Fintel (LSE:FNTL) — Half Year Results

0:01 Good afternoon, and welcome to the FINTEL PLC half year results investor presentation. Throughout this quarter presentation, investors will be in listen only mode. Questions are encouraged and can be submitted 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 received in the meeting itself. However, the company can review all the questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to note the following poll. I'd now like to hand you over to CEO, Matt Timmons. Good afternoon, sir.

0:31 Good afternoon, and good afternoon to everyone watching. Thank you for, taking the time today to come and view the FINTEL half year results presentation. My name is Matt Timmons. I'm the joint CEO of FINTEL, and I'm joined by my colleague, David Thompson, who's the CFO of FINTEL. We're gonna cover a number of slides today, 18 slides. The rest is available for you to download later, and all the slides are in the appendix there from the attached presentation. David and I will take about forty minutes to run through the presentation, which will give you plenty of time for q and a after, so please submit your your questions in the usual way. So first of all, for those of you who are less familiar with FINTEL, we work in the wonderful world of retail financial services, and we believe that this market works incredibly well for consumers.

1:23 Consumers have access to thousands of different financial products, and these products are created and run by, large scale financial businesses, are well capitalized and well run. And consumers have access to those products at a price which is commensurate with the competitive nature of the market that we all operate in. The difficulty for consumers in many cases is how to choose the right product, which is the product that is most appropriate or most suitable for their needs. And around 80% of all investment decisions and 80% of all mortgages end up in the hands of a consumer by an intermediary of some description. In the main, those intermediaries are financial advisers, mortgage brokers, wealth managers, aggregators, etcetera, etcetera.

2:14 So the market works well for consumers, access to all these products from well capitalized manufacturers at a price and value, which is really, really good for consumers. The difficulty is for everyone else operating in the market, it's quite a challenging market to work in. So the market is heavily regulated. It's highly fragmented. There's a lack of quality data across the market, and lots of intermediary businesses use numerous fintech solutions to give advice to clients. So no real sort of standardized flow of of data and technology, UI and UX, etcetera. However, all common all participates all participants in the market rather have a common and binding need for compliance and regulatory support for, data and technology, and for product comparison and information.

3:07 And we work right at the center of this market, helping all the participants to do a good job for their clients. And we serve three primary customer sets. We serve product manufacturers, financial intermediaries, and end consumers. And rather than focus on all the individual products and services we offer, at this stage, I think it's probably best to focus on the the outcomes that we're looking to deliver. So for intermediaries, our role is to help these intermediaries to do the best job they can for clients and to service those clients as effectively as possible. And we do that in two main ways. So first of all, we provide compliance and regulatory support to financial intermediaries. We've been doing this since 2002, and we run two great support service companies for intermediaries, and they pay a monthly subscription for compliance and regulatory support.

4:04 In addition to that, we offer top up and additional products that they can purchase on an ad hoc basis. But in the main, it's compliance and regulatory support delivered for a monthly subscription across our support service businesses. In addition to that then, we provide intermediaries with technology, And the primary technology solution we provide is a technology solution, which is which helps intermediaries with workflow and financial planning, and that's the de facto engaged product. That product is used by over 8,000 intermediaries, and around £50,000,000,000 worth of investment decisions are made via that technology system on an annual basis.

4:50 So intermediaries use the technology to be able to give compliant advice to their customers. And when they use that technology, they input information and data on the client's demographics. They do attitude to risk, asset allocation, fund selection, tax wrapper selection, and then ultimately end up with a a set of solutions for their clients. We then take that data, and we look through that data in an aggregated and non personalized basis to understand and gather insights on what's happening in the market. What are the key trends? What are advisers recommending and why they're recommending those products and solutions? And what are consumers demanding? And what are the filters and sorts that advisers are applying to the advice journey when recommending products to clients.

