Shearwater Group (LSE:SWG) — Investor Presentation

0:00 Good afternoon and welcome to the SHEARWATER GROUP PLC Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time by the Q and A tab situated in the right hand 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 it receives in the meeting itself. However, the company can review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I'd like to submit the following poll.

0:26 And I'd now like to hand you over to Phil Higgins, CEO. Good afternoon to you, sir. Thank you, and good morning. Sorry. Good afternoon to everyone. It's a pleasure to have the opportunity to present to you today our interim results. Joining me also for the first time is our new interim CFO, Adam Hurst, who you'll get to hear from later on. Let me start off by giving you a brief overview of the SHEARWATER group just to remind you. So at SHEARWATER, we provide cybersecurity, managed security, professional advisory solutions to help create a safer environment for our client organizations and their end users. We deliver this business through two divisions, our services division and our software division. Within that software division, we produce award winning identity access software and sensitive data discovery software, and we sell that via a a global network of 350 plus resellers.

1:25 Recently, we integrated our GEO Lang company into Secure Envoy, And we did that for a number of reasons. One, to gain greater efficiencies, both time and resources, and more importantly, for GeoLANC to benefit from the unfettered access of the Secure Envoy's global reseller program. All of the resellers, 350 plus of them have now been informed, obviously, of the of the new product set, and they're able now to represent that internationally for us. On the services side of the business, we we're made up of Brookholt Solutions and Pentest. This is following the integration of Exena Consulting into Brookhorn. And once again, we did this to gain greater efficiencies, but also importantly to to note is that we we did this to assist our Exena consultants in gaining greater access to the, our client base, and which is made up of Fortune 500, FTSE three fifty, government, and SME clients.

2:23 Adam will cover it in labor sorry. I need to go back one moment. Adam will cover the revenues later on in in greater detail. But just to give you a little bit of a flavor, our service division contribute 89% of our group revenues, leaving the remaining 11% coming from our software division. And whilst our software division is a smaller number, don't forget it's it's our own IP. It's a greater quality of revenue that we see with a greater profit margin. We also see a circa 84% recurring or repeatable revenue coming from our software division. So it's very important to us. And lastly, on scale, we we cover currently, we, we work across circa 50 countries, as you can see there on the map.

3:12 Adam, if I can take you to next slide. Thank you. We gave a resilient performance during h one. Our customer engagements do remain robust, resulted in 41 new customers during the period, and that's despite some of the market challenges. We did see client decision making taking a little bit longer than usual, and we also saw some projects getting deferred into the future. And, we we do expect to see some of that happening, potentially as as the year runs on. Also, during the period, we our revenues came in at $10,500,000 and adjusted EBITDA at $600,000 That gave us a healthy balance sheet with cash of $2,200,000 as of the September 30. Once again, Adam will go through greater details on the latest stage in the presentation.

4:01 As I mentioned earlier, we have enhanced our operations by taking decisive action to optimize our operations to we wanted to emerge leaner and more of a unified business. Our services division continues to show promise with our encouraging pipeline. We got high quality blue chip customers and government customers covering both domestic and international territories. Newly integrated software division can now look forward to enhanced opportunities now that their full portfolio of product set has been successfully introduced right across the the global network. We're very pleased with that piece of work. Now finally, we we're proud to announce, obviously, we managed to secure five significant awards over the period and two are in for relating to products.

4:52 One was for quality of service. Another one was the vendor one, but most notably was one from our pen test division where they successfully hacked for, I believe, it's a second or maybe third time, the Samsung s 23 phone. They did that on global stage at home to own Toronto, and we're very pleased with that result. Moving on to the next slide. Following our recent restructuring, we have become more agile, specialized, and more of a focused business. Our expertise enables us to assist our clients in meeting their regulatory and legal requirements while safeguarding their assets and their user base. We do this throughout our advanced solutions and our services. We do excel in upgrading beyond the high commodity segment out of the marketplace.

5:40 We do avoid the vast waves of competition. We're we're not in the commodity space. We're in that high value. They do have longer sales cycles. They are more complex. They are bigger deals, but we do enjoy that opportunity. Also, our commitment to cutting edge technology continues, along with our service offerings. It enables us to to create and forge, you know, enduring, partnerships with our blue chip organizations. And we cater the clients across all sectors and in both domestic and international markets. Our team has diligently managed and optimized staff numbers. We we do align and we have aligned and we have rightsized our workforce. With this strategic approach, we're now fully equipped and poised to seize any opportunities that rise out of h two in the coming months.

