Mobico Group (LSE:MCG) — Audited results for the 15-months ending 31 March 2026

0:00 Good morning, and welcome to the MOBICO 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. I'd now like to hand you over to Phil White, executive chair. Good morning, sir.

0:31 Good morning, everyone. I'm Phil. I'm chairman of MOBICO. Welcome to to all to you all for our audited results presentation. It covers a period 15,000,000 period ending 03/31/2026. Joining me today are Brian Egan, our CFO, and Paco Iglesias, who stepped up to be our group CEO in April. So we I think we warned you last time that the our reporting periods this year will be a bit unusual. Our audited results actually, as I said, cover a fifteen month period, which always seems to make things complicated. So apologies for that. We're we're also a little lighter than expected in reporting, but as I've said before, you know, we are in a World Cup year.

1:21 So we'd have to pay a bit more extra time and extra time and extra time, and, of course, BAR get involved. But I'm very happy to report that we have not received any yellow cards. Over to the results. I mean, as you know, we delivered good results in 2025, and we've made a strong start to 2026. This has enabled us to build a stable platform to re derisk legacy issues and take the business forward. Our focus has been on simplifying and then restructuring the the group to make it stronger. We've had a quite a few legacy issues to manage, but we've made a lot of progress. So we're now on track as well to deliver the 75,000,000 cost savings we promised for 2023.

2:07 And this is equivalent to a 100,000,000 in full year. We've dialed back our CapEx to a more disciplined 120,000,000 target from 2027, and we're also looking at other ways to significantly reduce our cost even further. In Germany, we've we've done what was absolutely necessary to derisk our rail contracts. In RME, we've improved profitability and removed revenues revenue risk entirely by shifting the contract from a net to a gross. RRx is still loss making that we successfully reduced its lifespan by three years. On a combined basis, these changes mean that our rail ops will now be at least cash neutral over their remaining contract lines.

2:53 This brings more certainty to the group and frees up more management time and focus on the future rather than the past. It's important to note here that we have some payment advances we are currently discussing with the PTAs. This is one of the legacy liabilities that Brian will explain in more detail later on. German rail, as you appreciate, is not the only area of focus we have as we have been rationalizing other parts of the business. During the period, we exit exited two loss making subsidiaries in UK GOUCH. We also addressed the two significant loss making contracts that we drive you. As always, our jewel in the crown, Alacer, delivered another set of record figures. This was driven by a continued strong performance in Spain and growth in ALSA's diversified and international businesses.

3:44 It's no surprise that ALSA is increasingly a more important role across the wider group. Based on the strong start to 2026, we are raising our operating profit guidance for the year to between 215 and 230,000,000. Looking ahead, our priorities are plain and simple. We are continuing to destabilize and de risk the group. We are maintaining the strong trading performance of of ALSA by continuing to invest in the business. We are completing the monetization de risking of The UK bus business, and we're continuing to streamline our central framework by removing the corporate glue that holds us back.

4:30 We're busy focusing on cash generation to help us derisk and deleverage. And finally, and importantly, we're looking at all options to manage our balance sheet better as the current level of debt is too high for the size of the group. But let me now hand over to Brian who will take you through the numbers. Okay. Thank you very much, Phil, and good morning, everyone. Today, we're reporting on an extended fifteen month period ending the twenty thirty first of March two thousand twenty six. Since we previously discussed our twelve months results, the focus today is our trading progress in quarter one and other key areas of focus. When measured against the previous fifteen month period, revenue increased 6% to 3,400,000,000, driven largely by also strong group group growth momentum.

5:20 Group adjusting profit operating profit grew by 18% to 231,000,231 million. Statutory operating profit was lower at 12,000,000, and this gap between adjusted and statutory operation profit continues to reflect a number of significant adjusting items. We discussed these in date detail at the twelve month results, and an updated breakdown is provided in the appendix to this presentation. Free cash flow of a £132,000,000 came in lower than the twelve months '24, largely due to cash outflow related to school bus business prior to its sale back in July 25. Covenant gearing remains well within tolerance at 2.9 times. Turning to the first quarter of two thousand and twenty six, we saw continued operational momentum with group revenue increasing by 28,000,000 or 9%, with group adjusted operating profit nearly doubling from the equivalent period a year ago.

