Oxford Metrics (LSE:OMG) — Preliminary Results

0:01 Good morning, and welcome to the OXFORD METRICS PLC preliminary 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. By the q and a tab situated in right corner of your screen, simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review the questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to CEO, Emma Joon O'Connor. Good morning. Good morning, everyone, and thank you, Alessandro. So welcome to OXFORD METRICS fiscal year twenty four preliminary results, and thank you for taking the time today to join us at this IMC meeting. Firstly, for those of you who are new to OXFORD METRICS, I will take you through who we are and what we do and the applications and markets we are in.

0:55 Zoe, our CFO, will then take you through the financials and the factors influencing the performance. And then it's back to me for an update on where we are today, our progress, and how we're well positioned to capitalize on the growth opportunities ahead. And then lastly, our outlook and priorities for fiscal year twenty five. I'll take it as read that you've read this safe harbor statement. Thank you. So OXFORD METRICS is a global smart sensing and software business that uses vision and other sensing technologies to derive insights into real world applications. We listed on the AI market in April 2001, originally established in 1984 as a management buyout from OXFORD METRICS has several subsidiaries, Vicon Motion Systems, the original business that was established in 1984, our motion capture company, and lately, Industrial Vision Systems, a smart manufacturing company.

2:00 And more recently post period end, we acquired the Sempra Group to strengthen our smart manufacturing offering. Here are just some of our customers. The first three columns, mainly the Vicon customers that we've had for over forty years, and then lately, the smart manufacturing companies that have joined our portfolio since the acquisition of IBS and Sempra. Across the markets we serve, customers include our made major sportswear manufacturers, automotive, aviation, and aerospace companies, research institutes, hospitals, global tech brands, medical device manufacturers, games companies, visual effects houses and location based entertainment providers. Some recent customer stories include, we move to this video slide, please, Alexandra.

2:54 Sockeny Sockeny shoes. The Vicon technology has been used to improve sports performance and reduce injuries since the early nineteen nineties. The Saucony Human Performance Innovation Lab uses their Vicon system to analyze and improve athlete performance and their shoe development with Olympians, such as elite marathon runner, Melindi Elmore. Ping is one of the world's leading golf club manufacturers and has been using motion capture for over fourteen years to help improve golfers' performance. Vicon technology aids the club fitting process by carrying out a full analysis of the golf swing at high speed, looking at how the golfer interacts with the club. Worcester Polytechnic Institute in The United States is helping to unlock the next wave of research innovation in small autonomous drones and robots.

3:52 The robotics engineering department use their Vicon system to track tiny robots who are learning to navigate complex environments at speed and scale to tackle real world challenges from pollination to autonomous search and rescue. Next slide, please. Also a video. Thank you, Alexandra. Moving to IVS. This is a well placed inspection system delivered by IVS. The system here is automatically checking for inclusions, cracks, gray level, colored particulates, and surface inspection in the final inspection process of blood sampling well plates. In this example, each individual tablet, and by tablet, we mean a painkiller, is being inspected by eight cameras on all sides to confirm it is complete, ensuring there are no chips, surface damage, inclusions, other defects.

4:53 Any issues are automatically captured, and the faulty tablet is rejected, ensuring right first time products. Next slide, please. And now I'd like to introduce Sempra, our post period end acquisition, strengthening our smart manufacturing offering. The Sempra Group are metrology specialists who sell a portfolio of products to help manufacturers with measurement, lean efficiency, and quality control. Using a range of sensing technologies, software, and services, Sempra improve customers production processes, yields, and efficiency. They provide customized solutions in the automotive, aerospace, precision engineering, and medical device markets.

5:46 I will take you through how Sempra and IVS work together a little later in the presentation. Okay. I will now hand over to Zoe to take us through the financials and factors influencing the performance. Good morning, everybody, and thank you for joining us.