6:31 And finally, take this opportunity to to formally welcome Adam Hertz, our new interim CFO and board member. Adam brings a wealth of experience, and he strengthens our leadership and finance teams. Later on in the in the presentation, Adam will be presenting the the finance slides to you. Moving on to that, a little bit of an update on our services division. On the right, we have a snapshot of some of our recent achievements. I'll walk you through a few of those and and embellish some of it where I can. After successfully incorporating Exena into Brookhaub, we have experienced increased momentum and a great attraction from Exena. We have discovered new business, and the pipeline, I'm glad to say, is is looking better than it was.

7:20 Also, as noted earlier, the majority of our revenue, 89% of that comes from our services division. I just wanna walk you through what those the the breakdown of that revenue looks like. As you can see, 5% originates from new contract from new customers. So these are net new customers to us, people that we've never spoken to before, they're new to the group. 54% is coming from repeat business and renewals. So where we sold something previously, maybe a year, two years, or three years ago, where the contracts come up for renewal, we're fortunate enough to be actually winning that back. The interesting one for us is the 41%, which is generated through new contracts with existing clients. And this also includes the clients where they have purchased from us, say, 100 user infrastructure and then in in year one and then coming back to renew that, but then extending it, making it bigger.

8:19 And, obviously, that gives us a good demonstration of the the deeper wider penetration that we're having inside our client base. So we're looking for that number to grow on a continuous basis. If you look at where where we actually do a lot of this work, we're particularly strong in the banking, telecommunications, and technology sectors. Obviously, with the technology sectors, that's a testament to to the quality our own industry see in in our ability in in by by acquiring our products and services.

8:50 Multiple wins during the period. We've had a number, but just a just a few highlights here. We got a significant contract win with a leading British mobile operator. We are fortunate enough to win an international contract with a European MSSP. We also won significant business from a international health and beauty retailer and pharmacy company, just to name by a few. One particular one that I'm I am very pleased with is, historically, we stayed away from the government portals. We did find the government business very slow, and we did find the decision making process, very complicated and, and and tiresome. I'm very pleased to report after joining the g cloud platform, we've managed to secure our first significant government contract from a government department.

9:44 This gives us an opportunity, obviously, to to to tap previously untapped sector for us. So we'll be looking to expand that, and there are a number of opportunities in the pipeline to do so. Our pipeline continues to build. We got some wonderful opportunities in there, and part of our focus is for the remaining part of this fiscal year is obviously to convert those opportunities into bottom line revenues. And all of this, our group, is underpinned by his experience and a very strong client relationship, breadth of offering, staff incentives, and, of course, our advisory support support. We'll just take on to our software now. Just give you a little bit of, color around what we're doing there.

10:30 So as I mentioned earlier, we've been streamlining the business. We integrated GeoLAN into Secure Envoy, and the GeoLAN technology set. They've been the Secure Envoy guys have been working on the Geovan technology network for over eighteen months. And I'm glad to be able to say that we have now got and we've created the Secure Envoy data discovery solution. And this is the merger of that technology coming to Secure Envoy. To update you on the progress we've made since the integration, I'm pleased to report that SINA now operating as one cohesive and consolidated unit. So we're leveraging their collective expertise to deliver heightened capabilities and and to explore new opportunities inside the technology sector.

11:17 The all new data discovery opportunities are strategically channeled now, obviously, coming through our, secure Envoy 350 plus reseller network. As we've already seen, the some of those opportunities come through. It's still very early. They're they're coming from literally international spread of of resellers.

11:42 Also, I'd like to just update you on the converged access management development. Obviously, this is the core product of Secure Envoy. We have now recently released our version three release three that came up in October. And what that does, it gives more features and functionalities for for the client. And it provides an expandable deployment deployment options. So now not only can you install this on prem and in the cloud, we've also got additional software platforms in which you can install this across. It's worth noting that many of our many of these options are not available from our competition. So this is what starts making us stand out from the crowd. The secure envoy came from an on premise environment.

