Nexteq (LSE:NXQ) — Results for the six months ended 30 June 2025

0:02 Good morning, and welcome to the NEXTEQ PLC results for the six months ended 06/30/2025 investor presentation. Throughout quarter presentation, investors will be in listen only mode. Questions are encouraged, they can be submitted anytime by the q and a tab situated in the right corner of your screen. Just simply type in your questions and press send. The company may not be in a position to answer every question received in the meeting itself. However, the company can view all the questions submitted today and publish responses where it's appropriate to do so. We begin, I'd like to submit the following poll. I'd now like to hand you over to CEO, Duncan Faithful. Good morning to you, sir.

0:33 Good morning. Thank you very much for the introduction, and good morning, everyone. Thank you for joining, the business update for NEXTEQ PLC for h one twenty twenty five. Just by way of an overview, the first six months of 2025 has been really exciting as we focused on the business transition that we highlighted at the Capital Markets Day in February of this year. And as we focus on the structures for delivering long term growth, we have been maintaining that laser focus on product and innovation delivery and also constantly delighting our customers, and that will be a theme we come back to often through the course of this presentation. The three year plan is really important to us, and I'm really excited to be able to report about that renewed sense of purpose and optimism that's really across our business as we look to deliver all of those objectives that form a part of that three year plan.

1:27 So what are we going to cover over the next twenty five minutes or so? First of all, I just want to apologize for the photos on this screen. I think if we tried, we couldn't get two photos to look more identical. So I promise that I won't grow a beard for next time and that I will try and think of a different glasses style just to make sure that you can tell us apart. But introducing Matt. So Matt's been in his role for about one year now as our CFO, and Matt's brought a huge amount to the business, and I'm delighted with his and our progress under his financial stewardship. But what we're gonna cover, just a quick recap on who we are and what we're trying to achieve, and then Matt will spend some time taking through you through the h one financial performance.

2:17 So by way of an overall summary of the first half of twenty twenty five, you'll have seen some of the numbers in the announcement this morning, and we'll give you more detail on that as we go through this presentation. And yes, our numbers are down versus the same period of the previous year, but we knew that would happen based upon the order intake going through h two twenty twenty four. And our performance for h one twenty twenty five is in line with expectations and is as predicted. As I mentioned earlier, the three year plan really is our guiding principle for the business, and we're making great progress, against those key activities in that three year plan, and I'll update you on those shortly.

3:02 A big focus of the three year plan is around how we diversify our revenue and really increase our order intake on a continuous basis. Really great progress is being made on this, and Matt will give you the details later on that. But the point I really want to focus on this slide is the line in green, and that is that we're on track to hit our full year 2025 objectives. And I'm not just saying that. Actually, we have received all of the purchase orders to allow that statement to be made with confidence. So everything that we need to deliver our business forecast has been received, and now we're just focusing on delivery. And as ever, that's not as easy as we'd like it to be, and I'll touch on that later. But just to reiterate that point that we have received all of the demand forecast from our customers, and it's all about delivery now, not focusing on finding extra orders to hit that number.

3:59 So, in terms of a brief summary of, who we are, I like to use this slide whenever we talk to you guys. It's really important to us, particularly now that we've created the one NEXTEQ agenda that we highlighted at the presentation we gave in February. This is a constantly evolving slide, but there are some really key words and key messages in here that I'd just like to focus on. First of all, about delivering innovative technology solutions. We've really set up our business now to to rekindle that spirit of r and d and to think about really great and new innovative solutions that will take our business forward. So a real focus on innovation. And as ever, our customers and exceeding their expectations is critical to us, whether that's through our technology or through the customer service that we give that really is over and above our competition.

4:57 And our values, that are listed at the bottom of this slide, are changing. These are more now about how we really want to behave to deliver that innovation and deliver that amazing customer experience. These are no longer just a set of words that, frankly, any AI engine could come up with. This is really what sets us apart in the industries that we're focusing upon. So, again, you will have seen this slide before, but just to reiterate who we are. So we are a really good added value innovation led technology solutions provider. And you can see that with the amount of patents and trademarks that we have on the left hand of this slide. We're very proud of those, and we protect those rigorously in all of the industries that we trade within.

