Zinc Media Group (LSE:ZIN) — Half Year Results

0:00 Good morning and welcome to the ZINC Media Group PLC Half Year Results Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and they can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and publish responses which is appropriate to do so. Before we begin, I would like to submit the following poll.

0:31 And I would now like to hand you over to CEO, Mark Browning. Good morning to you. Morning. Thank you very much. Morning, everybody. Thanks for joining. If you're new, I'll just explain as we go through the presentation. There's lots of images in the presentation all from recent programmes from ZINC. So the one you're seeing at the moment on your screen is from a new client, the Global Streamer Discovery Plus. If you watched the Olympics in any form, this summer, you may have seen it on Discovery. Discovery had the global rights, and they had the rights in The UK. If you watched on the BBC, you may have noticed there was a lot more talking between the sport this year than previous Olympics. That's because Discovery had the rights. So Discovery commissioned us to produce a number of programs, companion programs they're called in our industry, which sit alongside the live coverage. And this program, chasing glory, was one telling the backstories of some of the athletes from the games.

1:27 Let me just start with a scene set before we get into the numbers. So in the last three weeks, if you've been watching your r and s alerts, we've won £8,000,000 of new business. That is 20% of the entire turnover from last year, one in less than a month. I share it for illustrative purposes that it it it's it's symptomatic of how television can change quickly. Business in our sector comes in big bursts. We started the year very strongly, had good forward bookings. April to August was pretty slow across the market in TV decision making, and then boom, September turns up, and 20% of your annual turnover arrives inside three weeks. Of that 8,000,000 that we've won, 5,000,000 we expect to land in this year, and the rest adds to our good visibility actually for next year, for FY twenty five again, which we'll come on to. So the fundamentals of ZINC are excellent.

2:21 And by fundamentals, we mean increasingly diversified, client base, revenue base, high levels of repeat business, very healthy gross margins. The fact now that we produce content across a range of price points in our markets. They're all fundamentals, which stand us in very good stead as we go forward. And we're on course for a good profit growth year and some encouraging opportunities changing in our market. I'll come on to at the end of this presentation, market changes in television, both in The UK and internationally, some of which will present game changing opportunities for ZINC. So let's turn to the here and now, the last six months. So the headline for the first half year is that we've made good progress.

3:10 Despite revenue shifting into the second half of the year, we're trading in line with expectations for the full year. So revenue in the first half was GBP 14,000,000. And we began this year with really strong forward bookings. But the first half performance was behind prior year, and that was due to channels slowing their TV commissioning and delaying spend due to the advertising slowdown. And as a result of that, plus production related delays outside of our control, 2,000,000 of revenue moved from the first half to the second half. So first half revenue was 20% down on prior year. But to give some context to that, and how revenue in any one half year can fluctuate, this is actually 31% up on the first half of twenty twenty two, and a 100% up on the first half of twenty twenty one.

4:09 In terms of gross margins, we're maintaining really healthy gross margins of 41%. And cash at the end of June remained in a good position at 4,100,000. And then just to add a bit more color to the half year results. Group revenue of 14,100,000. It was lower than prior year, albeit that is in line with a wider market, which is seeing production weighted to the second half of the year. And that resulted in a GBP 1,500,000 reduction in EBITDA. So revenue is weighted to the second half. And in the second half, we expect to recognize GBP 10,000,000 more than in the first half. And that's supported by just having announced GBP 8,000,000 of new commissions in the last two weeks, and a significant amount of that will be recognized this year.

5:01 Gross margins of 41% were in line with the first half of last year, but two percentage points up on the prior full year. And that's been achieved by an increased focus on using in house production kit and postproduction facilities, which have benefited from investment over the last year. And the group's focus on its costs as part of the group's efficiency and synergy program have resulted in operating expenses reducing by $200 over the first half of the year.

5:40 This chart, this shows the first and second half revenue for the last four years. And it illustrates that performance is weighted to the second half of the year every year. And it's typically weighted sixty forty H2 to H1, as a lot of our filming takes place over the summer and autumn months. And it's marginally higher as a proportion this year in the second half due to the commissioning and production related movement from h one to h two. Okay. So that's our first six months of the year. Let me share with you some of the of the programs that are behind those numbers. This this image you've got in front of you here, is from our $9,000,000 commission from Disney for National Geographic.

