Dillistone Group (LSE:DSG) — Introduction, Interim Results and Prospects

0:03 Good afternoon, ladies and gentlemen, and welcome to the introduction to the DILLISTONE GROUP and their interim results presentation. To start with, if we could cover a couple of housekeeping items before we begin, we would like to submit the following poll, which you will see on your screens. Throughout this presentation, investors will be in listen only mode. However, questions are encouraged and can be submitted at any time via the q and a tab situated on the right hand corner of your screen or for anyone who who's dialed in via DILLISTONE at WALBROUP P R dot com. The company may not be in a position to answer every question it receives during the meeting itself. However, the company will review all questions submitted today and publish responses where appropriate. These will be available via your investor me company dashboard.

0:49 Finally, we would like to remind you that this presentation is being recorded. Without further ado, I would now like to hand you over to chief executive Jason Starr and finance director Ian Mackin.

1:01 Thanks, Tom. Ladies and gentlemen, good afternoon. Thank you very much indeed for joining us today for our debut on Investor Meets Company. We're very, very happy to be here. We're excited to be here. We're conscious that in the room today, we've probably got some existing investors, and thank you all for your support, but also probably a number of people that know very little about us. So what we're gonna do today is start with a bit of scene setting, talking a bit about who we are, how we make our money, but also our history on AIM. Once we've done that, I'll pass over to Ian who will take you through our most recent set of results. We'll then circle back to me, and I'll talk to you a bit about how we perceive our future. I'm gonna do a very short product demonstration as part of that session as well. I think one of the points that Ian and I would like you to take away is we believe the business is on a track to a a a good place. And we feel that the recovery, because we have had a couple of difficult years, the recovery has actually further progressed than our headline figures shared with you. Or it might suggest, if I just move a slide forward, great. Worked. These are our headline results that we've shared in today's announcement.

2:09 But what they don't make clear is the impact of furlough of government support. Last year, clearly, we were supported by the government, and that had an impact on our results, positive impact on our results. I'm afraid I've just managed to break the system. I've lost my slides. That's not great.

2:31 Can someone take control of the slides, please, present them again? I wish I just lose them. We're technology companies. You can probably tell. There you go. Excellent. Thank you to whoever just clicked the button. So yeah. So we we we believe that well, we know that last year's numbers were supported by, you know, the government to a certain extent for a loan and so on. We said that at the time. When you strip out that government support, because obviously it wasn't we didn't take advantage of it this year, our numbers are much, much better. And you can see that on an underlying basis, we've we've seen an improvement in revenue, an improvement in cash, an improvement in adjusted EBITDA. Pretty much every one of our core statistics are pointing the right direction. So Ian will go into that in a bit more detail, but I do want to share with you at the top before we got into too much about what the business actually does.

3:18 And what the business does is provides technology to the recruitment sector. We work with hundreds of recruiters, most of them third party recruiters, so agencies or executive search firms. Plus, we work for a number of in house recruiting teams at major organizations. We basically tried a series of recruiting technology products, and we split them into two streams. So we have contingency recruitment software. That is software primarily used by high street agencies primarily, but not exclusively in The UK. Our products in that field include Voyager Infinity, which is a CRM. We have a skills testing product called ISB online. We have a product called mid office and a product called vDQ. So that's the contingent side of our business. On the executive search side, we have a number of products as well. Filefinder, which for a number of years was our primary product in the space, generating most of our revenue. Gated talent, is a product that some of you will know of, that we launched a couple of years ago and faced a few hiccups, should we say. And Telentis, which is our new product which we will be looking at very, very briefly.

4:23 I referenced hiccups. This is the story of DILLISTONE GROUP as a public company. So when we first floated, we had a number of very successful years, grew organically, paid strong dividends. I think for a couple of years, we were the highest yielding tech stock on on a, well, at least for for a period anyway. We then started to make acquisitions, and again, the acquisitions were fairly positive and they supported the business and its growth. We then hit a choppy period. We lost a very large client, a very significant client, and at the same time, the initial launch of Gated Talents was unsuccessful. And those two things combined to hurt us. So at the end of twenty twenty eighteen, the business was in a a pretty poor state.

