Facilities By Adf (LSE:ADF) — Interim Results

0:01 Good afternoon, and welcome to the Facilities BY ADF PLC Interim Results Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged, they can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question received during the meeting itself. However, the company can review your questions submitted today and publish responses what is appropriate to do so. Before we begin, I would like to submit the following poll. And I would now like to hand you

0:32 over to Executive Chairman, Russell Down. Good afternoon to you. Good afternoon, and thank you, everyone, for joining us on this call today. What I'd like to do is to talk you through, our results. I'll talk through the sort of first half of the presentation around what we do as a business and the strategy, and then I'll hand over to Neil, our CFO, to talk through, the detail of the numbers. So if I just start with the highlights of the last six months. So revenue increased up to $17,400,000 in the first half this year, which is an increase of 14% compared to where we were this time last year. That is mainly due to the acquisition of AutoTrac that we completed in September last year, and that contributed $3,400,000 to our revenue number in the first half of the year. So underlying revenue fell by 8% in the two core businesses, largely due to market conditions in the first quarter.

1:31 We did see an improvement in the second quarter, we'll talk more about that a little bit later. And as a consequence of that, we saw EBITDA decline slightly from 2,500,000 to 2,200,000, and that was mainly in the core ADF business where EBITDA fell from 2,100,000 down to 1,100,000. But we also saw a slowdown in activity in our location one business, which suffers in the same markets or operates in the same markets that the core ADF business does. And again, I'll come on to that shortly. What we did to mitigate the effect of the market conditions in the first half was to put about 20% of the fleet into temporary storage, and that was about 150 assets in the core ADF business. Right now, because market conditions have improved, we have about 15% of our assets in temporary storage because we have removed some of those assets out of storage, and they are now actively on hire. And what that does is it effectively reduces our maintenance and compliance costs on those assets because they don't have to be ready to go out on hire at a moment's notice.

2:37 As touched on before, the AutoTrac acquisition, which we did in September last year, is integrating well into the group, and their results are pretty much in line with expectations. We have declared an interim dividend of 0.3 p. That is slightly below, the interim dividend for last year, but we would expect the full year dividends to to be in line on the assumption that trading, in the second half is as we expect. So for those of you who don't know me, I took on the executive chairman role, in July, when Miles left the business. So I was chairman, Guanjina as nonexecutive chairman in February. And we've seen some other board changes as well. So James Long, who was the COO for the CAD services, the core business, has now been appointed group COO on the September 1. He now is on the board.

3:26 And Miles, who was the previous COO, left at the end of July. And Neil, who is presenting with me, will be leaving at the end of October. So overall, from a business perspective, we have a very strong market condition. We have a high quality and well maintained fleet. And we have an excellent NPS score and customer service proposition. So that positions the group very well, for future growth as we move forwards. So what I'd like to do now is move on a little bit to an overview of what we do as a business and the strategy as we move forwards. So in terms of ADF as a company, we are the leading provider of services to The UK film and play in television industry.

4:12 We have a production fleet of over 800 vehicles. And if you look at that, about 300 of those are lorries, tractor units that will move trailers around. But we also have artist trailers, mobile production offices, makeup offices, and about 200 artist trailers and about 200 of the other types of trailers that we operate within the core business. The headquarters of the business is in South Wales near Bridgend, but our main operational site is in Longcross in Surrey with other bases, around The UK, and I'll come on to the detail of that on the next few slides. You What can see on the right hand side is a few photos of what we do. So the ADF business, the top, vehicle there is a vehicle with a generator, hybrid generator on that location one.

4:57 The second picture down, they provide, similar services in terms of power generation, but also tower lights, houses, also to service the film industry. And then lastly, at the bottom, AutoTrac, they provide Trackway for effectively film companies to operate in remote locations, but they also service other industries as well. And if I focus on each one of those businesses in turn, what I'll do is just talk you through where we are with each of the businesses. So the core business, the core ADF business, which is where we operate the artist trailers, that actually operates under a trading name of CAD Services. And we work with many of the world's largest film companies. So you can see there a number of the productions that we have worked on in the period, things like Slow Horses, The Gentlemen, Rivals.