12:30 We still have a large number of customers who still deploy with inside and on prem. So we're still servicing those. We're still developing our software with those, but we also have developed our, obviously, our our cloud versions so we can meet the old marketplace and we can also address new. We've also with inside the the access management, we have introduced a managed service provider version. This allows the managed service provider to white label. They can remove our logo, put their own logo on. We've also integrated a a smoother, better billing system. So as the demand for managed services grows, it allows the MSP provider to manage the billing of their client accordingly.

13:18 And whilst we're yet to see the benefits of some of the new software releases, what we are seeing is we've seen renewals and tracking currently ahead of management expectations, which is very encouraging for us. And finally, I suppose on just to confirm and to make additional commitments, we all of this is underpinned by a continuous investment on with inside software development, and we will continue to do so. And with that, I think I'm now handing over to Adam. So, Adam, over to you, please.

13:52 Thank you, Phil. Hi, everyone. It's it's good to be here. As most of you will know, I've now been with SHEARWATER for almost seven almost eight weeks. Before I start, I did want to take the opportunity to thank my predecessor, Paul McFadden, for his really professional assistance during the transition period. So I'm going to walk you through the main financial headlines from our half year results, and, obviously, we'll be happy to take questions later. So as you heard from Phil, our revenue in the first half of £10,500,000 was slightly below the equivalent number in the previous year. This was due to a small improvement in the services business, but lower revenue in the software division, which I'll come to shortly. Headline gross profit increased by £500,000 or 16%.

14:43 Although some of you will recall that in the first half last year, the company was impacted by £900,000 foreign exchange loss due to the political volatility and turbulence in the markets in The UK at that time. Those exposures were subsequently hedged, but excluding the FX loss from last year's numbers, which showed that gross profit declined by naught £400,000 this year, and this was due mainly to the weighting of revenue between our two divisions. Admin expenses were broadly flat year on year with savings in the divisions offset by slightly increased costs at corporate. Consequently, adjusted EBITDA was better than last year, although if the impact of FX is removed, then that would have been behind due to the lower gross profit.

15:29 And just to flag, building on some of the points that Phil raised earlier, we continue to retain a long standing customer base within our revenue numbers. So moving into the divisions, I'll start with services, which comprises Brookhort, Pentest, and the newly integrated XCena business. Revenue in the first half was encouraging with a 2% increase year on year. This was driven by a strong start in the penetration testing business, which included fulfillment of a contract delayed from last year. But underlying trading also performed ahead of our expectations. It was the services division that was impacted by the FX loss I mentioned earlier last year. So while our headline gross profit increased to £2,300,000, the prior year comparative would have been 2,500,000 if we adjusted for it with a percentage of 27%.

16:21 The slight drop in the underlying gross margin percentage was due to the profile of contracts in the first half. Admin expenses were lower than last year due mainly to cost savings achieved as part of the restructuring that was mentioned in our year end results and that Phil talked about earlier. The software division had a slower first half. While it's pleasing to note that renewal rates improved compared to last year ahead of management's expectations.

16:51 New business was lower than expected. Sales opportunities for the Geolang product, now renamed data discovery, have, however, increased significantly as the recent integration has created access to secure Envoy's 350 strong global reseller market. The gross margin percentage remained steady while admin expenses were slightly lower.

17:16 The remainder of the income statement is broadly in line with last year. Software amortization increased slightly as products in development were released to the market, and the exceptional item of naught £200,000,000 related to the integrations of Exsina into Brook Court and Geolang into Secure Envoy. The tax credit increased slightly due to the phasing of recognition of r and d enhanced tax credit enhanced tax relief last year, as well as an increase in The UK corporation tax rate from 19% to 25%. The reported loss after tax improved by naught £400,000 compared to last year, although excluding the impact of the FX loss would have been naught £500,000 behind. Finally, moving on to the cash flow. And, there are no significant surprises.

18:07 Overall, our closing cash balance of £2,200,000 was 1,300,000 better than at the same point last year. Although Although we did flag at the time that approximately £1,000,000 of cash receipts had just tripped into October.

18:21 You can see that the main reason for the reduction in cash since the year end, which sat at just under £4,000,000, was was due to unexpected seasonal outflow in working capital, which is consistent with recent years. And I've prepared a simple chart showing this impact.