6:33 It's to make, what we're calling the real Top Gun. It's illustrative for me. I think about everything that's that's that's going well about ZINC. It's very high quality program. It's about getting trusted access to some of the most secure, you know, military training bases in the world. It's getting trusted access to put cameras inside cockpits of f 35 fighter jets. It's about trusted with their complicated technology and making sure cameras don't fly off inside airplanes going at Mac, whatever they're going at. It's trusted to make sure the footage doesn't fall into the wrong hands. You know, you're filming really complicated television here. It's it's a it's an ultra HD commission. So there's a huge technical requirement. So every stage are sort of promised to the market that we can deliver the highest quality programs and get be trusted, both in access and budgets and technology and infrastructure and governance is part of our core proposition. Now we've spoken about this program for a few, a few updates, but I haven't shown you anything yet. So I'm gonna show you what we showed the client last week, a little sizzle of what's gonna be the real Top Gun, the story behind actual trainees, not just the movie. So here's a little snippet of the program.

7:53 We got the beach volleyball scene in. You'd be pleased to see. So other shows. Trust, quality, underpinning everything we do. Some of our clients, that might mean, you know, being trusted with big reputational programs. If, if you've joined before, you'll know that we make Putin versus the West, one of the BBC's, you know, big masthead programs of this year. Bargain Love and Brits is another illustration for channel five. We've been trusted to deliver at very high volume. That's one of our new commissions or recommissions. Now it's thirteenth season. We announced the last couple of weeks, or if you watch daytime television, you might have seen Con or Cure or Sunday Morning Live after the Laura Kunsberg Politics show on BBC One. All coming from ZINC. So that trusted partner status and that high quality product.

8:40 Quality is hard to measure. It's but through awards. The quality element of our of our of our promise comes from ratings, and it comes from peer group reward awards. So production company of the year for the second year running. It's an international award. It's where the big global players compete with each other. BBC, ITV companies, Al Jazeera, the big US companies, all three media, Banner j, etcetera. So, they may not move share prices, these sort of things, but they are important to our people, and they're important to our clients. And our people and our clients are what powers the share price. So they are our soft power, as it were. In terms of our press and PR and the talkability of our programs, the other way we measure quality is how much we get talked about in the marketplace.

9:28 ZINC's getting talked about in all the right places. This is our brand exposure or some of our brand exposure from the first half of the year in The Guardian, The Times, Sky News, Radio Times, and so forth. And I do urge you to follow all of our social activity, on LinkedIn, on our website, which has been, completely revamped, a new investor section and on X and other places. Okay. Let's look at the current trading. This image in front of you is from Gilbert and George. You don't have to be an art buff, hopefully, to know the work that they've done in sort of shaping British art in the last fifty years. This was for Sky Arts and gave us, again, trusted access into their lives and their work. So looking at the full year, we're in a good place, and we're in a good place too looking into next year. As things stand then, trading in line with with these market expectations, which has our revenue of 38,000,000 and our profit just above 2,000,000.

10:24 We've secured 33 for the year. So that on a like for like basis, when we when we, compare it against the discontinued operation that is in ZINC communicate that we've announced when you take a like for like same position as last year. So we can deliver that 2,000,000 of EBITDA of 38,000,000, partly due to the efficiencies that Will's mentioned, partly due to a better margin mix of revenue this year, which we'll come on to in a moment. And then looking ahead to next year, we've secured 11,000,000 of business for next year, which again is in line with where we were this time last year heading into this year. So that's the pipeline, the 38,000,000 of revenue, of which 33 is secured and the 5,000,000 that's possible for this year.

11:12 Around 40% of that is coming from international customers this year. That's almost double what it was last year. That's also in line with how the market has moved. TV commissioning for UK producers has become more international in the last eighteen months, and we have followed with our diversification in line with that market. The primary risk therefore just remains as ever at this time of the year in maintaining that 38 and making sure to as much as as much as we can control it, revenue doesn't move out of this year into next year. Mean, it's arbitrary number at the end of it's an arbitrary date at ultimate at the end of the year. TV schedules can move around but we do everything we can to make sure we come in on our on our number by the end of our financial year.

