Cambridge Nutritional Sciences (LSE:CNSL) — Final Results

0:01 Good afternoon, and welcome to the EMEA Diagnostics Group's final results investor presentation. Conference recorded presentation, investors will be in listen only mode. Questions can be submitted at any time via the Q and A tab situated on right hand corner of your screen. Simply type in your question and press send. The company may not be in a position to answer every question received during the meeting itself. However, the company review all questions submitted today, and we'll publish responses where appropriate to do so. Before we begin, we'd like to submit the following poll. I'd now like to hand you over to Jack Rawal, CEO. Good afternoon. Thank you, Paul. Thank you for the kind introduction, and welcome to,

0:32 the presentation of the final results for FY '23, which is the financial year ending 03/31/2023 for Omega Diagnostics. I'm Jack Rule. I'm the chief exec of Omega Diagnostics. I've been with the organization for twelve years, originally starting as commercial director before moving into the managing director role of the health and nutrition division and then subsequently taking over as chief exec in 2022.

1:09 And I'm Chris Lee. I'm CFO. I've been with Omega now for just shy of two years. This is my third, AIM listed small cap stock as CFO within the last ten years.

1:22 So this afternoon, we just wanna take you through a brief introduction to the the company. I'm sure many of you know, a lot about Mica Diagnostics, but there may be people on the call who are unfamiliar with the, the organization. We'll take you through the key points of, business in the last f y, a counter through the financials, a business overview, and more importantly, a forward looking growth strategy, and then ending with a summary and then taking your q and a session at the end of the presentation. So for those who are unfamiliar with over the diagnostics, we are now, haven't been in the past, but now solely focused on health and nutrition diagnostics.

2:13 And in fact, we're a market leader in food sensitivity, in over 85 countries globally and trusted by over a 160 laboratories on a worldwide basis. We work largely through a distribution channel in global markets through distributors or business partners, as we tend to call them, who develop those food sensitivity testing markets in their own specific regions. And those partners then sell our kits and our systems through to boultries, clinics, health care professionals, and ultimately the health care consumer who is wanting to be tested for food sensitivities where they may be suffering with a chronic long term inflammatory condition, which is often related to poor gut health, and they wish to improve their condition and wellness, going forward.

3:15 Our key products and our key brands in the marketplace, the first one is Food Detective. This is a point of care or near patient test that can test for reactions to 59 foods, as a positive or negative test that can be run-in clinic without any specialized equipment, at an entry level price for the marketplace. The bulk of our revenues for food sensitivity testing is the food print system. This is a highly specialized microarray which allows a test to be run off a couple of drops of blood off a fingerprint sample that can test, analyze, and quantify reactions to over 220 different foods. And these are testing for antibodies, long term antibodies or IgG antibodies that have been built up over time to foods that really shouldn't really be in the blood system at all and is really a root cause of, poor gut health.

4:22 We have fertilizers, which are basic laboratory tools used at main labs around the world. This is actually a small part of our revenues to date where the bulk of our laboratory sales are the food print kits. And, actually, we've taken a decision to discontinue that shortly due to the low level of sales and transition of our customers to food print testing.

4:48 Here in The UK, we have our own laboratory based at our site in Liverpool in Cambridgeshire, and that uses our food print technology to run tests for customers in The UK, largely focused on health care professionals such as nutritionists, naturopaths, and functional medicine doctors.

5:13 In terms of a brief summary of the last financial year, we'll take you back to to May, June where we were still restructuring the organization, exiting from a site based up in Scotland, and moving out of a a global health area, which is largely focused on infectious disease, COVID testing, and HIV monitoring. We were successful in raising funds through placing an open offer, which happened in May, June 2020. And those funds allowed us to restructure the company as well as give us a bit of time to sell, the c d four products, which at the time was being made under license, at our previous site based up in Alva, Stockland.