6:19 Alta's revenue improved by £29,000,000 and adjusted operating profit by £6,000,000. It is important to highlight that ALSA's strong performance is well balanced across all businesses. Long haul continues to grow and is being boosted by government's single ticket initiative. Regional and urban are both growing strongly. Health transport and other diversified activities are seeing particularly strong momentum. We also recognized our first technical service fee from the Qadiya contract in Saudi Arabia. And in Morocco, operations have stabilized after December's changes, and they remain profitable. Wheel drive view shows a £4,000,000 improvement in operating profit. However, this is mainly due to losses in the matter during quarter one twenty five, which are now which were not covered by the onerous contract provision at that time.

7:15 UK Coach has had a difficult quarter of trading with levels of competition remaining high. Adjusted operating profit is down by 4,000,000 versus the previous year. This mainly reflects a provision taken in March related to legal claim by a supplier. We are confident that there will be a positive outcome, will be reflected in the next reporting period. Our UK business continues to be affected by lower passenger volumes and higher costs. This along with changes to the treatment of supplier rebates resulted in quarter one operating profit worsening by £4,000,000.

7:50 This was supported by a subsidy for transport from West Midlands, the local authority, by of £18,000,000. German rail records a 12,000,000 improvement in operating profit, reflecting the financial benefits of stabilized operations, which we've seen since quarter four of last year. This also includes a £6,000,000 benefit related to Orax one emergency award contract, which is operated between '22 and '23. Central function costs of almost 0.5 to £2,900,000 showing the rightsizing of our central functions is progressing well. On the back of good quarter one results and the revised contracts in Germany, we are upgrading our full year 2026 adjusted operating profit guidance to between 215,000,000 and £230,000,000.

8:41 In ALSA, the Young Summer initiative in Spain restarted last month, and we're already seeing volumes above last year's. In also sorry. Taken together, the remaining divisions are broadly expected to offset central costs. We continue to focus on reducing costs and are implementing a number of new initiatives to improve performance. Adjusting adjusted operating profit for We Drive U is expected to be broadly down with 2,025 as focus returns to core operations and streamlining the business with a transformation plan underway. In UK Coach, the focus remains on improving its competitiveness, and we expect benefits of integration into ALSA and significant cost reduction to make an impact in the second half. UK bus is expected to be broadly breakeven with local authority fund support offsetting the decrease in patronage that the bus industry has seen right across the country.

9:36 Central costs have reduced significantly. However, increased audit fees have offset most of these savings. We expect the audit fee to normalize once we return to our usual reporting cycle. Underpinning our increased guidance is our strong cost visibility, noting we are a 100% hedge fueled fueled sorry. 100% hedged on fuel for full year '26 and mostly covered for the full '27 also. I want to spend some time just talking about our legacy liabilities and the big impact they're having in our balance sheet. The core business is generating strong cash flow, which is enabling us to reduce these legacy liabilities. However, these liabilities are impacting on our ability to reduce debt.

10:24 For attained school bus claims, North American school bus claims, we have a provision of £62,500,000 to cover expected settlements. The cash outflow will occur as the claims are settled, which should happen over the next five years. The school bus purchase dispute is capped purchase price dispute is capped to 35,000,000. We have provisioned an appropriate amount, and the outcome is expected before the outcome of that dispute is expected to be settled before the end of twenty six. We also have German PTA advances of circa £130,000,000. These consist of historic penalties and the overpayment of subsidies. We are in discussions with the PTAs in regard to the value and the timing of of, the repayments.