6:35 On the next slide, you'll see the high level financials. And then it's more we will go through the revenue split by market and geographical distribution so you can see the trends year on year and over a longer period of time as well. So just looking at financial headlines for the business, the group had a really strong h one, starting the year with a large order book of 11,500,000, which was utilized through in the first half of the year. We started to see a growing pipeline. But as we moved to the end of the year through the last couple of months of the year, we started to see that the low globally customers were exercising more caution.

7:28 Purchasing decisions were taking longer, and the academic market slowed down across The UK, North America, and Europe with some funding delays. That resulted in a 41,500,000 revenue. That's about 6% down on last year and a gross profit of 27.6. Gross margin stayed resilient through the year and actually increased year on year by 1.6%. Now that is reflecting the cost of goods returning back to more normalized costs with following the supply chain constraints of the previous years. There were higher price components that came out of of scarce components that were purchased.

8:20 They've all now been utilized, so we've returned back to a more normalized cost base. In addition, we also managed to increase some customer pricing over the year and some price increases went through. So it gives us a good margin of 67, just shy of 67. Statue p d p PBT is obviously lower with that lower sales at 2.8, and the adjusted PBT is at two at 3.7 versus prior year of 7.5. Now the items that go through on the adjusted level are amortization for acquisitions, share based payment, and m and a acquisition costs.

9:12 So they are all on a like for like basis of previous year's adjusted PBT as well. Earnings per share is down to 2.96. The balance sheet remains resilient with a large cash balance of 50 just over £50,000,000. Capitalization of r and d in the year was 3.1. That is at 1,000,000 on the previous year, reflecting about 2,000,000 of that number is the markless. So that's new technology that gets launched later in financial year '25. The balance of that capitalization cost is other products that will come through in financial year twenty five as well to add growth into the business.

10:05 Inventory at half year was at 9,000,000. So there's been lots of work around inventory to bring that number down to 7.7, and we will continue looking at working capital and our inventory to optimize through financial year twenty five. We've remained with a progressive dividend policy increasing it by 18% to 3.25p. So just taking you through that profit number in a little bit more detail, working across from left to right from the screen, you've got the adjusted PBT of 7.5 of the previous year working through to the 3.7 of this year.

10:50 Obviously, that reduction in that sales volume that we've just seen of that 6% down, it's given us a a sales volume profit decrease of 1.5. We see that 400,000 increase due to the gross margin increase. Operational costs, they did increase year on year. 2,000,000 of that there is associated to the IBS operating costs. That's the new acquisition of May November twenty twenty three. And then we've got 1,600,000 additional operating costs. That can be brought down into naught 800,000 relating

11:31 to our new facilities in Oxford for Markless. 300,000 was a new IT system, so that's the new ERP system to help improve efficiencies within the business. And as it's a client based system, it is expense rather than capitalized. There was also some additional increase for inventory provision of about 300,000 as well. So and then we had that increase in the profitability because of additional r and d capitalization. 700,000 impact from FX, that's predominantly US dollar to sterling. And then with the high cash balance, we've received more interest with the higher interest rates that were in play last year.

12:22 Okay. Thanks, Zoe. So what I'd like to take you through now is the sort of recent history of ICON. Put some context around the recent results. If we look at this slide here and look at fiscal year seventeen, eighteen and nineteen, the Vicon business was trading under normal operating, normal trading patterns and customer buying behaviors. Our general lead time for our products, somewhere between x stock and and as an outlier, ten ten weeks, but, you know, x stock to four, six weeks or so. So customers buying behavior was was, you know, on a on a fairly quick cycle at that time. Then as we ended into into COVID in 2020, you can see the contraction there, and that was very much affected by The US going into contraction very quickly after lockdown.

13:13 And at that point, we weren't seeing any particular supply chain issues. However, during twenty one to twenty three, Bicon was severely affected by supply chain challenges. And therefore, we had to ask for the first time for our customers to change their buying behaviors and effectively ask them to get into a queue. We were unable to confirm delivery dates in the vast majority of cases. And in order for them to secure their products down the line, they did enter into this with us and and placed orders. And the effect of this was the group built a significant order book for the first time in its history at its peak, £24,000,000, which was then followed the following month by landing the largest order in the group's history of just under $7,000,000.

