Comptoir Group (LSE:COM) — Investor Presentation

0:01 Good morning, and welcome to the COMPTOIR GROUP PLC Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be dismissed at any time by the Q and A tab situated in the right hand corner of your screen. Just simply type in your questions and press send. The company may not be in a position to answer every question it receives to the meeting itself. However, the company will review your questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. And I'd now like to hand you over to Nick Iurst, CEO. Good morning, Good morning, and thank you. Welcome to the COMPTOIR GROUP annual results for 2022. Delighted to have the opportunity to update you on our performance and also on our future strategy. My name is Nick Airst. I'm the CEO, and I joined COMPTOIR GROUP in October 2022.

0:52 I'm Michael Toon. I'm the FD. I joined just over two and a half years ago.

1:00 Okay. So agenda, we'll take you through an overview of highlights, which I will do. Michael will talk about financial performance. I'll then pick up again on the strategy and operational priorities of '23 and beyond, short summary. And then in the pack that you'll be able to see on our website, we've got some appendices with some additional information going through, today.

1:34 Okay. So overview and highlights for 2022. It was a year of change for the board, but I'm delighted to say, that the new team, chair, non exec, and CEO have settled, into a strong working team, and making progress in terms of, tackling, priorities for '23 and beyond. Our franchise partner HMS Hopes opened two new restaurants. One in London Stansted Airport and one in Hamid International Airport in Doha. Both are performing well in their early months. Sunset opened in June, so it caught last summer and is gearing up for this summer and it's all geared in growth year over year.

2:23 And Doha opened in September, which, of course, was a good time to give us some good publicity for the World Cup that was held in Qatar last year. There was a closure of one of our restaurants, and that was in Westfield in in Stratford. And that was in January 22. So, very little numbers of, for that site to be included in the full year. And that was a natural end to the lease, of that location. We strengthened the senior leadership team during the year, including for the first time in COMPTOIR GROUP, a specialist full time procurement, manager, who's helped us with a number of projects to improve our procurement and logistics.

3:11 Guest satisfaction ended the year at a net promoter score ahead of the years previously and that was at 60%. This followed a number of months on focusing on a back to basics program and that was really part of COMPTOIR GROUP emerging from the COVID pandemic style of management that we took, obviously, to protect cash and manage the business during that period. So we made sure that we brought our business back fully to get it ready for our guests for '22. We've mitigated food inflation costs whilst preserving our strong reputation for value of our food. That was things about looking at our suppliers and our supply chain, looking at our pricing and taking pricing opportunities where it's possible to do so and also some menu engineering.

4:09 Financial highlights for the year include, we grew our revenue by nearly 50% to GBP 31,000,000 and gross profit was up 44% to 24,400,000. And that gave us an adjusted EBITDA of £2,800,000, versus 3,000,000, a year previously. Michael will talk about key drivers of the differences, of that numbers. But we ended the year with a net cash position of 7,800,000, which is ahead of 2021. I'll then pass you on to Michael who will talk you through the financials in detail details.

4:49 Over the next three slides, I'll just take you relatively quickly through some of the headlines. So look at the p and l. We'll see there was an EBITDA reconciliation, income statement as well. And then finally, the balance sheet. Just to really ensure clarity, well, I think a lot of it is relatively self explanatory in the year. Like many who've reported on 2022, we saw similar themes, to other restaurant groups. We saw our revenue increase, and we continue to see that, increase now. But input input costs, sorry, have also risen, which did see a dampening of some of the profit margins. For those who did attend any presentation last year, I noted what we really wanted to achieve was a similar result to 2021 in terms of our EBITDA performance.

5:39 That was to be based on hopefully a normal trade year offsetting what had been a very heavily supported year before from government, support in general. And in reality, that's exactly what happened. So, overall, we were very satisfied as a as a management group. So as as Nick said, revenue increased, to 31,000,000, which is nearly 50% up on the prior year. I'd also note that there are still quite a few moving parts, in that year with VAT at 12.5% across q one, returning to 20% in q two onwards. That compares to the previous year where it was 512.5% at various points.

6:24 So over the course of 2022, VAT actually impacted us by around 2,700,000 if you compare it. We also have to do a follow-up industrial action. And, unfortunately, as we found over last week, that's still ongoing, and that impacted numerous trading days. Very hard to avoid, unfortunately. So on that basis, we're really pleased with the revenue. We also have, franchise sites in here. We we have six that performed very well. It's probably should be noted that restrictions were lifted actually slower across Europe, so we're actually still seeing them growing faster now. But in if we converted the franchise income we received to system sales, that would be the equivalent of around 7,400,000.