5:44 In the middle of this slide, first of all, I'll apologize for a slightly busy map, but it's busy for a reason. And that's because we've spent a lot of time and effort making sure we have global manufacturing and supply chain resilience across the world. And this chart shows our own locations, but also the locations of our key suppliers. And it really is truly a global business that's supporting the network of our customers across the world.

6:13 But who do we supply? As most of you will know, we supply a range of markets, from gaming through to industrial displays, broadcast, and medical, and many others. And in the bottom part of that central column of this chart, you can see some of the brilliant brand names of the customers that we work with and who we work with in a way that is all about creating added value solutions and really taking away their pain points through the through the partnership that we have together. The historical business split that you can see on the right hand side is really just to show you the scale of those different market market verticals that we trade into. And as many of you will know, historically, we've been largely reliant on the gaming industry to give the vast majority of our revenue. Although, as we outlined in, the Capital Markets Day in February, we're really focusing our innovation and our long term innovation pipeline around how we develop those other market verticals to become the same size as that gaming vertical that you can see there.

7:20 And the bottom of that chart, 60% or thereabouts of our revenue comes through North America. So how we support our customers in North America is really important. And we'll talk a little bit later on about what we're doing in order to make sure our sales and our account management processes are set up to make sure we get the best out of all of our customers and we partner them in the most effective way.

7:46 So, again, a recap of our trading brands. We have two brands that we're really, really proud of. We have Dentitron and Quicksint. Dentitron that recently turned 50 years old is focused on industrial display markets and creating display and display control solutions, for our customers. It's a range of hardware and software solutions, and on this slide, you can see a number of the bits of work that we're doing with our customers around our hardware solutions, and I'll touch on those again, in a minute. Quixen, which turned 20 earlier this year, is focused solely on the gaming sector, and we create hardware and software solutions with true reputation for innovation and quality delivery.

8:33 I'm gonna tell you more about the latest piece of innovation shortly, but on the bottom of that slide, you can see the range of hardware in gaming from the orange boxes that are our gaming computer hardware products going through to our cabinet solutions on the right hand side there. And, I will update you on progress of all of those as we go through these slides. But the key thing is that quality and innovation delivery is what brings all of our group together. And increasingly, as we focus on the one next step principle of our business, we'll be looking to see how the technology from both of these brands can help add value to the other. And more and more of the story as we go forward will be how computer and display technology can work together to create a true sense of innovation in how HMI functionality can operate.

9:28 It's been a busy first half of twenty twenty five. So in terms of the focus areas for the group, as I mentioned earlier, that that order intake and revenue diversification agenda has been something we've really focused on. And indeed, at the presentation we gave in February, we talked about our signpost to success, and these are two of them. Now Matt's gonna talk about those later because great progress is being made, but have been a big key focus for us across the business as we've gone through the first half of twenty five. We've already talked in earlier presentations about the new broadcast wins that we have with the new technology that was on that previous slide. We've been spending a huge amount of effort onboarding those through the course of h one, and that continues through h two with revenue predicted to start in quarter one of twenty twenty six. But as ever, our sales cycle is quite long, and the integration cycle is equally long. So making sure that's right and making sure that happens brilliantly for our customers in q one next year is really, really key.

10:32 A focus on innovation. Again, I've spoken about that a lot already, but we're building a road map for both brands within the business that takes us through the three year plan but beyond. And that beyond part of this is really, really important. So a lot of focus on actually how do we create technology that drives that innovation agenda, and we'll only do that with the right people in our team. So on the next slide, I'll talk about roles that we've been filling, but a true focus on making sure we're fit for now, but also fit for the future.

11:03 And, again, h one has seen a big focus on the m and a work that we've been doing, and we hope that we'll be able to bring you news as we go through h two about an outcome of some of that work, but things are looking really positive in terms of our m and a agenda. But there have been some challenges as we've gone through h one, and it's right to call those out. We're all aware of the tariff situation that happened towards the end of q one this year, and NEXTEQ has really risen to that challenge, and we are in our Quixen business seeing no impact of tariffs on the computer parts of our business. And in Densatron, in the displays element, also, we remain unaffected. So excellent job by our team to make sure that our partners and our customers are not exposed to the impact of those tariffs.