5:08 We realized that. We took steps to fix it. 2019 saw a restructuring of the business. We closed down some offices. We suddenly let some people go. We organized everything, and we came out of 2019 thinking that we were in a good place to to progress things. We came out of '20 into 2020 expecting to be profitable, and then COVID hit. Again, as I referred to earlier, we focus on the recruitment sector. Recruitment companies weren't spending a lot of money during COVID because they weren't recruiting, because no one was hiring, because nobody could leave a house. So that was challenging as well, but we believe COVID is behind us now. We are recovering, and I'm gonna ask Ian to talk you through the first signs of recovery. Ian?

5:51 Thank you, Jason. Jason's already shown you this slide. It contains the figures published this morning in the interim documents. However, we believe to get a true comparison, you have to adjust for the effects of furlough and government support received in h one twenty one.

6:09 Once we adjust for the furlough and government support received in the first half of twenty one to obtain a like for like operational comparison, a different picture emerges. Total revenue was up by 1%, which is the first h one growth in revenue since 2017. Non recurring revenue was up by 30% in the period to two hundred and sixty thousand. Recurring revenue although down slightly for the half year did increase in q two compared to q two twenty twenty one. This is the first quarterly year on year increase since 2018, and we expect that to continue into h two. Adjusted operating profit increased by 76%. The order book is ahead for the year to June by 13%, and the TACV, which stands for total annualized contract value, is up 3%.

7:02 TACV is a forward looking metric used in the software provider space to estimate what the next twelve months recurring revenue might look like. It's based on what's currently known within the company and adjusts for known decrease, but does not capture any anticipated future growth. So as such, it's a baseline figure we should grow from. Adjusted loss from operating activities half to 219,000, and adjusted loss before tax is reduced by a third to 274,000. Both of these figures are in line with market expectations. All this gives us confidence towards year end that we are on track to hit the market projections. The underlying operation is improving.

7:51 Running through the p and l. As previously mentioned, revenue is up 1%, the first revenue increase since 2017. Gross margin has kept steady at 88%, leading to a slight increase in gross profit. And once we adjust for the impact of furlough and government support, the adjusted EBITDA is up 51% at 435,000, and the adjusted EBITDA margin is edged up to 15.4%. Depreciation and amortization stayed broadly level, and the interest paid is edged up due to us benefiting from an interest holiday on the civil loan in the first half of twenty one. You see the effect of the furlough of government support items, meaning the reported losses increased to 274,000.

8:38 The underlying cash flow position is improving. Once government support is stripped out, adjusted net cash from operating activities is up 76% to about 560,000. The investing activities, which is mostly our spend on software development, is only slightly down at 482,000, and this was this decrease was due to reduced management overhead. We kept our core development team on. All this leads to an adjusted net cap, changing cash being 47% better at a 186,000 trending towards neutrality. Cash finished the period at 608,000.

9:23 On this chart, the blue line indicates the underlying cash movements of the business in the half year. The green line indicates all the exceptional income received in the relevant half year through loans or government support or furlough, and the red lines are all the cash flows associated with acquisition costs, dividend payments, and financing and payment

9:48 payments of the loans taken out. As we can see, at the start of 2017, the operation generated a healthy surface. Then things declined. As a business, we recognized this decline, we reacted, and we reorganized during 2019. We were just beginning to see the benefits with the underlying operation turning cash positive in h two nineteen, then COVID hit. Like most businesses, we were hard hit initially, but we regrouped again. And we can see steady progress from h one twenty twenty. And this past half year, the underlying operation cash has turned positive for the first time since 2019, and the first h one has been positive since 2017.

10:37 We believe all of the above is evidence that we've made progress on the financial turnaround of the business. The adjusted EBITDA is up 51% while we continue to invest in software development to drive future revenues. The underlying cash position of the business is improving, and most importantly, we are realizing revenue growth. Our first total revenue growth for h one since 2017 and our first year on year quarterly revenue growth in q two for the first time since 2018. Let me hand you back to Jason to go through what the future for DILLISTONE GROUP looks like. Thank you, Ian. So before I talk about the future, I'm just gonna look back at the last six months and talk about where our revenue growth has come from. So, essentially, as as I touched on the top, we split our business into two groups, product contingency products, the executive search products.

