Journeo (LSE:JNEO) — Final Results

0:01 Good afternoon, and welcome to the JOURNEO PLC final results investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged. It can be submitted at any time via the Q and A tab situated in the right hand corner of your screen. Just click Q and A, type in your question and press send. 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 we publish responses where appropriate to do so. Before we begin, we'd like to submit the following poll. I'd now like to hand you over to Russ Singleton CEO, Nick Lowe, CFO. Good afternoon.

0:30 Good afternoon, everyone. Thank you for joining the, IMC session to hear, a bit more about, our story and, FY '22 results. My name is Russ Russ Singleton. I'm the chief exec, and my colleague to my right is Nick Lowe. He's our chief financial officer. JNEO is a a business, obviously, list of all name, and we are a sort of a a business that provides information systems and technical services to The UK transportation sector. It's predominantly public transport, but we do have, some activities also in rail and specialist vehicle applications. Our results for f y twenty two just been published, and, we're pretty pleased with what we achieved.

1:18 We set out some sort of ambitious goals for the for the business, and we've broadly delivered them. Revenue was up 35%. The number of connections to our software and services platforms, we've got a number of them, increased significantly.

1:35 And profit more than doubled. And the sales pipeline of future opportunities also has grown very, very strongly indeed. We're seeing increasing adoption of our our technology, which is quite important to us. You know, some of the space that we operated in were commoditizing, and it's really great to see that people are coming to us due to our innovation and our new solutions. And I'm so delighted to say that results were in line with market expectations. I'll hand over to Nick now to talk through the financial results. Okay. So revenue was $21,100,000 which is up 35% on the prior year. Two segments of the business, fleet and passenger fleet was up 34% and passenger 37%, so strong growth across both.

2:25 Gross profit was up 29% to 7,800,000 We lost a bit on margins. We dropped 1.8% of margin to 36.8. Two key factors in that, some supply chain elements which are starting to write themselves now and should be okay later on this year. We had a couple of large contracts where we take a took a lower upfront margin, but gained a much higher margin on the recurring revenue through 2324 and beyond. Underlying profit, as Russ said, doubled to 1,200,000 PBT more than doubled to £900,000 Cash dropped in the year to £05,000,000 This is before the acquisition of Infotech. So as we sit here today, we have over £5,000,000 of our own cash.

3:11 The reason for the drop within the JOURNEO business last year was purely the how busy we were. We were much our run rate was significantly higher towards the year end, so stock and debt as a function of that were much higher. We spent well over 1,000,000 in R and D, and it's worth noting the 900,000 PBTs after that expenditure on R and D. Excellent. Thanks, Nick. So the next slide really is about sort of what we were doing, and what's been sort of behind some of the growth. So, the first thing really to note was that, we had a a significant increase in the number of orders that we received in the year. It was up to 27,000,000, And, and that doesn't include any value attributable to framework agreements, which we also secured in the year, but, the framework agreement can actually have no commitment to to actually to buy anything. So we only book them onto our SAP system when purchase orders flow with them. So the, the total value of the business that we generated is considerably higher than the 27,000,000 that we put onto SAP.

4:19 And we already mentioned that we've seen large number of connections to our software platforms. The icon on the right actually where we put 15,000 is. So we talked about about sort of 10,000 buses, coaches connected to the platform, but we also have about 5,000 bus bus information screens and in city, what we call totems, which can have sort of public information and also travel information on them. At the moment, they're not connected to our, cloud SaaS platform, but we have a program that is connecting them, during this year. So we are anticipating by the end of the year, we'll probably have something like 20,000 concurrent connections to our platform, generating monthly, service or licensing revenue.

5:13 We've got, quite an active program managing our supply chain. I'm sure you're all familiar with the difficulties in obtaining some high performance semiconductors, particularly from Far East, where we've been able to mitigate that either through redesign recertification, we've done that. But in many cases, we haven't been able to do that, and that's led to some strategic decisions about holding our inventory. And, we have increased the number of suppliers or industry complementors to help us do that. In due course, we do expect to start to consolidate the number of suppliers within our supply chain, largely as a result of the improved buying power or deeper connections that Infitec has within a specialist manufacturer.