11:54 As ever, there seems to be computer chip shortages to deal with. And over the last two years, the quicksand business particularly has dealt with those superbly well, and that continues now. We have two current chip shortages that that potentially impact production, but we saw that early, and we managed our supplier base to make sure that that won't impact h two twenty twenty five, but it does involve a lot of work to make that happen. Our two largest customers are being acquired or have been acquired through the course of h one, and I'll give you an update later on Everi, which has been our historically largest customer. But our two biggest customers have both been acquired, and there's economic uncertainty across the market still.

12:41 And that is making customer investment slower than pre pandemic. So that's something that we're just managing on an ongoing basis to make sure that we map stock to our customer demand. And we're embedding new structure and new processes. We talked about a new CRM system to make us more effective in our sales channels, and that's just been completed as of last month. So we're embedding all of these new systems just to make us more effective as an organization.

13:13 And And in terms of what we've been doing in specifics, so on the left hand side, some of the product work we've done. We spoke a lot about Tactila as a new human machine interface proposition. We're building on the success we've had so far with those three customers I've already talked about, creating new solutions to add to that piece of innovation. And we're taking Tactila to the latest trade show, which happens this weekend in Amsterdam called IBC, where we're gonna talk more and more about Tactila as a way of opening up the broadcast market to to the rest of our technology. Product that you can see there, I'm really proud to say we won an award at the National Association of Broadcasters Convention in March 2025 for industry innovation.

14:02 And this is essentially us taking broadcast studios outside of the broadcast studio. This is a mini portable broadcast studio, and it truly is an innovative solution in the marketplace. And we're making great progress on both Tactila and Progress and and Prodex, sorry, from a pipeline perspective. Our computer, hardware platforms for gaming continue to be a driver of the business performance, and really proud to say we've been launching new products in that space. But Launchpad, which is the words that will be new to you all at the bottom of that slide, this is a solution we're launching in a few weeks at, the big gaming convention in North America, and then again in the big European version of that in January next year. And this is a new software solution in gaming that allows us to create a recurring revenue model for all of that excellent software we provided to the gaming sector. So look forward to updating you on the success of those launches when we speak next.

15:04 In the center of this chart, you can see, again, another list of, enviable clients that we have, as a as a customer roster, and I'll talk about every specifically a little bit later. But on here, there are some really great names that some of you will know and some won't. Arrow, which is down the left hand side of that center column, is a gaming customer in North America and will become our largest customer in 2025. Genting Casinos, just under the arrow logo there, the the cabinet proposition has gone live and has been rolled out literally as we speak. So they have purchased those cabinets from us and are rolling them out across The UK casino estate that they have.

15:50 On the bottom right of that center column, there are two brands you might not be familiar with, and that's Cummins and Hack. And they're just really good examples of what we're trying to do differently in NEXTEQ because they combine the computer technology and the display

16:04 technology from the two brands and combining it into one product solution for our for our customers. And we've won significant new business with those two customers using that approach. And finally, on this slide, just talking about people. We have in h one, we've had a new Dentistron commercial leader start in The USA who combines really great commercial skills, but importantly, with those key technical skills because it's a very technical sell, what we're trying to do now. So we're upskilling ourselves in terms of our technical capability in our largest market. We recently had a new chief people officer start just to help us with our people strategy as we as we implement the new focus areas of our business.

