Intercede Group (LSE:IGP) — INTERCEDE GROUP PLC PRELIMINARY RESULTS

0:02 Good afternoon, ladies and gentlemen, and welcome to the INTERCEDE GROUP Preliminary Results Investor Presentation. Mode. The company may not be in a position to answer every question received during the meeting itself. However, the company review all questions submitted today and publish responses where it is appropriate to do so. These will be available via your investment company dashboard, and we'll send you an email to notify you when they're

0:33 ready for your review. I'd also like to remind you that this presentation is being recorded. Before we begin, we would like to submit the following poll. And if you would give that your kind attention, we would be most grateful. And I'd now like to hand over to Klas Vandelist, CEO and Andy Walker, CFO from INTERCEDE GROUP. Good afternoon to you both. Good afternoon, Mark, and indeed, good afternoon, everyone. As Mark said, my name is Klas. I'm the CEO for INTERCEDE, and I'd like to welcome both existing investors as well as potential new private investors to this session. Andy is joining me as the CFO. It's the second meeting on our the INC platform. We look forward to providing you with an update and indeed your feedback. It's very much us presenting to you, but we look forward to receiving your questions. And as Mark has indicated, we'll try and answer as many as as we can. So without further ado, let's start with full year results for 2021.

1:31 One or two hygiene slides, clear pretty faces before COVID. So what are we gonna talk about today? Quick status update on COVID. I think nowadays, we we can't do without providing you with a quick update because it does impact the majority of the business out there. For those of you who are new to INTERCEDE, I'll provide a quick introduction. We'll then do a a progress report. We'll talk about some of these second half initiatives. I'm gonna pass on to Andy for full year results. We'll then have a look at the markets, market from two perspective, a, market drivers, and b, market size. Market size is particularly relevant in in the current context as we're branching out of our traditional space and moving into a much larger addressable market. We then move on to outlook. FinCap is back with a two year forecast, and we'll provide some color on that. And then last two points is very much, you know, a little bit of focus areas for the next six to twelve months and provide you with a quick summary.

2:32 So co advice. Operationally, it's been pretty pretty much business as usual. We had everybody at home way before lockdown in March 2020, both here in The UK as well as in The US. We didn't furlough anybody. We didn't have any redundancies. No bounce back loans. No shorter working weeks. No pay cuts. No nothing. If anything, we've added a a few heads throughout the the period. Operationally, it's worked really, really well. All client projects and road map deliverables have been been met. As you sure will will recognize with many businesses out there, you know, we have plenty of deliverables throughout any given period and particularly so when we hit end of March. So all the deliverables that we're revenue generating were delivered in in good time.

3:25 Clearly, you know, we need to look after the staff. We need to look after the the premises. We've done all our risk assessments. We are ready to move back into the offices, but, you know, right now, realistically, 90% of our staff is is working remotely and is working remotely successfully. I don't see any reason why we should go back this side of summer. A lot of our staff have got children, school going children. So with holidays coming up, we might just as well look at at the September period and indeed see what's what's happening out in the market. We're clearly reliant on government instructions both here as well as in The US. And if there's any other spikes happening in weeks or months to come, then with everybody at home, we probably have a a lower risk profile. From a sales perspective, two two sides of the coin. US has very much transacted as as normally. We've seen revenues in The US of about 14%, so we're pleased with that. However, rest of world and then particularly Continental Europe and Middle East have been far more affected.

4:31 As I'm sure you'll recognize, a lot of those countries have been in heavy lockdown, including my home country, The Netherlands. But, you know, this has been been prevalent throughout Continental Europe with Germany, France, Spain, Czech Republic, The Nordics. Everything has been pretty much in shutdown mode. So those countries have been very much focused on public health rather than on identity schemes and introducing strong authentication. So pipeline's definitely not gone away. Pipeline's still continuing to develop and and indeed growing. A lot of these opportunities that haven't materialized over the last twelve months are still there. We are just waiting for those countries to go back to some kind of normal operating procedures, and we're pretty, pretty confident that the projects that are still there will be reactivated.

5:21 Our partner activity has been very much increasing. I'll provide a bit more color on that throughout the presentation. And normally, when we hit April and and May, our coffers are pretty, pretty empty because we've tried to squeeze everything in into March, but we've actually had a a pretty, pretty good start to the year. April and May have been very encouraging, and we're working very, very hard to get June into into to the same kind of pattern. And then final point here is we just launched in April our latest release, v 12. It's quite a major upgrade in terms of functionality, and we're actually seeing a lot of uptake in client base who want to upgrade, take advantage of net new functionality onto the v 12 platform, and we're actually expecting, you know, good services revenues on the back of that, as we assist our clients around these upgrades.

6:18 So that's a a COVID update. So what do we do? MyD is a software platform. You know, we're headquartered in in Littleworth with offices in Littleworth and Reston just outside of Washington, and our software, MyID, secures identities. And they they are identities, digital identities for governments, large enterprises, military police, etcetera. And, basically, what we enable those employees, citizens to do to get access to data systems, networks whenever they need it. We do that across a large spectrum of vertical markets, traditionally very heavily government federal focused and and closely associated with the defense and aerospace sector. But over the last three to five years, we've seen more and more interest from the enterprise market. So you see banking, finance, health care, and manufacturing industry on there as as vertical sectors that our platform is very much relevant for. So what's the problem we actually solve?

7:19 Organizations, you know, whether they're governments or enterprises, they want to protect themselves against data breach, and the reliance on passwords is very much the number one cause of data breach. And, you know, when companies are then starting to use multifactor authentication, two factor authentication, or strong authentication, that is the best way to protect against data breeds. Yeah. Passwords is a problem. As as you can see in some of the data here, but, you know, it's also a good good starting point yesterday in the the Washington Post where the CEO from the colonial pipeline was hold over the rep calls by the senate and was asked to explain what actually happened there. And and, you know, statements were made that basic security was lacking. But, you know, he is hurt and and and saying, you know, it was a complicated password, and that's the problem. The problem is the password. Passwords are simply not secure, and they cause breaches, account takeovers, ransomware attacks, etcetera.

8:17 So what's the solution? The the area where we pitch in is in in indeed, the the strong authentication factor and the strongest form of authentication is the use of a digital identity. A digital identity is a private key on a secure device, and a secure device can be, you know, a smart card, a digital ID card. It can be a mobile device. It can be a virtual smart card. It can be a laptop. It can be pretty much anything you'd like to think on U S USB devices. And a digital identity is a private key, and you combine that private key with the second factor. And that second factor is either a PIN, it's a fingerprint, it could be a face ID. What MyID does, it makes deploying those digital identities simple, secure, and scalable. So we can do it very, very fast. We can do it with full audit trails, and definitely in The US market, that's that's highly relevant. We've done this for the last twenty years.