6:01 All of the numbers that we're talking about here and all of the sort of operational aspects predate the Infotech acquisition, which we concluded on the January 17. So it's not included in here. And the so the business actually, in this reporting, had just over a hundred hundred people, 106 people, and we've seen some quite important moves now with a large fleet commit committing to our solution.

6:34 Sort So of notable one was basically a software as a service contract framework contract with First Bus, but we've also had others with other bus operators and coach operators and indeed some some rail opportunities. We had a contract with Heathrow Airport to provide our busing and service level adherence solutions in. That's actually a contract that we scored twenty twenty one slash 22. But at the beginning of this year, they invited us to connect in a number of other mobile assets, things like, aircraft, deicers, and snowblowers, these sorts of things. And that's particularly challenging, development because a number of those assets are stored out of sight of GPS connectivity.

7:24 So we've had to do quite a bit of work on heuristics and some other sort of technology to enable that.

7:30 And we are anticipating, once this is finished, that that would be a sort of package, software package that we could then take into other airports, around the world potentially. And finally, on the operations side, we we we've seen increased, importance on our sustainability. It's becoming an a larger component, particularly in the public tenders. So we've continued our our program to, basically to invest in sustainability and ESG. And, during the year, we we retained all our ISO accreditations and and our cybersecurity.

8:12 I'm back to Nick to run through the business segments. Okay. So the the the bottom three graphs is we have JOURNEO as a group on the left and the two key fleet and passenger segments next to it. Graphically, we demonstrate that this a one year increase. If you look just over the last four years, we've had 23% compound annual growth for the business, all organic. So it's, say, not just a one year, looking back four years, we've had strong growth. The top left element is highlighting our key contract wins last year, and this is spread across the different sectors of the business. So Ross has mentioned the first plus $9,000,000 SaaS framework. That was a three year framework with the option for a further two years on top of that in fleet side.

9:02 Edinburgh was a contract we won in late twenty nineteen, and this was phase two of the contract where we received the PO in early twenty twenty two. Heathrow and Dublin are both airport wins. Heathrow was, as I said, a second phase from a previous award, and Dublin was a new award where we're just starting to work there now. So none of the revenue was last year. This is all all into this year. Network Rail and GBRF, both on the rail side. Network Rail was announced late 'twenty two. And again, so that revenue wasn't recognized last year. That's to come in the future. And then Nottingham and Derby, so this is on the passenger side of the business in this scenario where Nottingham Derby is one of our biggest estates of displays. We won GBP 3,500,000 from them both last year. We've had success announced in previous years, we are winning from them again this year as well.

9:58 Thanks, Nick. So sort of technology and innovation really, what this is about is it's about, developing solutions that drive right at the heart of our customers' economic models. So, we we can't sort of approach them with some, you know, fabulous new concept and try and sell it to them, because what they're interested in is is trying to be more efficient themselves. They've also got their own kind of sustainability issues, and this is whether it's an infrastructure customer or a public transport operator customer. So what we're looking to do is to integrate as many of the disparate technologies on board and bring them together into a common sort of common platform, which then can be remotely accessed. And we've had a a good degree of success with with with that where we've sort of been able to integrate telematics applications with driver safety and awareness systems along with the CCTV and another sort of intrinsic onboard safety systems.

11:00 And that's had quite an impact on the value of our solution. And we've been able to do that actually into the legacy market because the number of new vehicles being registered over the last probably three or four years has been suppressed from the historical long term average. And, you know, obviously, we've done very well to drive our top line growth by by achieving this. When we get into the sort of, local authority space and we're talking about sort of street furniture, active street furniture, all to do with real time systems, there's a move to, introduce a new sort of IoT based protocol called MQTT. And we've been adopting that in our technology actually for some time. It's about to be ratified by, the steering committee.