12:00 Looking at the the bridge as it were, of how we go from last year to this, I'll let Will just speak to this slide. So here's how we get to 2,100,000 of EBITDA on 38,000,000 of revenue this year, which we believe to be the consensus market forecast. And so that is 1,100,000 more EBITDA on 2,000,000 less revenue compared to last year. So I think it's worth explaining. So we go from FY '23, 40,000,000 revenue and 1,000,000 of EBITDA on the left of the chart to FY twenty four's 38,000,000 revenue and 2.1 of EBITDA on the right. So on a like for like basis, EBITDA reduces due to generating 2,000,000 less revenue. That's the pink bar.

12:47 But more than offsetting that is the improvement that we have made in higher gross margins from the better revenue mix and the efficiency savings as a result of the closure of the Video Marketing and Brand Content business and other overhead savings, including in accommodation costs. So that's how we go from our £1,000,000 to 2,100,000 this year. Right. Thank you. So this slide in front of you, just checking it is, it is, is our pairing of Rob Rinder. He's a little fellow. And Rylan Clark, who's the taller one. This is a new format for the BBC. Robin Rylan's grand tour, recreating the original grand tour in Italy. It aired in the first half of the year. You if you remember, we announced this last year.

13:38 Massive ratings hit, achieves really good critical acclaim for the BBC in The Times, The Guardian, The Telegraph, and elsewhere. So ratings, reputation, and we announced last week that it had been recommissioned, quickly recommissioned. The best type of recommissions. And the production on the next series where they're gonna head off to India will start later this year and go into next year. This for me is is an illustration of good quality revenue. As we've said before, it's those trusted relationships finding the right hits, and actually the client comes back and comes back. This has the potential to be a long running series. So evidencing that revenue quality, and we're excited by it as are the BBC. Let me talk a bit about other things that are on the longer term horizon.

14:26 All of these will help drive long term continual profit growth. So we've got line of sight now of some really fantastic opportunities. In TV, you are one phone call away from a major game changing commission. And in the next six months, we expect to announce a major global music documentary, a must watch music biopic. Certainly, if you are over 40, you will absolutely have grown up with, the subject in this particular, commission. We're in the final stages of development for a new major format. Now these formats are where they can really become quite lucrative because if you have the format, you can sell them internationally. And that also has the potential to be a returning series.

15:14 We've got a couple of very significant proposals actually in the market in The Middle East, multiple 7 figure numbers that could come. So really big chunky bits of work out in the market. We've been asked for them, so we are not speculative. We've been asked to produce them, and they're very significant indeed. And we expect to be announcing a move into entertainment. We've talked about this for a year or so. Entertainment is where the bigger money lies. It's, often where the lucrative IP can be found, where you can then create a programme that is both sells well outside The UK and or the format is purchased by other broadcasters and they pay you for the IP. So it's it's a, you know, it's an important move for us. As we've been building our narrative over the last three or four years, we've arrived at that stage now where we think we should be moving into the entertainment world because our programmes are becoming naturally more entertainment driven.

16:17 We're one of only two companies that left in the in this public procurement by the BBC for a new quiz format. They originally asked 34 production companies to submit proposals. I spoke about this at our year end results in May, and we were expecting news of that, by June, July. This is unfortunately part of the challenge in TV at the moment is the delays that things are taking. So the BBC have paid us a decent, you know, 6 figure number already to develop this this pilot. You can see on the screen in front of you the the set for it. It's big and it's glossy and it's high profile. If we win this, this has the potential to be a game changer for a company like us because of the opportunity to sell it internationally. We will loan the IP on the show. If it's a ratings hit, it would be recommissioned both in The UK and these things can run for years and years.

17:13 If it's a hit in The UK, it can be sold overseas. And it's an illustration of us moving into new genres, diversifying out of specialist factual into general factual into factual entertainment and then beyond factual entertainment into entertainment quizzes where the budgets are bigger and the IP is more lucrative. But it's illustrative of the short term challenges. As I say, was expected to be able to to give you news one way or the other about this in the summer, and there is still no news. It's still being developed, but the audience feedback is positive and the BBC will take their time and make their decision when they're ready. So other things changing in the marketplace. I want to draw your attention to three big changes that are going on. The commissioning market now is moving and favoring

18:05 larger groups. It's concentrate the the clients are concentrating their spend in larger groups. This is from Ofcom, this data. You can see the trend over the last four years is up. Last year slipped back a bit, but still the trend is up. And the reason they're doing this is they want confidence and scale. If they're gonna commission bigger, more expensive shows, they need confidence that those companies have the scale, the infrastructure, the people, the governance to be able to manage those things. Top gun is one illustration. Prices in some parts of our market are coming down, and that's because linear viewing is declining. On demand viewing is going up significantly.