5:48 And during the period, we've worked on 48 productions. And based on the number of productions, our market share in the first half has increased to about 32%. We have a very modern hire fleet. As I said before, that's made up of vehicles and trailers. They are very well maintained. We have our own in house maintenance team based in Bridgend that refurbish those trailers and keep them in top quality in the top right hand corner there. You can see one of our artist trailers that will be used on, remote production for some of our customers. I touched before on the the higher fleet that we put into temporary storage. So a number of vehicles are sawn, so they're they're off the road. Each vehicle generally requires a a twelve weekly maintenance check, brake tests, things like that.

6:38 By putting those assets into storage, that means that we can save on those costs over the course of a year. And as I touched on before, about 15% of those assets are now in storage. We have taken some of those assets out of storage as market conditions have improved. But the reality is we still probably have excess assets, so we are looking to dispose of some of the remaining 15%. Some of it has a limited market. So ARTIS trailers in The UK, we have a couple of major competitors. We wouldn't be looking to dispose of those trailers to them. So we're looking at actions to dispose of those outside of The UK where we can. But things like tractor units, lorries, honey wagons or toilets, those could have a different market in The UK. So we are actively looking to dispose of those and realize the cash prior to year end.

7:32 So as a result of putting those assets into storage, utilization rates have increased. So q one was 34%. Q two was 47%. And then as we said, the market conditions have improved as well. So at the end of August, utilization rates are 73%, excluding those stored assets. And that, in reality, is probably about as high as we would expect to see that go. We do need some flexibility in the asset base, so that we can react to customer demand as it comes in. And as I touched on just now, market share in the first half, around 32% with a couple of, major competitors operating in our market space. So if look at location one, location one provides a broad range of services, similar services, but a little bit more, generic, should we say. So things like air conditioning units, power generation, eating, toilets, storage, and also water and fuel bowsers, as well as smaller items such as table chairs and fencing.

8:41 They operate around The UK, so their head office is actually embarking in East London, and they have branches from Glasgow, Newcastle, Manchester. I'm not going to read them all out. One there on the end there, Chobham, is very close to ADF's key operational base in Longcross. So we are moving their Chobham operations into our Longcross depot, and that will be completed by the end of December. That will give us some some synergies and also mean that we're working much closer together with people sat on the same physical location. There are other things that we're looking to do as well with location one. So they have a ground protection business. It's around 9% of of their business.

9:27 But as you will have heard me say just now, we also have AutoTrac, which is our own ground protection business. So from the beginning of October, AutoTrac will be managing location one's ground protection business so that that's all managed under one space as well. In terms of customer relationships, we have a number of sales teams in the different operations. We are looking to leverage those. There's much more communication going on between those teams now. And whilst the end customer might not be the same person on the same production, we are looking to to gain some intelligence and grow our revenue as a result of that, just realizing both revenue and cost synergies. If I move on to AutoTrac, that was acquired, in September last year, maximum consideration of £21,000,000.

10:18 There is a 4,000,000 deferred consideration payment on that and a 4,000,000 earn out. We would expect, the deferred consideration to be paid, up to probably not the maximum amount, but we would expect to see some of that being paid. The earnout is a little bit more challenging. But, clearly, we would hope that, activity levels improve such that, we do pay that money out. Again, working on major film and high end television productions, and customer contracts being leveraged across the group. In terms of their market share in the the film and TV industry, they've probably got 60 to 70 market share, 70% market share in that space. But they also operate in festivals, events, and the construction sector where they have a lower market share. So we are looking at opportunities to grow, albeit the the rates in those sectors are lower than what we achieve in the the film space.

11:16 And you can see on the bottom there around 19,000 aluminum and plastic panels basically go on the ground and enable heavy vehicles to to run across that. We have seen some challenges in the first half of this year, particularly as we haven't really seen the weather. So the ground conditions have been pretty hard, and we've had customers cancel some work at relatively short notice as they realize they don't need the ground protection. But we're coming into the the weather conditions now where, there's much more demand for for that equipment. So if I just move on to strategy, just wanted to sort of pull this down into three different sectors. So firstly, organic growth. In terms of CapEx, in the first half, the only CapEx that we've done really is in the auto track business.

12:04 It's relatively high return on capital assets. It's, an aluminum panel that goes on the ground. It'll last ten, fifteen years and gives us a very good return on capital.