16:49 And I'm really excited to be able to report that as of last week, we've recruited a global head of product innovation who will join shortly to help us create the solutions for the future. So lots of focus around people and lots of focus about making sure we keep our eye on being a brilliant technology support partner for our customers. So it's been a busy h one. That's what's been going on in the business. And I'll just hand over to Matt now who will give you some financial highlights for h one. Thank you, Duncan. So the financial highlights for h one. NEXTEQ delivered revenue of $40,700,000, which is down from the 48,200,000 we had in 2024. With 2025 being h two weighted year with, in comparison to h one twenty twenty four,

17:38 which was a h one weighted revenue year, which was an anomaly for NEXTEQ. Traditionally, we have that h two weighted year, and we're moving back into that cycle in 2025. From a gross margin level, we had 33.1% in h one, which was down on 2024, really reflecting quite a significant shift in customer and product mix on the gaming side. And then coming to our adjusted profit before tax, delivered naught 900,000 in the first half, which really reflects the the high operational gearing nature of our business. And, also, because of that high operational gearing gives us confidence that as we move into a a h two weighting revenue, we're we're on track to deliver that adjusted PBT number for the year.

18:31 A really good cash performance in h one as well. From an operating cash inflows, we're really strong delivering cash conversion of 445, again, up on on last year's cash conversion. Our net cash balance is down $1,000,000 versus the year end. That really reflects the return of funds to shareholders. So in h one, we returned 3,600,000 back to shareholders by way of dividend. And the final part of the share buyback program, which we had ongoing earlier in the year, which which ended in q one. But just to reiterate, you know, we we have the strong order book built out, full full coverage of the the revenue number in terms of order book for the year.

19:17 So we're happy that we're on track to deliver the full year number.

19:24 In terms of our three year plan, just a quick recap on that. We outlined that at our Capital Markets Day back in February. And the key focus of that was to drive growth in revenue from what we finished in 2024, which was $86,700,000 through to between a 108 and $120,000,000 in 2027. Doing that with 35 to 38% gross margin and that delivering EBITDA between 1015%. And then having m and a as being potentially accretive on top of this as we look to close out acquisition transactions through that three year plan.

20:06 The other key part of that three year plan that we we announced back in February was signpost to success. So we could update shareholders on how we were tracking towards delivering that number. And there were three elements to those signpost to success. The first of those was around pipeline growth, which is about delivering quality leads that drive repeatable revenues from from new customers. And our target for three years was to deliver 50% growth in the pipeline to $630,000,000 of opportunities. So our pipeline at the end of twenty twenty four was was 420,000,000. And we're really pleased to report that in in in h one twenty twenty five, we delivered more than 10% growth in our opportunity pipeline, seeing significant leads and opportunities developed through Launchpad, our gaming software that Duncan talked about, and our Tactila broadcast product, not just in the broadcast market, but looking at what the opportunities are outside of that in in broadcast.

21:09 And the key key focus for us in terms of pipeline development in 2025 was the consolidation of CRM systems, and I'm pleased to say that we're on track to complete that at the end of this month. The second signpost of success was around NEXTEQ new IP revenue, and that's key for us in driving innovative solutions that are unique for our customers and, again, deliver repeatable revenues. Our target for this was to deliver $10,000,000 of revenue for new NEXTEQ IP products in 2027, up from billion dollars that we had in in 2024. And, again, h one performance in in this area is really strong. We we had over a million dollars of revenue, which came from our new NEXTEQ IP products.

21:56 So that's spread across our award winning product solution, Tactila, and also the gaming cabinets solutions that we were able to sell into casinos. Again, with the order book visibility that we we have for h two, we know that we'll deliver more than a million dollars in h two of of new NEXTEQ IP revenue. So a a really strong performance in that second signpost to success. And then the third one was related to a million dollar customers. So here our target for the end of the three years was to have a 100% increase in the number of customers delivering a million dollars of revenue in 2027 and increasing that number to 20. Again, strong performance in the first half of the year. We've secured the order book where we know we will have an increased number of million dollar customers in 2025.

22:51 And also, pleasingly, besides that being an increase in million dollar customers, a much greater diversification of revenue across those top customers. And you'll see the pie charts on on the right hand side of that slide really show the diversification in revenue that we're seeing in 2025 in h one compared to 2024 where the 45% of our revenue from top 10 customers came from from one key customer. So, yeah, really strong performance in those signposts of success and be looking forward to sharing more details about those at the end of year with further strong performance. I'll pass you back to Duncan. Okay. Thank you, Matt. So as I mentioned earlier, it's been a busy time in h one with our historically largest customer, Everi. So I thought I'd give you an update in terms of where they are as an organization.