11:31 Contingency, which is primarily the Infinity CRM, the ISV skills testing platform, they had a really good first half. Year on year, revenue was up 9% compared to the same period last year. Now in part, that is down to a significant, significant by choice of words, a large contract win on the Infinity front. We announced that late last year. That was implemented in h one. The client is live. The client is happy. The client is satisfied. The client is a reference type for us, which is great. We have announced today today a another large contract again on Infinity, and that gives us great confidence, great visibility for the second half of the year and potentially into next year as well. So the contingency side of the business is already showing really positive and encouraging signs.

12:17 It's worth I'm sure we're get questions towards the end about the impacts of recession in the recruitment sector, but it's probably just worth me touching on the fact that the bulk of our users on the contingency side, certain bulk of our new users, are on the temporary recruitment side. It's generally accepted that temporary workforce tends to be less impacted by economic downturn than permanent placement. So we we feel actually that our contingency products are in a much better position than they have been historically for the reason we kind of care in time over the coming months or years. So that takes us to the executive search products. I think it's fair to say that the executive search area is one that we haven't done too well in over the last few years. Back in the day, Farfinder was, I think, most people would accept the global market leader in the space. So I think it's fair to say it doesn't hold that position anymore. We still have lots and lots of clients using it all over the world. It's not quite where it was. Over the course of the last period, we have spent some development time refactoring the platform so that it is faster for our users, but more importantly, for us to host, cheaper for us to deliver.

13:28 We're now seeing the benefits of that. Hosting costs on the Filefinder platform are down by slightly more than 20% on a year by year basis, and much of that comes from the restructuring. We've also seen a an improvement in client retention on the file finder front as well, partly perhaps because of the of changes I've just referred to, partly perhaps because we've given file finder clients access to ANTIS for a nominal, in some cases, no charge as part of their package. Gated talent is the second part of our executive search stream, and I touched on that earlier when we first launched GT. It certainly didn't perform for anything like the level that we would have hoped, but now it has consistently delivered it's consistently profitable. It's consistently generating cash for the business as well. But the area we're really excited about on the executive search front is Telentis.

14:20 Telentis is a relatively new product that we launched at the beginning of last year, and it's different. What it aims to do is essentially be one product that that can be used in two different markets. At its core, it's an executive search CRM. So it's all used by an executive search firm to manage their business. That's essentially what Filefinder is as well. So it's in the same space as Filefinder. We reckon that market is worth perhaps 250,000,000 per annum in recurring revenues. But what it also does, which Filefinder didn't do, which DataTell and tried to do, was be a candidate sourcing tool. If you like, an alternative to LinkedIn that a recruiter can use to go and potentially find candidates. Now that market is much, much larger.

15:05 LinkedIn wants to do lots of things. They generate revenues of 10,000,000,000. We reckon that the candidate sourcing aspect of that is worth about £1,250,000,000 per annum based on internal expectations. So this is a point of internal estimates, I should say. So this is a much, much bigger market. And almost uniquely, Telemntis sits in bulk. So the benefit of Telemntis to our clients is they can use it for candidate sourcing, or they can use it for CRM. And, actually, they can use use it for both. And by having two products does one thing, there's a much better user experience. It can be said that the whole is greater than the sum of the parts very much in this case. Now what I'd like to do very quickly is give you a short, very short presentation product. Now, hopefully, you can see my screen now. This is not TALENTYS. This is LinkedIn.