7:15 So we'd be edging towards 40,000,000 as a group on that basis, which is which is a great position to be in if you look at our historicals. Moving on to costs, as I noted, we're certainly not immune, to cost increases, and they were really unavoidable for businesses last year. And that's reflected in the EBITDA pre IFRS falling to 9.1% as a conversion, although very much in line with what we expected. So you can see on here growth profit, 24,400,000. That fell as a percentage of revenue to 78.7. That was a decline on the prior year, and that's really on the back of the aforementioned VAT increase, which is an impact of around 1.7 percentage points, but also inflation, which really did take hold as the war in Ukraine impacted really f and b across the world, if they're honest, not just in cost, but distribution, quality, and even quantity.

8:18 And this inflation is the main contributor to the rest of the fall in the gross margin of 1.4 percentage points. So we ended up with a blended inflation of around 8% last year. Although, very good products as as I'm sure everybody will remember, there is points of dramatically higher oil and protein particularly. So the mood of the procurement team in house reported to myself and our recent supply project, which is consolidated, quite a large number of suppliers down to something far more manageable that helps us to really offset costs, I believe, as well as anyone, if I'm honest. The distribution costs are really our labor costs. These rose by 22.7%, which is to be expected as trading accelerated by maybe double out over double.

9:09 These are well controlled by the operations team and site team, and that's despite NMW increasing 6.6% last April, and well publicized pressure that everyone is under to get and secure good labor. So we've never lost the trading day to labor problems. We've always had a really strong team, and that's helped us to to achieve these results that you see here. Moving on to admin costs, just so everybody knows what we're looking at here. They're made up of really three meaningful amounts. Depreciation, 3,300,000 of which the vast majority of rent because this is on IFRS 16, which includes the rent and depreciation rather than, above the line. Now exceptional costs of 1,000,000, which purely relate to the reconstitution of the board, which Nick has already noted, and that is a definite one off obviously, a huge impact on the numbers.

10:06 And then we have 7,000,000 for all the other costs of the business, which are doing your maintenance cleaning, etcetera. Just to explain a couple of the other numbers on here, other other income of $29.02 could be split into a 121 k for reopening brands from local authorities and $17.01 k, which is the final settlement of all the rent concession. It's obviously been a huge job over the last three years. But in context, in the prior year, these were 900,000 and 1,300,000. So, obviously, significantly different to the year before. The finance costs, they consist of 94 k interest on our CBIL and the remaining amount being the IFRS treatment of rent, which we've just talked about.

10:52 So overall, I think we're hugely satisfied with the profit figure of 588 k. It's, it's a great profit number. If you look over the last five, six years of the company, the last two years have been incredibly strong, which I think is testament to the team here. I look forward to continuing that as we go forward. Just moving on to profitability, and we've given you a little breakdown of, EBITDA and some of the adjustments that are made. So as a company, we do use the pre IFRS 16 EBITDA metric, which I believe is the closest measure to underlying performance in in this regard. The main difference again being that this contains renters and admin charge rather than depreciation and interest. So on this basis, EBITDA was 2,800,000 off of £31,000,000 revenue compared to the previous year of 3,000,000, which I've already noted had significant government support of of nearly £4,000,000.

11:53 So fantastic to get back to very near to the same figure of EBITDA, which is what we wanted considering we were impacted by the war in The Ukraine and certain things which weren't expected. So really strong year, especially after the turmoil in the last few years, and the return to the VAT of 20% as well.

12:14 We've then had to endure the cost of living crisis and inflation in general, which affects us as well as our customers. And the hottest topic of the year, which I just wanted to talk about very quickly, was energy. Obviously, generational increases in the energy numbers. We've never seen anything like it. I don't don't think we ever will again. So while small selected companies may have been fully hedged for the entire period, the vast majority weren't and found credit and fixed price is actually almost impossible for four or five months during the year. We were in a relatively strong position. We were on a two year agreement that ended in September 22.