12:14 So so that's been the priority. We spent about £2,000,000 on 2,000 panels in that business in the first half, but also looking at new complementary services and then, obviously, maintenance CapEx to keep the equipment in tip top shape ready for our customers. When I talk about complementary services, in LocationOne, one of the things that we are expanding in is doing TV commercials, music videos. So that's now around 10% of revenue in the LocationOne business. But in the the CAD services business, what you can see on the next bullet there is we're trialing a storage offering where effectively props on the film can be stored between either one series and the next or the first film versus the second one in that series. That's, again, pretty good return on capital. We'll see a twelve month payback on that initial investment.

13:04 And then on efficiency, the next couple of slides show some more details. So there's greater clarity now on the financial KPIs in the business, both within the core business and looking to gain that insight across the wider business for all three companies. So I'll show you on the next slide order book utilization and return on capital for the business. We are continuing to gain efficiency savings from integrating in the LocationOne and Autotrack business, whether that's in terms of sales on the front end or some of the back end office activities that we will perform. We've touched on capacity and looking at asset disposal. So out of the 15% of assets that are in storage, we're looking to dispose of some of those actively right now. And similarly, in terms of cost saving opportunities, I think the business is run pretty lean.

13:56 But when we look at integration, there are some more opportunities that I think we can gain from that area. And then finally, in terms of systems, we don't have standard operating systems across the three different businesses. So looking to standardize that and eliminate spreadsheet reporting, where we can across the group. And then finally, in terms of strategy acquisitions, so we do still want to grow the business through acquisition, but we'll do the first elements of those strategy piece first, both in terms of organic growth and getting efficiency out of the core business. So looking at our KPIs, the the top half of the slide here, you can see, is our order book, and the bottom half looks at utilization, as against the the group sales number that you see on the green bars on the right hand side.

14:48 So in terms of our order book, our order book at the end of August is £14,000,000, and that is projects that we have signed up, are committed, and we will deliver at some point in the future. We're expecting 10,600,000 of that order book to come through in the current financial year and the rest to come through next year. And what you'll see on that slide as well is the weighted pipeline. So those are projects that we bid. We would expect to win a number of those. That has a weighting of 2,200,000, so roughly 44% out of that weighted pipeline we would expect to deliver. And if you add the revenue for the end of August to the order book to the weighted pipeline, currently, at the end of August, we have more than 90% of our expected revenue, in the bank. That's not to say that, clearly, some of the order book might slip into next year, or equally, we've got four months in which to win and execute more work in the current year. So right now, we're we're pretty comfortable with with where that looks.

15:50 And part of that, you will see on the graph underneath. So the green bars on the bars sorry, on the graph underneath, what you'll see there is our revenue for the group and the first quarter. So the first three bars there, relatively weak, increasing into April, May, June, and then subsequently into July and August. And we would expect the activity levels in August and sorry, in September and October to continue at, a similar level to where we were in August. So the market conditions have definitely improved. We haven't necessarily seen pricing power change significantly at the moment, so we are still discounting off of our standard rates. However, right now, within the industry, what will happen when the industry gets busy is we may hire one of our trailers to one of the competition, and we may need one of theirs back. That's we're now starting to see that happen, which is the first time that's happened in the industry in probably the last three or four years. So it does indicate that things are improving, and that's what we're very much seeing day to day.

16:55 In terms of utilization, I've talked through the numbers already, but what you can see there on the graph is that increase in utilization on the red line to 73% at the end of August, excluding those stored assets. Again, we would expect to see that continue over the next few months, albeit when we get to November and December, that will drop off as the industry slows down through the Christmas period. What I should say is those utilization numbers are for the CAD services business. We do have utilization numbers for the other businesses. They're not in a standard format. And right now, the utilization numbers that you see on the page are based on numbers of assets rather than network value. So one of the reporting enhancements that we want to put in place is effectively looking at utilization by network value, by category, across the whole group. So we can see it for ground protection or tower lights or artist trailers.

17:52 So that's something that we're working on. And, hopefully, we'll be able to come back with that shortly. So moving on to another couple of KPIs. What you can see there, on the top half of that, chart is the headcount. So current headcount, 321 people. You can see the split there between the different businesses with the auto track coming in in September last year. And that headcount is the lowest that it's been, for the last couple of years. So that indicates the business being managed relatively tightly through this period. I think the key one, for us on the bottom left hand side there is the net promoter score. So net promoter score of 88 is a very, very strong net promoter score. That's increased from where we were this time last year.