5:41 We then take that information and those insights, and we help product providers and manufacturers to build out the products of the future. So we help them understand what the market is demanding, what clients are looking for, and we help them understand if they're not winning business, whereabouts they're losing business, where in that advice journey are they being deselected as part of the process. We also have then helped the product manufacturers to get in front of those intermediaries through a combination of digital and face to face marketing services where large product manufacturers can, through subscription to our distribution as a service product, ensure that they're getting product information in front of those key intermediaries.

6:29 For consumers, we help consumers make smarter financial decisions. And the primary way in which we do that is by researching and rating over 43,000 financial products in The UK, looking at the underlying componentry of those products, and applying a de facto star rating to the products based on the quality of them. And then consumers can access those star ratings either via de facto or through the many different aggregator and price comparison websites that they use to make decisions on things like general insurance products and basic saving savings products. So the de facto business that we have researches and rates 43,000 financial products. It applies a star rating, which help consumers make smarter financial decisions.

7:19 A big addition to the business over the course of the last eighteen months has been the acquisitions that we've made, and they are part of a to be able to provide intermediary businesses with all the technology they need to give advice to clients. So whether you're running a small intermediary business of three or four advisers or a large scale intermediary business with hundreds of advisers, the processes, the systems, the workflow that you need to go through are largely the same. You need to store client information in a recognized CRM of some description. You need to comply with the FCA rules on consumer duty. You need to be able to demonstrate ongoing learning and development to the regulator through logging hours of CPD.

8:09 You need to be able to give your clients access to their investments via a portal of some description or a website, and then you need to go through a financial planning journey with the client using financial planning software, looking at pension switching software, assessing, in some cases, tax advantage products, and then being able to trade those products via a platform with some description. And most intermediaries, in order to complete this jigsaw for their clients, use on average nine individual pieces of software. We think that that's wholly inefficient, and the intermediaries aren't benefiting from what should be an obvious data and workflow amongst all of those systems. So our strategy has been to acquire the market leading businesses in those fields and to bring them together via two way API integrations, sharing data, eliminating the need for rekeying, and creating clear efficiencies in the advice journey.

9:11 So that's been the the sort of main thrust of the acquisition journey that we've been on over the last eighteen months or so, buying what we consider to be the best individual component parts of that jigsaw in the market, and then knitting them together by a two way API integrations. The advantage we believe in this strategy is that the businesses we've acquired will continue to win business in the way they did before we acquired them, winning client by client, adviser by adviser, and carrying on running their business in a profitable way they have before. But over on top of that, the the sort of sum of the parts, if you like, should mean that we are able to go out to large scale intermediaries to begin with and to sell essentially a connected platform or a one stop shop in terms of giving advice to clients. So we believe the next part of the journey of our business is in large scale enterprise sales to large intermediary businesses, creating efficiency and sharing data at the center of those businesses on what's happening underneath.

10:19 So that's a key part of the strategy of the business and a key part of the growth driver in which we believe will come through over the course of the next couple of years. Another growth driver in the business has been the acquisition of three sixty. We acquired three sixty only a few months ago now with but we've been tracking that business for over fifteen years. It's a great business run by a real quality management team. Three sixty support around 900 advisory businesses with over 10,000 clients. They've been a competitor to our support service business, Simply Biz, for the last fifteen years or more, and both businesses work incredibly well together. We've got different client banks, and the three sixty business provides quality compliance and regulatory support to its customers and has done for a long period of time.

11:14 The opportunity for growth here is to allow the three sixty membership access to some of the additional services and benefits that simply biz members have enjoyed for a long period of time. In doing so, we believe that we can create additional value across three sixty and across FINTEL as a whole.

11:35 Finally, the third area of significant growth for our business is in the development of a product we have called Matrix. Matrix is a product that was created by the factor, and that product has been live in the market for over a decade. We have hundreds of customers using the Matrix product. And, essentially, the way that product works is if you're a general insurance provider, your product teams will access Matrix in order to understand how your product stacks up against the competition. So it's a database of products that is offered out to manufacturers on a monthly subscription basis containing all 43,000 financial products that we research and rate so product providers can compare their products against those of their competition.