12:59 So we were fully hedged for three quarters of the year, protected us extremely well from from the worst of the situation. We then took on a one year bridging contract, which runs until September this year, which has protected us from any out contract rates or further market increases. We have benefited, of course, from the first six months of the government cap. We've also done an awful lot on the operations side using systems such as wattage and kaput to make sure everybody is as efficient as they can be in use of that energy. And then most importantly, relatively recently in the last couple of months, we contracted for our brokers who are a 100% renewable flexible product.

13:46 That's contracted until September 25, which is a it's effectively a floor and cap product. So while we can forecast for some certainty within these parameters and protect ourselves from significant rises, we can still take advantage of a significantly lower although, just to be clear, not near 2020 levels yet, but significantly lower falling market, which is what we've done so far. And we've we've actually hedged 20% this year already, price of 13.7 p. So significantly different to what we were seeing last year, which is great news. So going into 2024, there's a real hope that we'll expect to see these increased costs really falling back. Utilities inflation have started, already plateaued, and that gives us a much more solid base of work with going into the following couple of years.

14:42 And then finally, just moving on to the balance sheet. The last year, absolutely exceptional last few years. So the only reference really I want to make is its general strength and the options and opportunity that it gives us. We closed 2022, which you can see on here, cash and cash equivalents 9,900,000. And if you consider the exceptional cost in the year, in my eyes, that's a really strong number. So increased our net cash, despite despite those one off costs. We have the full exec team now in place. We have a management team that's really much remained unchanged, under Nick. So we're in a really, really strong position. So it's really that net cash of 7.7. Great position to be in. The only debt on here is our CBIL loan.

15:29 So it has no covenants to speak up. At this point in time, it was have 2,200,000 outstanding, and I do note other PLCs have decided to repay that debt early. But as a board, we're in agreement that this cash would be much better invested in new sites, number investments as we see fit. We do invest all of our spare cash in various interest bearing accounts. So we have a six month treasury. We we have a ninety five day, interest account as well, and we we fully sweep everything each night. So we're making the most of that money that's in the bank, and we also get get ready to open some new sites in the next year. Over over the same for clarity, I'd say trading up on receivables, and on payables, they've increased as you'd expect on the back of increased trade driven by key prepayment accounts, such as insurance and rent and trade up on receivables.

16:23 And then in payables, really, the the return to normal f and b credit returns, standard terms back in practice, as you expect, large payments on utilities, pension, etcetera. So just to just to finish off and really reiterate what we've been saying, for the last couple of slides, got an extremely strong base from which we can leverage our our growth going forward. The aim of opening some new sites, generating offering cash flow. And on that note, it leads back into Nick for a little bit more of the forward looking initiatives. Brilliant. Thank you, Michael. I wanted to take the opportunity to talk about the strategic and operational priorities for 2023, many of which obviously now are well underway.

17:12 First one and most importantly is to return COMPTOIR GROUP to growth. We'll do this pursuing three different and clear avenues. Firstly, organic growth within existing restaurants, and that comes through selective refurbishments, revitalizing the teams, maximizing the use of our external terraces, a good number of our restaurants have got external areas, and we're maximizing those. Looking at our menus to ensure that we're giving people the opportunity to buy at a value price where that is appropriate, but also with the appropriate, menu laddering. So if you're in our restaurants on Friday and Saturday night, you also have the opportunity to to trade up. So we've added, for instance, a steak skewer to our menu in in April, which is selling well.

18:11 We'll be investing further in technology, a little bit more about that later on. We've introduced the breakfast menu in the last couple of weeks, so we're extending those late part trading and also making sure that we maximize on delivery. Whilst delivery in terms of cash sales perhaps isn't growing at the rate it was and is falling as a percentage of total sales obviously as dine in as we covered post pandemic, It's still a meaningful meaningful part of our our sales, and we need to protect that marketplace. Secondly, growth through new opening sites.

18:57 So we're looking to open two to three COMTOIR Lebanese restaurants in 2023. We're working with agents to secure those sites, and we're optimistic that the first of those is just about to go into into legals and be secured in the next few weeks. We're also in the final stages of being clear about the rollout and design look and feel for our shower QSR brand. And the hope is that by the end of the year, we'll be in a position to try on one or two sites of the back QSR format as well. And then thirdly, through franchising.

19:44 So we already have a new site in Abu Dhabi that is scheduled to early November. That's again with our franchise partner HMS Host. They do start on-site, of course, at the summer and to open in November. We signed heads of terms with a new franchise partner for a major international airport within Europe. We should be able to announce details of that over the next coming weeks in due course. And we're also talking to other partners that may open up access to other franchise marketplaces whether that be travel hubs or things like theme parks other sort of leisure destinations.