11:47 But that's also been driving our growth because we've sort of preempted the the standard that's that's going to come, and we've got that feature right now. And then another area that we wanted to sort of bring out is that there's sort of intelligent automation where we're gathering quite large datasets now from vehicles and also from the the systems in the street. And we're using machine machine learning and AI, to really pull meaning out of these huge datasets. And we're finding some insights actually that are sort of, not really intuitive. And when you bury in sort of dig into them, you find some very useful nuggets of information buried in that data. And we're using that to improve the service that we deliver to our customers, but also we're delivering to our customers so they can improve quality or safety of the systems that they deliver to theirs.

12:42 Because JNEO is a b to b business, but a lot of our customers are actually b to c where there's, you know, members of traveling public, either on the vehicles or in the airports or actually walking around the streets and looking for the information. Our approach hasn't changed from day one. We are an agnostic open provider. It's all standards based. And and also we have a program now, which I mentioned to or alluded to earlier, where we are looking to bring our content management system, which is a software application called EPI. We're currently in version x, which is why we refer to it as epics. We're porting that now into the cloud. And later this year, we'll be able to deliver additional sort of microservices directly either for the user to to operate or for us to operate ourselves.

13:33 So we'll be able to do much more throughout the infrastructure. Okay. The next slide is we're really proud about. This is sort of calibrated business that we that we deal with. We're very, very happy and delighted to to be working with a coach provider with, you know, one or two coaches just as we are to work with some of the larger fleet operators with five or six or 7,000 vehicles. And it's not just limited to the to The UK. We have customers in in France, and we have a base in in Stockholm where we have five full time engineers. We have a a registered company there where we look after VR, which was formerly Ariba Sweden and and also and throughout The UK, a real good connection of customers.

14:26 There's about a million journeys a day now being informed by the data systems we we we provide. The next slide is is really why we are excited about this, why we are here, frankly, and it's why, why myself and Nick have chosen to invest in this business. The board hold about 4% of the equity in JNEO. And, and what we saw a number of years ago when we sort of came into the business and saw an opportunity to to to kind of create the business that JNEO is now becoming is these sort of external megatrends where urbanized sorry, the public transport needs to decarbonize as part of the overall sort of climate change strategy.

15:19 And at the same time, the use of public transport, which obviously is a source of c o two emissions, has been falling over a very long term. And you can see that the infrastructure in this in a in a town has been siloed, so things don't actually intercommunicate, which makes interoperability very difficult. And we see an opportunity to link together the different vehicles with the infrastructure and the components within the smarter city to create we won't get all of that. Obviously, it's far too big and far too long time duration, but we could integrate parts of that. And so what we saw really was JOURNEO was because we had a good market share of predominantly bus safety systems and also local authorities that we could combine them. And that really is something we've been working on now for some time. We put over 5,000,000 into r and d over the last few years. And we're starting to see now, real sort of governmental commitments, not just in The UK, I must add, to to decarbonize public transport with the move to electric vehicles or hydrogen fuel cell type technology.

16:33 And right at the bottom right hand side of this silo, it's probably not as clear as I could have made it. There's a few quite significant government, stimuli packages. One of them is the bus service improvement, plan or BSIV. It's a an acronym that some of you may have heard of. And this is where the government have put 1,200,000,000, into, local authorities effectively. There's about 30 of them. It's been allocated across the next five years, and it's to sort of improve the whole amenity of the use of public transport where the local authority has formed what's called an enhanced partnership with the transport provider or transport providers in their in their area.

17:20 And JOURNEO spent probably the last two years or so with webinars and white papers and writing A and E specifications and kind of trials and demonstrations of technology which is yet to come,

17:34 basically to encourage people out of the cars and into public transport. And it's a it's a really important we see it as a market driver, actually. And the other one is the, I'll try and get this right, is the city regional sustainability transport supplements, grants, which is bit of a mouthful. Now this is a 5,700,000,000 package over five years running effectively from 2022 to 2027, and this is for mayoral combined authorities, and there's about seven or eight of them from memory, again, over five years. But what this is really to pump prime initiatives on things like, you know, trend applications or extending metro applications.

18:19 There's some very, very big programs in here, and and we're active in a number of them. So as a result of this, we see it's called an inexorable move to decarbonize public transport. We can see that the vehicle manufacturers are also moving away from, you know, from hydrocarbon based propulsion systems to electric or hydrogen or hydrogen hybrid fuel cell type technologies. And the charging or refueling infrastructure is also now starting to to to to grow. So we're not expecting this to happen overnight, but we are expecting now that this is going to be a pretty interesting place to be for the next five years as The UK initially, but also other countries decarbonizes its public transport.