11:10 We expect that these will be repaid over the lifetime of each contract. Finally, we have a pension deficit in The UK of 53,000,000. Here, we have a three year funding arrangement, which see the annual cash flows of just under £20,000,000. Now moving on to cash flow. We have excluded the negative contribution from North American school bus to show a clearer picture of our cash flow. Focusing on the first quarter of the year, we spent 32,000,000 on maintenance CapEx and had working capital inflow of £22,000,000. We made a £4,000,000, pension deficit contribution and paid 14,000,000 in interest. Overall, free cash flow was £55,000,000, and free cash flow after growth CapEx was £50,000,000.

11:57 The improvement reflects our much more disciplined approach to CapEx and working cal capital, which Phil also mentioned. Looking forward, we expect total CapEx this year to be around 135,000,000 due to prior vehicle orders, but we remain fully committed to our disciplined target of a 120,000,000 per annum from '27 onwards. Despite the disciplined cap CapEx targets, we are still able to pursue new growth opportunities through focusing on CapEx like contracts.

12:25 For example, JV contracts in The Middle East and elsewhere in ALSA, as well as asset light opportunities in The US. Now moving back to the fifteen month figures. We delivered free cash flow after growth in m and a of £40,000,000. We received 286,000,000 from the disposal of the school bus business, but had a 150,000,000 of cash outflows relating to adjusting items, mainly working capital. Again, a full breakdown of adjusting items can be seen in the appendix. We spent £43,000,000 in hybrid coupon payments, noting that this replaced two cup coupon payments falling within this extended fifteen month period. So in other words, February fell twice. Other movements saw a 10,000,000 outflow leaving the group at net funds inflow of £115,000,000.

13:18 Adjusted net debt at March 26 was £1,100,000,000, down from an opening balance of £1,250,000,000 at December 24. Covenant gearing of 2.9 times is a point two increase from improvement from the twelve month in August results and a point one improvement from '24. We expect net funds inflow of 50,000,000 before 80,000,000 of legacy payments for 2026. As a result, we expect overall cash flow cash outflow as the business derisks its legacy liabilities. However, we do expect a small reduction in covenant gearing at the end of December twenty six as the business continues to grow its EBITDA.

14:09 Finally, our liquidity position remains robust. We have £800,000,000 in total liquidity, including 240,000,000 in cash. We have more than sufficient runway to manage our private placement maturities in mid twenty seven. 86% of our group debt is maintained at fixed rates, and the weighted average interest rate is 3.5%. For the hybrid, the coupon rate is 8.1, which was reset last February, and the first payment at this higher rate is scheduled for February 27. We will decide on that payment closer to the time. To sum up, debt reduction remains the board's absolute priority. To achieve this, we are driving operational excellence to generate strong and predictable cash flow and derisking our UK bus operational assets ahead of the regional transition to to franchising.

15:01 Turning to deleveraging, the board and management are working closely with our advisers to evaluate all available strategic and financial options to deleverage. We will provide an update on this later in the year. So now, please, I would like to hand over to Paco who will, discuss the performance of each of the divisions. Thank you, Brian. Thank you, Chris. Well, I'm Paco Glicias. You know that, I've been appointed CEO in April. So that means that I have spent my first one hundred days in in the company. And when the what I guess that you expect from me is to have a a clear view on what we are and especially what are we going to to do to fix and to improve situation.

15:48 After this period, I have good and and bad news as as always. Bad news is that we have inherited a a company in a very difficult situation because of the legacies. But the good news is that we we have put in place a very solid plan that I'll try to explain right now with the with the real and clear facts over narrative that explain why we are going to we are very optimistic on on that. Don't expect that we are going to to show you a new strategy or big consultancy firm supporting the the process. Now we have done this work with the main ideas from top to the down, and after that, to create all the initiative bottom up. I will go later. My main goal as the brilliant has explained is to to generate cash in the in the next month, but to be fully transparent with you, with the plans, with the numbers because it's it's it's fundamental for us to you to recover all the confidence in the performance of the company and the capabilities to to to keep

17:03 to keep growing in in the future. This is the just to summarize the the the plan. The plan is very simple. As as I said, it's it's based on on the four the the sorry. The the the four main issues that you have in the in your screen and in this in this order. First, I have been focused on stabilizing the operations because before starting to fix things, we need to to to make sure that we are performing in terms of operation in the right way. Secondly, as they said, we need to avoid the the risk.