15:56 I'm gonna wait till I get the nod to be be clear that I'm showing my screen. Let me click that button. There you go. So do that and do that. Okay. Hopefully, you can see my screen now, and you should be able to see LinkedIn. Yep. Okay. So to be clear, this is LinkedIn. This is not Telenetis. But what I've done here, I've gone into LinkedIn, and I've searched for fintech. And you can see that that search on LinkedIn finds me 280,000 results. This is Telentis. I'm gonna go to Telentis. I'm gonna click on the search button, and I'm gonna do exactly the same search. Fintech. So LinkedIn found us 280,000 people. Telentis found us 1,200,000 people. So in this particular example, Telentis has found many, many more times many, many more candidates than LinkedIn has. Now recruiters don't care about the number of candidates. They they care about, you know, closest to fit. So let's target a bit more. Let's say we're looking for a chief revenue officer. So I'm gonna add in revenue or sales or business development to my

17:02 query. You'll see how quickly this turns into knocking the numbers down. 170,000 people. Current jobs. Let's now say we want c level. So I'm gonna head in chief or director or head or whatever it might be. Again, we can make that current element. Let's say we want to find people in The United Kingdom.

17:26 We're now down to 1,100 candidates. Let's say we want someone who has a background in payments. I didn't have to spell it right. Payments or payment. Again, you can keep narrowing down. This type of searching, this ability to keep adding layer after layer after layer of keywords is something that LinkedIn doesn't support, at least not the way we do. So if you're searching to find candidates based on very specific industry sector experiences, this is a unique way of working. It's a way of working that LinkedIn doesn't offer, it's it's a way of working that very few of the products do in in the recruitment space. And the big benefit of Telentis is once you then start finding candidates, you can see when you have a relationship with that person.

18:11 That's the CRM side of the product coming through. Okay. Let me turn off my screen share. Okay. I can go back to slides. Okay. If you can confirm, please, that the slides are back. Great. Okay. Thank you. So that's a very quick and dirty demo of the products, but we have clients right now using that product to do exactly what I've done all over the world. Our early adopters primarily use the tool for candidate sourcing only. But as we've added more and more CRM functionality, we're finding that it's being used more and more on the CRM side. That means higher revenue streams with bigger customers. This is a good case in point. This is a a UK search firm that specializes in recruitment of senior execs for private sector. They started off using it as a sourcing tool. They now use it for both sourcing and CRM. And this is just one example.

19:01 Right now, we have paying customers using Telentis in The UK, Europe, North America, South America, Asia, Australia, New Zealand, and South Africa. So we have clients all over the world using the product in the way that I've just described it. And what that means is revenue is beginning to grow, and we we launched it, as I say, in q one of last year. We saw the first revenue in q two. Early adopters were paying very lithium to source until they were turning on and off and so on and so forth. But you can see how revenue started to grow. In around September of last year, we we we we had a bit of a change of direction. It's an agile product. We, you know, we focus more on on on certain functionality we felt would generate revenue.

19:46 That came live in November. And just to give you a flavor of the impact that had on our client base, in November, if we exclude existing group clients who were potentially getting to Lentus as part of a package deal, we talk about purely arm's length clients, one better word. In November, we had four. In December, we had 10. At the end of June, we had six. And that's why revenue is growing so quickly.

20:13 In terms of growing it further, as I say, most of our clients are relatively small, but we're seeing that change. At our AGM announcement, we said that we expected the summer to be very slow for transit because, to be honest, the entire executive search community goes to a beach over summer. However, you know, despite that, despite the fact that prospects, opportunities were down and not many people with the market, we were expecting the q three q three will show the highest level of monetary growth in ARR yet. Why is that? Because we're winning a higher percentage of deals and we're getting a higher order value. And we expect to continue to keep developing the product in that that way, getting into bigger firms, getting into longer term contracts with customers paying more per seat for more seats.

21:00 And as a result of that, we're expecting that the revenue streams associated with Terentis will continue to grow into a very decent future revenue stream for us. Okay. So that essentially is where we are today. We've had a tough time. That's that's apparent. Gonna try to hide that. But, you know, we've come through that now. Numbers are getting better and better, and and certainly if you adjust furlough as as as Ian explained earlier, that they're they're much, much better than they were a year ago. We're now a very efficient business. We're highly operationally geared. So as we grow revenue, an awful lot of outflows through to to our our bottom line. The other, you know, in addition to contingency, which is already performing well, we're excited about the future for executive search.

