourselves in our own data centers.

14:11 There's a significant amount of cost saving that we that we can leverage from that point of view. So there's been an ongoing project, which unfortunately has been delayed due to availability of of IT hardware. So we will see that in the cash flow statement that our our expenditure on property, plant, and equipment, etcetera, is it's behind budget and behind where we were last year because of these delays. So that's something that we should see flushing through into future periods as we see that those costs reducing. Operating expenses increased 9.5% to 22,900,000. So the main drivers in there are employment costs and back office costs. I'll I'll just touch on employment costs to start with. So currently, 8.4% to nearly 19,000,000.

15:00 That does include the increase that we've seen in National Insurance contributions, and there's also restructuring costs going in there as well as there has been an increase in headcount much lower than we've seen in previous years. Where we're continuing to increase in headcount is around in house engineering resource, which, again, is linked to margin enhancement. We haven't got to buy in more expensive third party engineering resources, particularly relevant for Australia. So we've we've put more people on the ground there, which is which is driving an increase in in installations margin, also sales and marketing. So we do believe that there is a significant amount of white space to go to go at moving forwards, which is why that we're investing more in these quota carrying people in in the go to market market team.

15:46 On a like for like basis, our employment costs of when we take out the NI contributions and restructuring costs, the increase is 6.6% year on year, which reduced from around 12 in the previous half year. The other point just to mention is around legal professional and IT costs. So that that has increased, which which is really reflecting our planned road map on security measures. So we're continuing to roll that out successfully. So, obviously, the as as you all all know, the ongoing changing threat that we see from a cybersecurity point of view is something that is gonna, you know, need constant review, refinement, etcetera. So, unfortunately, that that's an evil necessary evil that we're gonna see moving forward as as time goes on.

16:35 The other area just to call out is that I kind of referenced on the previous slide is is investment into business systems. So this is really to help drive and increase back office efficiencies. Overall, what we have seen is a 19% increase in EBITDA to $6,200,000 and that is also reflecting an increase in EBITDA margin from 13.4 to 14.1. And I I think the other kind of major point to to touch on is is just the depreciate depreciation amortization charges, which is really a reflection of the cumulative buildup that we've seen on our investment in internally generated software. And the final point, margin enhancements, I've touched on those on the previous slides, but we're confident that these are starting to drop through now. We've seen the green shoots of that in h one twenty five.

17:25 There is a lot more to go at, and we'll see that dropping through in future years. If you could just move on to the cash flow statement, please, Nadim. So in terms of our cash flow, so our adjusted cash flow from operations has increased 6% year on year. As I previously touched on, the investment in plant, property and equipment is behind where it was last year. We had hoped that, that would be more as we can implement the changes that we want to do in the data centers to drive increased margins from a hosting perspective. CapEx on intangibles, as previously mentioned, relates to the internal software development. So that's static. We don't we don't really envisage that to grow on an organic basis significantly year on year. So from a capital allocation perspective, we we do think that our investment in CapEx is gonna remain stable for the foreseeable.

18:19 The other thing to to kind of call out is, obviously, dividend that was paid pre half year, 1,400,000. There will be an interim dividend paid for the 2025 results in November. We, as Nadim mentioned in one of the first slides, we have seen or received rather $2,200,000 cash proceeds for the TrackMate sale of the convertible loan notes and the the equity stake that we had in that business. That isn't reflected in these numbers because it's post period end. And I think the final point really to call out is that the you know, we we have 11,200,000 in the bank as at the half year. We have an undrawn facility with HSBC that we renewed in April 2024 that gives us access to a a committed RCF and accordion facility, meaning that we've got over 40,000,000 of of investment funds available to us to deploy in in m and a and internal growth.

19:18 Thanks, Nick. Just covering a few bit about a few slides on on market conditions. So just to give you an insight of what we're seeing. So externally, we're obviously seeing consolidation still happening in the space. Some recent announcements though, the DHL and every deal, and also the the GXO Wincanton deal. Again, we see those as as positive things. They're all existing customers, and and it just means that, you know, some of those customers just get bigger and and can deploy more of our solutions. We are seeing and I think we reported this in April, there's a shift in people's focus on sustainability.