6:02 We completed the sale of c d four in July 2022, and later on that year received the proceeds of the bulk of that sale, £4,000,000, which are contingent on a successful WHO evaluation in Kenya of the CD four tests, that allowed that product to remain on market and be prequalified for purchase by aid agencies and NGOs. In March '23, in in coherence with our key strategy in providing a digital platform, we launched in The UK My Health Tracker as a digital app that we will roll out across other countries and other markets in due course.

6:52 It was also pleasing to see that our major Chinese partner who was two years ago buying food detective for the Chinese market recommenced their ordering after a bit of a lull, and a lot of that was down to lockdowns and COVID in the Chinese domestic market. But we're very pleased that they've recommenced their deliveries and have a strong outlook going forward. However, in quarter four of the financial year, as I'm sure those who've been following the company are fully well aware of, we experienced, lower than expected production yields for our food print product line that resulted in an increase, of loss and lower than expected revenues.

7:42 This was very unfortunate and, you know, not so good for our financial results in the prior year, but we acted very, quickly and implemented with the help of a consultancy firm called Chartwell Consulting, a recovery plan that today is now giving us strong results, much higher yields, as Chris will explain in a minute.

8:10 K. So thank you, Jack. So just just to come back cover, first of all, the income statement for the year, very much in line with the trading report that we put out in early April. Revenues of 7.5 and a 2,000,000 EBITDA loss. The revenue of 7.5 should have been higher, but for the production issues, our order book strengthened very significantly from one year to the next. And we entered this financial year with an order book of 2,400,000, a million pounds higher than prior year. And that really is reflecting the delay in our ability to supply customers with food print products as a result of the production yield issues we encountered over the winter. A knock on effect of that was our, high levels of our of scrap. So a lot of tests we were producing were failing in the quality control process.

8:59 That scrap hit the margin. We also had additional labor costs in terms of trying to ramp up our production and trying to work our way through a backlog of quality control checks on our footprint product. Our administrative costs were a little bit higher. Bear in mind that this year, all of the admin costs for the business are having to be absorbed across the health and nutrition division. In the past, certain ex certain overheads were covered covering both divisions and was the cost was split between our global health division and our health and nutrition business, particularly service functions like finance, HR, regulatory to a degree. We're servicing both divisions. Now all of those costs are sitting within the health and nutrition continuing business.

9:46 Just draw your attention to an exceptional item for this year, just over £500,000. This relates to the planned relocation to a new purpose built facility in Ely. The landlord is still struggling to be able to complete the building to the agreed specification, has run out of money. We don't believe, actually, we're gonna be able to take possession of that building anytime at all. And as a result, we have taken the decision to write off all the cumulative costs that we've incurred in terms of equipment, in terms of legal fees, in terms of design costs relating to that site. And I'll talk about that a little bit later on. And finally, in relation to the p and l for the year, we have a discontinued activity line, a loss of just under £700,000 that relates to the CD four business trading from April through to July in 2022.

10:43 And you can see from here the knock on effect visually in terms of those numbers. Revenue down 12% primarily due to the shortage of available food product, gross margin being hit primarily by increased raw material costs, scrappage costs, and an element of additional production labor as we try to catch up in terms of production over the winter.

11:06 A knock on effect then to gross profit percentage, which has dropped by about 13 points year on year, and that should act is expected to reverse in the current year as we improve our production yield very significantly. And the net result was a 2,000,000 EBITDA loss compared to a small profit in the same period last year.

11:30 Turning to the regional sales analysis. Most markets were down as a consequence of the avail of the product availability for footprint with two notable exceptions. One was our UK market where our lab sales in The UK doubled virtually 95% up year on year to just under £1,000,000, and that's down to a successful partnership with an agency that works in a direct to consumer market using a white label product to drive demand, using their skills that we don't have in marketing directly to the consumer. We've seen significant growth in our UK lab testing volumes, and we're expecting further growth of around about 20% this year in that space as well. And finally, on the right hand side, doubling in terms of our revenues from China.

12:15 As Jack referred to earlier, our Chinese partner has commenced reordering after a two year gap, and actually China was our individually largest market during the course of 2022, 2023.

