Aurrigo International (LSE:AURR) — Interim Results

0:00 Good morning, and welcome to the AURRIGO INTERNATIONAL PLC investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and could be submitted at any time by the q and a tab situated on the right hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to David Keane, CEO. Good morning, sir. Good morning, and thank you very much for everyone in attendance, this morning, and welcome to, AURRIGO's interim results presentation for the six months ended 06/30/2026.

0:46 Just quickly on the disclaimer here, which always have to have in the presentation and can read this at at your leisure. So I'd like to obviously introduce myself this morning. So David King, cofounder and CEO of the company. And I'd like to also introduce Ian Ian Grubb. Hi. Hi, Ian. Good morning. Morning. Good morning. Do you want to just introduce yourself and say hello, Ian? Hi, everybody. CFO, as David said. I've been with the company since 2022 and have been assisted in the listing and have been running things in the finance since then. Fantastic. I'm doing a very good job, Ian. Thank you. Right. Let's get into the main bulk of the presentation. Just a high level executive summary.

1:36 Really good momentum for the company in the first half of this year, led in the main by by good recovery in automotive. And interestingly, a first order in a new market, which we're going to discuss in this presentation. And together with continuing commercial validation of the of our autonomous strategy, which will go through on largest ever contract we've received and also some significant progress with the projects that if you've been with us for some time, you will know about. But for those that don't know about it, we'll cover that as well. So and and also really importantly, the fundraise that we did late last year, we still have sufficient cash headroom and bound good balance sheet position to continue the growth strategy that myself, the executive team, and the board are are developing.

2:35 So just a little bit of a reminder for everyone. I actually started founded the company in 1993. We we were an automotive company, and we still are, and we'll talk a little bit about that. In 2015, I took the company into autonomous software development and vehicle development. We listed the company, in fact, four years last week was the listing of the company. Time flies. We're currently active in six countries with deployments and teams around the world, and we've increased our headcount in those locations to over a 130 people now. And the little carrots on the world map show you some really interesting things. We're we're headquartered in The UK where the bulk of our people are located.

3:29 And then we have offices in Ottawa in Canada, and you might wonder why we've got that. Well, we've got actually two offices. One one is a very, very big test track, which we use that for cold climate and insurance testing of our vehicles, and it's really important for our environmental things that we do. And we have another office at Cincinnati in The US, which in the future, we believe will be part of our hub strategy in The US going forward. And we're building starting to build out a team there. We have in the bottom right hand corner, our second biggest outside The UK, which is Singapore. And we're working in Singapore Airport and we have an office actually at the airport. And you'll notice a new carat, actually in carat color, which has hit the map and that is in Dubai.

4:20 And Ian and I are in the process of setting up a company in Dubai and opening our first office there. We're slightly delayed due to economic and political and wars and things that are going on, but we believe there's significant opportunities in The Middle East. And therefore, we need presence there, and, we need to build a team. And, we have been, working with potential clients there and, quoting for, for projects. So that's our flash history and where we are around the world. One of the biggest things that's happened actually in the history of the company over the thirty three years since I started it, we've been predominantly in five units in the center of Coventry, and they have served a purpose for a long time. But really, the company is growing now. It's much more grown up. It's expanding rapidly.

5:19 It's got the right backing behind it, and it was time to move from those five units. And very fortunately, because it's very difficult to get buildings in the Coventry area, we were very fortunate to to get access to these this site and these buildings. And in March late March of this year, we we moved the first three of our units over to this building. And then in the last week of July, first week of August, we completed that move. So we are 100% out of our original facilities and really praise to the whole team because actually we did that move ourselves. Everything organized the whole the whole move and no downtime in production.

6:05 And this facility is now world class and really sets us up for the future and really demonstrates the ambition of the company. So we now have three times the footprint that we had originally. This is a 6.3 acre site. We have approximately a 131,000 square feet in two buildings. The building in the near in in in the front there with the headquarters on is all of our office staff in in the upstairs and the design team. And downstairs, we have a very sophisticated and well equipped prototype build facility. And the building in the distance with the inverted triangles, that is a a very large build hall, which we have been kitting out. The upper area of that is now all down to our automotive business. That's all up in the in the mezzanine sections.