9:11 And because of the area where we're playing digital identities, very much the top end of the market, you'll see that a small company in Luttwelve has actually got a very impressive client base. And when I first joined the company just over three years ago, I thought, yeah. Interesting. Loads of interesting logos, but what's actually real? Because when you see Lockheed, when you see Boeing, when you see BASF, when you see Wells Fargo or, you know, Department of State or the FAA or the SNA, you think, okay. Are they just logos or are they real? Well, it's actually pretty, pretty real stuff here because these companies use anything from tens of thousands of licenses to hundreds of thousands of licenses. And when you take examples like TSA, the Transport Workers Association in the in The US, they use millions of licenses. Same for a citizen program we're running for q eight.

10:01 Again, it covers the entire citizen population. It's four, four and a 500,000 plus. So this is all pretty, pretty real stuff, and we have great credibility in this space. So digital identities is the area we play in. We have a platform that's very much proven out in the market. It's a platform that's very much recognized by the top end part of the of the industry. So it leads me quite nicely onto progress reports. When I joined three years ago, the the ask the task from the board was get us back to sustainable revenue

10:34 growth and profitability. This was on the back of a couple of years of heavy loss making, heavy cash burn, and probably a lack of direction. So three years later, we've had three years of revenue growth. We've had three years of profitability. We've had three years of cash generation. Again, if I go back to the early stages, we were down to our last £2,000,000 in cash, and the majority of the institution was saying, hey, class. You're gonna come to market soon because you're gonna run out. And, yeah, I had a plan. We worked on the plan. We executed the plan. And three years later, reporting at the end of March, we're sitting on £8,000,000 plus, and that's further improving. So we are in in good shape. The other part which is good about the business, we have a very strong recurring revenue stream through our support and maintenance. You know, all our clients are reliant on their support and maintenance. They renew year on year on year on year.

11:23 This is very, very sticky business. We have clients who renewed for ten, fifteen, twenty years plus. I'm also highlighting the repeatable revenue stream here. Repeatable is very much of professional services and development work we do for both existing customers and new customers. It's very easy to forecast 1 to 2,000,000 per year. When combining those two together, it pretty much covers our costs. So we think we're in in in good shape. For those of you who have followed us before, you would have been aware we had a £5,000,000 convertible note hanging out there with maturity in December 2021. So the first two years, we worked really, really hard on that cash file to make sure that we could we could issue a call a call notice. We did that in February, and 12 out of the 13 loan note holders converted into shares, which is good. And they've also resulted in net new institutions coming on board. So we are now debt free. We've got a clean balance sheet, and we've still got a very good cash reserve.

12:26 So that's that's promising to to take the business to to the next phase. Clearly, we're pushing hard on the sales and marketing side. I talked about, you US know, transacting very, very normally,

12:38 if not ahead of where we thought we would be. Rest of world, still very, very tight, but we are still seeing pipeline growth, and that pipeline growth is all driven through channel. Three years ago, we made a very deliberate choice to develop a channel model. Anybody who's done this before knows that building out channel takes time. We launched our formal program in February last year, a month before COVID. But despite COVID, we've made incredibly good progress in both existing regions where we're active, rekindling existing relationships as well as signing new relationships. The other part on the sales and marketing is very much driven on our customer first approach. I'll provide a bit more detail as as we we carry on. From a factory perspective, operationally, we are still spending a lot of time on on innovation and r and d. We're spending close to £3,000,000 per annum and earlier referred on to the launch of v 12, which now includes PKI, our traditional Heartland, as well as Fido, and I'll provide more detail on that. Clearly, we couldn't do this without a group of of motivated staff.

13:45 Staff motivation three years ago was not good at all. Attrition was was high. In those days, it actually worked well because it it got our cost base down and got us back to profitability in year one. But since then, we've really worked hard to make sure that we're investing a lot of time and effort in in staff satisfaction. We are running a annual eMPS score couple of years ago. It was had very heavily negative. Last year, it was very sensitively positive. I'm hopeful that we can actually push, push that upwards even further. Attrition is very, very low at the moment. Over the last twelve months, we've seen no attrition. Attrition is actually zero. So that's a little bit about the progress we've made. What's actually behind this? We've got a very clear strategy. Our strategy is built around five c's. Please ignore the six c in the bottom bottom right hand corner for the time being. But the five c's internally as well as externally is very easy to communicate against. I've taken from day one a very clear approach that it's all about colleagues.

14:46 If we get the colleagues happy, if we can get them safe, particularly in the COVID environment, then the rest will start to happen. So we've invested heavily in the, in in the staff side, three years ago, they haven't seen any pay reviews for many, many years. We did a deal with the staff and said, look. Help us to deliver the year. If we deliver the year successfully, we reintroduced pay reviews. We were profitable after year one, which was a year ahead of where we expected to be. And, you know, I said, look. We really need to recognize the hard work that everybody has put in here. So we started with noncontractual bonus. 90% of our staff do not have a contractual bonus. So to hand out bonuses at the end of the year for a job well done has been very well recognized. We've done this for the third year running now, and and staff like the fact that, you know, if they help us to deliver the numbers, they they get part of that that recognition. So first, see colleagues. Second, see code.

15:45 We you know, I'm I'm a firm believer is that we write the best code in our part of the industry. You know, once our platform is in, once MyID is up and running in the customer, this software works. We see very few tickets coming into the business. Our support team is relatively small. If we get a handful of p ones, p ones is platform down in any twelve month period. It's a lot. Yeah. And then when we start investigating what's actually causing a platform outage, nine times out of 10, it's got nothing to do with my ideas of platform, but it's the the third party dependencies we have. For instance, a client runs certificates. Those certificates are valid maybe for a year, two years, three years. They expire. The clients haven't renewed the the certificates. Well, yeah, that's gonna cause an issue for MyID, but it doesn't mean that MyID as a platform isn't working. So this is really, really solid code.

16:43 Yeah. Investment already talked about, talked about the r and d, and with our latest release, we have functionality out there that is definitely market leading. Nobody offers the functionality where PKI and Fido all combined in the same credential management solution. So code, colleagues, customers, as I said before, we have a customer base to die for. That customer base is incredibly loyal, and there is very little attrition when it comes to renewals. Our attrition on renewals is significantly below 5%, and that means that, you know, these customers keep on renewing, and we have a really good opportunity to continue to build on that that revenue going forward.