18:38 We do have account management teams that operate across the business, and their role is to make sure that the customer is serviced at all hours of the day. So we operate twenty four seven. A lot of the artist trailers are moving around in the middle of the night, and our teams are on call to make sure that any glitches are sorted out, very,

18:56 very promptly. And on the right hand side of this slide at the bottom, you can see return on caps employed. So this is a particular area that I would like to focus on. You can see for the full year last year, return on cats employed was 3.4%. If you look at it on a rolling twelve months, we're at 3.6% up to the end of August, but we would expect that to improve given where we are in terms of market activity in the second six months of this year. Very little CapEx we expect to come through in the next six months, and we're also looking actively at asset disposals. And in terms of the cost base, it is relatively fixed. So as revenue increases, profitability increases by a significantly higher percentage. And then lastly, from me, just in terms of where we are in our markets, the market challenges are easing, and The UK still is getting substantial investment.

19:53 What we have seen though is film spend in The UK pretty static, with spend on high end TV increasing. What that has meant is some of our competitors have moved more into the high end TV space, and that's meant that that space is more competitive. But we still see the market being pretty strong. Government support is remaining, both with corporation tax and business rate relief for the industry. So that's a wrap up for me in terms of where we are, on the strategy and the highlights. What I'll do now is just hand over to Neil to talk through, some of the numbers. Yeah. Half year in review. Well, Russell's already covered some of this, so I'll just pick on a few other points perhaps.

20:39 Firstly, our group net debt actually reduced by 600,000 of h 1 from 13,800,000,000 at the end of December to 13,200,000,000 at the end of h one. And the net debt is made up of predominantly high purchase agreements that we've taken out to fund CapEx, and that's produced from 16,100,000 to 14,500,000. And cash balances, net debt, has reduced from 2,300,000 to 1,300,000. CapEx, which totaled 4,200,000 in h one, was made up of two main elements. Firstly, spent 2,300,000 to purchase 2,000 additional aluminum panels for Autotrack plus some vehicles for them to move panels around.

21:28 And the other large component was a 1,400,000 capitalized property lease for additional space that we've taken after Longcross. Operationally, we worked on 48 productions in CAD, which was actually 25% more than we worked on in h one last year. But the average revenue per production has actually reduced from 305,000 sorry. Our TV's come back on. From £305,000, h one last £225,000 because we worked on a kind of a higher number of smaller productions in the period. It's just a function of the of what we worked on and not really, you know, indicative of anything else.

22:20 And as as Russell mentioned, the utilization rates were improving from a fairly low base at the start of the year, q one, up to 34% up to q two, moved up to 47%, and then as I've averaged around the low centis over the last couple of months. Page 15 then. So p and l. Yes. Group revenues increased to 17,100,000 in h one, which included the first full period with all to track onboard. Their sales were 3,500,000 for h one. However, the sales in in the core business, CAD services, were down 6% at 10,800,000, and location 1 was also down by fourteen percent three point one million, unless we know with the program delays that we experienced and and very competitive markets.

23:09 We also had to absorb additional payroll related costs in h one with the increase in national insurance suppliers' national insurance in April, which went from 13.8% to 15%, and national living wage, which increased again, as it has for the last couple of years quite significantly by 7% in April. We've also got a second pay review in October for the staff that were not impacted by the National Laboratories earlier in the year.

23:39 And infrastructures in the PLC made up of three components, high interest interest, which was £500,000 in h one, IFRS lease interest, 200,000, and 300,000 actually relates to the acquisition of AutoTrac. And on the bottom of the p and l, we tax credit for the half was 864,000. That's just purely deferred deferred tax adjustments. So the overall loss for h one after tax was 1,100,000. Let's go to the balance sheet. So CapEx, we have touched upon. So in in the balance sheet, the long term leases is, again, split up those those two components. There's the high purchase agreements, and that's made up with predominantly two finance parties. One is PACCAR, which is the in house finance company for DAF vehicles for the vehicles we bought with them for the last couple of years.

24:39 So 8,000,000 of the of the balances with them, and 6,500,000 is with HSBC for other trailers. The other part of them, the long term leases, IFRS leases, which I've shown, as I mentioned, is predominantly property leases with low cost our operational base. They're making up most of this. And tangible assets in balance sheet are are just the goodwill balances for the purchase of location one on an auto track. The contingent consideration is just the deferred consideration in the for acquisition auto track last year. Trade and other payables looks higher than usual, but it includes 2,100,000 cost for the additional panels in auto track that was settled shortly after the the period end.