12:31 From a product perspective, again, food detective sales on the bottom up, that down to that's driven by China, 42% up year on year, and footprint sales down due to the inability to supply product towards the back end of the year. One point just to highlight in terms of our, of our production and our pricing, we sell 16 pad kits. We sell four pad kits, and we sell one pad kits. The cost of producing a 16 pad, a four pad, or a one pad is broadly the same. What we used to do was use our byproducts, our our failed QC slides for the higher value products as one pad kits and sell those to the market.

13:17 With the improvement in yield we've seen post year end, we're no longer getting the right quantity of one pad kits available. What we've done is increased our prices significantly to try and drive customers towards buying higher value added products that are more profitable for us as a business. So as Chad touched on earlier, we've seen much lower than expected production yields within over the winter. Really, that fell off quite dramatically from October last year, but has really been running lower than than than we would like for quite a long period of time. Charter Consulting have been in. They joined us in February. They left us in June to help set up new processes, new procedures, new KPIs to train our staff in the troubleshooting methodology within the manufacturing process with a key objective to a, improve yield and and b, to improve the QC turnaround times within our manufacturing facility so that we can get product out of the door a lot quicker.

14:25 Those core skills are now embedded within our manufacturing team. We've made some changes to personnel within our operational structure, and we now have a very good level of expertise and troubleshooting within the footprint technology area of the business. Draw your attention to the the graph at the bottom here. This is a four year trend in terms of footprint yield. You can see the peak of the yield previously was April 2020. I don't think it's a coincidence that that's just when we went into lockdown and we with fewer people on-site, social distancing, etcetera. We certainly suffered, I think, in terms of the yield that we were achieving throughout the lockdown period, stabilized at a lower level, unfortunately, during 2022 and really fell off quite dramatically from October 22 to a low in February this year. The green bars on the right hand side are showing the improvements that we've been able to make as a result of the Chartwell project,

15:31 some of which are down to Chartwell being on-site, some of which are down to our own operational teams taking responsibility going forward. I expect the final bar on July to increase a little bit because we haven't got the results of all the July production through quality control yet, and I would expect to see a higher level of production coming through in that final bar on the right hand side. But, essentially, the objectives of the Chartwell project to recover yield to better better levels, to reduce manufacturing QC lead times have significantly been achieved, and actually our internal team are setting an internal target higher than the original Chartwell project with a view to improving the yield still further.

16:19 Just trying to illustrate this in in terms of current performance levels, I draw your attention to the purple box towards the bottom right hand side. This is comparing the original Chartwell plan, which is the dotted blue line at the bottom with our solid blue line, which is our actual production. So you can see really since the beginning of middle of April, we've been producing at a higher rate in terms of finished product yield than the original plan. The original plan was set up to enable us to deliver or fulfill the order backlog

16:51 that we came into this year with and meet demand within the first half of this financial year so that we no longer have orders that have delayed in terms of delivery by the end of September. And we're on track at the moment to be able to deliver that.

17:09 In terms of our new site, so those people who've been following the business for some time will know that we've long been intending to relocate to a new purpose built facility in the in the Ely area. We've run into the landlord has run into some issues in terms of financing the project. The build is not complete to the specification that was agreed. There's another billion pounds to spend to bring the facility up to scratch, and the landlord does not have sufficient cash to be able to do so.

17:38 With the passage of time as well, the site is, larger than we would ideally like, and we are now, talking to the landlord about how we extricate ourselves from the lease in exchange for a cash sum to provide the property back to the landlord, and we're looking at alternative sites. In the meantime, we have extended the lease on our current Littleport site until June 2025, which gives us time to assess whether we wish to go to a new purpose built site or convert an existing unit. But it's clear that within the next couple of years, we will need to find additional space because we're too crapped in the facility that we're in at the moment. The production flows are not ideal within the layout of the facility, but we certainly don't need something as big as the originally intended building that you can see in the picture on the screen.