18:51 So if a channel has to fill its airtime with programmes for the linear services where the audiences are declining and the advertising is declining, they need to make TV cheaper. They need they need cheaper television. That's our job. We can make television cheaper if we can do it at volume, but you can only do that if you have infrastructure and scale. Equally, they want big, loud, premium television, and they're only gonna give that to groups that have the governance and the infrastructure and the the scale to support it as well. So that's the change in the the move towards concentrating spend in larger production companies. The market price points are moving. And you can see in the purple box there that gone are the days where you would often sit down and scroll through your EPG, your electronic programme guide, or look in the newspaper at what was on tonight. You probably get you just you simply go for what you wanna watch. You will go for the title of a show.

19:51 If you are watching Clarksons Farm or if you're watching Yellowstone on Paramount, if you wanna watch Ted Lasso on Apple, or if you wanna watch Bargain Love and Brits or Putinverse in the West, you'll know you'll heard you'll have heard about it. So it's these big loud programs that, our market increasingly wants because that drives consumer behavior in a way that listings used to. So we've we've got two things going on. We've got bigger volume, lower cost, and and big glossy premium factual. And we've responded to those, and I've got you two illustrations out of many with BLB, which is the response to the high volume, lower cost need and Top Gun, which is the response to the big global loud need. And there's a move towards more global programming.

20:37 If you can see that, I mean, is still very big. But in terms of growth, the growth is coming from outside The UK and the very big groups, all of their growth will come outside The UK. We have a small market share. We can still grow very healthily in The UK, but we are going to double our international revenues this year. So this little map illustrates how we're positioning the company. We've repositioned ZINC, transformed its product, changed its price points, diversified its offering with these new labels we've launched over the last two or three years. We now run through specialist factual to factual entertainment through to branded entertainment and corporate production. But there's a missing bit. This is where we need to move into. This is next part of the strategy to move into areas like entertainment, where we've got formats, where we're going to be making acqui hires into reality, where we've got developments on our pipeline and into drama, which may be organic, but it may be acquisition.

21:42 And we're in lots of advanced conversations about how we might do all of those things, particularly around acquisition opportunities, because clearly the market needs more scale. And the last acquisition we did a couple of years ago gave us some of that scale. So 25 is where our sites are on. We've got good line of sight at 24. TV showing signs that the market is now coming back in again. We've done well in the market in the last two years. Actually, Ofcom published the TV market stats for last year, only last month, and TV production was down 8% last year. ZINC's organic TV growth was 19%. Market down eight, we grew 19. This year, we're gonna grow again. We've got these strong fundamentals.

22:30 We've the strong financials for next year. 11,000,000 is booked, our gross margins are increasing year on year. So next year, as the market recovers, I think we're very well placed to capitalize ourselves, but also on the changes to the market sector that are going on. So that is us. That's great, Mark. Well, thank you very much indeed for your presentation this morning. Ladies and gentlemen, please do continue to submit your questions using the Q and A tab situated on the top right corner of your screen. While the company take a few moments to review those questions submitted today, I would like to remind you that a recording of this presentation along with a copy of the slides and the published q and a can be accessed via your investor dashboard. And Mark will, as you can see, we have received a number of questions throughout today's presentation.

23:18 And if I may now hand back to you and kindly ask you to read out the questions, give responses where appropriate to do so and I'll pick up from you both at the end. You. I will do that when you tell me what I have to click to see the questions. So on the bottom right corner there should be a blue button. Thank you. Alright. Right. Let's just scroll through here. I'm just gonna read these from top to bottom, between Will and I will answer them. So given the state of the AIM market, have you considered going private? So, I mean, I'll answer the question directly. Yes. But we have no, no plans to. Of course, we've considered it because that's what you should do in in situations like this. The difficulties with the a market, well documented. I saw the articles this week in the Times and the Financial Times around potential government legislative changes that are are affecting investor confidence and so forth.

24:17 And we've spoken to all of our investors about it, and I I don't think there is an appetite to change strategy at the moment. So have we considered it? Yes. Do we intend to do anything about it? Not in the immediate future. I've read articles about the decline in TV viewing and post production companies closing down. What is happening in the market? Well, I I think I've answered that. Hopefully, I've answered that. The market is shifting. There has been a decline in commissioning, but it is a four well, it's now slightly yeah. It's a £4,000,000,000 production market in The UK annually, give or take a few £100,000 here or there. We're in the factual space. The addressable market there is still about 800,000,000.