17:28 Again, introduction of the customer first strategy three years ago is it yielded a lot of benefits. We are now actively engaging our clients through the customer advisory board into the road map development two years ago and a year ago. Well, actually, two years ago and three years ago, we did this face to face last year. We had to do this this virtually. It had an upside actually that we had twice the number of of attendees on on the virtual on the virtual approach. You know, clearly, we're missing the social element, but actually, it works really, really well in those sessions. You know, we split the clients up in different working groups. We get them to collaborate together as to what they would like to see. They then present back to the to the wider the wider board, and then we take all the input. And, eventually, we get customers to rate and rank what they'd like to see in functionality going forward, and we then try to embed that into the road map. Customer satisfaction surveys are now being held every year. We have a customer portal for additional support.

18:32 And about six months ago, we've introduced the goal of customer success. So we very much want the onboarding of new clients or when clients are upgrading, we wanna make that process as as as slick as possible. One of the earlier sessions, there was a good description when somebody said, yeah. Probably it's a bit like a swan and then under the water, you need to pedal fast, but that's exactly what it is. You know, the director of customer success is about that pedaling underwater to make sure that, you know, the customer's got a very smooth transition or introduction into into INTERCEDE. Channel is a fourth c. We introduced the channel program, February last year. Timing wise, not great, a month before COVID, but we've actually seen really good progress. There are two main pillars into department program. One is the technology partnerships.

19:18 It's those applications. It's those systems, those hardware components that we need to integrate to and with in order to provide an end to end solution. The second part of the program is the channel relationships. It's those relationships that are typically priming the contracts they are reselling. So for instance, we we announced a deal last year with a new partner called Guidehouse in The US. Guidehouse is the new name for PLC public services. They would have prime for a contract win into Department of State of which we were a key component. So that's a good example of of a channel relationship. 90% of our business and new business is now contracted through partners. We want to grow that even further because, you know, with a relatively small sales team, there's only so much global reach we can get. But when we start to make use of technology partners as well as channel relationships, we can actually move much wider.

20:11 Fifth c is around cash. Cash is looking good as as as referred to earlier on. A lot of that cash is generated from operating activities. We retired the the CLN. So, you know, we are in a in a much stronger position than where we started three years ago. Community, I think, is an important point that we should not forget. As a company, we have a role to play within the community. You know, we are an employer in Letterworth. Letterworth is a relatively small town. We have just over 70 staff there. A lot of those staff go have children who go to local schools. And as COVID hit, it was clear that a lot of these schools were not prepared to support the children for remote learning. And then, obviously, there was a lot of noise in the press about, you know, disadvantaged families, disadvantaged children who didn't have access to devices. So, you know, this happened also in.

21:05 So as a company, we decided to donate quite a few new laptops, new Chromebooks, and we had quite a bit of refurbished kits that we could offer into the local community. So we in excess of 35 devices were pushed into the the local local community, into the local schools, and they were very grateful for receiving us. The other thing we do, even now we do when we have very limited presence in the offices, things like the local food bank staff are still collecting food parcels and submitting those on a weekly basis. So I think as a as a company, we have a role to play in the wider community. So at this point, I hand over to Andy. Thank you, Claus, and I'll provide a high level summary of the key numbers.

21:52 So you'll see revenue was 6% up year on year. With the strong end to the year, the order intake was actually 10% up, and we do believe the revenue on the year would have been double digit as well had it not been for a couple of factors. The first of which is COVID, as Claus has already said, whilst The US was still strong. I can think of a couple of of orders that have been delayed as a result of COVID, but still generally has performed well in The US resulting

22:24 in a 14% increase in revenues. But as regards to the rest of the world with national lockdowns, then, you'd see if you've looked at our preliminary results announcement, the rest of the world was £500,000 down year on year, and that's the sort of level, in previous years as well that we're down. So as a minimum, I would have expected us to have achieved that much better had it not been for COVID. It's also worth referring to currency effect. A large part of our sales are dollar denominated. And with the dollar rate increasing during the year from one twenties to the one thirties and one forty plus, then particularly in q four, that's started to have an effect.

23:13 Year on year, not significant. The impact's less than a 100,000 because the average rate for the year actually came out at one twenty nine versus one twenty eight the previous year. But an important factor as we enter the new financial year and as we look at forecasts going forward. Moving on from the revenue as regards the operating cost then, we've continued to keep tight control. We have maintained a high level and a good level of research and development resulting in the releases during the year. We have had a couple of increases in headcount. We've taken on a couple of developers during the year, and we have had the pay review that Klaus referred to. But overall, the increase in costs has been restricted to 2%, and that illustrates the operating gearing. With us having a margin gross margin approaching a 100%, then you can see that with revenues being larger than the increase in operating costs, that's resulted in a 400 to £500,000 increase in profits at the different levels.

24:20 And, obviously, indicates that as things return to normal in markets around the world, the potential for substantially increased profits in future years as we grow the revenue line. Moving on to the cash. As Claus has already said, very strong performance during the year. Very important for us in steering, of course, to be able to resolve the convertible early, which we did in February. And that in itself saves us £400,000 worth of interest each year from this year onwards. What that's also done is, you know, this time last year or in March 2020, we had 4,800,000 of cash, but 5,000,000 of convertible. So we were in a net debt position.

25:11 This year, an 8 with 8,000,000 of cash and having removed the 5,000,000 convertible, a substantial significant turnaround. That's also reflected in our equity, which has improved by 6,000,000 year on year with the 1,500,000 profit for the period you can see there, and also a 4,500,000 increase as a result of 12 out of 13 of the low note holders choosing to convert. So a much stronger balance sheet and very much signifying the completion of phase one of the turnaround and setting the scene for phase two and how do we grow the top line. So I will hand you back to Claus who will run through the markets and future outlook.

25:57 Good. Thank you very much, Andy. So two views on on the market. One one is the market drivers and, you know, how we position the product into the market. The second slide after this one is about market sizing. So what are the main drivers? Well, as as as I indicated in in in the introduction, data breach is good for us. You you know, lots of noise in the press means that we have opportunity to to sell into.

26:28 Whether that's Colonial Pipeline, whether that's ransomware, whether that's issues with Marriott Hotel, you know, our clients trying to protect themselves from data breach. So that's good good good area to start with. The new normal post post COVID, whatever that means, clearly will include some office based work, some remote working, but it's definitely gonna be different from what we're used to. When people are not on their corporate networks, clearly, there is a much larger threat factor out there. A lot of people who work remotely are not on VPNs. If you're not on VPNs or the corporate networks, you're far more exposed. So, actually, this this new normal this hybrid kind of working is playing well to a proposition like INTERCEDE.