19:07 And we're seeing steps already now outside this into the commercial service market, the CSB market, where they are also now at sort of advanced trials of electric and hydrogen based vehicles using some of the sort of technologies that JNEO has developed for for bus coach and Andrea. So our strategy, for those of you that aren't familiar with us, we we the business has been around for quite a long time. In 2019, we we sort of launched this JNEO PLC, the JNEO being new journey that both we were on and we felt our customers were on.

19:53 We've been trying to get a profound and technical understanding of the core technologies, that that are applicable to these transport applications. And from 2019 through to 2022, it's worked really well for us. It's driven, as Nick said, a 23% compound growth in our revenue. And this last year, we've seen some quite significant moves now to adopt our technology. And it's an integrated service. It's not purely software and it's not purely hardware.

20:25 It's a combination of those with the agnostic approach that's driving our growth. And towards the end of last year, we we locked on to actually, there's a number of potential acquisitions that we're looking at, but we locked on to one of them. And through

20:45 with, ultimately had a a very successful and oversubscribed placing for first acquisition, which is Infotech, which I'm going to come on to next. Actually, I should talk to about the the airports first. So this is just a timeline. So on the right hand side, our first airport was Gatwick. That was back in we actually secured the contract in 2016 and began the program in 2017. That's now just come out of its five year

21:18 original maintenance package, and it's being renewed with with some technology refresh in it. During the commissioning of Gatwick, a number of the airports came to see what we had there, and, that led to, Stansted, effectively adopting the same solution. That then led to the cellular system at Heathrow, which then has led to the cellular system at Dublin Airport, which we are about to commence. And whilst it's much smaller, we also secured a contract at Bristol Airport. And, last week, we secured the, the, East Midlands Airport with the first bus. Okay. Now I've come on to So Invertake is a a business that's been going for twenty five years. It's the leading rail passenger information displays provider in The UK. It's on about 8% of The UK rail network.

22:19 From the stats, there's about 2,500 stations, and it's not all of them have active, information systems on them. The ones that do infotech on about 8% of them is also on about third of the underground. It's a well established business, just over 40 people with a 25,000 square foot manufacturing plant, three miles from JNEO's HQ in Ashby in the Midlands, and it has, a really enviable list of rail accreditations and all the test facilities that go with that. And some recent prestigious projects, you may well have seen actually, the widescreen displays above the doors on Crossrail Elizabeth line over there in for tech. And the 30 meter concourse displays at Waterloo and Victoria are also in for tech.

23:10 But particularly notable is it secured a contract with a media company, an outdoor media company in The United States who have the, advertising rights on the New York mass transit project subway. And, Inputech secured a contract there to provide around 5,000 displays to 500, just over 500 new subway cars, so roughly 10 displays per train set effectively. This is really important for them because it's the first sale of their technology outside The US, and it's really interesting opportunity for us because it it sort of provides JOURNEO with a foothold now in the sort of important North American market for some of the other things that that we have that we're planning to do.

24:01 The business itself is UK based manufacturer. A number of people might rise in our buyers about that and ask why with the so low low cost region manufacturing, say, you know, at least in Europe or even in in the Far East, why you would do this. The reasons they do this is they don't operate as a Centimeters for anybody else. They only manufacture products for themselves. This has given them great agility through the supply chain difficulties. So, obviously, they've been able to revise and recertify their circuit boards, but it means that they have all of the accreditations and the anechoic test chamber in the MC facility to fully characterize the the systems themselves. And in due course, JOURNEO plans to put all of its manufacture, which we currently subcontract printed circuit board manufacture, that will go through Infotech in due course.