21:50 And I think it's worth reiterating. We, you know, we're we're in a good position from a cash perspective. We are not expecting to need to generate additional cash. So there you go. That's our presentation. Thank you very much indeed for joining us. And and, Tom, back to you. Yep. Super. Thank you, Jason. Thank you, Ian. We have a number of questions. However, please continue to submit your questions using the q and a tab situated on the top right corner of your screen. I'd also like to remind you that a recording of this presentation can be accessed by your investment company dashboard after the event. Additionally, your feedback is important to the company. So immediately after the presentation has ended, you will be redirected for the opportunity to provide feedback. We've got a couple of questions actually around the more recent contract wins, and I'm actually gonna blend two of them together for because it might enable you just to talk around the issue a little bit. Reginald has said, what is your definition of a large contract, and can you provide a steer for the type of client who is buying? I are they recruitment firms, and are they small, medium,

22:54 or large, regional, or London, etcetera?

22:56 The other one I'm just gonna combine that with, if I could, is there's a question here which is of the 50 exec search sales in h one, what did a typical order look like?

23:07 Thanks, Tom, and and and thank you to to for the questions. So, again, it's probably worth as we're iterating. We have a number of products. Clearly, they they all price differently, used in different ways, different different models. I suspect the question about a a large contract relates to the announcements that we we made late last year. That was for a UK based contingency recruiting business. The value of that was sub not fast sub 6 figures in in total. Some of that was recurring, some of it's non recurring. So we would consider that to be a a large contract on that side of the business. But, we have lots of different products, and, you know, they would all price differently. They'd all have, you know, different concepts of large. We focus in on Telentis specifically.

24:03 Most of the early adopters on Telentis were typically using it as a sourcing tool, And what they would often have would be, say, a six user executive search firm using the CRM, perhaps ours, perhaps one of someone else's, and they would buy Telentis just to be used by the sorter in the corner. So it would be search. We'd use it alongside our CRM. So our aim is that

24:25 at which stage where we don't use it on just one machine, they use it across their entire team because it is their sourcing tool, but also their CRM tool. So our aim is to get from just having lots and lots of single users to having larger clients. And as I touched on over the course of the summer, we we are increasingly seeing that happening. I believe the average executive search firm is about six users, and we have a number of customers now of that size or larger who are using Telentis as their only recruiting platforms. They don't use it alongside with

25:00 the CRM. They've decided the product is is a standalone product that would meet their needs. As I say, we we are continually developing the products and as a result of that, we expect we'll be able to get into bigger businesses and tick more of their boxes.

25:16 Great. Okay. And then we'll stick with Telentis for a minute if I can just because we've got a question in from Steve, which says, I note that Telentis has paying customers across a number of continents, which, while small on revenue terms, is an impressive reach. How big do you think Telentis could be for the group, and how can you speed up its adoption? If I could just combine that with another question, which is what is the expected cost of marketing and growing Telentis globally? Because I suspect they overlap slightly. Yeah. Yeah. They do. Thank you. So I'm I'm gonna tell you a story. Probably one I shouldn't tell you, but I'll tell you anyway. When we launched gated talent a couple of years ago, I was extremely excited about gated talent. I thought it was gonna be the the next big thing. And all of the early signs were positive, and then it failed. It failed because of things that hopefully we could learn from. So I am loathe to make

26:12 sort of big statements now about future potential for for specific products. What I can say is that well, I shared the slide earlier. Our revenue is growing very, very rapidly, and we have a tiny percentage of the global market using our products at the moment. A tiny, tiny percentage. So, you know, I I think the longer the longer term opportunity for Telentis is bigger than that for any of our products. It can be sold globally at very little cost to us, very little cost to delivery, very little pre sales cost, and it has a sustainable competitive advantage associated with it. Think it means that once clients start using it as a CRM, they will stick on it for a very, very long time. I yeah. So I I I'd rather not put specific numbers on it. Think the whole group is very excited about the opportunity to do this.