20:08 The move to more efficient vehicles, electric vehicles, etcetera, does seem to have slowed down, and people are far more focused on driving efficiencies and driving profits. Again, it's what our software and solutions are there for, so we don't see that as a as a particular problem. Cyber attacks, obviously, in news over the last few months, M and S, COOP, Harrods, and, of course, more recently, JLR, all of which are customers of ours. And that has caused some disruption with projects that we've been working on with those with those customers, and some of those have been delayed. M and S, particularly, there's a large project there that's that's that's delayed currently because of the the continuing recovery from that earlier cyber attack.

21:16 And then in the automotive sector, we've seen recovery in the automotive sector compared to the second half of twenty twenty four. However, overall, we're expecting sales in automotive and and and into OEMs to be flat against last year. Internally, I think Nick's already mentioned that we've had, you know, lead time issues on IT equipment, mainly larger players who bring a lot of that up for for their own AI projects, which is extended lead times and a lot of equipment that we we we normally purchase.

22:02 And, of course, there's still a a skill shortage in in certain technical roles as well. This slide, just to give you an example of of customer growth and how we increase customer share of wallet. So this particular example, again, we highlighted this in April and and talked about how that customer had grown and bought more of our products over over couple of years. Pleased to say that, you know, we were indicating that they were gonna buy some more of our products and and and they have. We've signed a contract to supply our recently acquired TMS product into LF and E, and that's, again, meant that that, you know, the the revenue growth in this account has grown 450% since since first implemented.

22:59 And in terms of our growth strategy, well, we're continuing to execute on that three main areas, growing existing customers. So, yeah, there's a lot of white space for us to sell more of our solutions into existing customers. Again, if we sold everything to every one of our existing customers, our recurring revenue would go from currency to $5,758,000,000 figure to over 300,000,000. So there's a large amount of white space there. Obviously, not everyone is gonna buy everything from us, but but but clearly, there's a significant opportunity there in our existing customer base, which we we continue to exploit. New customer acquisition. So, again, we've seen positive new wins in all of our geographies, UK, Australia, and also in in France.

23:55 And layered upon that organic growth is m and a. And as Nick mentioned, we know we have 11,000,000 as of the end of June, plus another 2.2 from the track mate sale, plus 30,000,000 of facilities available to us for for m and a, and we're continuing to evaluate targets for that and can't really say an awful lot more about that. But but to say that it's, you know, m and a on an international level is is really what we're what we're targeting and looking at. In terms of our strategic priorities, we've talked about MICROLISE ONE, which is again providing more integration across our product suite so that we have more frictionless upsell into our existing customers. And also, you know, we can tell that story to to new potential customers to show how we can grow with them over a period of time and how they can turn on different aspects of our portfolio and purchase and consume that very, very easily as we do more and more integration across the across the portfolio.

25:13 Improving margins is is something that, you know, we we spend a lot of time and attention on. We've seen some of that coming through in h one. That product integration also applies to partners as well. We've launched a a new developer portal to make it easier to integrate some of our products, and we've also now have someone specifically in that role for managing partners. And that's partners that we can collaborate with to to deliver projects, but also it's is for looking at more more resellers as well for our core products. We continue to invest in security, both at product level and and infrastructure level, and we've grown our sales teams internationally as well. So international growth is something that we continue to to work on.

26:07 And, of course, we've mentioned m and a already. Just a reminder on the investment case. So, typically, our contracts are five years, so we have really good long term visibility of contracted revenue. We maintain a very low customer churn rate, 0.5. So, again, that's that continues to be the same at the end of h '1. There's a lot of opportunity to sell more products into existing customers. Again, that helps us be more sticky with those and and more difficult to substitute. We've got a lot of activity on margin enhancement as we mentioned and a really big opportunity in terms of international growth.

26:56 And I think from the graph on the right, you can see the the track record that we have of of consistently growing our our recurring revenues. And then just to summarize, you know, we're we remain pretty positive and optimistic in terms of the outlook. We are seeing some impacts on the automotive sector with a slow recovery and and being impacted by the tariffs announced earlier this year. The cyber incidents are causing a bit of delay, but we're keeping a close eye on things, and I think we can show from our performance in h one that, you know, it gets into be a fairly resilient business and and fairly optimistic going forwards.