24:56 It has a well liked and well respected suite of products, including some very sophisticated content management systems that's that control the displays technology in the rail market. And we right. This is we only completed the acquisition, let's say, on the December 17. But the actions we've taken straight away were to to, obviously, take control of financial systems. And we've begun a program to harmonize the software teams. JNEO has about 15 developers, eight to ten, five or six. So we we're we're sort of bringing those together, sharing some of the the, basically, the design philosophies. We're And doing the same sort of thing

25:41 on the mechanical and electrical design. And in due course, what we expect to do is to see common platform which will lead to less redundant components within our project based sales, which we think can not only reduce the fat consumption and increase the performance, we think it actually lifts our margins and improve the even long term reliability. Inprotect's customers are it's extensive suites of customers, which is taking a snapshot there. So Outfront is actually Outfront Media, which is The US based media company, Siemens Rail Network Rail transport for rails, etcetera. And they beat us because there's about 2,000,000 JOURNEOs a day relying on Infotech technology.

26:32 And as I've already mentioned, out of the two and a half thousand stations, they've got about just under 1,500 connected to with their displays technology in there. So I'll hand back to Nick to sort of just bring up to date on the recent announcements that we've made. Okay. So, yeah, these are a list of recent announcements. All were actually made in March, it's been busy March for announcements. The first one was a £1,000,000 software and service contract with Transport for Wales. This is to provide a content management system across the entirety of Wales. The initial value is 5 is is 1,000,000 over five years, and that's on the that's a base case estimate. So potentially there's there's more on that one. The next two announcements, Network point 7,000,000 and Network Rail point eight million are both wins for Infotech since since we acquired it.

27:25 The first one was is in Kent, and that's replacing displays that were originally installed in 2003. And in Leeds, it's replacing displays in tech originally put in in 2007. Also, two weeks ago, we announced the appointment of Barney Kent as an exec director. All very pleased. He's previously was IdeaGen, which was sold for just over £1,000,000,000 last year. IdeaGen had strong organic and acquisitive growth and and has strong was strongly in software, which we hope will be a strong benefit to us. Gatwick Airport, as Russ mentioned, this is the second contract with them. So this was our first airport. Five year contract ended last year and we've been awarded a five year renewal.

28:15 And the last one is Cardiff. So this was two different awards. One was 600,000 for Cardiff Bus Station, and the second one was 1,000,000, displays across Cardiff. So it's separate from the software contract, but both both complement each other. Thanks, Lee. So, really to sort of try and bring all this together, we what we have in our mind's eye to to achieve for JNEO now in the medium term is, we really want to continue applying this strategy of sort of customer led development. That doesn't mean the customer actually pays for it, but it means that we've got a really good, understanding of what the challenges our customers are facing and how we can help them solve that through the application of, sort of technology, which has been increasingly software oriented, of course.

29:10 And we are well on our way to achieving what we had to go was to 70,000,000 revenue with double digit protein margins in the medium term. In medium term, we sort of think in two to three years. The acquisition of Infotech actually takes us past halfway through that, and we are anticipating strong organic growth to continue in our sort of core markets. We can see an opportunity to increase our market share, but we can also see an opportunity where we can consolidate either our services or the services provided by potential bolt on acquisitions, which we can effectively share our technology and our software service package into that market. So we're looking at acquisitions as being a route to market for our core capabilities effectively.

30:03 And the number of opportunities that we are pursuing right now. We can see also that as a result of the large deployments of our, particularly in the bus market in 2022 where we increased the number of buses connected to our platform from 4,000 to 10,000. As Nick's explained, that actually depressed but it slightly depressed our margins in the fleet market as we were installing the the device. But that now moves into the monthly recurring revenue phase from January this year. So we are expecting the both the software and the services. Now recurring revenue to go quite strongly from this point, and we see that really both affecting, you know, the the the sort of quality of our earnings and the visibility going forward.

30:59 And then we can see other applications for our technology both inside The UK and outside The UK, in what we refer to as adjacent markets where there's sort of niches within there's maybe things like the commercial service market or other markets where there's some unique challenge that they that they're looking to face. Many of them have got quite advanced telematics packages, so we're not going to try and enter the market with a generic telematics application. But where you can derive some meaning from either the vehicle's condition, its location, or the performance of the driver or indeed that environment where ultimately the way they may be no driver, then we can see an opportunity.