12:27 They can look where they're winning in the market, and they can look at areas in which they're lagging the competition. Currently, that product matrix generates around 2,000,000 a year in revenues from the general insurance market and 1,160,000 in revenue from the asset management market. And the the product itself contains product information. What we're looking to do with Matrix is to extend that out to provide a number of different datasets, firstly to the GI market and then in addition to banking and asset management. And the kind of datasets that we're adding into the product will be pricing data, macroeconomic data, weather data, claims history data, all of the datasets that these providers are accessing from other people in, again, disconnected software.

13:19 Our aim is to bring them into Matrix into Matrix three sixty and to offer that out as an enhanced service to our existing customers and to hopefully some new customers as well. So we intend to increase the revenue significantly from the sale of Matrix three sixty products to our existing and to grow that even further through the sale to new customers. We expect over time to continue to develop out this product and for the revenue line that you see there at 3,160,000 to increase significantly to double or treble over time. In terms of the highlights for the half year 2024, we grew the business by 13% in terms of core revenue growth at a EBITDA margin of 30.

14:12 We increased the dividend for the half year by 9%, invested 2,000,000 organically into the growth of Matrix, completed four acquisitions as well as an investment, and developed four important new partnerships. We were voted fourteenth best service company to best financial service company to work for up from 22 in 2023. The revenue that we generate comes in in terms of very high quality. 65% is SaaS and subscriptions, and the balance of that is repeating revenue from the same customers for the same type of product, which repeats annually each each year. So the vast majority of revenue within the business is recurring or repeating.

14:59 We delivered strong underlying operating cash conversion at a 101%, and David will go into how that breaks down in a couple of minutes' time. And all of this was underpinned by strong market dynamics. As the regulator increases the level of regulation on intermediary firms and brings in new initiatives like consumer duty, It encourages those intermediaries to outsource clients and regulatory support to businesses like ours. So we believe that regulation rather than being a hindrance to our business is actually a real tailwind that creates demand for our products and services. So in summary for me, for the first half of the year, we delivered a strong financial performance. We invested heavily into the business, completing four deals in 2024 in the first half of the year to match the four that we completed in 2023.

15:53 So in the last eighteen months, we've completed eight transactions plus two minority investments into really strong technology businesses. We've significantly enhanced the proposition, allowing us now to provide all services out to intermediary firms in the form of one connected platform, and we've also increased the proposition enhancement of Matrix to Matrix three sixty. We believe that we're operating in an attractive market landscape, which has got some really strong tailwinds and that those are set to continue into the future. So summary is a good financial performance in the first half of the year, really strong strategic acquisitions that embed the services that we offer to our intermediaries and give us the opportunity to go out and enterprise sell to large intermediary businesses.

16:47 With that, I'll hand over to David who will take you through the financials for the first half of the year. Thank you, David. Thanks, Matt, and afternoon, everyone. So as you've just heard, we've been on a real period of strategic execution, and we've acquired eight businesses and invested in two others to build what is essentially all parts of our vertically integrated supply chain. So we stand here with essentially nine sub businesses for our business, and each of which will get their own underlying KPIs and and we're we're all of our driving financial performance across each of those. But for investors, a snapshot, we we like to boil the business down into three key areas that we focus on. And that's core revenue growth, and you can see they're up 13%.

17:42 But equally, you you've got to grow profitably. So the the next one is EBITDA growth, and that's been up 5%. And, again, that's at that 40% EBITDA margin that that Max spoke spoke about. And and equally importantly, we've got to do it. It's got to be sustainable long term because that's a key characteristic of the business. And you you see, again, two thirds of that revenue comes from either SaaS or subscription model, and that's basically we we collect that bimonthly data data. So, again, we grew that 1,200,000 to £20,000,000 for the first half of the year, and that's just under two thirds of the business overall. So we've got great visibility of our of our revenues. So, you know, sometimes, it's helpful to just distill that all down into what the three key value drivers of our performance is with with the number of parts underneath it.