14:05 So during that period of time, we were fulfilling orders as we were receiving components from the field. And in a lot of cases, those components were at premium price. And then we come into 24, the supply chain situation is easing. We have still have an order book, and we start to return to the trading patterns observed in '17, '18, and '19 where customers lead times have come down, and we return to a pipeline operation or an opportunity forecast situation. The other thing to note about the Viacom business is that it it's a very q four weighted business. And in fact, September historically, over a number of years has proved to contribute significant levels to the year's performance.

14:57 So the trend of the customers buying behavior returning to pre COVID behaviors continued as we went through h two. We saw coverage of our sales pipeline to the end of the year as we had where it was in evidence in August. But really, was extended buying cycles and pipeline timing shifts and delayed decision making really developed into September. And then, unfortunately, the conversion rate of pipeline into revenue during September was not seen at the required levels to deliver the full year number. So just taking the revenue numbers and looking at that across our different markets. As you can see there from an engineering and an entertainment point of view, they were both down on previous years.

15:48 We were seeing that academic slowdown that I referred to in previous slide in in the engineering market, and it was resulted in about 7% decrease on the year. From an entertainment's point of view, that was a larger decrease of 73% sorry, 23% impacted by, you know, the ongoing slowdown of the global games industry and content creation contraction. We from a life sciences point of view, that was really flat year on year even though we had that slowdown in particular in The US on the academic front. And the smart manufacturing, our new division, so that had IBS for eleven months in it, but 2,900,000 of revenue was earned through through IBS.

16:43 The end of year number was slightly behind where we were expecting, but it's mainly due to customer delays and some orders got pushed out to q one of f y twenty five. I mean, one of the examples of one of the customer's delays is that the customer just pushed out the delivery in the in store. It was a Spanish customer, and the factory was flooded. So we are expecting most of those delayed orders to be shipped in q one. What was very reassuring with IBS was a healthy order book at the end of the year and the growing pipeline. And we have received further £1,300,000 worth of orders in this financial year to date.

17:31 Splitting the Vicon revenue only across the geographical destinations, you can see that both UK and Europe saw increases year on year with The UK having the largest ever state of the art virtual production studio complex, and that order did span both both years. And then Europe also having success with the Grand Canaria Studios, one of Europe's largest virtual production stages. When we look at North America and Asia Pacific, both were down year on year. North America, 7% down. And Asia Pacific, the large gap at 35 down, predominantly due to the ongoing games contraction.

18:23 And also, 2023 was a very large comparative, which you'll see more details on the next slide. There was success stories in Asia Pacific still with the Thailand University upgrade to the a new Valkyrie camera. So taking that same data, but looking at it over a longer period of time. So we've looked at it from 2017 to 2024. You can see the purple and pink is that North America and the Asia geography. And as we look across all of those different territories, we do have a positive CAGR over this period that's is from about 6% up to about 13%.

19:12 When we look at the business overall, it's an 8% CAGR over this time period. So one of the questions we get a lot is that is around the cash balance at just shy of 47,000,000 as at the end of November. That balance now reflecting the separate acquisition and the share buyback scheme. The share buyback program was launched in the middle of October and is for up to £6,000,000. To date, we've now expensed about 1,300,000 through that, and we would expect that to continue over the next few months, and we do review it regularly.

19:58 As previously said, we continue our progressive dividend policy with that 18% increase this year. That'll cost the business in cash about £44,200,000. We continue with R and D investment. There'll be some further investment from Markless before it's launched and some more more new products, all to generate growth in that Viacom business. And then we look at our m and a program, and we've allocated as a minimum 15 to £20,000,000 to progress through with the m and a. And all of those will ensure that the company remains debt free in the next period. I joined the business in the July 1, and wanna I've worked across the business, across the divisions. I worked with IBS, worked with Sempra now. They're on board. But also across the vibe and then the different departments within there and, of course, alongside them. And then looking at what costs we can save within the business, how we can be more efficient, how we can get the business more agile, and invest into the business for growth.