17:50 Some contracts that we we are running, and they are jeopardizing us a lot. So and as as you has already listened, we have to get some good news on the Germany contract in some other places. Then and this is basic that once we have the the right operation and the right contract, we need to to get more savings and cash generation. That is the plan that I will show you later. And finally, what is is also important that we cannot live for for the whole life only cutting cost cost. So we need to to

18:33 to create new opportunities for for the future, and I will try to explain what's in the in our pipeline. This is the the plan that I showed you with numbers. For example, in terms of cost savings, we'll have more than 100 initiatives that have proved us the the a run rate for for for a year of 100,000,000. That is initiative by initiative of 100,000,000 of of cash. We have a lot of initiatives that, as I said, we're putting in place, and you you can see that the the first months, we are performing better. It's very important to reduce CapEx as well. Also, a figure with with being able to manage to pass from more than 150,000,000 last year to 120 in in a disciplined way of of doing things to avoid the loss making contract. As as I said, that is very important and to to keep the opportunities of of growing through the, for example, new contracts in Spain in the visa or the new contract in in Saudi, and we have just been announced as the preferred bidder in Medina in Saudi. That is a big, big contract to to go through. Of course, we need to grow through asset light contract.

20:04 Let me go division by division. I'm starting from from MASA. One one question that you probably are are thinking is MASA able to keep growing in the future, but this is the this this is the figures for the last fifteen months in terms of revenue. In terms of revenue, we have a growth more than 10%. And if you see the the the numbers on the on the on the chart, it's not long haul. Long haul, we have the growth, but it's a very small part of the of the growth. The the main part come from the internationalization, other new businesses, and diversification. That is the the the most important part.

20:50 And it's also important remarkable because of Morocco. It's a revenue we have lost after the the lose at the end of last year. Well, it's roughly 1% of the revenue of of ALSA. But now we are still the leader of of euro transfer in Morocco. We are profitable there. We have we have managed to restructure the the the company there, and we are working in a in a normal way. Another question for for probably from you is what's what's happening with the franchise's system in Spain in in GALSA. Just to put you in context, we manage roughly 200 contracts in GALSA with more than fifty five zero PPAs, and it's an an ongoing process that we have every single year in the last ten years or more, five to 10% of our our our revenue under under renewal.

21:56 So it's something that they what they probably is is difficult or is more strange that part of the long haul is has not has had a significant delay, but it's also now in the in the process of of the tendering. The the key point here for ALSA is that they will have a a ratio of success in when we are the income bit very high. I put there 95%, but if you ask me for last year, '25, it was 100%. And we have also a a good ratio of success when we are not the incumbent that would be 25%. That means that's the reason behind we're able to to keep growing. And as we said, you saw with a with a very similar margins that we have in the last five years after pandemic, we have been performing with the margins between 1214%.

22:58 I don't see a a reason why not to to keep doing it that way. After a tendering process, it's true that we have to to reduce our fares. That means in the the first minute, we have a reduction on the margins. But as you saw in the in the in the slide, we are growing passengers in ALSA almost 10%. That that means that in the two, three year, we usually recover the margin. This is what has happened in in the in the in the past. If we move to to the states, I think it's the same strategy that I have explained earlier is, first, is to reduce CapEx.

23:44 We are now working in opportunities with asset light. We are avoiding contracts with heavy heavy CapEx, and we're working on that. On the savings area, we have changed completely the company there. Now we are working a more similar way that we do in GALSA with regional five regional areas and are very tough and controlling the headquarter. Headquarter manager, procurement, safety, finance, legal, and we have been able to reduce the the overheads in all the regions. That gives us a significant reduction in in sales.