27:05 The the second question related to marketing, and it's if I may, I'll I'll widen that out and talk about the implementation as well. So I can't say in every country, but in most countries, if you go to Google and you type in executive search software, you then look past all the adverts, Google sticks at the top. In the vast majority of the markets we care about, we have a number one organic grant result for that particular search. So pretty much anyone going into the market to to buy executive search software, they do that search on Google. They find us. Most markets were the same on Ben. In addition, we're very, very well known in this sector because of the firefighter experience. You know, lots of people who've got a firefighter. We still get people coming along saying, oh, we'd like to see the latest version of firefighter. We can say, well, this is firefighter. This is. Have a look and choose both. So we get a lot of leads coming into us organically.

27:58 So we are not currently expecting to increase our, you know, business wide marketing expenditure. What we are doing is clearly, you know, being intelligent about how we spend that money and where we spend that money. So one of the things we've referred to in our announcement today is that the one of our products, BEQ, is being taken off market because of success with Affinity. And by doing that, it allows us to spend our marketing money, our sales money, our development money more prevalent. The other thing that I think is probably worth mentioning is, yeah, we have an existing client's product range in in the executive search section in Filefinder. Some of those clients will continue to use Filefinder for a long time because they like Filefinder. It's a great product. Some of those clients will choose to switch across. What we've also seen, and we're really excited about this, is that customers that have left our group, gone away and bought someone else's product, have now come back.

28:55 So again, it's there is a lot of opportunity for us to monetize Telentis without actually going out and spending significant amounts of additional marketing. So, yeah, hopefully that answers your question. Thank you. Great. Okay. And just sticking a little bit on existing client base and products as well. David has asked, great to see excellent Trustpilot reviews. What is in the pipeline in terms of new products coming to market? And from a competitive point of view, where do you see the biggest crossover? And I wonder if we might just combine that as well with what is the opportunity for cross selling to the existing customer base. The two might sit nicely. Yeah. Thank you. So so I agree about the excellent trust pilot reviews, and I I think the team here have got to take an awful lot of credit. We've some fantastic people working for us.

29:47 And just on that topic, you know, one of the issues that, you know, all companies in the software sector have had recently is is pay inflation. You know, we struggle with that same as everybody else has. One of the things we've really done, and I I to be fair, I've got to duff my cap and tip my cap to my my colleague, Paul Mabo, who's really led this. We've built a really good culture in the business. And what we have seen is team members leaving the business and then coming back. We we had somebody leave to go to a competitor. About a month later, he came back because they felt that the the experience being in our company, the way we treat our customers, the way our customers treat us is a really, really good thing. So it actually helps retention of staff as well. So, yeah, so the trust part thing, we're really proud of that. Very proud indeed, and thank you to the staff for some of this stuff. More more broadly about about the products, one of the things that we've done over the last few years is focus our efforts more on the products that we believe have major, you know, development opportunities. And as a result of that, we've reduced development expenditure elsewhere.

30:51 We've alluded to the fact that certain products have been taken off the market. And, you know, that that is a strategy that we think will pay dividend for us in the long term. The Voyager product we're adding, you know, constantly adding significant functionality to it. We are looking at different ways in which our Infinity CRM can potentially take advantage of some of the big data from that we have access to through Trustpilot through Trustpilot through to Lentis. Sorry. So you might see things happening there. But, essentially, at the moment, with the way the market is, a lot of our focus on the Infinity front is likely to be around the tenpin sector because, yeah, we know that's relatively the strong market if the economy does take. On the Telenetus front, we are adding CRM functionality. We're adding lots and lots of CRM functionality. So coming out very, very soon, perhaps in the next couple of weeks. And, you know, my my my colleagues in the development team will will yell at me if I say anything more than that. But coming out in the next couple of weeks will be some next generation reporting functionality, which we think will be really strong, really helpful for clients to produce reports for for for clients. We think that's a really, really, really strong piece of functionality that will be on the Torrentis platform very soon, very soon. I wanna say more than that, Steve, shout out to me.