31:46 We've got a number of programs now within our r and d that are looking at that area. So it's, formative now, but we think the culmination of these these kind of capabilities will take JOURNEO past the 70,000,000 revenue mark. So we we actually are feeling pretty good about the platform that we've created and the progress that we're making. And, so that sort of wraps up the sort of, the the presentation side. So, I'll hand back to Paul. Fantastic. Ross, Nick, look, thank you very much indeed for the presentation. Ladies and gentlemen, do please continue to submit your questions using the q and a tab situated in the top right hand corner of your screen. I just want the team to take a few moments to review those questions submitted today. I'd like to remind you the recording of the presentation along with a copy of the slides in the published Q and A can be accessed via your investor dashboard.

32:37 Ross Nick, as you can see, we've had a number of questions that have come through throughout today's presentation. Thank you to everyone for submitting those. If I may just ask you just to click on that q and a tab. And where appropriate to do so, just read out the question, give your response, and I'll pick up from Murray at the end. Thank you. Okay. Did you want to have a go? Yeah. First one. So first one is, please could you talk through the working capital profile of the business and this growth working capital consumptive. Differs on on just talking generally of two two different segments of the business. So on the passenger side where we deal predominantly with local authorities, we we are usually, not always, usually cash flow positive with orders. So I say, usually, on that side, we will get an upfront payment, and the cash payments will be will be ahead of our expenditure.

33:30 So so usually, we we we would be yeah. Cash flow costs on that side. Fleet is very different. So so we will be that will that will does does eat working capital. And as you can see in the year end where stock and debts were higher, predominantly that's from the fleet side of the business. So so, yes, as we have grown, we have been working capital consumptive. I would hope from a stock perspective, there's not much more needed to go into that. Debtors will always be a function of how busy we are. So so there's turnover increase. I would expect, more more to go into that. Okay. Let's look down the next one. Okay. I'll I'll take the next one. How much of Incotec's $18,000,000 New York contract was booked to sales in 2022, and how much is expected to be billed in 2023?

34:19 Okay. So, at the end of December, it was about a third being booked, so roughly $6,000,000, that sort of level. Yep. And, the the sort of the the profile suggests that that will probably take about eighteen months to finish. So it's that sort of timeline. We are looking at it it may be a little bit longer, but quite a a chunk of it will go out in 2023. Yeah. Yeah. Some running into 2024. Yeah. Okay. Okay. So I'll take the next one as well. Who are our main competitors and how is your market share? That's actually a really good question and very difficult to answer. We we do get asked this a lot quite often, and I'm not trying to dunk the question.

35:07 It is difficult. So in the in the bus and coach market, our competitors actually are not necessarily the service providers. You might think that it's the service providers, but it's more likely to be, a new entrant or possibly even a manufacturer who has some some self lead technology that they want to bring into the market. And so there are a number of sort of integrated service providers in in in The UK, and we do compete with them. Now once you get into the local authority infrastructure space, it's much, much more difficult to to to talk about that because there are people that also make displays technology.

35:58 And at the moment, they, they tend to be connected into the real time transport systems in the local authorities. So if they went, when the real time system was installed, the displays provider would be, chosen. And then as they add more displays, it tend they tend to buy them from the same place. So the it's even more complicated actually in the local infrastructure and we we do compete with some companies, such as, you know, trapeze and parts of Constellation Software, but we also partner with them. And in some, situations, we might subcontract to them or we might actually provide services to them or between each other. So and it's not unique in in that sense. It's a very kind of complex market. So what we are intending to do, and now we've brought Infotech into the business, is to start tracking things like, our market share, but but not in the sort of commoditized parts of the market, in our target market for some of the the new applications that we want want to bring where it isn't a landscape that's dominated by an incumbent where we are taking market share from them. What we do is we bring in solutions to market that didn't really exist till now, and and we're actually going to start to track that. So it's a really good question.