27:16 Anything to do with cloud, whether it's public cloud, private cloud, there are always questions around security, data protection, and compliance. It's an area we're very well positioned for. Strong authentication is is the area clearly we play in. The area that's coming up. You know, Joe Biden announced an executive order, and it was one of the questions that was posted early on as well as as to what the impact of that is. It's actually it's a good sign for us because, basically, what that that executive order mandates is very much a zero trust approach. They specifically are calling out multifactor authentication. So it's a good good sign for us at the market. It also helps on the on the regulatory side, particularly in markets that are heavily driven by regulation. US is a good example of that where, you know, we clearly see see a lot of our business happening.

28:08 So, you know, there are some really good drivers in the market. If we then move to the right hand side of slide, you know, we have a platform. There are three versions of that platform. Enterprise is exactly what it says on the team. You know, we position in the vertical enterprise markets. Mighty PIF or PIV is a version of the platform that's been specifically developed to comply with federal government in The US and the associated defense and aerospace industry. And then mid last year, we introduced a lower end mid market version of the product called Mighty Professional. It's in effect a scaled down version of enterprise, but it's all the same code under the bonnet. So, you know, realistically, you're looking at one platform here with three different variants.

28:58 So when we look at the market size, and it's also for those who are not too familiar with us, gives us a bit gives you a bit of a feel of where the company has traditionally positioned and where we are now positioning because it's it's it's a big step forward. So some of you may be familiar with the authentication pyramids that we've presented for quite a few years now. When you start at the bottom of the pyramid with passwords, it's not particularly secure. You move up that pyramid pyramid to one time passwords, sometimes through SMS, some sometimes through tokens like RSA tokens we used to have or even through mobile one time passwords. Yes. It's stronger than the simple password, but if you take, one time passwords through SMS, it's still easily brief. There are plenty of examples out there, and and there is plenty of of noise, on the Internet available that, you know, a lot of people are still using it. A lot of companies are using it because it's easy to use and it's low cost to use, but it's not particularly safe. There are a lot of breaches relating to use of one time passwords for SMS.

30:04 But as you move up that pyramid, it becomes cryptographic. FIDO is cryptographic. PKI is cryptographic. It then starts to become person bound. That's the area where we're playing in. So the strongest form of authentication is in the top of that pyramid, which is where INTERCEDE has got his experience for the last twenty years. However, there is also a drawback on the shape and the size of that pyramid. Whilst the top of that pyramid is really, really good, it gives us great experience, and we have really strong credibility from the client base. When you look down, you think, actually, the size below us is actually significantly bigger than the market we're playing in. And that's also reflected on the right hand size. If you look at the size of the credential management solution market, it's roughly a billion dollars, which in itself is still a very sensible market. But as you'll see on the next slide, when you start coming down that pyramid, the market size suddenly increases, you know, tenfold.

31:00 Growth in this market, in our core PKI market, in the core CMS market is still good. It's still growing double digit going forward. But, you know, eighteen, twenty months ago, we said, look. We need to find a way to breaking out of our traditional space. We like the traditional space because we know this inside out. We have great referenceability. We have lots of sticky revenue on customers. But at the same time, what are the other areas we we can address here? So we had lots of dialogue with analysts in the market. We had lots of dialogue with existing customers and prospects. And in effect, we came to the conclusion that we should come down that pyramid in order to eat into a much larger target target account market. So oh, sorry. I'm using the wrong key here. So from April onwards this year, we've introduced v 12. V 12 is including PKI, Fido, and mobile ID.

31:55 What is Fido? Fido is faster identity online. It's a cryptographic form of strong authentication that was originally designed to help consumers like you and I at home. It's fairly well used in the market. It's backed by the big boys. You've got Microsoft behind this. You've got Google behind it. You've got Facebook behind it. You've Apple behind it, but it started its life on the consumer side. And Fido is based on the USB token that's got a credential on it. Yeah. And

32:26 that credential makes sure that when you log in to your MacBook or your or your lap laptop at home, that it's you logging in, and it's a really good seamless user experience. It's been really well designed. What's actually happened over the last couple of years is that standard that Fido standard has found its entry into the enterprise market. So we now see parts in our customer base coming up with use cases for Fido, but there is a challenge.

32:56 Fido was never designed to be operated in the enterprise space because it was designed for consumers like Andy and I at home. I've got two boys, a wife at home. I can buy four tokens, and we've each got one. I can label them one, two, three, and four, and I know who's got which token, and it's gonna be relatively straightforward to manage. Now think about a scenario where an enterprise has got 5,000, 10,000 staff has to acquire 5,000, 10,000 Fido tokens, and suddenly this becomes a nightmare. This becomes a real nightmare to manage. In PKI, that's all managed because PKI was set up to manage the credentials. So we've worked really, really hard over the last twelve to fifteen months and say, hey. Can we bring Fido into the platform so we can manage PKI as well as Fido through a single pane of glass? Through through one interface, our clients can manage different tokens with different strength for different use cases. PKI is really strong to be used within your own organization, but doesn't really work in the supply chain, doesn't really work well if have lots of contractors. You take the defense and aerospace, you take the federal markets, government markets in The US, they have loads of of contractors in there, and PKI just isn't designed for that kind of use case. But Fido works really, really well. So we've added Fido and mobile authentication mobile ID to the MyID platform.

34:25 When we then look at the market we start to play in, we are certainly into the much wider multi factor authentication market. It's roughly 10 times bigger than the CMS market. If we take roughly a billion and and and 10,000,000,000 as as a starting point, it's a factor 10 bigger. I am not saying that we will address the entire MFA market or what we are strongly convinced of that we are now into a market that's three to four times bigger than the market we've traditionally been in. And it's not just, you know, from the market data. Also, when you look at the adoption of Fido into the enterprise world, you suddenly start seeing the analysts like Gartner jumping onto this bandwagon and say, hey. Whilst adoption rates at the moment are still relatively low, over the next four, five years, we really see strong growth happening going forward. So for twenty years, we've been operated in the have been operating in the top end of that that pyramid in the PKI field, but it is very much a niche kind of play. It probably also explains why we've never been, really capable of breaking out with v 12. We're coming down the pyramid, moving into a much bigger market, target account market,

35:35 and for the next, you know, twelve to twenty four months, we'll drive that new version very, very hard into the market. So that's a little bit of background on the the drivers into the market that are still very much there, and if anything, you know, are improving. And the market space that, you know, we've now got available with v 12 is significantly bigger than where where we were before. So think up puts a new two year forecast out there. You know, our aim is to drive double digit growth based on constant currency. As Andy has already indicated, there is a little bit of a headwind out there because the pound since since concluding on Brexit has materially strengthened against against the dollar.