18:29 At the same time, we've been reassessing our slot core slide printing technology. We use currently, a a kind of contact printing, where we we're using silicon pins to print the foods onto microscope slides. That's been part of the challenge in terms of the production yield where machine settings have have not been able to cope and have have caused quality control issues to be seen in finished line manufacturing. We've been evaluating some contactless printing, some new technology which is available, which we think will give us significantly higher production yields, We'll be run we'll be on much lower operating cost in terms of labor

19:14 to run the equipment, and we'll provide additional capacity over and above what we're gonna need in the next couple of years. We're currently assessing that technology. We're running number of feasibility studies to make sure that they can print and replicate the slides to the same standard or better than we're currently doing. We'll be making a decision on that in the in the next four to six weeks, but it's likely to be a capital expenditure around about 1,500,000 over the course of this winter, expected to be roughly half half of which is expected to happen in February and the balance in the first quarter of next financial year. But this is core to being able to improve our yield, to reduce to improve our efficiency, and to refresh our aging technology into a much more modern and efficient production system.

20:11 In relation to global health, as you know, we've recorded global health as a discontinued operation last financial year and again this financial year. As Chad touched on, we sold the business for 6,300,000. So 5,300,000 paid up in in cash for inventory risk and for fixed assets and for the intellectual property, all of which was banked last financial year. We have a trailing royalty on c d four sales, which continues to 2026 capped at a million pounds. It's currently yielding more than £50,000 per annum, but we're not privy to the growth plans of Accubio over the next few years. But to the extent that they are able to improve revenues from the sale of this product, we have an an element of participation and a 4% royalty on everything they sell for the next few years.

21:05 And finally, the DHSC dispute. Since December 2021, the Department of Health have been asking us to repay the 2,500,000 of advanced funding for our ALVA based COVID lateral flow test contract. We've been exchanging a number of letters over the course of the last eighteen months. We finally managed to mediate in at the end of April where we sat with representatives of the Department of Health to discuss their claim and our counterclaim because we've made a substantial counterclaim for additional losses in relation to the contract. The situation fundamentally is the contract that we signed was to provide manufacturing capacity for the Department of Health, and if the onus was on the Department of Health to find a test, license a test, we would manufacture that and we would we would achieve a fixed margin on manufacture for the government.

22:01 Unfortunately, the government did not manage to license the test at the outset and did not tell us that they failed to license the test at the outset, deeming this with a cost base that was too high for too long. Through mediation, it became apparent that our position is a lot stronger and the department's position is a lot weaker in terms of the negotiations, and we are increasingly confident that we will not be required to make a payment of any of the 2,500,000 to the Department of Health. And in fact, actually, we are now intending to pursue our counterclaim more vigorously against the department to try and recover some of the losses that we incurred throughout 2021. Great. Thank you, Chris.

22:48 I'm really looking forward, to what our growth strategy looks like. I'm sure many of you have seen this before. We've got a a leadership position for food sensitivity in many markets. So in a market and a health care environment where gut health, nutrition is increasingly prevalent in people's thought processes. Wherever you go, they are free from foods. There's increasing levels of article on the role that gut health and nutrition plays in chronic inflammatory long term conditions as well as maintaining wellness amongst our consumer health care population. We need to carry on doing what we're doing. The demand is there for these tests.

23:34 I guess on the back of COVID as well, people are much more used to diagnostic tests and sending off tests to laboratories, to get results, to manage their their health, going forward. We want to embrace digital technology to further drive that awareness and connect it to, the health care consumer. So we're gonna do more of what we do today. There are specific geographic targets we wish to address, one of which is The US, and the other one is to carry on the upward, trajectory of our business in China. And then the third area is adding menu to our existing basket of goods.

24:22 We have a leadership position in the marketplace. There are demands for additional tests that we're looking to commercialize in this financial year. And the first step, in the direction is with our digital platform, My Health Tracker, which was launched in The UK in March 2023. This is a health care profession led, app based system where then the health care consumer they're working with is invited to log on and load their own consumer version, of the app. And this is so much more than just, an ability to share and review test results.