32:08 In terms of cross selling, so, yeah, absolutely. We've taken the decision to give Filefinder clients, in many cases, access to Trellentis for free. We charge Infinity customers for it. And so, yeah, it it's also about the opportunity to retain customers either by offering Telentis as as an addition to the products we've been bought or got. So, potentially, in the long term, giving them an alternative type of product that they may want to port to. Again, we'll continue to support Filefinder for as long as it makes sense for us to do so, and that will be for a number of years. I've no doubt about that. It's, you it's got a very solid revenue stream associated with it. Lots and lots of customers on that platform. But, yeah, we are now prepared to say to a customer if they decide that actually they don't think Filefinder is for them anymore. We can say, okay. Well, rather than going to a competitor, why don't you come to Telentis? Again, we've got examples of customers that told us they were leaving and have now stayed because they want to go to the Tilentis route. So bit of a a verbose answer, but hopefully that that gives you what you need. Thank you for your question.

33:12 Great. So thank you. A couple for for you, Ian. How is your business split between the search and contingency markets? Give us an approximate. Yeah. Through h one, the revenue split was roughly 40% from the exact search and 60% from the contingency. If it that shows the underlying strength from the contingency products, we saw that the exact search products were gonna go into decline, is why we decided to position our new product to Lentus in that exact search space to supplement that sector's revenue going forwards. Great. Okay. Another one for you, Ian, if I could.

33:57 How exposed is DILLISTONE to the current FX movements? I mean, luckily, our exposure is minimal. Most of our cost base is contained within The UK, and our overseas operations only make a small contribution at the group level. However, since our new product, Telentis, is really global in nature, the strength in those sterling should only have a positive impact on our future on the revenue streams going forward. I think if I could add to that, Ian. Thank you. Looking at to end this in the last quarter, most of our to end this clients are UK based as you would imagine. But in the last quarter, we've sold far more Tenantis systems outside The UK than we have inside The UK. So I think that's a really good point. Actually, the the pound doing what pound is doing is is likely to be beneficial to Tenantis revenues.

34:49 Great. Okay. One question slightly broader. I mean, what might the impact of a potential recession be? Well, again, one of the things that's thank you for the question. One of the things that I think is probably worth making clear is that we are a recruitment software company, but our our business model is not the same as a recruitment company. Most recruitment companies have to eat all the killers, they say. You know, they have to go out and place them. We have recurring revenues. You know, we have subscriptions. We have SaaS contracts that keep going. So firstly, if there is a recession, generally speaking, we tend not to lose our clients overnight anyway. Beyond that, our view is that Infinity is particularly strong in the temping space now as we've alluded to. Most of our growth is coming in the temping space, and that is a sector that, generally speaking, tends to be somewhat cyclical.

35:42 And on the Talentis front, you can actually make an argument that buying Talentis will save you money because instead of buying a CRM and a a LinkedIn premium license of some sort, you can buy Tarantus and actually get that for less. So, you know, there is that side as well. So I think going into any potential recession this time, we feel we're in a much better place than have been in any previous economic turbulence we've ridden for we've ridden for a few. Great. Okay. Very encouraging. Good. Okay. Well, that takes us to the end of the questions that we received. Jason, I don't know whether you'd like to give us the little postage stamp summary of of where we find ourselves as a closing statement for for investors. Thanks, Tom. No. I mean, I I think we've, you know, we've we've we've explained our our story. We yeah. We've obviously had a tricky few years. There's there's no doubt in that. Some of that come down to our own mistakes, down to my mistakes, but some of them down to things like COVID as well. But I think reality is we've taken steps, and we're now in a position where we're really optimistic about the future.

36:43 You know, both sides of our business have got real reasons to be positive, and, you know, we're very excited about the future. Good. Excellent. Okay. Well, thank you, Jason. Thank you, Ian, very much indeed. Could I ask investors not to close this session as you will now be automatically redirected for the opportunity to provide your feedback? If anyone has further questions or would like additional information on DILLISTONE, please do get in contact via DILLISTONE at WALBROUP P R dot com. Many thanks for attending today's presentation. We look forward to updating you again soon. Thank you all for joining us. We we appreciate it. Bye bye.