36:20 But when we take our numbers, FY '21,

36:24 which was at rate 01/29, we restate the same number at one forty. It then drops to two two ten fifty and then put our forecast out in the market. We're on double digit growth, and, you know, we're confident, and we can drive those numbers in into the market. So already talked about, we have very high recurring repeatable revenue element. It's 60 plus of the business. Just our support and maintenance is is just north of 6,000,000, and then we have this repeatable professional services stack sitting on top of that, which pretty much covers our costs. Talking about the organic growth on the next slide, I'll provide a bit more color on our inorganic approach. And Andy has already said, you know, we have high operational gearing. When we get the licenses through with extremely high margin, a lot of that drops straight through to the the bottom line.

37:16 So where does it leave us for the next next six to twelve months? We clearly need to prepare for, you know, a post COVID era. We're very much ready for this. We've been well practiced. We look forward to the markets opening up. But at the same time, we show a a degree of caution, particularly still with Continental Europe because we're not completely convinced that market will open up in the next in the next six months. However, at the same time, The US market is performing incredibly well, and we see that today.

37:47 And, you know, we have we have good levels of confidence that, you know, as and when the continental European markets start trading again, you know, we are in a really good position. So growth. Where's the growth gonna come from?

38:00 Point one is extending that addressable market. I talked about v 12. I talked about extending the PKI platform into Fido, into mobile authentication. So that's gonna give us a much wider addressable space. Second part there is our connect partner program. You know, we're really driving the program very, very hard and wide into the market. We are, you know, developing net new relationships, whether they are technology relationships or reselling relationships. We now see deals coming through that previously

38:31 we didn't see coming through, and, clearly, that's paramount for the growth of the business. The third point on this slide is the appointment of a head of corporate development. We wanna drive the inorganic side. We wanna drive the buy side m and a Over the next six to eight weeks, we will conclude on defining the m and a landscape that we think is is relevant to our business, come up with a clear pipeline of buy side m and a prospects, and we wanna layer that on top of our, you know, organic revenue growth and see if we can start accelerating this this business. Our pipeline remains strong. We know we can convert that pipeline, and, you know, we think we're in in a good position. So in summary then, you know, phase one, three years ago was all about business turnaround, repositioning, restructuring, refreshing key hires in into in into the business.

39:27 I think we have a very credible EMT, executive management team. But we've also made sure we have the next layer down, what I refer to as the OMT operational management team in the business. From prior experience, I know that once you start doing m and a, it can be very, very disruptive, and it's very easy to lose track of of day to day activities into the business. But by having this OMT layer into the business, they can run day to day activities,

39:55 you know, like clockwork, and we're confident that they're capable of of doing that. Andy has already talked about the loan note, cleaning up the balance sheet, saving 400 k in in interest payments. Momentum, you know, we talked about momentum market drivers. We talked about momentum with regards to market size, but also as an organization, you know, we've we've significantly matured. We're in a much better space. We're far more process driven, and we are pretty pretty ready to taking the next the next lead. We talked about increasing that addressable market. From a go to market perspective, you know, I keep coming back to those partners, but those partners are key. On the right hand side, I'm just giving a few examples of, you know, new relationships we've announced. And I'm always suspicious when I see, you know, lots of announcements on the Internet about, you know, partnership a, partnership b, partnership c because a lot of these partnerships is paper and there's not a lot behind it. We're very, very firm on announcing these partnerships that we actually have deals in the pipeline or we have already completed deals. So INTERCEDE and White Point, White Point is a Nasdaq listed company operating in our space. They actually provide a managed service rep around MyID.

41:11 So it's particularly for those companies that may not have all the skills or all the infrastructure to run MyID and the associated components themselves. White Point actually offers that as a complete service rep, which is really good. We've announced our first deals. There is traction in the market. It's really encouraging to see. The bottom one, INTERCEDE and Aware. Aware, again, is a Nasdaq list business. Aware is part of our proposition and our solution that we've offered into Department of State through Guidehouse in the deal we announced last year. So, again, this is very much real. We're working very, very closely with Aware in other regions, and we're also starting to build up, opportunities in Latin America by combining our efforts with Aware and indeed their partners in the space. The middle one is interesting.

41:58 We announced technology partnership with SailPoint a couple of weeks ago. This is very much driven by the client base. So frequently, it's partners who want to partner with somebody else in order to drive downstream revenue. In this case, SailPoint is very, very dominant in the federal space in The US. They are very, very prevalent in lots of federal departments. And it's actually some of those departments, some of those, yeah, federal departments who have come both to SailPoint and to INTERCEDE and said, look, we're really keen for you guys to collaborate here, make sure you can integrate those platforms. So I'm hopeful over the next couple of months, we can actually make some some positive statements on that. So phase one, all about getting the business clean, tidy, ready, profitable, cash generative, good cash pile, good organizational structure, working sales team, marketing is working, factory is working really, really well. We moved on to agile development. We're pretty much into quarterly releases now. Every release is incremental, incremental, incremental.

43:01 Four years ago, it took twelve to eighteen months to get a new release to market. We are now releasing pretty much every three or four months. So what's phase two? Phase two is all about business expansion. You know, we need to get that foot on the accelerator. We need to drive the double digit growth out there from an organic perspective, but at the same time, we really see good opportunity on the inorganic side. We've seen over the last couple of years definitely in our core space, PKI space has been market consolidation. Andy and I have had conversations over the last twelve months plus that, you know, once we get this business in the right shape, we could be one of the consolidators here and and actually drive incremental revenue and EBITDA into the business. We're also looking at the adjacent areas. Clearly, we've added FIDO to to the, the product portfolio. We've added mobile authentication.

43:50 There are other companies out there that provide similar kind of solutions, but with different kind of functionality, we can start looking at at those companies and say, hey. We either build this, we partner, or we buy. And, you know, over the next eight to ten weeks, we'll provide internally a good view on, you know, what these landscapes landscapes look look like, what's the traditional landscape, PKI landscape, what does the FIDO landscape look like, what does the adjacent areas look like, and then we'll come up with a target list for m and a. Final point is, you know, the last three years, we've been very, very focused on the execution of our model. We were very much challenged in the early stages in April, May that, you know, this company had overpromised, under delivered for years.

44:35 So we've worked really, really hard to deliver six sensible halves of growth. Yeah. We've got three good years behind us. We wanna use that same energy, that same focus into the next period where we wanna drive the growth out there. That leads me to conclude. I think, you know, it's been an interesting year. It's been a challenging year from a COVID perspective. I think as a business, we've reacted to it very, very well. We have the technology to make sure that everybody could work safely, securely at home. Our productivity has been good. We've seen continued traction in The US market. There's been some slowdown in Continental Europe space, but at the same time, the opportunities are still there. It's a matter of of waiting for these markets to relax a little bit.