20:41 Secondly, in terms of our operations, we've taken the opportunity to realign our focus on three complementary sectors. And that is casual dining with COMPTOIR LIVERNAIUS brands, clearly our largest number of restaurants. Our fast casual offer to Shell, which currently has got two sites in shopping centers.

21:06 And then premium casual dining where we've got three sites under the Kensa and Yad Yad Yad brand names. That focus helps us make with prioritization but to be very clear about where we're going to deliver our growth from. It also gives us a degree of resilience in the marketplace by operating across the three main sectors in hospitality.

21:37 We continue to work on the building blocks of the future through our back to basics working program including refurbishing, focusing on on the team, making sure that the environments that people come into when they visit COMPTOIR GROUP PERNAY or any of our brands is up to to to scratch and and is part of the experience that people come and visit us for. But the service that they get is great and we continue to grow our NPS recommendations and also our reputation for food. We'll talk a little bit more about social production facilities towards the end as key parts of how we maintain quality. NPS has grown in quarter one of twenty twenty three over 2022.

22:29 So the sort of results of that focus is showing through. Moving on to people. Post pandemic and Brexit, it's been difficult to recruit and retain strong team members and management, but we're now close to an ideal team members across all of our restaurants and that's competitive pay rates, employee benefits and packages are all in place together with additional support for training for our teams. We're working with our new supplier partners to leverage the benefits from moving to

23:11 two large consolidated suppliers with Briggs and Matthew Clark. These were live in quarter one and we're now working to finalize the last few products into those supply chains. And then finally, the new labor forecasting tool will be in place by the second half of this year.

23:34 Controllable costs, particularly energy, are a high focus as Michael said for both the ops and purchasing team to make sure that we're not wasting any costs through those two times. In terms of, technology, COMPTOIR GROUP has made big strides in tech, over the last few years. However, there are still some opportunities to improve our guest experience and operational efficiency. These include further development of the order and pay app, and that's due to go live shortly. So that's QR codes that you can set up the table or a map that you can have on your phone where you can place orders or you can pay your, pay your bill, if you wish to leave, swiftly and promptly at the end of your your meal.

24:31 We're collecting more data about our guests through various different sources as we interact with more guests on a digital basis. We're harvesting more information, and we're using that to then target future communications to each customer grouping, various different tribes of guests that we have coming through our businesses and making sure that we're able to tailor offers and information to each of those those colleagues. We will have handheld TILs deployed for the summer, particularly helpful in those terrace sites that we talked about. Terraces are about an additional 20% of covers. They're on warm and sunny days and sunny dry days from, you know, May through to October.

25:22 They add significant operational capability to it. So those kind of help to sort of really help. The final steps of that rollout is happening over the next couple

25:33 of couple of weeks, and then we'll be we'll be setting every terrace location. Kitchen display screens to help us manage our our kitchens and increasing accuracy and speed, will be trialed in the second half of the year. And as mentioned, labor productivity and software will be in place, very shortly. The board and myself are keen, for COMPTOIR GROUP to accelerate our work on, ESG activity. Not only is this the right thing to do for environmental reasons, it's also the right thing to do in our guests and most importantly, I think in our team members' minds as well. In a very competitive working environment where our next generation of workers are gonna come from people born this century.

26:30 Clearly, environmental concerns are much, higher part of, the mix in terms of people considering where they're going to be working. We wanna make sure that they become an employer of first choice for the widest range potential employees. Activity that's underway includes, I won't run through all of these in detail. You can see them on the screen, but the the key ones, we've joined the Sustainable Restaurant Association. We're working in partnership with them on a two year action plan to get us the highest rating that we can through through those guys. We formed a board level ESG committee which meets regularly now and is tackling issues and particularly looking at a plan to achieve net zero carbon footprint for our COMPTOIR GROUP PLC And there's some things that are already underway.

27:32 So our electricity is already a 100% from renewable sources where we're in control of our office supply. And as Michael talked about, we're working with, technology like COMPTOIR, which manages individual pieces of equipment, in our restaurants, understand, how much energy those pieces drive and pull from the system and what behaviors we can adapt and change to minimize those costs. And then just one other thing to pull out, the consolidation of deliveries of our two new suppliers has reduced us from somewhere around 25 individual suppliers, making many delivery drops into our restaurants to two key ones. So the number of miles that we've taken out of our delivery routes 80 to the thousands per week across our 20 locations.