25:03 We have a 2% share. So we have plenty of headroom to grow in a declining market. The market was down eight percent last year. We were up 19. So I'm confident that there's plenty of headroom in ZINC. Consolidation is definitely coming. It's happening already. Some companies are choosing to exit the market. Some aren't choosing to exit the market, but are exiting it. And then there's consolidation. We've seen all three media this year being bought by RED IMI. That's the biggest production group, changing hands. There are there's a lot of supply in our sector, and the natural next move is consolidation. So that's what's happening. I think we're in a strong place to benefit from it. Why should I believe in ZINC more than any other production company?

25:50 I mean, we'll jump in on this, but I'll I'll point to the fundamentals. I will say that ZINC's product quality, revenue, repeat client base, 80% of clients come back, high gross margins, diversified revenue base. They're all reasons that we are doing well in this market and growing. Will, do you wanna jump in? Let me just add the the point made in the in the presentation around scale and one of charts that we looked at Ofcom looks at production companies over 70,000,000 turnover, bit of an arbitrary cutoff. We're at 40. We do have the scale and infrastructure and what we talk about in terms of our platform, whether that is financial, HR, governance, post production, production kit, that infrastructure that means that we can produce on one hand, you know, million pounds an hour type TV in Top Gun or the at at the other end, the kind of high volume, low cost, bargain loving Brits type type stuff. As a small independent production company, we would not be able to win and produce that and certainly not be able to produce it on time and at margin, and we would not be in the final two for a prime time BBC quiz.

27:20 And that is because of being a group, not operating in silos, because of having this platform. And that means that we can compete with the bigger players, and we absolutely differentiate ourselves from the long tail of small production companies. Okay. Another question. Your business continues to develop, becoming larger and more diversified. I appreciate that your cost base should be scalable, driving increased profitability as revenue rise revenues rise. But are there any areas in which you may need to invest to accommodate this diversity and support growth? This cost base, this business model can support a business with revenues $5,055,000,000 probably, depending on the revenue mix.

28:15 But broadly, that's where we think it sits before there's need for any further investment. And that is, you know, that is two commissions. That's two commissions away. All things being equal. So while while I, you know, I think we we are pleased to be at this kind of trading level. The opportunity for us when the market just recovers a little bit more is a couple of commissions away, and that would all drop through to the bottom line. And the ability to outperform targets, the potential to outperform is is is really good when we get better line of sight of the marketplace recovering. It's so short term at the moment, but as say, it's a couple of phone calls away. It's two two shows away, really, to be able to get that kind of scale.

29:02 I think once we get beyond that, we would probably need to think about infrastructure around post production, particularly where margin recoveries can be very good. But the one thing about remote production now and the whole world of connectivity is that you don't need complicated infrastructure. We have roughly 14 edit suites in our London base and another 14 or 15 in our Glasgow base. But we run 60 or 70 edits across the group all through this infrastructure. So the ability to scale now is, is really quite exciting to to drive those synergies. So where have I got to? Great to see your new business coming through. Have you have you changed or stepped up the process of developing and pitching new ideas?

29:50 What's the balance between clients coming to you and you pitching to them? So I'll I'll the balance between clients coming to us and us pitching to them varies between business to business. So in our corporate business, which is the super collider business and the edge, that's very heavily inbound. Big global global clients coming because they know we provide a solution that they need. For channel four, for example, it's almost all outbound. They will ask for the market for something, and then we will respond to it. But there's a lot of proactive pitching that goes on in TV. So it depends on the sector and it depends on the client. With regard to the earlier question,

30:37 have we stepped up the process of developing and pitching new ideas? No more so than we have done for the last two or three years. We've been making organic investments in these new labels. Atomic was only last year, and we've announced recently in an r and s they've got another commission. So they could be into a position now where they're starting to get recommissions and new commissions. We haven't stepped up any more spend this year. We are seeing the fruits of this of the investments we made, last year and the year before. Mark, I'll just add that that with, that kind of business development, what we have done is enable ourselves to win some of these big game changing commissions that we talked about earlier in the in in the slides.