45:22 Clearly, I'm following The Netherlands very, very closely. Infection rates are coming down very, very rapidly at the moment, which is good. And there's a lot more freedom now. Germany is starting to look better. The Nordics is starting to look better. So we're hopeful in the next six months ish that we'll see increased traction. We saw it last year in May, June, but then, you know, we all know what very quickly happened after the summer. So I am cautious, but at the same time, cautiously optimistic that with vaccinations, you know, running high in many, many countries out there that, you know, there is gonna be more control. So that leads me to the end. We got a list of questions already there. Mark, are you Yes. Taking That's very kind of you, Klaus. Andy, thank you very much indeed for your presentation and updating investors.

46:08 Ladies and gentlemen, please do continue to submit your questions using the Q and A tab situated on the right hand corner of the screen. Just while the company take a few moments to review those investor questions submitted already, I'd like to remind you that a recording of this presentation, along with a copy of the slides and the published Q and A, can be accessed via your Investor Meet company dashboard, and we will send you an e mail to notify you when that's ready for your review. Also like to remind you that your feedback is important to the company. And immediately after the presentation has ended, we will redirect you for the opportunity to provide feedback in order the company can better understand your views and expectations. Clas, obviously, you were very kind. Investors did have the ability to pre submit questions. You very kindly provided a written response to all of those. And we will, at the end, after we've reviewed the questions that have come through the live event, send those to all the investors on this call.

46:57 So they'll be able to see the questions that were pre submitted along with the answers. And perhaps, obviously, I could ask you now to open up that Q and A tab. If I could ask you to read the question, who it's from, and give a response, that would be absolutely fantastic. Thanks ever so much indeed. K. Well, we're gonna have a real good good go at this. First question is from Ryan. Can you talk a little bit about the competitive landscape when tendering for contracts? You know, who are the main competitors and and what makes you different? Competitive landscape is probably different depending on on the geographical market we're tendering in. If it's in The US, there are companies like XTech. There are companies like Axiata out there. There are companies like Citi US that we see in our space when we tender here in in close to home, what we tend to refer to as rest of world. We see companies like, see companies like HIV, active identity, companies like NEXUS, recently acquired by the INTERCEDE in France. So we see we see a different competitive landscape be depending on on the region we're in.

48:05 What makes us different I think I've tried to highlight that in the presentation. We understand this space really, really well. We've done this twenty years. We've got a client base to die for, and it's very, very referenceable. So we understand PKI as nobody else in this market. We have a client base that's incredibly relevant, yeah, is referenceable, and we have a platform that is market leading. I I I challenge anybody out there to to come up with the same, if not better functionality out there because we don't think it's out there at the moment. So I think we're in a in a really, really good space. So, hopefully, Ryan, that's giving you some color. Next question is from Andy. I thought it was actually Andy my Andy asking, but debt free cash on the balance sheet, so you seem well placed.

48:54 What do you see as the greatest risk and opportunity moving forward? That's an interesting question. I'd I'd still take COVID as as the biggest risk. You know, you've you've you've heard from Andy that, you know, our rest of world, you know, has been impacted by COVID. Those market haven't really markets haven't really transacted with five, six hundred k down on rest of world. If those markets don't open up, we'll probably see very, very flat business in in in in rest of world. So I think there's a risk. I don't see that risk in in The US. The US have taken a very different approach under two different presidents to to COVID, and and that market is operating like like normally.

49:42 Opportunity, maybe COVID is also the opportunity here, Andy, in in as far as if the continental European markets actually open up faster than, you know, or or more pessimistic view that it may take a little bit longer. We might see some acceleration, which which may give us some some net new opportunities. So COVID probably plays on on both sides here. Simon, what's the normal sales cycle from pitching to develop to deploying the solution with a customer, I guess, wants technology. They are very sticking, which reinforces the importance of what it does. Yeah. Again, there is a wide range here. When we tender for the large large federal government defense and aerospace programs, you could be tendering for a year, two years.

50:34 National ID schemes like we've got in Kuwait, they tend to be long drawn out processes. However, you know, we've worked really, really hard to make ourselves far more relevant for the enterprise space. We've also introduced Myvy Professional as a mid market enterprise entry product. And when we look at, you know, some of the deals that have come in in that kind of space, we're seeing deals coming in in three, four months, which, you know, Andy keeps telling me, class, this is incredibly unusual, but we are starting to see more and more of them. You know, we have a product now that's off the shelf customers. We have a good example of a recent win. It's it's it's by no means big, but it's a it's an aim listed company headquartered from Devon, which is very unusual for us.

51:23 But they've got strong presence in The US into the aerospace markets, inbound inquiry. They've asked for a few demos, which we did. They asked for a test license. We issued a test license. They were very capable. They knew exactly what they were doing. They were testing out virtual smart cards. Within weeks, they were convinced they found the right technology. Within three three months, they placed an order, and and that's unusual for us. So huge dis disparity here between the large programs of work, you know, Department of State, which we announced last year. Probably, we're working on it for two years plus. But, you know, that's 4,000,000 plus dollars. But we're very, very keen to get more momentum in that enterprise space and get these deals moving because, you know, INTERCEDE traditionally has always been accused of big highs, incredible deep lows, and then big highs, deep lows.

52:19 We wanna fill these troughs with enterprise business. And then, you know, for those who have followed us for the last couple of years, you see that we're quite cautious in our approach. We are really trying to get that deal flow moving. So we have we are very much predictable. When we say we're gonna deliver 11, we'll deliver 11 in the market because, you know, we have degree of confidence based on the work we do and the pipeline we have that we can deliver those numbers. So hopefully, that's answer that. Nick has got a question. Do you have sales teams globally or just in The UK? Nick, we have two sales teams. We have one sales team in The UK. We have one sales team in Reston, which is just outside of Washington. We are covering, you know, our global approach from those two regions. So US is very much driven on The US market, but not also more recently into the Latin American market.

53:13 And then from The UK, we deal with UK, Continental Europe, Asia, Middle East, well as as well as Africa. So two two teams. What I'd add to that as well is we also have a global reach as a result of the partnerships we've got in place, both long standing partnerships with some large organizations in our space who themselves have offices throughout the world, but also, as Claus has said, the connect partner program. We've been successful in setting up partnerships with new people in in different continents as well during the year. And and and I think Andy is is is is stressing a very important point here. So part of the sales team is partner managers. We have a a partner manager here from the rest of world, but another another head in The US, and they are recruiting those partners. They are training those partners, and you get that multiplier effect. You know, we only need one partner manager to train twenty, thirty, 40 salespeople in in a partner's organization.