28:28 So we're very proud of that fact. And then finally, I just wanted to give a little bit more, information about our our central kitchen. It's an important part of COMPTOIR GROUP. It's a substantial part of the food. It's about 40% of the food that we buy. We internally buy through our our CPU. But it's 14,750 square foot production space, that is large enough to support long term growth for the business. It's our largest single supplier to our own business and it's got the highest available rating from the BRC that was obviously very recently. So the team did a fantastic job running and the high quality production facilities are very safe.

29:23 There's a process of continued improvement and investing in process and quality in either regions and the associated r and d that goes along with that brings us some tax benefits that we've we've been able to reclaim over the last couple of years. But the benefits overall of having a CPU are consistency and quality, continuity of supply, product development timelines are much shortened from working through third party manufacturers. It's a cost neutral operation for us, but growth of the business will reduce those reduce those costs. It safeguards recipes and IP associated with those recipes and the food that we serve.

30:16 We're able to supply and sell into our franchise partners within The UK. It's potentially a long term opportunity to supply products into third party wide label manufacturing. So finally, looking forward despite the obvious trading and cost pressures, COMPTOIR GROUP is in a good position. We're focused on the three complementary sectors as we talked about. We're clearly defined brands and we're very clear the strategies for each of those. We've got strong NPS underpinned by well loved interiors, food and service propositions, I guess, We have cash reserves facilitating our new restaurant openings and got plans to open sites this year.

31:10 There's a strong board and senior leadership team, in position, but we married that with founder led, innovation, coupled with, rigorous implementation of those plans and a program franchise, model as well. So in summary, I'm very confident about '23 and the years beyond for COMTOIR GROUP. So thank you very much for your time. Nick, Michael, thank you very much for for your presentation. What I'll do is I'll just bring your cameras up to full screen now. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab which is situated on the top right hand corner of your screen. But 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 your investor dashboard.

31:59 As you can see, we received a number of questions throughout today's presentation. And, Nick, Mike, if I could just ask you to read out those questions and give response to where it's appropriate to do so, I'll pick up from you both at the end. Yeah. Okay. Okay. You wanna do the first two? Yeah. I'll take the first. It's the first question. What interest is the company earning on the material cash balance it has? I'm not giving you an exact answer. It would be around 6 figures. So we have several accounts. I think I I touched on it during my presentation. So we have a couple of six month treasury bonds. We have a ninety five day liquidity account, and we also have almost an instant account, which sleeps every nine hours of works off the working capital that we need. So we lock away as much as we can and make sure we've got resources going forward. So we we use all of that cash. So that's why it still makes sense for us with the debt that we have, to maintain that to put it put it to better use, which, I'm sure we'll get to in a second.

33:00 Second question. Yeah. Okay. Is the current plan to use recent falls in energy prices to lock in a better energy deal? Well, yes. We've done that already. I've already talked about it as well. So we're in a flexi contract. It's a fully renewable contract. It's very important to the business as well in terms of renewable energy. We're also leveraging it so we can we can get the benefits of forward market, but nobody wants to be caught out. Nobody would have thought what happened last year. What's gonna happen in terms of the utility prices? So we're conscious of that, but we we've already 20% this year. We've hedged 20% for the following year. That's significantly lower prices in terms of this time last year. So we're in a good position there. We work with our broker on that.

33:46 It is to make sure we purchase When when when am I comfortable? You probably feel the next one. I'll pick up the next two. There's a couple of property related ones. So what is the planned store rollout in The UK this year, number of stores, and and where it's a focus it starts in London or regionally. So as I covered, we're looking under the COMPTOIR of an Agram to have two or three openings. We're talking to a number of landlords and agents about sites at the moment, both in London externally in the regions. We trade successfully in Manchester and Birmingham, for for example. So there are some obvious times like Cambridge and Brighton and Guildford and those sorts of places that we will be looking at in in the regions.