24:34 Loss making contracts, I think, is a good example. The state we have managed in the last months to to avoid the two significant loss making concept that that we're we were running there. So now we we are in a better position. It's really a difficult process with the with the a tough negotiation process. Now we are out of them. And finally, as I said, we have a huge pipeline of opportunity, more than 600, and we have to we need to be very disciplined and selective in order to go to pursue only the opportunities with asset light and with real positive EBIT in the in the future. For UK coach, I have to acknowledge that we are going slower than expected because of lot of recent deterioration of ALSA started, but we have struggling with some other progress, mainly that we have a strong competition there. That in the last month, they have brought their flat number of flights and mileage by 70%.

25:49 And with facts, we have lost only less than 5% of of passenger, but we have also reduced the average ticket in order to be the more competitive of of that. Actually, we we still have the the the largest market share in in the in UK. So and the the the strategy we are following is the same that that I explained, CapEx, less CapEx. We are reducing our own fleet in order to not to have commitment for CapEx in the in the future on the savings side. We have reduced our our overhead of general expenses by more than 25,000,000 in in the year. And in terms of loss making contract, we have the sequest in the noncore business, but we are also reducing and cutting part of our network that were not profitable. So we are focusing on the more profitable routes in the in in the country. And finally, with growth, I can give you some example where we are now using revenue management system tool from from ALSA, and we are being able to grow passengers in some regions where we are introducing this this this tool.

27:13 Next is UK bus. UK bus well, here, we have in a in a a different way. You know that that with the new prime minister, he has decided that he want to to give local local PTAs power of having control of the of the transport. The background that we have in UK is London has grown passengers a lot in the last year, but the rest of the cities of the region has lost a lot of passengers. So that makes sense to to make a a change. So as while we're starting in the areas to the risk, the the the the the contract, monetize some of the assets and prepare the company for the franchise's system with the new team with international experience.

28:10 So so I think I we will be a bit neutral at the end of the year, of course, because even with the patronage that we are suffering, we have been able to manage the subsidies and the savings in order not to lose EBIT. And finally, German Rail is sorry that I cannot give you many details because we are under an NDA, but but it's public that we we signed off an agreement a couple of months ago with the the five PTAs in in Germany, and that that will give us cash at least at least cash neutral in the in the forthcoming years from a from a a contract that, as you know, was loss making contract one.

29:01 On the operational side, savings, for example, for the first time, we have 100% of the drivers that need for operation. Even more, we are hiring part of our drivers who come from the training center to serve parties and making money of that. But also number of penalties that we are we are suffering are in a lower range in the in the last years. And finally, just to give you a fact, in terms of safety, we have the best ratio of safety in in in Germany. So that's a very good niche. And in terms of growth, we are working to create a platform, a established platform with a potential new opportunities, the tenders in in the area of Westphalia where we are the largest private operator there.

29:58 We can add significant value to the company for the for the future. And just finally, to to summarize how are we doing that is is not a secret that we are working in in a model that also is the is the central. We are proving best practices and supporting all the teams. And I think this this is allowing us to get better margins, to get better operation. It's absolutely a priority to generate cash, and as I said, we are doing that with significant savings in everywhere, but also to to reduce CapEx or to manage the the working capital. And finally, with a new new structure with very central strong central features.

30:50 For example, we are now with Rafael Sterling at COO that was in charge of procurement, safety, maintenance, and a lot of things that he will manage for the for the whole company of MOBICO, not only for for ALSA. And as a result of all of that, we are we have presented a record number for the for the year, for the fifteen months. And an outcome from that that that we have increased our guidance for for the for the full year by 10%. That I think is completely achievable according to the plans that that we have. So that's all, and happy to answer to any question.