23:45 As you may know, both Everi and another gaming company, IGT, have been acquired by Apollo Global Management to create a larger gaming brand trading under the IGT name. What's really important to point out here though is that Avery is currently being treated separate to that from the point of view of the business model that they have with Quicksand. We will continue to trade with Every under the current Quicksand business model. Currently, however, there is an RFP going on literally right now for the IGT North America volume for computer supply going through 2026. We're a part of that RFP, and as I said, that process is ongoing, and we hope to be able to update you soon with the outcome of that.

24:38 But that does create an opportunity for NEXTEQ. But again, just to reiterate, the EVRI volume is not included in that piece of work, and we continue to work with EVRI as before. The other important thing to note in terms of the IGT every situation is that all of the agreements that we have with IGT separate to the North America volume will continue as currently. So agreements we have with IGT for supplying computers for their Spanish business and for what will become their Brazilian business, carries on outside of this RFP. And we're making great progress with both of those opportunities to secure volume going into 2026. So, process for IGT North America ongoing, but again, final point, EVERY remains outside of that process, so the volume with Quixient will be secured as we go through 2026.

25:36 And what are we focusing on in h two? So from a NEXTEQ perspective, we have just launched an external market review to look at which market verticals will become the next focus areas of the NEXTEQ group, and we expect results of that towards the end of October. And we will look forward to sharing the outcome of that with you guys when we meet again at full year results. We are investing and improving and upscaling our sales team to make sure that we have the hunters that we need in our market verticals that we're targeting. So that's a process of work that's going on now. And from an m and a perspective, we will continue having the positive conversations with the target that we're talking to right now.

26:26 And, again, as stated in the Capital Markets Day in February, we look to have positive news of a completed process towards the end of twenty twenty five. So lots going on at a group level. In QuickSent, Apollo, IGT, and Every will and rightly retain our focus for the next few months as the RFP process happens and as we continue to protect that every volume. You'll see the Brazil flag there. Brazil is is a is a hot topic in terms of the gaming industry at the moment. There are two elements of the Brazil opportunity. One is a federal law that makes casino operations legal, and that's ongoing. But there is an immediate opportunity with the way that the states in Brazil operate their lottery, and we are in active conversations now with a number of lottery providers.

27:22 And, again, I hope to be able to give you really positive news around that next time we speak. The deployment of Launchpad and doing that brilliantly is a key focus for the business across the business right now. And, again, we're launching that, to selected customers in October, and then the full marketing launch will be at the European Gaming Show in early twenty twenty six. But making sure that Launchpad is exceptional is a focus area for the business. And our latest hardware products for gaming, you can see at the bottom of that center column, which is called Icon three, and that's really bringing the latest technology of graphical performance combined with a cost and a cooling mechanism that's very important for the gaming industry, bringing all of that together to create a a really cutting edge new solution, which we're launching in October at the gaming show in Las Vegas. So big focus areas, all of those for Quickson.

28:20 And in Dentitron, as we move into the next set of trade shows that that again happen this weekend coming, we're really focusing on how we develop Tactila and Prodec and sell that to a wider audience across broadcast and other market verticals. So h two from a recap, we have the purchase orders on hand to make sure we can deliver the numbers. And from a future perspective and how we deliver the three year plan, we're working on all of the things on this slide to make sure that tomorrow is as good as as this year is gonna be. So with that, I'm just gonna pass through to Matt to go through some of the detailed financials behind that summary you've just heard. Matt? Thank you. So the H1 twenty twenty five financial results.

29:07 As we mentioned before, there's a reduction in revenue to 40,700,000 in in h one twenty twenty five. Q one was quite a quiet quarter from a revenue point of view. That was as expected based on the order book performance that we had in h two twenty twenty four with q two being significantly ahead of that. And that q two gives a really positive run rate into the second half, and we're expecting to see that momentum build through the second half with the order book that we've got. And in gross margin, as I mentioned before, reduction comes from the the change in product and customer mix in the gaming business. So 33.1% gross margin in h one twenty twenty five compared to 37.3% in h one twenty twenty four.