6:57 And on the Ground Floor, we now have capacity which we're laying out, for potentially up to 500 vehicles, per annum from that UK facility. And that will be the facility to begin with, which will support our initial growth and manufacturing as we then transition into our hub strategy where we will get manufacturing in in the locations around around the world. We also because it's a big site, we have the ability to now test and validate our own vehicles on our on our own site. This is a fully gated facility, so no one can come in and out, and we can test our autonomous vehicles. And indeed, the contract that we won with Ultra Global for the PRT vehicles, we will be building a test site on on that on this site to actually test those vehicles as well. So this is really positioned for growth and for the scale up of the company.

7:58 And we have already had a large number of customers, potential customers, suppliers, investors, and I think to to say that they were impressed would be an understatement. So this really sets us up for the future. So let's talk about aviation to start with. As a reminder, we design and develop and we manufacture all of these vehicles ourselves. So we are not beholden to anyone. We can do all of this on our own. And we have a very small but very talented team that can go from blank sheet of paper to the vehicles, which are world leading vehicles that you can see in the picture. So this this breaks down into two areas, software and hardware. So software, as a reminder, we have three core products, AUTOSIM, which is a three d digital simulation model modeling engine. This allows us to work with customers. In fact, every customer that we're working with is doing one or more AutoSIM programs with us. And this allows us to model the airports of the future or the terminal of the future, bringing in autonomous vehicles, working out how many vehicles they need, what the efficiency levels are for the for the flights that they want to do, and how the appropriate staffing levels are managed. And and also, interestingly, we have an electrification

9:29 module now in that auto SIM. So we can manage that whole electrification piece for them because quite frankly, airports around the world are it's very difficult to to work with them in terms of the amounts of capacity of electrical electrical grid that they need to actually electrify all of the ground support equipment. So that's an important part of that step from electrification into automation. Auto stack is is is now very, very advanced. It might be internally coded version two, but I can tell you that's that's over ten years in in the making. And the sophistication of that driving software or our autonomous driving software is now up with the world's best in terms of driving capability and we continue to develop that. In fact, my CTO told me yesterday that since the start of the year, we have developed, in addition to what we've already got there, 4,000,000 lines of code to improve that stack and its performance and how it handles all of the idiosyncratic nature of the develop of of driving around an airport as we get more complex operations.

10:48 Auto Connect is our proprietary platform that all of our vehicles connect through and then can Connect platform connects into the customer platform. And this is a buffer. Think of it as a buffer. And that buffer provides cybersecurity protection for all the vehicles to prevent them being hacked because that would be pretty disastrous. But it also provides, effectively, what looks like an Uber platform where we're optimizing each of the vehicles, where they're going, what they're doing, and doing that in a way that is super smart. So that has an AI engine to optimize where those vehicles are and to get the best efficiency that the airport can operate in. And we're now just about at the point where AutoConnect is mature enough to now go into production, and we have one of our clients where we've been testing this extensively in terms of a fleet of our vehicles and working solely now on AutoConnect, which is proven to be really, really exciting.

12:00 Software is backed up by the hardware. Some of you have seen this before, but for those that haven't, Auto Dolly Tug is is completely ground up revolutionary vehicle. It is very agile, and you need to be agile when you're going around an aircraft. This this vehicle goes directly to the aircraft. In fact, we're the only company in the world that that can actually do that and has the vehicle to do that, the insurance to do it, and the safety case to do it. We carry a single unit load device. That's that metal container you can see. That has about 40 of of your suitcases in that container, and we can tow another four trailers behind that vehicle if we wanted to. This vehicle, as I said, is super agile.

12:46 It'll go forwards, backwards, sideways, rotate on the spot tank turn, and also can load and unload that container automatically with two robotic sliding arms. This vehicle can navigate around all sorts of other ground support equipment servicing an aircraft or along the road or into the baggage hall. So no one has got a vehicle as sophisticated as this vehicle. And that translates into the middle middle vehicle, which is a much bigger vehicle, but very much on the same principle. By the way, all of these vehicles run the same software, so there's no differences in the software. There might be differences in position of sensors, but the software is the same for all of these. And cargo is a much bigger vehicle carrying and towing up to 15 tons of cargo.