18:39 And just to to see how that breaks out a bit more detail, we break down the revenue growth between organic and inorganic, and you can see the relative split there, but then that overall revenue growth. So I spent about the time on this. So this is a a a revenue stack slide that we present. And, again, it just highlights the relative weighting of the quality of our revenue. So if you just look to that right hand side stat, you can see the the bottom green section. That's the foundation layer of the business, and that's the 20,000,000 or 65% of revenues that are recurring from my SaaS subscriptions. You can see the the the growth in the track record there. That middle section, the 11 point 2,000,000.

19:25 So whereas that's not SaaS subscription based, it's it's transactional

19:31 as highly repeated, and I'll give you a couple of examples of what the bulk of that is. So we we have our mortgage club. So, basically, we act for as as for buying power for, you know, thousands of mortgage advisers, and we will go and speak to different high street lenders and get and and negotiate better deals for them. So we we

19:56 we get 25,000,000,000 of lending from that panel of our businesses, the mortgage advisers that we support, and we take that buying power to the high street lenders and and drive additional value, which ultimately gets passed through 10 consumers, and we take a small percentage, one or two basis point of the of the the mortgage procuration fees that are written. So that's transactional in nature, or you only get paid once a a mortgage is written and someone gets the keys to the house, of course, we can. But as part of our membership base, it's really sticky. And so they tend to not not go anywhere, and why wouldn't you be part of that lending panel when you get a, yeah, better deal for your end consumer, quite frankly. And the other part of this, the the fact to insurance ratings business.

20:45 That's about 5,000,000 of revenue a year, and that comes from, you know, you know, I'm sure you've all bought an insurance product, and you've seen that it's the fact to a full star or a five star rated. And those are the an an annual vintages that we have. So you can, you know, you can't connect to the years off of ratings revenue and and do it on a subscription basis because every year, the the the criteria get refreshed, and every year, you have to apply your product to to have the particular de facto meeting. And once once that's in your marketing DNA, you tend to come back every year for it, and then you've got, you know, significant customer training in that in that product. So it's important to know that it's not an opinion based rating. It's not five stars because we think it's a good product or the good good service or claims history or whatever.

21:37 It's a set of criteria that we publish in advance, and it's up to the insurers to build a product that meets that five star rating. So, again, that's another example of how we've got some influence over building the best insurance products for for end consumers. And so it's factual as to whether it's a five star rating or not. There's no opinion based on that, which is why it it's it's so valuable. So that that's how our our revenue stacks up. So, you know, those two thirds of it SaaS subscription based, really almost all of that has a has a great deal of of visibility and and is repeating in nature.

22:15 How that breaks down into the three segments, so working with today. So intermediary services, if you just have in your mind's eye, that's three and a half thousand IFE forms that that appears on a a monthly membership. And and, again, that's really, really sticky. Revenues, the ten years, you know, seven years plus for the for the average member there. And and that, in and of itself, is a great business, but what it does is it's highly attractive to those businesses that generate revenue in the middle column, the distribution channels. So in the distribution channels, we've got three main but every revenue types, essentially. The first one is the share of the mortgage procreation fees driven from those three and a half thousand members as part of the the lending panel.

23:01 The other part of it is the protection income that we get. So if someone takes a mortgage, for example, we're highly likely to take a life insurance product to go with it and and and, you know, to mitigate the risk against the the mortgage not being paid. And, again, similarly, we get we get an override on on the commission of that policy being written. And, thirdly, we've got a marketing and advertising revenue stream because all the product manufacturers, we get them a much better ROI on the marketing spend because we're able to distill which of those three and a half thousand members will be the best target audience for them and get a forum for them to present to that audience. You know, you pick a Viva, for example, a Viva someone from a Viva doesn't have to travel in the country visiting separate funds.