21:09 We've executed £1,200,000 worth of cost savings in the last probably six weeks, maybe eight. Predominantly, that is headcount, but there is no overheads as well. We are streamlining our operations. You know, we've introduced a new IT system, which will really help with our efficiencies. We're ensuring that we have time to cost controls measures in place. And looking at our working capital, as I already said, that inventory was high at half year. We've got it down for year end, and we're looking at how we can just use our working capital more efficient efficient and optimize that inventory.

21:56 Some of those cost savings, we will reinvest into the business for growth. One of those areas is restructuring with the group. So we have created a smart manufacturing division. And across the Vicom division and the smart manufacturing division, we will change the management structure structure and restructure so that we have senior managers in those divisions that are really geared to the growth on both. One of the other areas we're looking at is the revenue models. As we've seen on the previous slides, the Viacom business historically is is fairly bumpy on occasions and a lot of the business comes in that last quarter.

22:43 So looking to how we derisk that and different revenue models, Both IVS and Sempra will provide some some of that, but also the Mark plus the new technology of Mark plus launching. That will be partially CapEx deposits upfront, but also moving to that annual recurring revenue over a three year period. Thanks, Harry. So as we scale, we've now with the period at the period end of fiscal year twenty four, we've reviewed our forecasting methodology also. So we need to make sure that our forecasting is reliable.

23:28 So as the business scales and we draw more companies into the group through the m and a program, also we have consistency above all. So we now have a lot of historical performance and phasing, which is valuable data, which we'll continue to use. But the the biggest change that we've moved to the evidence based MEDDIC system, that means the salespeople must evidence why they opportunities at a certain stage and a close date, which gives a lot more robustness to the forecast. And in addition, lead generation contribution from our growth manufacturing system, which is now fully in place in Vicon. And then very importantly, the revenue target visibility, the coverage is obviously provided by the invoice sales we have and then the order book or orders in hand.

24:19 And also the visibility from that weighted pipeline from the METRIC methodology. And then very importantly, tracking the conversion rate of opportunity to order out the door. So it was clear that the pre pandemic historical forecasting method needed to be enhanced and we have done that already within the business. So OXFORD METRICS of today consists now of two two divisions. The Vicon's motion capture company serving those three main global markets where we have the MARCOS technology ready to to launch very soon. I'm building out this new division in smart manufacturing via IVS and post period end of Sempra. So the Sempra acquisition was earning enhancing with clear commercial and technical synergies with IBS.

25:09 And the smart manufacturing division has different customers at different revenue models and markets to the Vicon Motion Capture division, which is a deliberate move to help to diversify the group's revenues. So with this growing group, as Zoe said, we're in the process of restructuring the management levels to optimize and position for future success. And then the synergies in the smart manufacturing division since bringing Sempra into the group with with aligning the capabilities of these two companies for growth. So in sales, we have more people selling both companies' offerings with dedicated regional resourcing. In products and markets, the expansion of IVS technology to better serve the markets that Sempra have brought into the portfolio.

25:55 Group services providing bandwidth and introduction of growth marketing without significant cost increases. And in r and d, we have identified two cooperative product opportunities with the IVS IP helping Sempra to win more. And again, in management as part of the group structure reorg already mentioned by Zoe. I'd now like to talk about the opportunity and threat of AI to the technology within the OXFORD METRICS group before we before we move on to the growth opportunities. And by AI, I mean generative AI text to video. In this video, I'm showing the latest text to video AI, renderings that are possible.