13:36 And, again, this is a unique vehicle. To our knowledge, there isn't a vehicle on the market that can carry that amount of cargo. And we have two of those vehicles in operation at East Midlands Airport with our client UPS. And the final vehicle here is our auto shuttle. We don't develop this vehicle. We developed its mark one version, but we needed a a vehicle that could go to all markets and be homologated in those markets. So we chose the platform of the Ford e transit minibus. And with some help from Ford, we have overlaid our auto drive system onto this vehicle, and that vehicle now operates up to 40 kilometers per hour, full level four, and can, operate, on road or, off road if we are operating an airport.

14:35 So that's our that's our pretty much our product portfolio. Let's now talk a little bit about automotive. If you remember that, when I was here and and Ian and I were here this time last year, there was a very different picture in automotive, particularly tariff related issues from the Trump administration and followed up very quickly with a very, very serious cyber incident at our leading customer, Jaguar Land Rover, which not only affected us, but the whole of their supply base and shut them down for about three months. I'm I'm really pleased to say that through the back half of last year in h two and continuing into h one and actually continuing into h two, which we'll talk about in Outlook in a minute, we've seen a very, very strong recovery in automotive revenues, which Ian will go through in a moment when he does his numbers.

15:34 And that's fantastic. So so we've seen that come back. And in fact, it's come back so strong that the automotive division has had a record first half year since the company's IPO back four years ago. We've maintained really strong customer relationships with all of the customers that we already had. We've got great ongoing pipeline, and we have secured new projects. One of those that we've reported was a 4,300,000 framework agreement with a next generation supercar manufacturer, and, we continue to, to deliver product to that framework agreement. So quite exciting times on automotive, and we'll talk about automotive in the round in a minute as to how important that is in everything else that we're doing.

16:26 The automotive division generates cash, and all of that cash is effectively reinvested and supports the ongoing investment into the autonomous division. And that skill set that we have developed over thirty three years in in automotive and back actually previous to that when I and others in the company were working in the automotive industry, We have now been able to start to look at adjacent markets, not just in autonomous vehicles in aviation, but looking at a ton of different markets for for where those capabilities could be could be deployed. We now have I'm to report and excited to report actually that we have our first contract in a new sector with this with this technology that we we've been developing.

17:20 And it won't be too much of a surprise because of a very topical the word defense is very topical at the moment across lots of areas in the world. But we're now looking at how we can use our technology and help our our defense customers going forward. And and really this basically is our transferable expertise. We are experts in electrical systems, electronic control units, software engineering, obviously, autonomous expertise, and that's really being recognized now. And, as I say, I'm pleased to say, not only are we not just looking at defense, but we have actually won our first defense contract.

18:09 We secured that in h one. We started delivering that contract in h one, and I can tell you that as we sit here today, we have we have delivered that contract in full and on time. And we've really demonstrated to them how, our strengths in automotive. So being able to provide quality product at the right price and at a very high reliability level means that that is very applicable to this market. And and I'm also, pleased to say that we have now been invited, which we have, already done to, bid for additional programs, which if we win those contracts will be additional revenue in FY '27 and and '28 as we go forward.

19:05 So at the moment, as Ian will probably tell you in a short while, this is this is small, but this could be a huge market for us. And at the moment, we have these revenues from defense incorporated into the into the automotive reporting. But I can see that if this starts to gather some momentum that in '27, we may well split this out into a separate division and start reporting on this separately. So so really exciting and well done to the team to transfer the skills and be able to develop products for defense. So based on that, I'm going to hand over and be Ian's assistant to turn the slides.

19:55 So Ian, can I pass over to you, please? Yes. Thank you, David. Okay. So the results for HY '26 interims. On the left hand side, you have the autonomous sales for the last four year periods. So your autonomous revenue shown there reflects a continuous in 2026 of the contracts rolling over from year ended 2025 and the initial invoicing of the PRT project that David mentioned earlier. So the, the darker green that you've got there in both 2023 and 2026 are passenger, autonomy. The numbers in 2026 for passenger autonomy are the PRT project.

20:44 And the lighter green is the aviation side, and that's the bit where we've got the continuance of the projects that we had rolling in from and being completed from 2025. The renewal of those and continued work of further development, all of that will then be seen through second half of twenty six and into 2728. And just to know from there, or you've not lost any customers currently, they're all still engaged with us and highly interested in what it is that we've got moving forward. The automotive sales, are on the right hand side, which the scales on the two graphs are the same. So you can see the proportion that we've got currently and historically between the automotive and the autonomous revenues.