18:38 On the left hand chart, you can here the seasonality in the cash position of the business over recent recent half years. And on the right hand side, I've extracted the half on half movements. These show clearly how cash generation has historically been weighted to the second half of the year. And you'll also note that even after adjusting for the million pounds that tripped into October last year, the outflow in the first half this year at 1,800,000 was relatively low compared to the first half in f y twenty two and in f y twenty three.

19:12 So to finish off the remaining cash movements, you can see that we spent slightly less CapEx in the first half this year, and that was due mainly to bring some expensive overseas outsourced resource in house in The UK. And we also received naught £300,000 repayment of tax after we finalized the f y twenty two tax returns. And that's all for me, and I'll hand back to Phil to close out the presentation. Thank you, Adam. Let me just move on to the next slide. I'm just gonna give you a little bit of direction on on our strategy. And as you'll you'll see there, the the the key pillars on the left hand side still remain. They're they're unchanged.

19:59 And whilst that that it's important to note that we are a client centric market consolidator. We're we're focused on building an organic sustainable revenues and profit growth for the years ahead. And we will achieve our organic growth through helping our our company solve core scaling issues by providing capital and product services and development where's when when's required. And also to help provide with infrastructure and skilled experience, management personnel, along with the board advisers. And all of these things actually help create scale for for our clients and as demonstrated with integrating our geoLang into Secure Envoy. We also aim to build upon the cross selling success that we've we started back in 2019.

20:47 We're also very much focused on selling our own software. The the revenue stream is good better quality, higher grade, and obviously has a huge impact on the on the bottom line. So we're incentivizing our sales team to make sure that we're we're selling our own in house services and software. We also intend to continue, obviously, to to secure new long term high value customers. We deal with the the Fortune 500, FTSE three 50, as well as SMEs and government. But our long standing customers, some of those have been with us for in excess of ten years, and and we're very proud of that. And these are blue chip names. These are companies that you would know the logos of. Also, we've continued to we've made a commitment to to continually to innovate, and we'll continue our investment through r and d into our our software and our services.

21:41 However, it is also our long term goal to to grow via focus acquisitions. We'll be looking for

21:51 companies that will complement via our services or our software division and that can bring shareholders value, and that will be the key focus of of any acquisition moving forward. If we go to the next slide, please. So just to give you a little bit of the outlook, the current trading landscape, our engagement levels remain high despite the challenging challenges that we've seen recently. Our recent operational adjustments have not only fortified our strategy and our strategic positioning, but they've also paved the way for enhanced resilience. And the presence of the promising pipeline and our service opportunities is it gives us a source of confidence.

22:38 And we still have, obviously, a some historical

22:43 contracts to fulfill, and we do anticipate seeing those deals being secured later in the year. We also look forward to leveraging our accents our extensive reach, our global distribution network of those, 350 plus resellers. You know, we will be working very closely with them to help help drive our our software products and our sales through them. We have the opportunity to thrive, and we've got dedicated focus in in pushing high margin deals with inside the division. And amidst these dynamics, we have our unwavering commitment to maintain an healthy balance sheet. I'm very pleased Adam's on board and even with those who've with us a very short period of time. He's managed to to get a grip and get a a clear understanding of of the inner workings of our group, and we make a continuous commitment to maintaining a healthy balance sheet.

23:37 Our opportunities. There's a there are several opportunities on the horizon for us when you think about it. Firstly, there's potential of few further expansion of our blue chip client base with inside the services division. And in particular, focusing on the increase of the proportion of revenue generated through recurring sources, We're looking to go deeper and wider, and we're also looking to obviously can, you know, convert our our opportunities that we see in the pipeline into bottom line revenues. Additionally, we can capitalize on the enhanced offerings that we've we've got. We develop in house services as well as in house software, and we're looking obviously to capitalize on those, push those deeper and wider across our client base, and also with product marketing to look to towards winning net new customers through that route.

24:28 Furthermore, we got those room for growth by introducing our software products through to our existing BlueJeans clients. We have been doing this. We've got some good conversations taking place at the moment, and we're very pleased now that we've got the full products available and that we're able to actually do this. And we will look for opportunities to to get converted later in the year. We're also looking for the strategic initiatives really to position us well to optimize our market presence and obviously drive that sustained growth that we talk about in for our organic. And we'd be looking to do that with, obviously, with both our software and our services side of the business. And with that, concludes today's presentation.