23:50 You can get a hundred day fees on a Zoom call, a Teams call, then a hotel conference center or or or what have you, and and we we got a revenue stream from from the product manufacturers for space on stage if you want to call on that. And then on the right, we've got fintech and research. That's essentially the de facto business, and that's that's got a a couple of different value revenue streams, one of which is the de facto Engage software product, and that's you know, as as an accountant, I use Excel every day, and as an IFE, you would use the fact to engage every day. That's one of the tools of your trade, and that's the it takes journey software to, you know, meeting and greeting a a new prospective client all the way through to capturing the the risk appetite and the age and the cash needs and when and the money and when they can accumulate and then the the the accumulation phase starts, etcetera.

24:46 So that's the full life cycle of the investment journey in that software revenue, and then you've got the ratings revenue as well. So again, you can see growth across the board. The margin is slightly diluted, but as we say, diluted from 54% to 52%, and that's because of the integration of some of the acquired businesses that were, you know, a breakeven point, and and we would expect that to keep back up to being, you know, 54% plus over time. So from a from a p and l perspective, you can see growth across all the key metrics, but I think it's important to contextualize that that growth as to where we are today. So, basically, we present to you having invested £36,000,000 on a vertically integrated supply chain or a a one stop shop, so to speak.

25:41 And it's no time after that concerted period of m and e and and investment to to focus on the the core business and growing it. So we've given guidance that

25:51 we'll reach the end of this financial year once all the acquisitions are completed, and we'll have about 36,000,000 of gross debt, and that's about 1.3 to 1.4 tons of leverage. And that's the peak, and we'll start to delever from that point. And we've got a number of growth drivers, as Matt talked about, being h a c 60, a market penetration into the additional adviser from that we bought and enterprise licenses. And we forecast that we'll be debt free again in FY twenty seven, FY '28. And that's what the slide tells you is we we we've we've gone through this strategy previously because in 2019, we purchased the de facto business itself, and we focused then once on maximizing that opportunity.

26:42 And you can see there that we can put a deal at the business by the first half of twenty twenty three into a close cash session. And it was great then to start the capital deployment phase again and get the next step, which was that integrated one stop shop. And so you you basically cut and paste that and stick it to the right, and that will be the leverage the deleveraging profile for the businesses. Focus on growing it organically and see after. Yep. Each each six months, we like to give a bit more detail on just exactly what we've been investing in because we have been in a a significant investment phase. And, again, that's just what walks the cash flow from left to right. So you can see started off the year in the January 1 with £2,700,000 in the bank, generated circa 10 from operations in the first six months.

27:34 Bottom five, and that that gave us just 20,000,000 of financial resource from a sources perspective. And uses of it were 11,000,000 into a variety of different investments in the period, 7,300,000 in terms of capital transactions, dividends, and settlement of of our delta. And then we've got some tax and some interest to service the debt. So you can see there, hopefully, clearly how we're investing, you know, shareholders funds for future growth. And, again, that that period of investment is curtailing now, and it's time to time to optimize the investments. Just another key metric for us is is cash conversion. We take we use the green sort of bar there in the middle of the page as the is the benchmark internally from from a division perspective.

28:26 And the the main reason for that is that's how well you're controlling your cost and your working capital and your investment into capitalized products, basically. The rest of it, tax interest and experience is finally for for me to worry about. So we measure the the teams on the the operating cash flow conversion. You can see that, again, it's a 101%. And before all the way down, including absolutely everything to free cash flow, you see that conversion at 55%. And I think that that and in the bottom right, you can see the investment for growth over the last three comparable periods. Again, that's peaked at 2,200,000, and that that will that will start to fall over time. So in summary for me, hopefully, you can see there's been a strong financial performance across our key metrics.

29:14 We continue to maintain that high quality revenue percentage in the core business. Again, strong cash generation, and, hopefully, you can see that we've been investing that for longer term and greater return and deploying our financial resources judiciously, and that lets us put our dividend up to 1.2p per share at the half year stage in line with our progressive policy. So, you know, all systems go going forward for for, you know, monetizing the investments that we've made. And pass back to Matt. Thank you, David, and thank you to everyone for watching. We've finished with plenty of time to to spare, so very happy to take questions. There's some come through on the q and a at the moment, so I'll read out the question and then either answer it myself or hand it over to my colleague, David.