26:47 And later as the video rolls rolls forward, you'll see Vicon motion capture, and I hope it will be very clear what the difference is. Text to video, generative eye tends to be very headshot, straightforward, turning left to right, not multiple characters, not complex movement, not, you know, things like gymnastics or sports moves. This is now the Vicon section. As you can see, the level of complexity, direction, nuance. This is animation and creation at its sort of highest level. This is what Vicon is is used for. And text to video, I'll talk a little bit about how we feel it fits in to the the pipeline in the next slide. But I'm hoping to see from the video that it's the two things at the present time look and the outputs look very, very different from each other.

27:59 So how do we see generative eye fitting into the entertainment industry particularly? If you just take that video, the video the start of the video was at the the left hand side diamond. And as we we went through, we didn't see any markless in there yet. But towards the end of it where you saw the Vicon motion capture, that's the the diamond the the dark blue diamond at the very far right. So in the creative process, there's a lot of stuff called ideation or storyboarding. And that's where the animator or the creative has an idea. You saw in that video, they even have, sketches, the old fashioned way of doing it, draw actually drawing the, characters out. But generative AI could be used, to help speed that process up by just using a text to video tool as we kind of saw in that video.

28:49 And what we see is that that would be used very quickly to to come up with an idea that then moves along the chain and then uses the Vicon Markler system to then ideate it to a more complex level, more nuance, more intent, more emotion, more like the final product. The thing we need to remember about motion capture is that the stage where the outputs for the games, the films, the TV are being done are usually busy, expensive to use, and are not used in the ideation stage at all. So where we see AI fitting is at the beginning of this process, and then you advance through the Viacom pipeline pipeline as the creative process advances as the project advances.

29:35 We do keep a very close eye on this technology and we do talk to our beta program customers in Markkilos to see how they're using it and they all see it in the same way as we've discussed here today. And then we have to also talk, you know, to the the use of of generative AI in in other markets we serve, certainly life sciences. I think GN AI may be a difficult sell there because patients' movements are unique to them. And they are related to the underlying pathology and treatment is being prescribed from from the the the motion capture. So I think it would be difficult for a text to video tool to be able to replace motion capture as it stands today in in life sciences. But we do feel it's possible that AI techniques in some form such as classification, which we use in our IBS IP could be used for classification of movement and movement disorders.

30:33 So we're positioning the business for future success. The motion capture division, Vicon will be stimulated by new products and will continue to grow through our previous investment in sales, marketing, product, and customer success. The commercialization of the Markerless technology in the final stages of beta program are going well, and we'll be launching the first two versions of this technology within fiscal year twenty five with revenues to come including ARR. Our smart manufacturing division continue to work with the the Sempra and IVF Synergies to to grow those two companies as stronger together whilst also, continuing our m and a program in this exciting and vast area. And then the power up is still there.

31:19 It's anything that could accelerate the other three components to our growth strategy, and that's also keeping an eye on m and a in the more in the motion capture space. There's some interesting IP in in the market less area particularly. So our outlook. So trading in the first months of the financial year has started in line with expectation and continuous continuation of the normal or the pre COVID buying patterns seen from our customers in the Viacom business. The group has made clear operational progress in '24, getting Marvelous ready for launch and establishing our new growth area in smart manufacturing. Our Vicon division has started the year with a good spread of opportunities across all main markets and this pipeline of new products in addition to Markalus being released throughout the year.

32:09 The Viacom pipeline has seen improved activity in the academic area, particularly in The United States. The entertainment market remains mixed at present. Markalus is in its final stages and ready ready to realize those revenues. And smart manufacturing division has made a strong start to the year with those additional 1,300,000 pounds of orders contributing to IVS's healthy order book. Sempra also has a good pipeline and we are already seeing sales synergies with IVS opportunities. The group enters fiscal twenty five with strong balance sheet and a current cash position of just under £47,000,000, providing us the flexibility to build out our smart manufacturing division via our targeted m and a program as we seek to extend our capabilities in yet more areas and capture more of this important growth market.