37:24 Very hard to answer. I hope I hope I haven't built it. Okay. So who do we come up against in tenders and the competitive landscape? It's a similar question. The sorts of businesses that we come up in competitive situations, again, can be sort of large systems integrators. So think about what what what we're doing in an airport or those sorts of situations. If it's something in rail, for for example, with, have their own sort of competitive position. It it doesn't appear to be, a repetitive situation, does it? So we're seeing new people come into the market. They stay for a while. You you see them, in bits for a couple of cycles and then they disappear.

38:18 So we we don't seem to have, like, ones or two dominant people that we see every time. And in many cases, actually, don't know who in some of the public tenders who you're up against. Okay. I don't want to hog all the questions. I'll have this another one at this and then perhaps hand over to to Nick. But with dominant position in The UK and airports, how come internationalize this this segment? Again, fabulous question. We are trying to work out the answer to that. We believe that the way to do it would be to partner up with, systems integrators, or possibly airport busing providers in, you know, for example, in North America or in Asia. We've been talking to a number of the baggage handling, international or multinational baggage handling businesses, and the government is not concluded. So we're carrying out some market research to try and work out how we can resell what we have.

39:21 And I've I've got to qualify that. We also need to check before we do go off and sort of invest too much in this as to whether the solutions that we've developed in The UK actually are as good as we and our customers are saying. It's quite possible because we haven't completed this market research, but it could be something that's actually more advanced or more integrated in other parts of the world that's just not being publicized widely. So but at the moment, we we we believe we do have something that's compelling. It's integrated systems that were previously not integrated, and it's a multilevel solution where whilst we don't do the b to c part of it, our customers tend to be the busing and inter terminal transport providers, both for flight well, both for staff and for passengers.

40:14 But also, ultimately, our customer is either directly or indirectly, the airport authority and what they're interested in, and obviously, is enhancing the passengers' overall experience of using the airport, but also monitoring the service level adherence of their busing outsourced provider. K. Okay. Let's pick one more. Okay. So just we're just looking through the questions. I don't I don't want to hog the questions. Just looking for one for for Nick to to answer. Would like pick one of those? How about you? Okay. Okay. Can you just we've actually got quite a lot of questions. I'm just gonna find one that's not talking about okay. Let's let's have a go at this this last question question.

41:07 This is one that's asking, how close to 70,000,000 revenue can we get with the current shape of our business, and how much will M and A contribute? Really good question. We are expecting the organic growth of the, original JNEO businesses to continue for the reasons that we've explained. And as a result of Infotech, that takes us certainly towards 50% of that mark. Absolutely. Yeah. We do have our eyes on a number of bolt on acquisitions, which we now don't need to come back to the market, but we have the some cash on our balance sheet to do that, and our business is on track to be cash generative this year.

41:53 So we I would imagine that we can get to that predominantly actually now through through our current business with one or two sort of bolt ons, that sort of thing. We're not talking about anything seismic. Although, obviously, if, if that situation was to arise and fitted our strategy, then, obviously, that's something that we would contemplate. But, remember, we think we think we can get there just by by by the organic growth and the small number of bolt ons. Okay. Hand back to Paul. That's fantastic. Thank you very much indeed for covering up all those questions. You can, of course, any further questions that come in, the team will have the ability to review those, and we'll publish all responses on the investor meet company platform. Russ, just before redirecting investors to provide you with their feedback, which I is particularly important to you and the company, can I just please ask you just for a few final closing comments, please?

42:47 Well, so main main thing to say, obviously, thank you for your time for listening to our story. Yeah. We we are developing the business very nicely now. Strategy is starting to work, and we we we believe that this is going to be quite an exciting area to be working in as the sort of UK and other sort of advanced countries decarbonize their public transport. We think we've got something to offer that will make a difference, and we're sort of enthusiastic in this. We have, you know, people that love love the industry and love the technology, and we're trying to make things better at the same time as increase the the value of our business for the benefit of our shareholders.

43:33 So thank you very much. That's fantastic. Rajnek, thank you very much indeed for updating investors' sake. Please ask investors not to close the session. It should be automatically redirected to provide your feedback in order the team can better understand your views and expectations. This will only take a few moments to complete, and that is greatly valued by the company. On behalf of the management team of JNEO PLC, we'd like to thank you for attending today's presentation. That concludes today's session. Thank you, and good afternoon to you all.