34:42 The one that is just about to go to to legal, so we think it's slightly too too open first. It's actually within the Greater London, and there's certainly room to get a number of new COMPTOIR PLC sites within Central London. And like with that then was, what do you look for in new location, and what's yours typical store fit out cost? From scratch and, of course, fit out cost would be typical of of of restaurants, which I I mean, maybe between 750,000 and £1,000,000, currently. We would need to test that out. It's been a few years since, COMPTOIR has has opened in new sites. There's obviously been some quite serious inflation within that building sector as well as inflation and food cost inflation. So that's something that we'll be working on when those sites come up. What I can say is our preference for the time being, and there are a number of these sorts of locations out in the marketplace at the moment, are restaurants that are partially or fully fitted out in reasonable condition, where it's a conversion cost which is substantially cheaper and varies varies by size than the primary concern.

36:12 Okay. I'll probably take the next one. Could a broker be engaged to provide research and forecast of retail investors? Well, absolutely. Yes. I could. It's something that we become very close to doing over the last year. We'll see a few reasons why that didn't happen. So Q1 last year, we were we had we had actually done almost ready to release, and then we had the war in Ukraine energy costs and inflation, cost of living prices, which also materially changed a lot what we were looking at. We were coming around against doing it at the back end of last year. Obviously have a new board in place and the strategy being fully agreed. All in place now. And I think, hopefully, maybe by the back end of this year, it'll be something we we actively look to to do at least.

37:01 Okay. The next one, can you provide an update on recent trading and current cash position? The cash is broadly in line with numbers at the end of twenty twenty two. So there's been no significant use of that cash, and Michael's talked about where that is in place at the moment. And in terms of current trading, it's in line with budgets and board expectations, but we won't be getting into to any further further details on current trading here and now. I'll pick up the next one, which is, after all the board issues, how our relationships with Tony Kisses, and how is that impacting impacting business performance now.

37:47 And, well, in reality, the business in Tony Kittu's relationships were were never a real issue. So there were more individual and personal relationships, I think, that were the cause of that. So Tony is the creative director, a board member, a shareholder of the company. And he's fully actively involved, as you would imagine, a creative director would be. So he he oversees menus. He oversees refurbishments and new store designs and leads activity. We did a a an activation in Chelsea last week for the Chelsea Flower Show, so he led a lot of activity there. And he's actually got an event on in the same restaurant at Chelsea this evening where he is, cooking. We've got wine, tasting. He's leading, sort of cooking set sessions, and we've got, guests coming in and and interacting, mingling with Tony and, you know, getting signed to Katie's book. So Tony is fully involved in in in business and helping support and drive the business forward.

39:16 And then would you elaborate on the European final question that we've got on the screen so far. Would you elaborate on the European franchise opportunity? I can't say too much for at the moment. So we've signed heads terms, but we're not quite in a position to to go public on that. It is major European international airport. It's one of the large franchise operators within the travel hub sphere. We already partnered with HMS Host, so that would tell you that it it it's not them. But we don't have exclusivity with HMS Host. So it's an opportunity that this new partner has been able to bring to us and we're looking to proceed.

40:06 Hopefully that answers that one. Nick, Michael, thank you very much. I think I actually managed to address every question from investors and of course the company will review your questions submitted today, and we'll publish those responses on the Investor Me company platform. But just before redirecting investors to provide you with their feedback, which I is particularly important to you both, Nick, could I just ask you for a few closing comments? Yeah. So firstly, thank you people for attending this, and thanks for the opportunity of talking to you about COMPTOIR GROUP. I came in in October of of twenty twenty two. Had some familiarity with the brands having actually worked for another franchise partner who franchised restaurant COMPTOIR in UK and airport. So I was familiar with the brand, but very pleased when I came in, to see, the, the position that the company was in, both in terms of its operational performance, financial performance, and, of course, the money that it has in the bank account ready for 2023 at the op.

41:15 So there's a strong differentiated brand in the marketplace. Our customers love the environments that we create for them. They love the food, that we deliver for them, and they love the service, that we offer them. The trick that we need to make sure is that we deliver that consistently all day, every day, in every every restaurant, and that's the same challenges every business in this sector faces at the moment. But we've got a very strong team, an enthusiastic senior leadership team as well as, a stable, group of people within our restaurants, who are all keen, to take COMPTOIR GROUP So I'm delighted that we're in a strong position to see 2023 and beyond going forward.

42:09 Nick and Michael, thank you very much for updating investors today. Could I please ask investors not to close the 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, but I'm sure be greatly valued by the company. On behalf of the management team of COMPTOIR GROUP PLC, we'd like to thank you for attending today's presentation, and good morning to you all. Thank you.