27:47 I think that's it, and I think we can go across to to look at some questions now. That's great. And, Nick, thank you very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions using the q and a tab situated on the top right corner of your screen. While the company take a few moments to review those questions submitted today, I would like to remind you that a recording of this presentation along with a copy of the slides and the published Q and A can be accessed via our investor dashboard. I'm Nadine Nick. As you can see, we have received a number of questions throughout today's presentation. If I may now hand back to you and kindly ask you to read out the questions where appropriate to do so, and I'll pick up from you both at the end. Thank you. Thank you. So first question is asks what portion of new customer wins in h one were mid market versus large fleets, and how does that shift impact ARR trajectory?

28:39 So the vast majority of the 216 customers were in that mid market space. There there were one or two larger fleets, obviously, Muller, GROLISE, and a couple of others are are much larger fleets. It doesn't really have an impact on ARR trajectory. I think it's fair to say that smaller fleets tend to be able to implement and get things implemented and and implement change within the organization faster than than a lot of larger organizations can. But whether it's a big deal or a small deal doesn't really vary in terms of how how it impacts ARR, I think it's fair to say. The next question is also from John. To what extent is Marketplace looking to bundle products into tiered packages versus selling point solutions?

29:32 We already sell tiered packages in quite a few places. We are conducting a review to look at if there is a better way of of bundling some of our products, but we already do that and we already offer tiers. But I think we can do more to improve that and and make it easier for customers to consume. So there is work in progress on that that we'll be implementing early part of next year. David, is the the next question, why is ARR growth below recurring revenue growth? Nick, I don't know if you wanna answer that question. So ARR growth was 8.7 versus recurring revenue growth of 11.1, and that is really down to a couple of main factors. I think the first one is around the timing of some of the renewals that we've got with our OEM clients. So some contracts have expired that we believe will be renewed that we haven't had the the orders for. So we we really think that that's a timing issue.

30:33 And one of the points that we have seen is is we have seen a delay in a large project rollout with with a customer that that has unfortunately been subject to a cyber attack. So that that's caused a fairly lengthy delay on a large project that had both those previous two points, you know, not happened, ARR growth would have been much closer to to our recurring revenue growth. Okay. So fundamentally, it's a timing issue, I think, is the point that we're making there. Next question also from from David. How much do they our growth benefit from price increases? Do these price increases also apply to larger OEM customers? So I'll I'll I'll try and answer that question first, and Nick can can help me out on that. But I think most of that increase is not actually down to to price increases. It it's additional product sales or new customer wins.

31:35 I think with larger OEM, it's important to say that larger OEMs tend to buy and consume our float in advance. So in some cases, they pay for three or five years in advance, and so there isn't really a price increase applicable because they've already paid it and we've already had cash. Nick, I don't know if there's anything else you wanna add to that. Yeah. I think I think you're right, Nadim. I think, obviously, the counterpoint to the the inflationary the lack of inflationary impact that we have on the OEMs is, you know, we we get a significant amount of cash up front, which is obviously very, very helpful. Just in terms of price increases, we do routinely apply price increases annually, which most of our contracts now have clauses to allow us to do that. And, obviously, that that tends to be in line with inflation. So in terms of the number, you're probably looking around 1% considering that probably 35% of our revenue is paid upfront.

32:40 So the remaining the remainder is is with our direct customers and and, you know, it's a reflection of the kind of underlying inflation rate that we tend to apply on a on a routine basis. Yeah. Next question. Are you comfortable with future growth expectations given more cautious outlook? Yeah. I think I think we are. We're still, you know, positive and and optimistic in terms of our future future growth. I think there is a void market out there. You know, I think we're highlighting a couple of couple of challenges and a couple of things that we're seeing in the market. But overall, I think we remain very positive and, you very know, optimistic in terms of the continued growth of the business.

33:26 What is your exposure both direct and indirect to JLR disruption? While JLR is a customer through DHL, there is some exposure there. I think there is also exposure to wider supply chain as well. We have some customers who obviously are responsible for parts deliveries in and out, and also for moving vehicles, which obviously are being manufactured at the moment as well. So there is some disruption there. I wouldn't say it's it's significant. You know, they're they're not in our top 10 customers by any means. And and so, you know, we we continue to monitor that and, you know, doing what we can to to help our customers who are probably feeling a lot more pain on on on that than than we are.