29:57 Adjusted operating expenses, we saw a reduction in those down to 13,000,000 from 13,600,000. That reflects a lot of the restructuring we did at the back end of twenty twenty four in November and December, but also reflects us keeping in tight control on costs through the first half of this year. And, again, just reiterating the point around the order book that we have in place now to deliver the increase performance in H2. So we're expecting to see much more positive P and L on the second half of the year. So diving into the QuickSimps business. Quicksand revenues were 26,900,000, and that's largely driven by the increase in in platform sales, so the number of units that we sold.

30:48 So those were up 7% year on year at just under 22,000 units. But what brings that revenue number down is that the average selling price reduced year on year. So we saw a higher mix of the midrange and and cost effective solutions because of the change in mix of customers that we sold to during H1 this year. In terms of Dentastrone revenues, Dentastrone was down 20% year on year versus H1 twenty twenty four, so $13,800,000 of revenue. Really positive point here is around the strong gross margin. So we've continued at 38% gross margin, which is the record level that we had in 2024.

31:35 And from a new business point of view, we've had some really strong success in h one for Densitron. We've had a real focus on driving more more than just the display as a solution for the customer. So really looking to design into more of the solution that the customer needs. And so you can see that in some of the numbers where the average selling price across per unit across Densitron was $16 in the first half, yet we've been winning new business at an average rate of $25 per unit. So that allows us to drive efficiency in in in how we scale, but also deepens the value of what we supply to the customer, which enhances the repeatability of revenue that we have. So expecting that to to really drive some benefit as we move into 2026 and beyond, and we'll continue that focus.

32:33 Just diving into gross margin performance. So you can see the historic trend here. So whilst 33.1% is down versus where we were in h one twenty twenty four, I see it much more closely aligns with the historic trend of an average of where NEXTEQ group gross margin has been. Again, the kind of key driver for this is the change in the the customer and product mix in the gaming side compared to what we saw in H1 twenty twenty four. And we are expecting that to be an improved gross margin as we move into H2. Just to finally close on cash flows. So to reemphasize the point, really strong operating cash flows in H1, almost $4,000,000 inflows from operations and from working capital positions.

33:28 In terms of our our CapEx of 1,200,000, that's primarily our investment in innovation. So r and d processes, particularly kind of final stages of developments of Launchpad solution and and Tactila amongst some other gaming products that we've developed in this year. And yeah. So whilst cash is down $1,000,000 year on year, that really reflects $3,600,000 having been returned to shareholders via the dividends and share buybacks. So overall, our cash performance continues to be really positive even on the reduced trading level that we've had in h one. Thank you. Back to you, Duncan. Brilliant. Thank you, Matt.

34:14 Okay. So just to just to, pull all this together. In terms of the three year plan and the milestones, by which we measure ourselves, We've sort of got three separate year focus. So a foundation year this year, how we accelerate through 2026, and then look for that continuous improvement to make sure that we deliver the numbers that you can see at the bottom of the slide and that matters been through earlier. So in 2025, really focusing on embedding that one NEXTEQ principle, how we work together and using the different strengths of the brands to help the other. Focus on onboarding excellently and making sure that the revenue that is due to start in 2026 happens on time in full. Really focusing on our people, so looking at sales team effectiveness and making sure we have the right people in the right place, and also that continued focus on m and a and delivering our commitments that we made at the Capital Markets Day.

35:11 Order coverage is key, and and every briefing we have around our our business is around how do we make sure we continue the good progress that Matt's just highlighted on order coverage? And Brazil. So Brazil has been that sort of focus area for for a number of these briefings. But actually, we're getting to a point where that's starting to be realized, and we look to make sure we convert all of the opportunities in that. As we accelerate through 2026 and Tactila becomes mass production ready for those three broadcast wins, that's gonna drive not only that revenue that we already have purchase orders for, but also allow us to take that technology to multiple other market verticals. Launchpad really is key for us and a big opportunity for the business as we look to capitalize on what our brand means in gaming from a hardware perspective and how we put that into the software world. So I look forward to really updating you on how that can accelerate our 2026 revenue and the quality of revenue that we get from that.