33:02 With a continued focus on cost and efficiency, actively reallocating resources to high impact areas, we are well positioned to capitalize on the growth opportunities, setting the business up for success in 2025 and beyond. Okay. Thank you. That concludes the presentation section, of the meeting. And I'll be back to the webcast. Perfect. Image and Zoe, thanks very much for your presentation. Ladies and gentlemen, please do continue to submit your questions, and you can do that just by using the Q and A tab that's situated on the top right hand corner of your screen. Just while the company take a few moments through the questions that have been submitted today, I would 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.

33:48 As you can see, we have received a large number of questions throughout today's presentation. If I could just hand back to you to read out the questions and give response where it's appropriate to do so, I'll pick up from you both at the end. Yeah. That's fine. Yeah. That's fine. Great. Yep. No problem. That's alright. I'll just go. Over to you, OXFORD. Yep. Sure. Just on a quick yeah. Okay. Alright. Thank you. We have some pre submitted questions, so we'll we'll hit those first. SCI Group recent acquisition of Inspect Vision, is this a direct competitor? Well, Sempra actually have the agreement to sell Inspect Vision in in The UK and Ireland, and we so it's not a direct competitor. It's actually part of the group in terms of Sempra.

34:36 The acquisition came through, and we made sure that we were communicating with the new owners to ensure everything was going to be remaining the same and and thus far it is. So so far, no issues there. Will we be affected by The US tariffs? Oh, good one. Until we really see the the detail of that, we don't know. But we will we're already taking action in terms of planning for various scenarios of how that tariff might look. And we obviously have a US operation out there, so we have we do have options to be able to mitigate for any US tariffs should they apply to our our products and our markets.

35:27 Why has the administration expense increased by 47%? Sure. Yeah. So I I did sort of touch on this when you with the gross profit chart earlier on in the presentation. So when you look at the admin costs, they have gone up about $4.04 just over 4,000,000. 2,000,000 of that is all IBS costs. So that's a new acquisition. So, of course, it would push that up. The other can be split with 700 k of FX, 300,000 of increased inventory provision, 300,000 ERP new system, and then there's 800,000, which is a new facilities for Markless. So in all, about 800,000 of that is one off costs.

36:17 So we wouldn't expect to see those repeat. Okay. Could you give us an update on m and a activity? Sure. So the m and and a conversations continue. We have a range of sizes in inactive conversation. Some sort of in the in the sort of IBS and size and some a bit bigger. We've actually removed the 3 to 9,000,000 revenue cap on our previously stated criteria. So we are talking to to sort of larger companies. I feel that we needed to become a credible buyer in the smart manufacturing space and the Sempra Sempra deal has certainly helped us with that. We the know how that Sempra have brought to the group really also helps with qualifying in and out on m and a. And also, we've actually walked away from a couple of deals.

37:11 Although, on in a lot of cases, hit a lot of our criteria for a good ad to the group. On one, we had to walk away because of price. And on the other, unfortunately, with the technology, didn't really feel that the technology would have a a long term place in the area of smart manufacturing that we are targeting, I e, the top end, you know, hard problems to solve, highly regulated quality compliance. Laurence, please, can you break down the components of the 1,200,000 annualized cost savings? Yeah. So the the 1,200,000, sort of a million of that is annualized headcount, and the rest is is overheads. So that's, you know, travel and assistance and software licenses that aren't made. Just general sort of overheads of the business that's just being reviewed and and can be taken out without any impact.

38:08 K. Please, could you outline the remaining steps to bring Marklist to market? Yep. Sure. So the beta program is now in its final stages. The beta customers have the final product to test. We have deliberately because we get one you get one shot of bringing new technology to to the to the market, we want to get it right. So we've made sure that we that we've established the value of the product in the customer's minds. It's also allowed us to have a little more time discussing the commercial model, again, making sure that ARR piece is landing well. And and so the next phase is is is to, you know, get ready for the public launch, finalize that last view of testing to make sure that the the product is exactly as it should be. And remember, we need to remember that Markalus is going to be a program of launches because it's not a one and done. It's a it's a machine learning product.