34:25 What is your largest customer forecasted sorry. What is your largest customer forecasting going forward? Can MICROLISE still grow meaningfully if volumes from this customer decline? I think, you know, our largest customer is in the OEM space. I think it's fair to say the forecast is flat for 2025 compared to 2024. And and so that's what we've built into our forecasting models. How do you approach the valuation of m and a targets? So, obviously, each each deal is unique. I think that, you know, we're we're not looking at paying over the odds of what would be considered market norms there.

35:17 And I think that, you know, we are continuing to be very selective in a deal that we want to do and making sure that it's accretive. We're not looking at buying a loss making business and doing any kind of turnaround. That's not that's not the game we're in. Are there any plans to develop software products through quantum computing applications to help customers with distribution logistics? FedEx and DHL are going down this route. Thanks. We are looking we're not looking at any kind of quantum computing based solutions. However, there is more AI technologies that we can bring to some of our products, and we have already announced some of those. There are there are AI and machine learning solutions in some of our products already, some that we've announced this year, and there is more to come on that next year as well.

36:34 And it's really all to do with the new data that we have, particularly given our larger customers and our market share in The UK. We have an enormous amount of data that we can feed into AI models and help with forecasting, planning, and scheduling. And and that's really the areas that we're spending a lot of time on looking at solutions that we can implement to to benefit our customers. So history legacy question. Always been intrigued by the SAAS ticker symbol that the company issues is the reason it was chosen.

37:20 Yes. Partly, it was because people often thought it was as a hardware telematics business, and we wanted to emphasize that we're very much focused on being a software as a service business. Although, you know, we did sell hardware as well, and we still continue to sell hardware, but that's not the the the the core of what we do. The core of what we do is we are a software as a service business, and and particular was chosen to to really enforce and and emphasize that. In France or Australia, would you be more interested in acquiring functionality or the customer base? I think I think it's fair to say that we've seen several examples in this industry sector of of companies doing acquisitions to acquire customer base, And they've, in almost every case, tended to not be successful in comparison to acquiring new technology or acquiring new products to add to the portfolio.

38:34 And so we, you know, we've we've reflecting on that history that we've seen in the market over the last fifteen to twenty years of the type of x acquisitions that we've seen work and the type of acquisitions that we've seen fail. And hence, we're very much more focused on acquiring these that yeah. Increase our geographic footprint and add more products into our portfolio to provide more cross sell and upsell opportunities. So those are the key things that we're after. I know in other in other markets that that, you know, acquiring for for growing the customer base does work, but we haven't seen it work in this space and and hence that's not the the way that we are evaluating targets.

39:28 Could you access additional international markets through local partners or reseller models? Yes. And we already have resellers that do that internationally. And, you know, we as I said, we've we've got somebody enrolled now that that's focusing more on that. And so we expect to do more through the partner channel and through reseller channel, particularly in international markets. So, yes, is the answer to that. And I think that's the end of the the questions. That's correct. Nadim, Nick, thank you for addressing all those questions for investors today. And, of course, the company can review all questions submitted today, and we will publish those responses on the investment company platform.

40:14 But, Nadim, before I redirect investors to provide you with their feedback, which is particularly important to the company, could I please just ask you for a few closing comments? Sure. Thank you. So firstly, thank you all for for attending today. If you have any follow-up questions, please, you know, please feel free to submit those. We you know, I think I'd I'd like to to to summarize by saying, you know, I think we've had a a good set of results for h one. We are a living in in some uncertain times in the macroeconomic environment, but we are a very resilient business. And we've shown that over the last four years of being listed and, you know, we we remain very optimistic and positive looking forward and, you know, continue to focus on our growth and focusing on increasing our margins.

41:10 Thank you. Thank you. Fantastic, Nadim, Nick. Thank you once again for updating investors today. Could I please ask investors not to close this session as you will now be automatically redirected to provide your feedback in order that the Board can better understand your views and expectations. This will only take a few moments to complete and I'm sure will be greatly valued by the company. On behalf of the management team of MICROLISE GROUP PLC, we would like to thank you for attending today's presentation, and good morning to you all.