21:38 So the automotive has recovered from the H1 twenty twenty five, as David said, in terms of the tariff disruption and also in first quarter of H2 twenty twenty five where we had the cyber attack and continue to be strong through H1 airports and into H2 as we go currently. The automotive sales there, as David mentioned, includes that first, defense contract and the sales and revenues that we've there, through deliveries. That is a small, number, which is why it's a it's a very small slice of that. But you can see the automotive bit is is on a growth trajectory first half, and we certainly expect to, meet the levels of automotive that we have in the past come the end of the year.

22:39 And that defense comes from the electronics experience that we've got in the automotive side. So if you want to next slide, please. So in terms of income statement and balance sheet, with those sales, the revenue has increased 19% year on year in H1s. And the effect of the segment mix between that automotive and autonomous sales is what has diluted the margin to 25.5% in the period we'd expect. As more revenue on the autonomy comes through that to revert back to levels that we've experienced previously with that year on year mix.

23:28 So this along with the increased property costs that we've had that David explained in terms of moving to a property that is three times the size of what we had and significantly more advanced and newer than the properties that we had in the past have led to an increased EBITDA and net profit before tax loss. But that allows us to then move into the future with greater confidence in terms of moving and supplying all of those contracts. On the balance sheet side, the gross net assets have increased significantly. That is in part down to the increasing placing that we had in September 25, which is post the half year results for twenty five, fourteen point one million.

24:28 The new property that we have leased with an IFRS 16, a right of use asset is about a 5,000,000 property addition within that period and that's where the twenty eight point two million resides along with the net assets. Cash is still strong. We've got €8,400,000 within at the end of the period and that sees us through the current period and beyond with future expectations that we've got. Over to you David. Thank you Ian, that's great. Right. So let's just have a quick look at outlook.

25:14 And I'm going to start in the middle of this slide because a lot of company's foundationally running around the automotive business because not that not that's really the super future of the business, but the the technology, the direction of automotive, and, you know, we're not in nuts, bolts, and swarf, and bits of metal. We're we're in the very high technical end of delivering very high quality and, in some cases, safety critical components to the automotive industry. And to do that, you need to be an exceptional supplier and have all the systems and the quality systems and reliability systems backing you up.

26:01 And that is paying dividends in our aviation, products and our aviation customers who can rely on us that we're not just two students out of a university in California that have thought something up. We're a proper company that has spent decades knowing how to deliver highly complex systems. So that it all goes down well. The fact that we have a strong balance sheet, the fact that we have a really good shareholder base, and the fact that we now have the business location and the the facilities to deliver are all now bringing to bear in the growth side on the left hand side. And I haven't put all the customers in here, by the way, for all the sections, but you you you know some of the leading ones that we've got with Changi and Swissport and UPS and Cincinnati and Schiphol, etcetera.

26:59 As Ian said, we haven't we haven't lost any of those customers. All those programs are still running. We are very deep into those programs, and I can tell you some very exciting results that that we've got on operations that are going on. And we should be able to report hopefully soon on on where we are on some of those programs. And hopefully, you should see some news flow coming out over over the following months. And what's really important is to be involved in the ecosystem. We're not just a company that invents things, throws it at our customers, or or or just spins around on a technical angle. We we are the company that deals directly with the policymakers, the decision makers, the insurance people, the the legality of all of this.

27:54 So you can see names there, Civil Aviation Authority. I was with them yesterday talking very deeply as to how we bring systems like this and products like this in into The UK. We deal directly with the FAA in in The US exactly the same way. CAS, c double a s there, Civil Aviation Authority Singapore, we deal directly with them. In fact, they're actually a customer. And then organizations, world organizations like IATA where we're we're on the technology committees where we're telling all of these organizations about what we're doing, how we're doing it, and working with regulators to make sure that we once regulation comes in, we are at the forefront of that. And quite honestly, making sure that the high bar is higher for anybody else to come in, and that's really important in, in everything we're doing there.