30:07 I think one question is coming from James, David, which you you just ended on. So maybe elaborate on that a little bit more, which is what is your longer term dividend policy? Sure. So, I mean, ultimately, you if if you let me just quickly flip back to so if you if you look here at in f I twenty three, technically, I had the decision to make, James, in terms of right, we've completely delivered the business. We've got the fact to and certainly does. We've we've got the bookends of the service proposition for IFAs, and we could have reverted to a dividend stock, didn't trading the dividend, and become an income story. And so, again, you get the tenets of long term sticky revenues, recurring cash flows, as a relative cash flows.

30:57 But to be honest, the the opportunity to build that one stop shop was in front of us. We that that's what we plan to do. So over the next sort of three to four years, it will be small but progressive, and you'll see just similar steady growth. I think dividend payments, an important hygiene factor for any new company. And you've got different funds with different investment criteria. It's important that you hold hold the line on a a certain level of growth. But four to five years' time, we'll delever the business again. We'll have a significantly higher level of profitability, and we'll revisit the dividend policy at at at that time. And but for the next three, four years, for for monetizing these investments, it will be similar to what you see now.

31:43 That's alright. And, David, while you have the same slide up and you're on a roll, let's go for a question in from Christopher. He said, how comfortable are you with the level of debt, and do you anticipate further borrowing to fund your growth? Sure. So the the current investment fees, we'll see as reached gross debt of 36,000,000, and that's in the context of our revolving credit facility of 80,000,000. Now that additional so there's two things you can do there. You can you know, that that's certainly all that we've planned to invest then to this point, certainly from an m and a perspective. So you could reduce the facility in size and save yourself the commitment fee, which is about 190,000 for that extra 40,000,000 of headroom.

32:35 But we think that it's it's a relatively small cost to maintain that level of liquidity should anything else present itself. That being said, that the guidance that we've given in the market and the outlook section of the half year RNS is that we're well into 24, about 1.3 to 1.4 tons of leverage, 36,000,000 of gross debt and delever thereafter, hopefully, seeing us pay the final bit of that day off in in FY twenty seven q one twenty eight. So happy with the level of debt, happy with the level of leverage. We the recurring cash flow type of assets for this is when we we delever the business quite quickly thereafter. And but it's important to have that flexibility and credibility, frankly, if something comes along that we would like in the mortgage space, for example, that that we're not completely reliant on an equity raise or a refinance.

33:34 We've got some dry powder. And the a a technical point on that as as as I continue is the the the covenants and the debt facility allows to go up to three tons of leverage. So in order to deploy the rest of the facility, the EBITDA that we would have to acquire would mean that it would be value accretive because we couldn't wouldn't spend another 30,000,000 on businesses that are breaking even. Basically, that that that just couldn't happen structurally in the facility. So we've got to make a strategic, large, immediately accretive investment. We've not got the dry powder to continue to make small bolt on investments that we need to drive synergies out of. We've we've kind of done that now.

34:23 Thank you, David. We've had two questions in from John. I'll answer both of these. And the the first one of those is FINTEL completed four acquisitions during during h one. What synergies have you already realized from these acquisitions, and how long do you expect the integration process to take before full benefits are delivered? So great question, John, and I think there's there's a number of parts to that answer. So first and foremost, the businesses that we've acquired in the main, we are comfortable that if they continue along the path that they were when we acquired them, they will continue to generate revenue growth and earnings growth.

35:08 So they're strong businesses in their own right with quality propositions or products out there in the marketplace, used by in the main thousands of advisers, and they are growing well themselves. So an example of that is Voucher four. If we don't do anything at all with the integration of Voucher four, that will continue to run as a fantastic business with a great product that has an absolute growing demand at the moment because of primarily consumer duty. So those businesses we've acquired, we think, run well individually and without too much interference. However, we are aware that we can generate integration synergies in a number of ways.