36:14 As I said to you earlier, we're doing that piece of research to look at how we define and plan our strategies as we go forward past the three year plan. So really looking at how do we need to structure to take advantage of the opportunities that come up from that research. And following that research, we will continue that focus on m and a, looking at how we accelerate our capabilities in the target verticals that that research identifies as where we should play. And then in 2027, again, we talked about this a little bit at the Capital Markets Day where we're talking to the graphics chip suppliers around how AI enablement can make gaming outcomes more interesting and more more vivid for the consumer. So that piece of work, we have already started, we're looking in 2027 that that will come to fruition.

37:03 And software will become an increasing part of our business both in gaming, but also in the broadcast sector as we look to really bring excellent customer benefits to our partners from the technology that we we can supply them. Looking again at m and a in different tiers and different market verticals. And by 2027, we expect that that federal law, the big law in Brazil will be passed, and actually that can really transform the business as we come to the end of that three year plan. So we're really excited about what the three year plan can do for NEXTEQ and for the brands within it, and we look forward to updating you against the progress around the three year plan next time that we speak. So that concludes the formal presentation that we wanted to give you today, and I'd like to hand back now and and open this up to some q and a. Thanks for your attention.

37:59 That's great. Thank you very much for your presentation. What I'll do is I'll just bring your cameras up for the q and a. Ladies and gentlemen, please do continue to submit your questions. Just post in the q and a tab that's situated in the top right hand corner of your screen. But just for the company to take a few moments for you, some of the questions have been submitted today, I'd like to remind you that recording of this presentation along with a copy of the slides and the published q and a can accessed via investor dashboards. As you can see, we have received a number of questions throughout today's presentation. What I'll do is I'll just hand back over to the team now and I'll pick up from you at the end. Great. Thank you very much. So we've had a number of questions that sort of segment themselves into a few different subject areas. So I'm gonna try and bring the answers to them in groups so so we don't have to cover all of the questions individually.

38:49 There's an there's a number of number of points being made around customer satisfaction and retention rates. So just to touch on that a little bit, we're really proud across both of our brands at the customer satisfaction rate that we get. That's largely driven by two things. First of all, the quality of the products that we make really is market leading. We have we have tremendously high success rates across all of our pits of hardware that are out in the field. So, that's the first bit. Second thing is from a customer service and account management point of view, we're very attentive in terms of our customer needs and backs that focus on making sure we really delight our customers at every transaction. So really proud of that as a performance, but in terms of how we leverage that across the opportunities that can grow our business, there's a number of things that we're doing and we're thinking around ourselves as NEXTEQ, not just the traditional Quixson and Densitron brands.

39:46 So more and more, we're going to be thinking about how we bring together solutions that involve computer technology and display technology to create different value streams for the organization. And an example of that is how we're looking at gaming monitors development, but using the skill base that we have in the Densitron business that is a renowned expert in display management. So just thinking ourselves differently. And then also within the brands themselves, as we've talked about earlier in the slides around Launchpad, we're using the expertise and the knowledge of Quixent as a brand within that gaming sector to launch a new piece of software that increases the penetration of our customer base in hardware and software. So thinking about how we act as a group, but also how we get further penetration in those brands that are well known in their own marketplaces.

40:40 But, yeah, really key point for us as a business around customer satisfaction. Another question is around how the board intends to deploy the current cash reserves that we have to accelerate that delivery of the three year plan. We use the cash reserves that we have in two ways. First of all, the board allows us to spend some of that cash on strategic stock of the critical components, particularly for our computer section of the business. As we talked about earlier in the slides, there is a continuing process around shortages of key components. So how we manage those shortages is a real key advantage of us over our competition. So we do utilize some of those cash reserves to forward buy some of that stock to make sure that we can carry on supplying the customer demand.