25:29 That's the balance sheet. Then to the cash flow. So the same shows we generated a positive cash flow of 4,800,000 from operations across H 1, but that included a positive movement in working capital of 2.7, which, again, was just down to the timing of the auto track CapEx, which was sitting in in payables at the end of h one. Repayments on high purchase leases, again, significant elements in the cash flow was 2,700,000, and IFRS lease were 9,700,000, which is the 3,400,000 total lease payments further down. We're in discussion mode with our bank HSBC to see what options there are to refinance the individual high purchase agreements into a single facility to hopefully reduce our interest charges and also improve our cash flow.

26:26 And many of the agreements are actually due to expire in 2027, unless repayments were significantly reduced from that time. Finally, it was capital allocation. So we've introduced a kind of more formal capital allocation policy, and how we, you know, plan to use our resources and sort of in the order priority. Firstly, organic growth. So CapEx for, you know, equipment support, the growth, you know, focusing on new markets and and activities with higher margins, hopefully. Secondly, returns to shareholders. So, again, paying dividends to our shareholders. Thirdly, you know, acquisitions, you know, as when the time is right for appropriate opportunities.

27:18 And finally, excess capital, you know, our aim is just maintain leverage in the region of sort of one to one and a half. It's currently a bit higher than that. At the end of h one, I think it was 1.9, but we're forecasting it to be sort of down to 1.2 by the end of this year. Just from my perspective, just wrapping up with the the outlook. So, you know, we do have a a strong market position. We have a very good fleet, and you saw the the Net Promoter Score. Our customer service proposition is excellent, and we are very well regarded in the industry. So we would expect, future growth to come as a result of all of that. First six months has been challenging, particularly in CAD services and location one. You've seen, the group revenue numbers picked up, as we got into May, June and are continuing for, into July, August, and we would expect that to carry on into September and October.

28:15 And that applies to both the the CAD services and Location one businesses. So we are seeing market improvements. We're not seeing any signs of tightening on pricing yet, but we'd expect that to to come in due course. In terms of the market dynamics, you know, there are budget pressures in the market. We are seeing production spend have a greater focus, and there are rising costs within the industry. But momentum is building through q two and into h two. And overall, we're seeing, you know, more stable pattern within the industry. Still global growth in the market, and UK film and high end TV is getting its share of investment, and we would expect to see that continue to grow. And we are well positioned to capitalize on those underlying drivers.

29:04 So our focus, I've been through the strategy. Let's have a look at organic growth. Let's have a look at efficiency. And in due course, we'll have a look at acquisitions. But right now, we're pretty comfortable with where we are. Whilst there is some uncertainty in industry, we do expect to hit, current market expectations for the year. So that's it in terms of the formal presentation. I won't go through the appendices. There's a few pictures of people on the board and some credits there, but I'll just hand back now to presenter if I may. That's great, Russell and Neil. Thank you very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions using the q and a tab situated on the top right corner of your screen. While the company take a few moments to read those questions submitted today, I would 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.

29:58 I'm Russell Neil. As you can see, we have received a number of questions throughout today's presentation. If I may now hand back to you and kindly ask you to read out the questions where appropriate to do so, and I'll pick up from you both at the end. Thank you. Thank you very much. So we've got a few questions here. If I start with what rate of capacity utilization are you targeting during h two and over the medium term? So at the end of August, utilization is 73%. As I've touched on before, that's probably about as high as we would expect it to go. We have the ability at the moment to move stuff in and out of storage. But if we're into the 70%, that would be, a good result for us. I don't expect it to be there for the whole year, so somewhere between sixty and seventy would be a target utilization that we would like to see.

30:49 There's a sort of follow on question, which is do you plan to dispose of any of the equipment currently in storage? You know, we have 15% of assets in storage, which is about a 100, just over a 100 assets at the moment. We are looking to dispose of particular types of assets, so vehicles. So we've got some lorries. We've got some tractor units. We also have some toilets. Those have a a sort of more active market in The UK that we wouldn't have to sell those to the competition. So those, we are actively looking to dispose of between now and the end of the year, and I wouldn't expect those to be on the balance sheet at the December 31, where we've got trailers, artist trailers, makeup trailers, production offices, costume trailers. Those have a more limited market because, as I said, we wouldn't necessarily want to dispose of those to our competition in The UK, but they are up for disposal should the right opportunity arrive in an overseas market. So yes is the answer to the question. We would be looking to dispose of some of that. We would still have a buffer. So out of the just over a 100 assets that are in storage, if we were to be able to get rid of 50 or 60 of those, I would be reasonably comfortable because that still gives us the ability to manage utilization as we move forward.