28:50 So what have we got going forward? Well, we still have a large global market and in fact, that market is actually increasing as new airports. In fact, lots of new airports come online. We calculated 700 or more airports that would have a beneficial business case to adopt the tech. And now on top of that, we now have obviously, we've got all automotive, but we now have this defense market opening up. And and, actually, in The UK, the defense market is opening up to smaller technology companies. If the if there's one lesson that has been learned from the Ukraine Russia, war currently is that, speed and, reliability of speed and change and being able to develop things, at pace, with ingenuity and entrepreneurial ship is really important, and you can find that in The UK in smaller technology companies, and we are one of those companies.

29:55 So there's been strong market tailwinds for some time, and these are just getting bigger and bigger. And again, defense, when we talk about defense, we talk about our many aspects, but of course, the RAF and other, flying organizations around the world, they all have their own airports and they all have to move things around on those airports. So we've got such a cross cutting, suite of products and technology. This defense market could could be considerably large for us. We have a track record of innovation and r and d and commercializing those, and that's super important when when these are products and systems that need to be of the utmost accuracy and dependability, and you need to be relied on. And we need to position ourselves to show that people can lean and rely on us to develop and deliver these these critical systems.

30:59 But you've got to be differentiated in your technology. We're not a me too company, and I think we've demonstrated to our customers and people that are talking to us how how we can really help our customers to move forward into the future with some high-tech solutions. We've built everything right from the start, and we continue to do so on a scalable business model. We launched the hub strategy. We have, brought on investors who can, scale this business with us. We've got very advanced discussions in The US, in The Middle East, and the Far East in terms of how that hub strategy would be deployed and who would be working with us and coming on board with us, which is super exciting as well.

31:46 And then we've got an very experienced team, and we've added to that experienced team. So we brought in Mark Gower, who is now director of autonomous global deployments. Mark was heading up Gatwick ground services, 1,300 employees, $6,070,000,000 pound turnover business wholly owned by International Airlines Group. He's joined us because he's driven by this passion to bring autonomous vehicles into airport operations, and he knows on the ground how how to do these things. And that's a really important thing that we have, additional people joining the company now. And please keep a lookout because I would imagine more would be coming, in the future.

32:35 So I think that's quick but solid update of what we've been doing in the first half of this year. We're well into the second half of this year, which is super exciting, and I'm looking forward to providing you a further update as we we go into the new year. But for now, I'd like to say that's our presentation over, and I'd like to hand back. Thank you. That's great. Thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab situated on the right hand corner of your screen. Just while the company take a few moments to review those questions submitted today, I'd like to remind you that recording of this presentation along with a copy of the slides and the published q and a can be accessed via investor dashboard.

33:20 As you can see, we have received a number of questions throughout today's presentation. David, could I please ask you to read out the questions and give responses where appropriate to do so, and I'll pick up from you at the end. Yes. Absolutely. Right. Here we go. So, Richard g, thank you very much for your question. What margin profile do you believe the autonomous business can achieve at scale once production volumes increase and the investment in manufacturing capacity is fully absorbed? Yes. So short question requires quite a long answer, but the short answer to it is there is a very limited investment other than getting the buildings themselves into the manufacturing capacity. So we're not building production line. We're not investing in a huge amount of capital equipment.

34:09 All of the vehicles will be built on a cell based process, which is quite common for lower manufacturing build capacity. So each cell is multivariant. In other words, you can build different vehicle types at each cell and you have a cell team. So to manufacture up to those 500 vehicles, we're not going to be investing hundreds of millions of pounds into that. So that's the that's the first thing. In terms of margin profile, well, the answer to that is what I'd really like to do with the business is I'd like to transition the business over the forthcoming years into a much higher margin profile business.

34:56 We already get high margin of our consultancy work, of our auto SIM, and and anything to do with software. You know, you're talking ninety ninety plus or or or more percentage gross margin on those type of on those type of projects. And we're talking 45 to 50% gross on on anything we do with vehicles. So if we, through the hub strategy, can transition the business into more where we're developing product and we're developing software, but we're sending that product out for someone to build that product and deploy it for us under license, then the licensing revenue, the software revenue should be much higher margin.