54:22 You know, each partner manager can manage easily between eight and ten partners successfully and and and and more depending on how how complicated the infrastructure on the partner side is. So you really get that multiplier effect out in the market. So we made a very deliberate choice to go down that indirect market route because we can get more scale, yeah, much faster through the partners than we could build up our own. Simon's got a question. Is there any danger that your tech is becoming outdated as new generations of big money VC backed cloud cloud cyber companies are entering the market, or do they need or do they need you as part of that package? I I think that second point is is is is very, very relevant as as I indicated on my market driver slide, you know, that move to the cloud automatically starts asking questions about what level of authentication are you going to apply or do you have to apply in certain countries. In US, this is very much specified in, in rules and regulations that, you know, they may start looking at technologies that that we're offering. Strong authentication is very, very relevant in the market. It's all nice and well for somebody to say, hey. I've got single sign on. You know? I am class Vandalis.

55:47 I'm logging on to the network. Well yeah. That's all nice and well. But is it me who is physically logging on, or is it somebody who has stolen my credentials and then uses those credentials to get into in into into a third party organization. You know, this this this colonial pipeline issue last week is is very much the issue. Yeah. They were using simple passwords. That's the problem. Yeah. Could anybody do what we do? Andy, how many many years have we invested in the platform? Well, we've been saying a thousand plus for quite a few years now. I think they're probably just about ready to revisit that. Yeah. So, you know, for anybody to build this kind of technology, it would take them time. So I I think we're pretty, pretty confident that, you know, our technology is very, very relevant. Also, our move into the Fido space just shows that we can continue to be relevant going forward. Fido is still in early stages.

56:45 We believe we're we're very well placed. Alastair, question on the m and a side. Do you have any views at this stage on how acquisitions will be funded? So that's question one. Well, there are multiple answers here. We don't know exactly what we're looking at. We're trying to define that landscape. What ultimately, you know, it would have to be a combination of cash, cash and debt, cash and debt, and and a placing or or any combination thereof. That's that's the most likely kind of scenario. You know, we are confident that when we find the right right targets and can engage the right targets, we can make stuff happen. I think we have a credible story out there. We have a credible team, and we need to find the right backers at that point. And we definitely hope that we can get support from existing shareholder community as well as the institutions.

57:39 There's a second question is, can you please talk about the board's experience in in m and a? We all know the research about the majority of deals failing. Blimey, you you have spoken to Andy too much, Al Al Al Al Al Al Al So, you know, we have we have an experienced board. We all you know, if we look at the executive team, you know, we all have thirty, thirty five years plus experience. I've worked myself into the PE world where, you know, m and a was was the the going talk of the day. We were either buying or we were being acquired. So I definitely bring bring my own experience. We have a number of of nonexecs on the board, again, who are very experienced in this in this space, specifically calling up who, you know, is a is a plural nonexec, plays a lot in the in in private sector and is very, very used to doing the buy and build kind of kind of approach.

58:46 So I think we got the right skills into the company. I'd also like to stress that, you know, the head of corporate development we have recruited into the business is an ex investment banker who then subsequently furthered his career in in running his own boutique m and a outfit. He has done a lot of the work for the likes of of Micro Focus in in recent years. He's used to deal crafting. He is actively involved in in, you know, the strategic discussions and directions of the company at the moment. So we're pretty, pretty confident we've got the right skills in the company to, to make this happen. Martin, what are your plans for the connected devices IoT markets develop internally, m and a, target, ignore?

59:37 Yeah. IoT is interesting. Lots of noise around IoT, but are we really the right company to credential your Internet connected microwave at home? I am not convinced that's the area we will play in. Taking a serious more serious view on the question, maybe we we revise the the question to IIoT, industrial IoT. We've had trials going on this. So look thinking about critical infrastructure. We've had trials already out there three, four you know, it's even before I joined. So it's gonna be four, five years ago on credentialing IP cameras for secure locations. That's interesting because military bases have got lots of security cameras. You wanna make sure that they are not being taken over.

1:00:31 So I IoT is potentially interesting. We continue to look at it. We've had trials out in Florida, but we can't get traction in that space. Whether that's a timing issue, sometimes you're just too early. It it's possible. Looking at this a bit broader in relation to m and a, you know, our our our core heart in the business is all about citizen and employee identity. So that's that's the thing we know best. You then move a little bit sideways and you get to device identity. IIoT identity may be worth looking at. We definitely know companies are out there in this space. Right now, you know, we're defining that landscape.

1:01:16 We have different bubbles on our on our on our whiteboards where we put companies in. I'm not excluding this at all. But pure IoT, consumer IoT, don't see it too complicated. It's too low low value from our perspective, and it's too far away from where, you know, we've come from. We've come from very heavy duty b to b. So I'm keen that we continue to play on our strengths and find adjacent markets where we can use those strengths. Paul, what pricing power do you have to raise prices in The US to offset forex headwinds? Yeah. We we've definitely adjusted our pricing in the last couple of years, Paul. We need to be careful here, particularly in The US markets, in the federal markets.

1:02:09 All prices are published in the public domain. There are things like GSA schedules where the government forces suppliers like ourselves to publish our price list. It's an interesting observation, but there is a limit to how far you can push the boat. And believe me, when I joined the business, I said to Andy, said, we we may have to look at our pricing, and and we've done so. Whether we can do that again now, question mark, but it's an interesting observation. We made your competitors. I think we've answered that question earlier on, so I'm gonna skip that one, Bill. Bruno, can you give us a feel of many companies of the size smaller or similar to INTERCEDE are present in the PKI space? Probably 15 to 20 companies in the the real competitive kind of space. Some of those are bigger. Some of those are smaller.

1:03:01 But I would like to think that what we're one of the more dominant players in that in in that in that space. John, great overview. Thank you very much. This question probably overlaps with others you've received, but why would a US government agency, for example, choose to partner with a small company in Littlerworth rather than a US Nasdaq competitor? I like the question because we've asked ourselves this. But at the end of the day, we provide a solution, John, that you would struggle to buy in The US. And even if you can buy it from some of our US competitors, they don't provide a platform that is as advanced and and proven out in the market. You know, this this small company in Letterworth has had these, you know, recognizable clients for a long time. They've stuck with the platform. We have companies that have renewed fifteen, twenty years on on the on the go. They have probably upgraded in those periods four, five times. So I don't think they can buy the quality of the codes, the quality of of the expertise we have, and and and the functionality.