35:54 So first and foremost, there is the cost synergy to look at. So where can we centralize finance, HR, and some of the operations of those businesses, leaving them free to deal with their clients in the way they want to, but, you know, being able to operate at a at a higher margin. So that's one area. The second area is where can we use the distribution that we have within the group to generate real revenue synergies. So, again, under the example of Voucher for is opening up that service to the distribution group that we support through Simply Biz and and three sixty and indeed compliance first. So there's sub cost synergies, there's revenue synergies, and then the other big synergy is on bringing those businesses together to form the connected platform that we discussed on one of the earlier slides of the presentation.

36:46 And in terms of the work that we've done so far, we have created integrations via two way API integrations to seamlessly flow data between the systems. If we prove that that's successful and we win some large scale contracts, which I'm hoping we will do relatively shortly, then we will go on to look at synergies around UX and UI. But for now, we're concentrating on the data flow, on the operational synergies, and on the revenue synergies through distribution. So I think it's a journey of which there are multiple steps and multiple stages. We are on stage one of those because we've only acquired the businesses relatively recently, but we believe all of those businesses we've acquired have the ability to generate synergies in all three ways. So, hopefully, that's answered the question for you.

37:38 The second part of the question is you say, also, you've increased investment into the Matrix three sixty platform. Can you elaborate on the specific developments and enhancements you're making? Absolutely. So Matrix three sixty will go ultimately from providing one dataset, which is product data, to seven or eight datasets into the general insurance market, the asset management market, and banking. At the moment, we've concentrated on the development of one of those product sets, which we believe is the most important fundamental first step, which is pricing data. So we're bringing pricing data into the product data that we have and concentrating primarily on the GI market. And the reason we're concentrating on that market is because it's the most obvious in terms of it's the largest customer that we have within the current matrix product.

38:30 So we've got one development or one additional dataset out of seven, and we are concentrating on one of the three markets. As we grow the continued development of Matrix, the other datasets will come in more rapidly than the first because we had to reengineer the platform at the first stage of development and reengineer the data architecture. So the next six data points will come in more rapidly than the first. They will cost less to to bring in, and then we will go after the other two markets of GI and banking as well. So that's the the sort of development journey for Matrix three sixty, if you like. I think that now completes John's two part question and all of the questions actually that I have on the system in the moment. So if anyone does have any more questions to ask, please feel free to do so.

39:27 We'll give it another couple of minutes. And if nothing else comes in, then we'll we'll deliver a quick summary on the business and leave you to to crack on with your day. And there are no more quest sorry? Matt, David, what I was gonna say is I was just gonna jump in and thank you for answering the questions that you have already. If any further questions come through in the feedback, we'll provide them to you, and you can provide the written responses where it's appropriate to do so. But what I'll do just before redirecting investors to provide you with their feedback, Matt, if I could just ask you for a few closing comments, that'd be great.

40:17 Absolutely. And and thank you to everyone for taking the time to to watch the presentation and also for submitting questions. I think in in summary, it's been a really good first half of two thousand and twenty four. We have delivered the financial results that we set out to deliver. And and more importantly than that, we have invested into and established the platform for growth over the next five years. We've acquired some great businesses over the last eighteen months. We've made two additional investments into core software businesses, and we are set for growth. Our focus is on major enterprise wins with our connected platform on increasing the revenue that we generate from Matrix three sixty and on developing the services that we offer out to the customers of three sixty.

41:11 So we feel very well positioned for future growth, And thank you very much for watching and taking the time out of your diaries to listen to David and I. Thank you. Matt, David, thank you once again for updating investors today. Could I please ask investors not to close the session? As you know, we automatically redirected to provide your feedback and know that the management team can better understand your views and expectations. This only take a few moments to complete, but some should be greatly valued by the company. Apart from management team at FINTEL PLC, we'd like to thank you for attending today's presentation, and good afternoon to you all.