35:44 So so so really that that's my answer to you. It's all about trans transitioning the company from where we are now to more software and licensing as we scale this around the world. Second question, Alan b, current monthly cash burn rate, what is it approximately? Well, that's that's not something we can we can go into on on this call, Alan, but I think if you did a little bit of simple maths on what cash we had at at fundraise back in October, November, and the funds that we are showing at the end of end of June, you should be able to get roughly what our cash burn is.

36:33 Stuart, could you tell me the ownership details of the new building? Are you tenants, or do you own the freehold? Thank you, Stuart. Well, we're we're tenants. We don't own the freehold. We took the building over from a previous tenant. They had a fifteen year lease, and we literally stepped into their shoes with with some very smart negotiation, but we stepped into their shoes. So we have the remaining seven year lease on on that facility. Stuart, again, can you explain more about your Dubai office? Office? What are your plans there? Yes. Well, the answer to that is there is a lot of activity as you probably might guess in in The Middle East in terms of let's just put the let's just put the the conflict with Iran to one side just for a second.

37:29 But there is a huge amount of growth in The UAE, in Qatar, and in particularly Saudi Arabia in in terms of airport development and plans to make that it's already a regional super hub, but to make it regional mega hub. And the new airport that is being developed in in Dubai, which is a five runway, 260,000,000 passenger operation, which will start, I think, first operations in 2032 to move that amount of people around and that amount of baggage and that amount of cargo, you you really can't do that in manual methods. And I can tell you now that the the airport designers and planners and the operational companies are all looking to how they autonomous all of the baggage, all of the cargo as much as they possibly can.

38:28 We're right in the thick of that. And you can't do business in some of these regions if you're not there on the ground, and it's very important that we do that. So bringing the Iran conflict back in again, things have slowed up a little bit, but we intend to to have that office opened and a very, very small initial team on-site as soon as we possibly can. Steve b, who do you think are your competitors for autonomous vehicles at airports? Okay. So we we do have competitors, Steve. There's not many of them, but there are competitors. So the first thing is, it's always great when you're in a market where there are competitors because it actually proves there is a market because other people look at it and think they can make some money out of it.

39:18 So currently, our main competitors are two French companies and a Chinese company. And when I say those as competitors, those are competitors in baggage or cargo movements, not in people movements because there are a number of other companies that are trying to move people around. But in baggage and cargo, effectively, it's three main players. Those three main players are in the main trying to automate existing vehicles, existing ground support equipment vehicles, and they haven't to date been looking at it from a clean sheet of paper, start again, what would it look like, and what would be the maximum benefits that you get from an autonomous operation.

40:03 So we think we're ahead, both in vehicles technology and deployments and the where and where we've got those deployments to. But you should never say complacent. We've all always got to think faster, think smarter, and keep ahead of the competition. But we are very clear who our competition are, and we keep tabs on them daily. Stuart a, can you explain more oh, sorry. We've done that one. Yes. Stuart. Yes. Sorry. They're rolling up a little bit. Sorry. They're all coming in. There's more questions. Is your defense customer in The UK or NATO?

40:49 So the only the only probable thing I can tell you right this minute, because I can't tell you what it is and who is it for, but, yes, it the first contract is in The UK. However, I don't actually know where the the equipment that we're doing is going to end up. So it it's definitely going into The UK. Whether it ends up in NATO, I don't know. But, certainly, there are opportunities for the company both in UK defense, NATO defense, and defense in other jurisdictions where we may have offices already. Philip t. In the first part of his presentation, did David mention something to do with power electrical constraints at airports?

41:38 If so, could you expand on that point, please? Yes. Of course, Philip. So I can give you a practical example in Singapore. So Singapore have very constrained electrical requirements in terms of capability of the grid. So if you go and build a a massive new terminal, Terminal 5, which is what they're doing currently, and you also plan to run and continue to run Terminals 1 to four, then and then your plan is to convert every single vehicle to electric. And when I mean every single vehicle, I mean everything, catering wagons, baggage trolleys, fuel bowsers, people movers, then you can imagine that the amount of grid capacity that you need increases substantially.

42:29 And if you overlay that on the flight times, I e, peak and dip, if you look at the peak, then, actually, there isn't enough grid capacity to support that electrification program. So one of the things that you can do with AutoSim is you can say, okay. Well, given a certain grid capacity to the airport, what would be the optimum vehicles to convert to electric first to give you the maximum benefit? Because, of course, if you start converting the wrong vehicles first, you might not get the maximum benefit from the grid capacity you've got. And although this is probably not relevant in The US because they seem to have more capacity than than actually demand, it certainly is relevant to to airports in other locations.