31:40 Okay, guys. Back back to me again. I'm just about to wrap up the presentation as quickly as I can. I think it's important to emphasize that we've made a strong start to 2026. I'm confident that that can continue for the rest of the year, and that's enabled us to be in the position where we've given an upward revision to our guidance for operating profit in the year. Also, it continues to outperform and is absolutely key to the group. We will continue to invest in that business so it can continue to achieve its growth potential. The state stabilization of our German German rail contracts ensures our rail service has a future. We continue to operate a quality service.

32:28 In The UK, we are progressing the monetization of our UK plus our assets in the West Midlands to derisk the business well ahead of the move to the reregulation of bus services and the introduction of bus franchising. Every move we make right now is focused on driving cash generation and managing the legacy issues we inherited. This includes driving further cost savings over and above those we announced at the 2012 twenty five twelve months results. Our our priority is leverage reduction. We are working closely with all our advisers to look at all our available strategic and financial options to deleverage the business. We will give you an update later in the year.

33:16 So that concludes our presentations, guys. So happy to take any questions. 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 investor dashboard. Patrick, if I could just hand back to you just to share the Q and A where appropriate, and I'll pick up from you at the end. Thank you, moderator. First, pre submitted question. As debts reach maturity, are you intending to pay them off or refinance? Because I we're working with our advisers at the moment on I mean, first of all, just to say we have a very high level of liquidity with £800,000,000 at the end of March, and we are now working with our advisers on a plan to tackle our debt and our balance sheet. So we'll have an update at this later in the year, probably at the September September results.

34:19 Thank you, Brian. Any updates on asset sales in The UK? Can we give any opinion as to whether this will be cash in or liabilities out? If you're talking about the West Midlands monetization, I think it's a bit of both, really. We have assets that we can capitalize on in cash, but we've also got some long longer term availability contracts that we will have to deal with those liabilities. Thank you, Brian. A question on Elsa. How will Elsa maintain a durable competitive advantage in the long term future? Well, as I said in the in the presentation, I think there are several factors. One is to to keep diversifying and to to not to have all the risk in the the same just in one business under the area that we have growth more is especially international.

35:21 Another important point is to have a a very strong team in bidding with the the ratio of of success as high as we have had in the past and also to keep our lean structure to with a pretty simple and low central cost in order to not to have to to be able to maintain high margins. Does the arrival of Rafael Sterling as the new group COO mean that investors should expect the rail business to play a bigger part in MOBICO's future going forwards? Well, I the the the arrival of Rafael Sterling has nothing to do with the the rail.

36:10 He's not in charge of in charge of rail. He's in charge of operation, in maintenance, procurement, but it's true that he has a lot of experience in in trade. So who will take advantage of of his experience and knowledge in order to improve operation or to analyze new opportunities. But it's not the main role that he has been hired for. Okay. How has Saudi JV commenced, and are there more contracts currently being bid on? Well, the the contract we have just started six months ago with in Saudi, and we are over expectation both in terms of passenger, but also in terms of profitability.

36:57 So we're working quite well. And the other news is that we have been announced as pressure beater for Medina. That is a huge, huge contract there with another with joint venture, but there will be a lot of new opportunities there. For example, Jada or or or some other places. So it's a it's the area of the world that probably will grow faster in the next years. Thank you. Question for Brian. For how many years of cash outflows, legacy liabilities, constraint net debt reduction? Okay. So that that answer is a little bit more complicated to answer. Mean I mean, the first thing is that the legacy liabilities will be paid off over a number of years.

37:49 For example, the German demands of Germany to be paid off over the length of the contracts. So it will constrain us, obviously, as we as we pay these legacy liabilities down, but it won't prevent us from tackling debt because we would hope that, you know, we're going to continue to grow our our, our EBITDA and generate more cash. So it is it will be over quite a long period of time. As I say, Germany, it's going to be several years. Pension at the moment is three years. Claims legal claims are about five years. So each of them has a different different length. So it's certainly going to impact on our ability to pay debt, but it shouldn't prevent us from reducing our debt. Thank you.