25:09 Its key component really is to help the health care professional manage their patients. It becomes essentially that the clinic's patient management system that connects and binds the health care consumer, the patient to the health care professional over a much longer period of time to enable better health care outcomes. So we've launched initially in The UK, and we're looking then to roll that out into various markets in priority order, around the world. The key benefits of the system beyond just a results system is to enable that relationship with a practitioner.

25:56 We're able to track wellness. We're able to track symptoms. We're able to track the the test results and link them to what symptoms we're seeing. And from a scientific point of view, that's incredibly valuable data. But also from a commercial point of view, that's incredibly valuable data. It becomes effectively our Tesco club card understanding what tests are done where around the world and on what basis has that consumer decided to order those tests accordingly. That brings a range of commercial benefits to the organization. First of all, it further increases the barrier, to retaining our lab partners versus the competition as we're adding a lot more value into the relationship. And we're really moving beyond a very classical. We're selling a system and kits to laboratories like some of our competitors do. We're adding value. We're driving business to many of our labs and our health care professionals, around the world.

27:04 It allows, for increase in testing, repeat testing and reflex testing to different tests that are complementary to what we're doing today. And should we want to, having a greater understanding of our business in particular markets, it allows us potentially in the future to improve margin and go more direct in key markets in the future. Geographic growth, is important. And already in the in the prior year, we added to our range of three print installations and added 11 new laboratories, to our laboratory base, and we appointed new business partners in eight new countries, taking our coverage to over 85 countries. But all within that, we're really targeting business in The US, and we want to carry on the growth trajectory in China.

28:04 In terms of The US, we're already planning two installations, in The US, one of which has already happened. Both those installations are laboratories who want to move into the food sensitivity testing arena, which is complementary to their existing customer base and existing test menu. And we are currently in discussions with a third laboratory, which is already a significant player in the food sensitivity testing arena. And then as is quite typical in the diagnostics industry is once you've got a position, a very strong position in the marketplace, how can you add to those basket of goods and provide even greater value to our customers going forward? And, clearly, what is being demanded from the marketplace today, the marketplace that we serve is microbiome test results and nutrigenomics test results. So microbiome, for those who don't know, is an analysis of the gut flora that you have, which has a major impact on health, in in the body, and increasingly being linked to a wide range of chronic long term inflammatory conditions such as IBS, migraines, skin conditions, etcetera.

29:30 Neutrogenomics is the study of your DNA, and looking at your DNA and looking at those genes that have a direct impact on how you process food and how you metabolize food, going forward. We reported last time that we signed heads of terms with two separate report providers, and this business model is quite different to what we do today. Today, we manufacture kits at our facility in Liverpool to Cambridgeshire, and we export those kits out to all those 85 different countries, which are then used by our lab, providers. This is a testing service, so we'll be commissioning a third party lab, a genetics sequencing lab that will do the testing for us, and then those results will be put into a portal that will generate two unique test reports that will then be marketed to our health care professionals around the world. So effectively, it becomes a paper reportable business, which is quite different to what we have today, but we then move into the arena of being a digital service provider for two essential tests that are highly complementary to what we look at today, which is the immune function or food sensitivity, at the moment.

30:56 So in summary, as a business now having sold c d four in the prior year and removed that, as a product line, we are now focused exclusively on health and nutrition, and what's increasingly being spoken about is personalized nutrition testing. It's a very exciting market to be in and very, very prevalent to many long term conditions that people are wishing to, improve on. We're well capitalized. We have a strong balance sheet and cash in the bank having divested the c d four business. But there is work to do, work not only in terms of embedding those new skills and improving our efficiencies and yields in our manufacturing team, but also building a new team and culture, in in our little port on Ealy manufacturing site.

31:48 You know, we are transferring, creating new teams in finance, HR, and regulatory, and we need to embed them into the new business as a stand alone business and move out from what was a divisional structure in a group organization. We have a singular focus on health and nutrition going forward, and and the great thing is we can build on our existing global leadership position in what is a very exciting marketplace. And we do lead that marketplace and differentiate through science and education through our webinars and our papers and our engagement with key opinion leaders all around the world. And once we've got that foundation in place, we are able to target the new geographies, particularly focused in on The US. We can build out China where the reordering has recommenced, which is great news. And then we're able to add menu to those well established, well honed sales channels in terms of microbiome and nutrigenomics.