43:25 So so we we are working with airports as to how we get an optimum solution to the grid capacity they've got currently. Robin m, please give more details around UPS trial at East Midlands. What are the KPIs and by when, and is this a trial for a larger following order? Okay. So so, basically, just go back in in in history a little bit. We applied to the UK government for support to do a joint program with UPS at East Midlands to develop a new cargo carrying vehicle, which ended up being auto cargo. UPS, by the way, don't have any commercial or IP hold over us on that vehicle. It's all ours.

44:14 It's just that as part of that UK government program, it was great to have the customer or the potential customer involved in the program and also the potential customer to tell us some of the specification that they required for that vehicle to operate in their airports, not just at East Midlands, by the way, at all their airports around the world. So auto cargo was developed in conjunction with UPS. It will work as a cargo vehicle in other airports, but specifically for UPS, it's designed so that it can go into any UPS airport and operate. We've been we worked on the first program and that was very successful in developing the first vehicle. We then applied to the government to say this is great.

45:02 UPS think it's brilliant. Can we have a second tranche of money? Which they said, yes. They thought what we were doing was fantastic. So we went into a second round, which enables to to develop a mark two vehicle with several improvements that we had established from the mark one operating at the airport. And now we have that mark two vehicle running extensive durability trials at East Midlands. We anticipate at the end of this year or beginning of next year that we will have closed out all of the KPIs and all of the reliability and movement requirements that they want. And and, yes, we we would love them as a customer. That's what we've been driving for for the last eighteen months.

45:51 So I hope to report on that in the coming months. Alan b, if your opportunities and aspirations come to pass, will you need further funding in the short to medium term? Well, that's always that's always a sort of perennial question in these type of companies and these type of projects. So the answer right at the moment given everything that we know, the answer is no. We don't need any additional funding right now. We have funding to take us way into 2027. However, you don't know what you don't know. And and if some of these projects do come off, obviously, there are commercial arrangements that that we can have with customers.

46:40 And in several customers, we have cash upfront or prepayments or or what have you. So commercial aspects aside, my role is to expand this company as quickly as and safely as we can and to grab market share and to grab customers. So if we need to raise funding to do that, it will be raised on a positive and not on a negative. And and that's what myself and my executive and the board are trying to do. So I know there's a bit of a roundabout answer, but that that's what we're trying to do. So thank you very much. I think we've gone through most of the questions, if not all of the questions. And, again, thank you very much for your time, and I'll I'll hand back again.

47:30 That's great. Thank you for answering those questions you can from investors. And, of course, the company can review all questions submitted today, and we'll publish those responses on the Investor Meet company platform. Just before redirecting investors to provide you with their feedback, which is particularly important to the company, David, could I please just ask you for a few closing comments? Yes. Of course. So once again, thanks to everyone, for attending today and also for following the company in general. We're building something really special here. We're four years in. We're four years in on our on our life on AIM. We're we're considerably more in in in total, but four years on AIM. I think we have done a really good job. Our team is working tirelessly. We've made some whatever we've said we were going to do, we have been delivering, and we will continue to do that. And highlights moving into a new facility has been just game changing for us, positioning us for for the future and not just our staff and the working environment, but really our customers seeing that we are serious about this and and we are going to succeed.

48:39 And I'm picking up and winning some of the biggest contracts that we've that we've had since since I started the company way back in 1993. And and indeed, we haven't mentioned, but, you know, winning further grant funding, we're still very much seen as a company by the UK government as someone they want to back. And that should give you confidence as well that we're we're on the the right road here and and bringing new people into the company to to help with that expansion. So I'm really excited about what we've got. The the entry, although it's small into defense, could be huge, and we just need to continue doing the day job and moving this company forward. So thank you for your support, and and we look forward to updating you in the future. Thank you very much. That's great.

49:33 Thank you for updating investors today. Can I please ask investors not to close this session as you'll 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, and I'm sure it'll be greatly valued by the company. On behalf of the management team, we'd like to thank you for attending today's presentation, and good morning to you all.