38:37 Is there an option to to lower the amount of maintenance CapEx on a temporary basis to allow us to speed up net debt reduction and to be able to do that without an adverse effect on business. Absolutely. It's one of the of the figures I showed in the presentation. For example, this year, we have managed to reduce over 30,000,000 and how have we done this with the several points. One is we have less contract with the without avoiding loss making ones. Another is we are improving our scheduling planning in order to to maximize the cascading of the fleet from the first hand to some other lives of the vehicle.

39:25 And third, we have introduced new brands of vehicle, more affordable, like the Chinese one. So it as a mix of all of them, we have achieved this number that is absolutely sustainable for the future. Thank you, Pekka. Respectfully, apologies if this is something I've missed, But if the PTA deal has been finalized and the German business risk reduced, why have we not been able to write back some of the onerous contract provisions in Germany? K. So this isn't so easy to explain. So we have we have two groups of countries. We have an RME contract, is profitable, and we've an OROX contract, which is loss making. So the OROX loss is going to continue to be loss making. We're going to lose 20 to 25,000,000 a year, and that loss will go against the owner's provision.

40:21 The RME contract is going to make a profit each year. So it's gonna make a profit of 20 to 25,000,000 each year. The onerous contract is going to make a loss of 20 to 25,000,000 each year, and they the profit from the RME goes to the p and l. The loss from the RRX goes against the onerous provision. Thanks, Brian. And and actually, we've had a similar question in on on the now that that contract is ended. So in Womata, there will be a reversal of most of that provision. So there will be a a cost for, for April and May and some closing costs, and then the balance will be reversed, but it'll go through adjusting items. Thank you, Brian. One for PACCAR, I think. Looking through the restructuring of the business, can you give us a better idea of your long term vision for the business and the potential for shareholders such as ourselves?

41:15 Well, I feel that the future of the of the of the company as working in the way that has run the business, but that means a very small but tough central function that that support all the very important decision that we have to in the business. Secondly, I see a more international business. We have international. What I run-in the past, we were working in six in six countries. Now we are living, but I expect to to keep growing number of of countries through through opportunities. And the third area that I see that we need to to change and we are changing is everything related with digital to be leader in technology as we are right now in primary management or in scheduling or in predictive maintenance and so on. So I see a a digital linear company at the matching.

42:22 Thank you. Okay. Given the state of UK Coach, would we consider selling that and focusing our business on Spain or The US? We're already focused now, obviously, on Spain and The US. We're doing a lot of work on Coach at the moment. It's still gonna take some time to put it in good order, and we wouldn't consider the future of the business until it's operating at a level that we're happy with. Are there any plans for management to buy shares in the company? Always. And one final question. The PTA settlement, how is that going to impact p and l cash flow going forwards?

43:11 Can can any sort of So is it a little bit the same answer? So there are two separate things. First of all, there's cash. So over the next number of years, it should be cash neutral. So we're going to get roughly 20 to 25,000,000 cash in from the RME, and cash of 20 to 25,000,000,000 is going to go out from the ORx contracts. That's for the next four years. And then the final two years when the ORx contract has finished, we would just be getting cash in on the on the RME. That's cash. So it's neutral for the next four years, roughly neutral. And then there's a positive for the last two years from the the ORx finished and the OREX is still ongoing. In terms of the p and l, the 20 to 25,000,000, for the OREX doesn't go near the p and l. It gets charged against the the owner's contract provision.

44:03 The 20 to 25,000,000 that comes in each year from the RME contract will go to the p and l, so we'll get a benefit from that. So in other words, the net benefit to the p and l is about 20 to 25,000,000 a year. Thank you, Brian. Unfortunately, I think that's all that we have time for today. So moderator, I would like to hand back to you for any closing remarks to end the presentation today. Thank you. That's great. Thank you for updating investors today. Can I please ask investors not to close this session as you'll now be automatically redirected 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, we'd like to thank you for attending today's presentation, and good morning to you all.