32:03 In terms of production lead times, shortening how we're adapting the operational model to respond quickly, we do have a fixed cost base, within a company. So roughly 57% of our costs are people costs. We then have about 17% of our costs are are vehicle costs. We've talked about some of those vehicles are in storage, and we would look to dispose of those. And we're also looking to integrate the businesses closer together to get some efficiencies out of them. So and if we can operate, you know, as one fleet of vehicles, one team of people, then I think that enables us to operate quicker and more efficiently across the business. What level of recovery are we seeing in the location one business given the heightened competition and pressure on rates?

32:52 Location one has about a 40% market share in the areas in which it operates. What it does have, though, is a slightly lower barrier to entry in terms of the equipment it provides than than you will see in the CAD services businesses where, you know, a trailer is a significant investment. And if you need to operate in that sector, you need more than one trailer, clearly. But to operate on a particular production with a couple of tower lights and a generator doesn't require significant capital investment. So we have seen some smaller businesses set up. But at this point in time, we believe our market share is still in that 40% area, and we have seen that business pick up in the last few months similar to what we've seen in the, CAD services business.

33:37 Rates, you know, really similar to where we are in CAD services in terms of pressure. Not easing at the moment, but I would expect to see that change when we get into next year. One of the things we are looking at doing is looking at our headline rates, so our list rates, and potentially increasing those, which may not result in anything in the short term. But if we've got those rates in the market, then over time, we would expect to migrate towards those. In terms of competition, could we say more about the competition? In the CAD services business, where we have a 32% market share, you've got two main competitors. One is Translux, one is Movie Makers. They're both privately owned businesses.

34:23 So it's quite difficult to get too much information on their their financials. Moviemakers has a similar number of trailers to to what we operate, but they are private businesses, so it's it's quite difficult to to ascertain financial performance. What generally happens in the industry is they will have particular customers that they deal with, and we will have particular customers that that we deal with. Clearly, the challenge is to increase our market share by taking some of their customers through either better rates or better service preferably. Do we envisage having to replace any part of the trailer fleet soon? The short answer is no. At this point, we have a very well maintained fleet. We have our own refurbishment center in Bridgend, so those trailers are maintained to a very high standard.

35:13 And over the the next couple of years, I wouldn't expect to see significant CapEx on trailers. One of the things that we are doing is to get a new executive trailer, so an ESAT trailer, which is for the the high end movies where the the movie star will stay in that trailer. So we have one of those arriving in the fourth quarter of this year. We'll evaluate, the performance of that trailer and the the market for that trailer to to see whether we need to, procure any more of those. But at this stage, in terms of the the main CapEx and the main fleet, I don't envisage, any significant CapEx coming from that. And do we have any acquisition plans, or are we focusing on organic initiatives?

35:59 I think if you look down the slide that Neil showed in terms of capital allocation, Right now, it's around organic growth, focusing on CapEx within the core business, obviously maintaining a progressive dividend policy, and then looking at acquisitions once we've completed the above. So it's not, off the agenda, but it's not, item number one on the agenda right now. That's great, Russell. If I may just jump back in there, thank you for addressing all those questions for investors today. And, of course, the company can review your questions submitted today. I will publish those responses on the investment company platform. But, Russell, before I redirect investors to provide you with their feedback, which I know is particularly important to the company, could I please just ask you for a few closing comments? Yeah. Just thank you, everyone, for your time in in joining the call today.

36:48 It has been a challenging first six months and particularly the first quarter. But where we are today, I think we have a very strong market position. We've got a very strong customer service proposition. We have a strong balance sheet. We're cash generative. So we're optimistic for the future given that market conditions are improving. And thanks for your time once again. Fantastic. Russell and Neil, thank you once again for updating investors today. Could I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback in order the board can better understand your views and expectations? This will only take a few moments to complete and I'm sure will be greatly valued by the company. On behalf of the management team of facilities by ADF PLC, we would like to thank you for attending today's presentation, and good afternoon to you all.