31:22 A few years ago, it was more about winning the $5.06, $7.08, $900 series, and we still want to win those, and that's our bread and butter. But being able to win a quiz and go into a new area or into more into the entertainment side is something that we've allowed ourselves to do with the types of people that we've brought in and allowing some of that pitching time to be dedicated to some of those bigger, bigger potential wins. How are doing for time? I'll just there's a few more questions. Are there any clear trends in demand by either genre or cost per hour that clients are prepared to pay? I think the key thing here is that the public service broadcasters, ITV channel four, channel five, BBC, and day and daytime television, especially if it's linear first, prices are coming down.

32:20 So TV, the market, the TV market has to respond to the reality that for that type of television, we have to find ways of making it cheaper. Because people are viewing that type of television less. Therefore, there is less advertising or commercial opportunities around that type of television. Therefore, the producers of type of television have to face the reality of making it cheaper. The way we do that is by scale. We have to have the infrastructure, the underutilized resource, and then we have to talk to our client and say, we can make it few at that price point, but you need to make some compromises. That may mean filming slightly out of season, for example, rather than in peak season, if it's an observational documentary. It may mean waiting a bit until we've got a bit of down capacity, because then we can do it for you at that price and make a margin on it because we've already got the infrastructure in place.

33:11 So scale is critical. And at the other end, they they want big you know, they're prepared to pay even the smaller channels have to prioritize louder standout programs. And you see that across the board from channel five through to Disney. You talk about acquisitions. What are your thoughts on financing these? And do you think expectation of equity financing is weighing more on the share price at the moment? I I don't think that equity financing is weighing on the share price. I think what's weighing on the share price is government legislation and policy and the and the state of the AIM market. You know, the Feet reported only, what, this week that AIM's down 40 points in three years.

34:00 And there's this October hiatus, and that's what's affecting everybody. So, we we are in that, you know, we're we're in that tide. We're going out with the same tide, but we're we're we're still the company is growing and performing well. So I think the the share price is more is less to do with the any equity issues and more to do with the wider market. How might we finance acquisitions? That depends on the size of the acquisition. We could do all paper acquisitions for small acquisitions. We could do bolt ons. We could do a combination of paper and share and cash for bolt ons. If we wanted to do something substantial, then we'd have to build a business case, and we'd have to do some equity financing. But you'd have to assume that that would be because it was a very, very worthwhile deal to do. So I think it's all of the above.

34:45 But what has to happen? You know, the the company must continue to grow organically, which we're doing and have done successfully, and it must add scale. Could be small scale bolt ons, could be large scale transformations. Does the consolidation in the market create opportunities for you to acquire, make investments in smaller labels, or to strike content deals? I I think I've just answered that. Yes. Does. And we are having lots of conversations about bringing people into the group who want to work within a support structure and infrastructure, want to do work inside a group. We're talking to companies that have run out of road for one reason or another, and we're talking to very successful companies about whether we can be more successful together.

35:31 So in terms of content deals, I don't think the market there's been any significant change to the opportunity for content deals. We have bought IP in some cases. In fact, one of these on our pipeline, one of our potential format hits was a piece of IP that we bought from a a broadcaster overseas. We thought that's a great show. We'll buy the IP for that and own the rights for that in The UK and see if we can get that away in The UK. And we're very, very close. The ROI on it would be phenomenal. So we are always looking out for opportunities to to buy IP and create our own. That's great, Mark. Well, if I may just jump back in there and thank you for addressing all the questions that came from investors today. And of course the company can review all questions submitted today and we will publish those responses on Investor Me company platform.

36:22 But before redirecting investors to provide you with their feedback, which I know is particularly important to the company, Mark, could I just please ask you for a few closing comments? I'm gonna close with the fundamentals of ZINC. That's ultimately what is in excellent shape. All the other noise and difficulties in the marketplace will come and go. Our investors believe that timing is everything on this and we we are on course and our our valuation will course correct itself as the market course corrects itself because the fundamentals of ZINC are excellent. Highly diversified revenue, excellent gross margins, good visibility of revenue, healthy repeat business. They are the fundamentals, of our business, and they're in excellent shape. Fantastic, Mark. Well, thank you very much once again for updating investors today. Could I please ask investors not to close this session as you will now be automatically redirected to provide your feedback in order that the board can better understand your views and expectations.

37:20 This will only take a few moments to complete and I'm sure will be greatly valued by the company. On behalf of the management team of ZINC MEDIA GROUP PLC, we would like to thank you for attending today's presentation and good morning to you all. Thank you.