39:02 So its capability will grow over time as we use more and more data to answer more and more end use cases. So you need to think about the law when the launch happens, there will be further launches over periods of time. We will also be working with the life sciences market to get the product ready for them over the coming months and years too. Okay. How does the order book this year compared to last year? Well, because our customers in the Vicon business have reverted back to the buying patterns seen pre COVID because we have the supply chain challenges of eased, then Vicon has gone back to having, you know, no order book or no significant order book at all. And that's how it was, you know, for years, not fiscal nineteen and backwards.

39:53 And the the order book was unusual, exceptional, driven by the demand and the supply chain issues of actually shipping goods out the door. So the order book for Vicon is very low compared to 11.5, but it's normal levels. But then the order book for IVS was good for the size of the business and the visibility there is very good and it's a different revenue model for them with, you know, sort of contractual and project deliveries as well. I have two questions, please. Are we seeing any signs of the longer decision making process changing for better or worse, and should we expect any catch up sales or the effect to be lost? Yeah. So the return the the larger economic events of entertainment market and you and academic funding kinda slowdowns was that we in some cases, we see, again, The US increased activity as we expected.

40:55 Entertainment remains mixed. We have some customers who are, you know, going very well very well. We have other customers, unfortunately, who the story isn't quite so great. So I'd say that that we see some moderate signs of of improvement, but we want to see longer this happening over a longer period of time. We're taking a prudent view of that at the present time. I think we've answered that second bit. Low a low number of months for the Markless launch. Reasonable view, cross selling. Cost selling cost savings already realized. What is the potential here? Well, Sempra have only been in in the group for just over a month, a couple of months, just under a couple of months. So the first thing I wanted to do with those guys is get the commercial synergies going, get them selling more because that's that's an easy win.

41:53 As part of the restructuring and the divisional structure that we're going to, you know, put in place, that will be part of looking at all the other areas will be part of that. Further details you can provide on upcoming Viacom products. Yes. So in terms of the Viacom products, we're targeting areas where we see the ability to unlock upgrades and unlock new business. So a couple of products for the life sciences market on the software side, which will drive upgrades. We have a product specifically for the virtual production market in entertainment.

42:42 That is not in contraction from our perspective. And then there's one general product which will be useful for every customer, and that will also help them to move forward with upgrading their existing system. So we're we're doing as much as we can to unlock business from our existing customer base, which is very big. But also it makes us certainly on the life sciences side more competitive. The timeline for Marcus launched the first sales, we're expecting to be relatively short. The pricing model is is is set to to be attractive to customers.

43:30 We obviously have beta customers in in play, so an obvious thing to do there is to ask them to pay for the systems that they have. So we are expecting that the the the timeline to be relatively short there. The forecasting methodology include an upgrade to a top level CRM system. Or we do have one. We have have we use Salesforce as a CRM and have done for a number of years. But the the MEDDIC methodology is is the thing that we've actually worked on to change with that evidence based opportunity waiting. What level of inventory are you targeting?

44:19 I think, you know, we're we're targeting several days around where we ended the year for financial year 2024, you know, to maintain that level and bring it down should we need to. It's all about ensuring that we've rightsized it for the forecast. So given the absolute number on it will depend on where they obviously, what's required from a forecasting point of view. But at the end of the day, we're looking at around about 7,000,000 at what we're we're looking at with our current forecasts. Yeah. And then there's another batch of share buybacks envisaged. Well, we constantly review the buyback at the board level, and we review the cash balance and its use and its allocation regularly by the board.

45:10 So it it is a topic that remains a a live topic. Okay. Right. Well, thank you everybody. I think that concludes the q and a session. We will get back to any of the other ones that we can afterwards. But I'd like to thank you all very much for taking the time to be with us today. Thanks very much, Alessandro. Image and Oi, thank you very much for updating investors today. Can I please ask investors not to close this session as you now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations? This will only take a few moments to complete, but I'm sure you'll be greatly valued by the company. On behalf of management team of OXFORD METRICS PLC, we'd like to thank you for attending today's presentation, and good morning to you all.