25:14 And with that, I'd like to hand back to control for some questions. Perfect, Phil. Adam, 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, which is situated on the top right hand corner of your screen. We have received a number of questions from investors, and I want to start off the q and a session with this one here, which reads as follows. Good to see hope high profile wins in the services division. What are the types of contracts are you securing? And are they moving to one year or still three year contracts? Good question. Right. So we we do have a healthy blend of contracts now across our order book. We got a good mix of one year deals with larger customers signing one to three year deals. We also have some high profile wins, which is where we have an encouraging rate for renewals from our existing clients as well. So, it's it's really mixed, but it is blend there is a blend, and it's very healthy, and it's well balanced for us now, better than what we we were experiencing in previous years.

26:14 Perfect. Thank you very much, Phil. Just moving to the next question. Why is it taking so long for companies to invest in what most see as an essential service with so many cyber attacks? I think there's couple of things that play here. I mean, what we have seen is obviously due to the economical pressures out there, budgets have been under pressure from some of their clients. And this is because of all areas. There's not one particular vertical that we're seeing this. So part of it is economical climate. While cybersecurity remains high in the general of our customers, constantly in the process as we all know, customers are also taking slightly longer in their decisions. Some of the projects are getting deferred to the future. And so we we have to wait for those those customers to, you know, to to initiate and and to start that engagement. Unfortunately, you can't push some of these global operations any quicker than we do, as much as we'd like to. But, unfortunately, yeah, due to some of those those economical pressures on their client base, they are delayed.

27:14 Perfect. Thank you very much. The next question here. Can you tell us more about the reorganization of the business and other benefits expected to deliver in h two? Yes. So I will. I'll I'll probably ask Adam to help me on on part of this to talk about some of the finance sides side of things. But with JiraLang, now we've successfully integrated in Geolang into Secure Envoy and Exena into Brookhort. We're we're now right sized to capitalize on that long term growth of the opportunities we're seeing. Know, within one of the things inside Brookhort, for example, we've we've enlisted our normal commission only sales representative. This is this is what we're piloting. We're trying. If it works, we will continue and expand it.

28:00 So we we don't have the heavy cost of the of sales and not until they actually sell something. So, obviously, it's it's a it's a new opportunity for us. Obviously, with that 350 strong global reseller networks I mentioned earlier, it's, you know, a big opportunity there now for Geolang to to get their message out on the on the international stage. And I I think maybe, Adam, if you can maybe give a little bit of color around any of the savings that we we see. Yeah. Sure. Thanks, Will. Yeah. So we recall in our annual accounts to to March 23, Paul had flagged that we expected to take out around about a million pounds worth of fixed cost from the from the cost base.

28:47 And the actions to do that have basic largely been completed completed during the first half. So the impact of that will start to come through in the second half this year and then get annualized next year. It's probably fair to say that, you know, we have reinvested a little bit of that, and we've also obviously had cost pressures as with as as alongside everybody else. So I'm not sure we won't quite get the full million pounds going to our bottom line, but we yeah. The actions have all now been taken, and and, yes, that that those savings will are starting to come through. Thank you. Perfect. Thanks very much. Could you give us a flavor of the type of customers you're engaging with in the current year? Yeah. We we got a a broad set of multinational blue chip organizations.

29:33 They span a range of business sectors, including FTSE three 50, Fortune 500, government, and SMEs. And they're obviously they're they're international and domestic. It's it's it's a wide range of of all of all sorts. Thanks very much, Phil. The next question. Macroeconomic factors have again been noted as a driver for struggling performance. Although this aligns with the wider IT services market, cybersecurity continues to be more resilient with continued growth. Why is SHEARWATER not able to replicate this level of market growth? Tough question. There's many things that you can point to on this. I mentioned earlier already that in subscript, we would know it remains high on our customers' agenda.