32:51 So what links all that together is a digital spine with My Health Tracker that will bind us to our lab partners around the world, health care professionals, and ultimately the patients that we serve, in this area. So that's us in terms of a summary. I'll hand back to Paul Fantastic. Take us through some q and a. Yeah. Chris, thanks indeed for the presentation. As you can see, we've had a number of questions through today's presentation. Thanks to all the investors for submitting those questions. Perhaps I can start with the first one here. Can a director explain why the market values the business so lowly? Currently around 6,000,000, yet when the company has circa 5,000,000 in cash, this means the projects are valued at nearly zero.

33:38 After that, in a nutshell, no. Not not really. I I think for those of you who were on the call twelve months ago, I think the same question popped up, and I, you know, I expressed my view that the business was significantly undervalued at that point, and it still remains the same. I think there are a number of factors that are impacting that at the moment. We're we're in a bear market, generally, but we have a couple of specifics, I think, that are impacting the valuation of Omega at this particular point in time. Firstly, we have an overhang of a potential £2,500,000 claim from the Department of Health, notwithstanding the fact that we as a board don't believe that that will turn into a genuine liability and a cash flow cash outflow. I think there's an element of of that overhanging the business, until we get resolution, that will probably continue to be part of it. I think as well, we have a number of warrants, 90,000,000 share warrants outstanding going back to the placing from May, June 2022.

34:39 Those warrants expire on the November 9, and I would expect that that might have some sort of benefit overall. Fundamentally, I think though we need to start delivering results that are in line or better than the forecasts that they're out in the marketplace. And I think until we have a track record over a period of time of delivering results, I think there will always be, an an element of discounting, and disbelief perhaps in in terms of the numbers for this business. What I would say is we are a long way on, fixing the issues within the organization. Some unexpected bumps in the road, particularly around the yield for last year, but we're working hard to improve the quality and professionalism within the business as a whole and to deliver results in on behalf of our shareholders.

35:36 That's great. Thank you very much indeed, Chris. That kind of covers off the the next question I can see here. Does the board expect the four p warrants to be exercised before expiring November? I know you have touched on that there. I don't think there's anything if there or if there's anything further to add. I think, you know, the warrants are at four p. The current share price is round about 2.5 p. I would be very surprised if anybody exercises a warrant in the near term. So I I I I think they will probably expire, but ultimately, it's it's the shareholders' decision as to whether they wish to exercise those or not. But I I I would be very surprised. That's great. Thanks, Chris. What we've got here there? Given the low value of the company, does the board of directors consider a takeover approach a possibility? I mean, we're on a share prices. We we are vulnerable, and we're a public company.

36:22 So that's always a possibility. However, where the share price is at the moment, we would certainly not be able to recommend, a lowball offer. And it's certainly if we did, it wouldn't be voted by by the shareholders. So, you know, yeah, it could be, but it's very unlikely. That's great. Thanks, Jack. What was the, what sorry. What's the rationale behind the name change to CNS? I think, you know, going forward, as we said, we we are, a nutrition testing company. And and the main rationale behind that was to draw a line under legacy business. We we call it discontinued business, and I think this will be the last presentation we will refer to discontinued business. We wanna be looking forward. We'll be talking about our value proposition in the marketplace, and I think we should be named accordingly.

37:17 I think as well, you know, Omega is as a brand is tarnished with the COVID story. You know, we've had a number of, businesses that we've been in and gone over time, allergy being one, COVID being another one, c d four being another one. I I I think I think the the the rebrand is is bet it better describes what we as a business are going forward. We use the kit the CNSLab brand you'll have seen throughout the presentation for our own lab testing service. That is Cambridge Nutritional Sciences Lab. Partners our business partners around the world associate Cambridge with science and education, and we want to take advantage of that within the marketplace.