41:30 And that's really important when we look at 2025 because, obviously, we're able to fulfill those orders on the basis of of having the stock component stock of components that are required to go into those those boards so that's the first thing and the second thing is the board is very supportive in when we targeting new market verticals in order to accelerate the penetration into those market verticals. If M and A is the appropriate way to do that from a bolt on level, they are really happy to support that. So as we talked about in the slides, we're actively investigating some M and A opportunities that will further our technology development at a quicker rate, for instance, in the broadcast market vertical. And that is something that will continue as we go through the three year plan, particularly on the back of the research that we've described in the session.

42:22 Just a point of admin actually, there is a couple of questions around the Capital Markets Day presentation that we've referred to extensively through this session. We will make sure that any request for that presentation is responded to and you will get access to those slides and apologies if that's something that hasn't happened to this point. There's a group of questions around how we're managing those signposts to success that Matt talked about earlier. So I'll just hand over to Matt for an initial comment on that, particularly around the 1,000,000 plus customer base, and then I'll pick up again after Matt's answer. Okay. Thanks, Duncan. Yeah. So we had a question around the momentum from million dollar customers and how that can replace some of the reduced volumes that we're seeing from our long standing key customers.

43:08 So I'll pick up that question in two parts. The first bit around the the reduced volumes from our long standing customers. So our two key customers on the gaming side, they both had quite unique situations this year facing acquisition challenges. So we don't see their reduction in in volume as being a a permanent reduction to something they're managing through as part of their acquisitions and changes in their business. Positively, we've developed the the next generation platforms, both for Every and Ainsworth, which are being integrated into their their hardware stack. So we'd run very much front foot with them to to get them back to the volumes that we've we've had in the past. In terms of the second part of that question around the how quickly we can gain momentum from new million pound customers.

43:59 Already in h one, there was 1,000,000 customer that was new one, and we and we expect to, certainly, in 2026, be progressing through to having new million pound customers. So either that's a net new customer or customers that we're scaling that we've increased their volume that they will cross over that million dollar threshold. So, really, how quickly you can scale them depends on which products they're they're taking. So if we're selling existing solutions, we can onboard them much quicker than kind of new innovations that we're bringing through. So Tactila, as an example, we're we're progressing through into mass production in the middle of next year, and we'll start to see revenue scaling from from key customers in that.

44:44 And, certainly, from Launchpad, as as that goes live, we'll expect to see revenue scaling and potentially million dollar coming dollar customers coming through from those innovations. Okay. Thank you, Matt. I think that the final point just on on the the $1,000,000 customers point is the pipeline of innovation that we've been focusing on and delivering that real high quality new solutions both in hardware and software will make the development of those customer base accelerated and actually really high quality revenue based on the software launch of the Launchpad product that we're talking about to the gaming industry in North America in a couple of weeks. So of a really exciting time for us in our business as we look to really capitalize on being one NEXTEQ and bringing all of those key critical technology skills to both brands.

45:39 And I think, Alessandro, that largely covers off the questions. So I'd just like to hand back to you to finish off. That's great. Well, thank you very much for answering those questions you can from investors. Of course, the company can review all the questions submitted today, and we'll publish those responses on the investor meet company platform. Just before redirecting investors, provide you with their feedback, which is particularly important to you both, Duncan, could I just ask you for any final closing comments? Yeah. Of course. First of all, so thank you very much for everyone's time to to listen to the h one outcome for NEXTEQ. We're really excited about what's coming, and we're particularly excited about the fact that 2025, we're confident in the full year outcome, so much so that we're really thinking about '26 and beyond. So really exciting time for us.

46:26 For any questions that we didn't answer that that have come in, we'll answer through the portal. So apologies if we've missed your specific question, and we look forward to updating you again shortly once we get to the full year position. So again, thank you very much for your time. That's great. And thank you once again for updating investors today. Could I please ask investors not to close the session? As you know, I'll be automatically redirected to provide your feedback in order management team can better understand your views and expectations. Apart from management here in NEXTEQ PLC, we'd like to thank you for attending today's presentation, and good morning to you all.