1:04:11 I think I'm not trying to be arrogant here. I just think that's that's very much the driver. Andy, you got anything else to add on that one? Going back to when we first started making sales in The US, then it shows the importance of the channel partnerships as well. So a lot of these long standing deployments that class has referred to reflect early partnerships with the likes of RSA Security and VeriSign. So that gave us credibility to enter the market. They were the people actually making the sale to the government agency, and we've built on that with subsequent relationships, and we've built the the reputation and awareness of MyID along the way and and reinforce that with the customer advisory boards that we've instituted in the last couple of years, which tend to have a mixture of attendees both from our partners and from the end customers.

1:05:10 And that's quite interesting in that we we see both. So it's been a gradual evolution. We need to continue to be market leading in terms of what we do. K. Question from Roger. Have you considered raising more capital to enable you to expand sales marketing activity more rapidly? I don't think we need to raise capital in order to to do that. I'd much rather, if we need to come to the market to to to raise capital, use that for acquisition. You know, we have plenty of cash in the business. If we need to fund a sales and marketing expansion, we're actually doubling the size that is from one to two on the on the marketing side, but what, you know, we do that from within the business. We don't necessarily need to come to the market for that.

1:06:04 Bruno, what's the average length of time between signing a partnership, getting the first sizable revenues from new partnership, twelve, eighteen months? Yeah. It depends whether there is a deal on the table. You know, sometimes those partners are already active in an installed base in one of their installed base customers. It may be a net new opportunity for us. Sometimes the customer may ask, sorry, the customer or the prospect may ask for us to collaborate with their incumbent, and that's absolutely fine. We we happily do that. So they are probably the cases where it may run faster, but, you know, to to source your partners, to recruit them, to train them, to onboard them, to do the joint the joint marketing, you are you are definitely twelve months down the track. What we are starting to see, revenues coming through, and and and that's the encouraging sign.

1:07:02 When we look at the relationship line Guidehouse, we've consumed our first deal. That project is is moving very, very well. It's it's it's it's it's aiming for go live, so that's good. We have other opportunities now in the pipeline. That's good because if it's just a single deal, then, you know, you need to continue to recruit and recruit and recruit new partners. But the trick on on the channel partner side is that, you know, you get multiple opportunities per partner in the pipeline. We have a a good partner in, for instance, in in Austria. It's a long standing partner. They probably got 20 plus joint installed base customers. They have multiple opportunities on the pipeline at any point in time, and and that's really what what what we what what we want to do. Adi, there's a question about management's stake in the business and your biggest shareholders.

1:07:57 I saw you flicking through the papers, so I think you're welcome. Yeah. So I guess the the biggest shareholder is a family trust. They have a representative on the board. So as a result of of of that and and other shareholding, myself and and and my fellow directors takes us over 30% for the management element. For the for institutions as a result of the convertible and bringing a couple of new institutions on board, that's taken the the long standing interest from the likes of of Herald and Canaccord and LINE Trust, who's still with us. That's taken the combined from institutions to nearer 20%.

1:08:46 So, you know, that those are the biggest shareholders. We also have a number of shareholders who who go back to when we floated back in 2001 and have been very supportive through the throughout. Another question from Bruno. Staff costs grew circa 400. I assume that's 400 k last year. Do you expect something similar next year, or do you plan a step up because of you entering an expansion phase? Andy, you wanna take that one? Yes. I would expect it to be a little higher. We took on two extra people last year, a couple of developers. This year, we're projecting more like three or four and the same the year after. And so do expect that that to be higher. And and I guess we as Claus has said, we've we've obviously put ourselves in a much stronger position cash wise for us to do what we need to do resource wise.

1:09:46 Question from Simon. Would insurance cost reduce the cost if a company uses you any idea? I'm afraid, Simon, I don't know. I'm not really an insurance expert, so I'm I'm afraid I can't use the I can't answer the the question. Andy, last one, I'm gonna pass on to you. Will any placing the earnings per share enhancing? Question from Ian. I I well, presuming the place in this for us to make an acquisition, then I guess it's going to be depend upon the nature of what we're requiring and and and yeah. And I guess the the hope would be that we would be identifying targets that were earnings accretive, but we will we will need to go through the systematic process of a long list and short list and what that brings to us in terms of our offering and why is it we're buying a particular entity. So watch this space. You know, we've we've got the we've got the expertise on board to go through a proper process.

1:10:51 We need to get that first acquisition right as one somebody else has has has observed. That is not it is not a given. There are far too many acquisitions that fail for any number of reasons. As always, it's very important to get the first one right, and that will be dealt within the round. Right. We got another question from Barry. What's the f y twenty two order book look like compared with previous years? Any final based orders booked yet? And you you wanna answer the first part and I answer the second part. I quite fancy the other way around. But anyway, the the order book in is is continuing to grow, albeit what we've done management rate wise, we're now working with the US dollar rate of one forty.

1:11:38 So it's not that different year on year as a result of being one forty rather than one thirty. What I would add is that my chief exec is relatively cautious in putting opportunities in the order book. He he tends to, particularly on the large ones, prefer to let it gradually evolve through the cycle to being closed and then put the full value in towards the end. So if anything, our order book is likely to be understated. I'll take the the second part. I'm afraid, Barry, we've only just launched Fido in in v '12. We have a pipeline of opportunities that's starting to emerge, which is good both in our existing client base as well as as potential net new prospects, and there are some really interesting names coming through.

1:12:29 But I fully expect it's gonna take another six to nine months before we we see any progress with those. So by the time we come back in in November, maybe, Barry, I've I've got an update for you on on on that specific question. I think we've cleaned the questions out unless I'm I'm gonna jump in. I suspect I might keep you here till 09:00 if I don't. So thank you both for being so generous with your time, I'm sure. And thank you also to the investors for taking the time to submit those questions. Perhaps I know investor feedback is important to you guys, so I'll shortly redirect investors to provide you feedback. But perhaps I could ask you for a few closing remarks before I do so. Yes. So a couple of final words then. We're still dealing with the effects of COVID as as as witnessed by our strong US performance, but, you know, somewhat muted rest of world revenues. But, you know, we're well prepared for the markets opening up. We've delivered six halves of growth in all areas. We've retired low note. We've added new functionality like Fido and and mobile authentication, and we will be addressing, you know, a much larger target account markets.

1:13:39 We have a highly committed and loyal team of colleagues, you know, who day after day, I think, deliver the best code in in our part of the industry. And, you know, we aim to deliver that sustainable revenue growth and profitability. We've had an encouraging start to the year. I'd like to thank you for attending. Look forward to updating you again in November. So thank you very much. Klas, Andy, thank you very much indeed. Could I please ask investors not to close this session as you'll now be automatically redirected for the opportunity to provide your feedback in order that management 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. Behalf of the management team of INTERCEDE PLC, I'd like to thank you very much for attending today's presentation. That now concludes today's session. Good afternoon or early good evening to you all.