38:06 Albeit, we go to market with strong product brands rather than a corporate brand. But CNS, I think, as a as a as a name gives us, better describes what we as a business are today and intend to be in the future. That's great. Thank you very much indeed, Chris. I've got a question here. It kind of ties in with Charles B's question that he's talking about My Health tracker. Please, can you elaborate on the reasons for the implementation, the realistic expectations, and that kind of ties in with a couple of other questions? Just really looking for what what can we expect to see. Yeah. So, you know, we're we're we're focused as a company on the health care professional being linked to the health care consumer. We're not a direct to consumer, marketing company.

38:55 That's why we partnered with a white label product or or partner in The UK to drive some of those UK volumes in the prior year because they have the skills and expertise to market via social media, online, and other through celebrities. We very much believe that health come better health outcomes work through the health care professional linked to the patient. So the digital platform, My Health Tracker, will be rolled out through health care professionals, and the patients that they serve will be then be invited to enroll by the health care professional to then form a relationship online to get that, patient managed much more effectively on the back of the test results, which is the start of their journey to better gut health.

39:46 Our rollouts, we wanna obviously cement a position in The UK. The reason we went live in The UK is right under our noses. We understand the market better, and, obviously, we're direct in The UK. And then what we'll do is select those low hanging fruits where there are opportunities to implement My Health Tracker in some of our global markets to bring that benefit to our lab partners, in those markets accordingly. And then ongoing, there'll be translations, so we'll be able to address those markets further down the line in different languages. Fundamentally, our customers believe that this is a tool will help them drive volume in their own markets, which will, in turn, drive volume for us.

40:36 Thank you very much indeed. You mentioned production, in the presentation, but what what have you put in place with a question? What have you put in place to mitigate any production problems occurring again? I think on the tail end of the consultancy, we were very keen to implement the embedding of that learning, not only in the teams that make microarray, but as the teams widely across our our manufacturing sites as well. And and we're seeing the ongoing results of that with further improvements in yield with Chartwell having left the premises effectively, as well as improvements in other areas of the business. And the teams themselves have identified further opportunities for improvement. So that will deal with the yield improvement and stabilization in the short term.

41:28 As Chris presented as well, longer term, we also need to replace some of that aging technology, and we have engaged, a potential supplier of new printing equipment to eventually replace that in due course. Thank you very much. What rental costs have you budgeted for in looking for a new facility in Ely, Cambridge? Well Oh. Units, for existing units, there is a possibility to to put a mezzanine level in that would reduce the unit cost per square foot for those facilities. So right now, we have we are budgeting to stay on our existing site for the next twelve to eighteen months.

42:17 The rental cost of that is relatively modest. It's only a £110,000 a year for that particular site. New sites will be evaluated and compared, you know, to to make the right commercial decision for what we see as the business going forward. Fantastic. Look, Jack, Chris, thank you indeed for addressing those questions from investors. And, of course, the company can review all questions submitted today. We publish those responses where appropriate to do so on the Investor Meet company platform. Jack, if I may, I know we've got the summary on in front of us now, but if there's any further comments just before we redirect investors to give you their feedback, which I know is particularly important to you and the team. Yeah. Thank you. Thank you very much. Well, firstly, thank you for the people online in in giving us an audience. We did have a tough, final quarter, which had a a major disappointing impact on our results in the final year. But, we've we've learned from that. We've generated a greater degree of resilience, in the the the foundation of our business going forward. We are building out new teams and new skills as we speak. But let's not forget, we have a a very, important business only focused in one area and not distracted by other other ventures.

43:34 We are a market leader, and we've got exciting growth opportunities from that foundation. That's fantastic. Thank you both for updating investors today. Can I please ask investors not to close this session? It should be automatically redirected to provide your feedback in order the team can better understand your views and expectations. This will only take a few moments to complete and that is greatly valued by the company. On behalf of the management team of Omega Diagnostics Group PLC, we'd like to thank you for attending today's presentation, and good afternoon to you all. Thank you very much. Thank you.