30:22 It does continue to do well. However, our customers are very transparent with us, and we have been impacted by their hesitancy amongst our customers. The wider economical climate has had an impact, and this is more of a matter of timing of when these custom when these contracts will actually happen. The customers are there. The the contracts are there. It's it's it's a timing as to when will they invest in cyber. Obviously, with more pressure coming from, you know, regulators and government, you know, that will help contribute to to speeding some of these up. We're as keen of that to happen as as anyone. We also see things like, you know, customer engagement has remained robust in the first half of the year, which is very encouraging. It gave us an awful lot of confidence.

31:10 We've got our enhanced offerings following the recent operation enhancements that we've made. So, you know, we're now that we've got this out there, we we will expect to see, you know, some some return on that coming through and throughout the the, you know, the remainder of the year and into the future. And, of course, we've got a pipeline. The pipeline is is is a very rich pipeline of opportunities and goes across each division. And now we've got a firm foundation which deliver solid sustainable revenues and and profit growth in years ahead. So, yeah, we're very encouraged by that. Hopefully, that answers your question. Is there anything there's anything more I can add to that one? Perfect. Thank you very much. Another question here.

31:57 Trading after adjustment for FedEx issues worsening year on year. Are there real opportunities to turn this business around, or is it going to be a long haul slog to get any improvements in earnings? I think I don't think I can really sort of comment on where the the future earnings will be. It's true that it was a difficult year last year, as you know. But the opportunities are there. We are seeing that pipeline grow with the types of businesses we get involved with. We're we're not in the the general maze of of of the general research space. We we tend to deal with the high value propositions. They they do have longer sales cycles.

32:42 Our top clients have stayed with us all the way through this period, and we're we're winning new clients coming in. So I I can't really give you a a timeline on any of that. And what I can say is there is there is all the materials there for the company to be successful. Our focus in h two is conversion of of these opportunities as well as obviously winning new clients. So the the company's been right sized to and we have the right people in the right place, hopefully, doing the right things. And and I think that will actually help generate that success coming through. But I I really can't go into anything more than that at this stage, I don't think. Maybe we can address that question also in in writing.

33:31 Perfect. That's great. And and one final question here. You didn't inform the market of the recent 1,300,000 million pound government contract win by way of separate r and s. Why was this? As one of the reasons for the share price is the lack of contract wins for new information, and they suggest that it would give them reassurance if you're making progress. I think there's there's a couple of things we we suffer from. We when you look at our our client fiscal year ends, a lot of our banking sector will will be calendar year. A lot of our enterprise are March 31. And so this is why we get a lot of h two heaviness. The what we're always hesitant about is announcing a a great win and boy, do we wanna announce those wins.

34:21 But what we don't want to do is announce the wins around the period of when we've got our interim results coming out. We don't want to mislead the market. Obviously we we believe and we have responsibility for being transparent. And where there's the opportunities to to make an announcement, we certainly will. We do set the same problem, obviously, in q four. And where we do get an awful lot of opportunities coming available to us then, if they come through early in the in in the month and if we're not knowing where we're gonna be towards the end of the fiscal year, what we don't be doing is making big announcements and and setting expectations. So it is very difficult for us when it comes to making those announcements. We use these opportunities like our interims and our our half year to make as many announcements as we possibly can.

35:10 Wherever we can, we will make more RNS announcements if at all possible. I don't think there's anything more we can add to that. So, Adam, is there any view from yourself? Sorry. Playing with my microphone. No. Sorry, Phil. Nothing to add. Perfect. Phil, Adam, thank you very much. I think you've actually addressed all the questions from investors. And, of course, the company can review all the questions submitted today and publish those responses on the investor meet company platform. But just before redirecting investors to provide you with their feedback, which you know is particularly important to the company, Phil, could I just ask you for a few closing comments? Certainly. Thank you. Well, firstly, thank you very much for joining us today. And what I would like to say is, obviously, when you look at SHEARWATER, we this year, we've had a healthy start to the year in that the pipeline is growing.

36:07 The opportunities are there. We've now integrated parts of the company to make it more efficient. We've got a pipeline to focus on for h two and then into the future, and we look to to deliver that. And we've got a cautious confidence in being able to achieve and reach our fiscal year end numbers. And with that, I would just like to thank you for taking the time to listen to us today. Perfect. Phil Adams, thank you once again for updating investors today. Could 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 then take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of SHEARWATER GROUP PLC, we'd like to thank you for attending today's presentation, and good afternoon to you all.

37:01 Thank you.