Journeo (LSE:JNEO) — Interim Results

0:01 Good afternoon, and welcome to the JOURNEO PLC investor presentation. Throughout this recorded presentation, investors will be in a listen only mode. Questions are encouraged and could be submitted at any time via the Q and A tab situated on the right hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the week itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. And I'd now like to hand you over to Ross Singleton, CEO. Good afternoon, sir.

0:31 Thank you, Lily. Good afternoon, everybody. Thank you very much for making time to hear a story about how JNEO is progressing in our first half results. Just by means of reduction introduction, I'm Russ. I'm the chief exec. And my colleague over to my right is Nick Lowe. He's our chief financial officer. We've both been with the company sometime. I I joined right at the end of twenty thirteen, and Nick joined us in 2017. And today, we're really just going to run through our results. So again, I'm hopefully, that most of you are aware of JNEO, but we provide information systems and technical services to the mainly The UK transportation sector.

1:18 We're pleased with the h one results, a very strong performance in line with our expectations. And what JNEO does is supply software, hardware and services to domestic and international markets. We've got some real momentum behind us. Our revenues are growing, our pipelines are growing, and the group is strongly profitable and cash generative as you can see. Our revenues increased 17% up to 25,600,000. We now have 13.2% of our first half recurring revenues mixed between services and software,

1:56 Six to 7% increase in profit before tax and our pipeline now stands at over 60,000,000. These are qualified, pretty advanced opportunities. Obviously, the total pipeline is much larger than that. So really good strong h one performance. I'll hand over now to Nick to run through the results in a bit more detail. Okay. So so as Russ said, revenue was was was very strong. We're up 17% to 25,600,000. In terms of gross profit, we were very pleased with margins. So we were up 6% on gross margin. We moved to 35%. So we were down last year, and we've gained all the margin back this year. So the impact of that was that gross profit was up 41% to 9,000,000.

2:44 We flowed the profit down very well. So in terms of underlying PBT, we're up 40%, 3,400,000. And PBT, as Russ touched on, we were 67% up to 2,800,000. That seems to flow well to EPS as well, so there were minimal new shares went in the period, so EPS was up to 14.76%. Cash, again, really, really strong. We closed with 12,900,000 at the end of June. We are cash generative. We grew up 12,900,000. Did have some acquisition costs in the period, but they say we still grew despite them, so very, very happy with the cash position.

3:31 Bottom right, we will state our R and D investments. I think last year, were about $750,000 in the half this year, were $1,000,000 so R and D team grew with the acquisition of MultiQ. So we had $1,000,000 pass through the P and L in the half. So the $2,800,000 PBT is after the write of 1,000,000 of R and D. On the slide before, we touched on recurring revenue. So in the period, 13.2% of our revenue was recurring. That's up from 10% of revenue in the same period last year. And as we look forward, we have an ARR of about 8,000,000. So looking forward, we see we're about 16% of revenue, so strong continual growth, and moving moving further towards the number that we that we want to see.

4:26 Into segments, Fleet Systems, was was strong, 17 sort of 17% up on revenue. It's continually growing over about four or five years, so it's a very, very, very strong revenue now.

4:42 Margins were lower in fleets, but lower compared to the rest of the group. So we had a 25% margin, although that is 1.5% up on the same period last year. Passenger systems, again, continual revenue growth there, so 12% uplift on revenue. Margins were 3% up to 46.5%. So, again, very, very happy with that. The bottom graph includes the acquisitions. So we had two acquisitions last year, Infotech and MultiQ. Infotech's revenue was 8,500,000, small variance from the same period last year. Where we're very happy is margin there was up at 38%, which is an 11% uplift from last year. So all three of those segments had uplifts in gross margin.

5:34 Additionally, we've got MultiQ, which delivered just over 2,000,000 revenue, and that had a good margin of 40%. It has a strong recurring element as well. So, again, very, very pleased with that. And then then on the left hand side, just some of the contracts we announced during the half. So we up we up the threshold for announcements to a million pounds last year. So we only actually had about, what, three three or four announcements last year, although our total order intake was was about 24,000,000. So, yeah, strong performance there. Excellent. Thanks, Nick. Then really just to pick out some of the sort of, highlights from h one. So as Nick just said, we've actually had record order intake during h one, up from 18,000,000 in the year before to 24,000,000 and that run rate has actually continued into h two.

6:27 So really providing the confidence that that that's needed for the remainder of this year and into 2025, very, very strong trading. R and d investment increased to about 1,000,000 again as just mentioned by Nick there. This is a key part of our strategy. We we're very closely bonded with our customers. So we're we're solving real world needs that they have. We don't tend to have contracts where they place the development with us. We prefer to retain the intellectual property. But the the the r and d is what we call customer applied or customer led, and this is why it's it's driving our growth effectively.

7:13 In January, we formed the JOURNEO design center, which is a a new sort of structure within JOURNEO group. And that is to apply infotech's design for manufacturing and design for service methodology across all of JOURNEO Group's products. So we're bringing our products that have historically been manufactured in our Coventry plant through a design for manufacturing process And in due course, they will be the microelectronics parts of them will be produced at Inputech and this will give us a cost reduction in their cost of sales. It will give us the benefits of scale economies, high volumes of components. But crucially, it will give us the standardization of service. So our engineers, we have nationwide network of around 40 engineers with vans and spares.

8:04 They will require fewer spares in the inventory and it will increase the familiarization of the products. And then lastly, it will also give these products the international approvals and accreditations for them to be sold on a worldwide basis. So it's a very big and important step for JNEO that we do this. The first products coming out of the JDC will be launched into the marketing q one twenty twenty five. And so simultaneous with that, we'll start to build international channel distribution for resellers and value added and VARs effectively. The other sort of key points in here is that we're also strengthening the senior leadership team. We already have an experienced senior leadership team around Nick and I. And through the acquisitions, additional high caliber people have come in. But we're strengthening further strengthening this with other appointments, which we expect to be making towards the end of this year and into 2025.

9:07 And that's to give us the bench strength effectively to double the business from sort of 50,000,000 to a 100,000,000 in the next two to three years. And the final point really is that we are extending the JOURNEO portal, which is going to be effectively brought to the market under a new brand, which we're calling Apex in November. And that will be bringing in all of the cloud based applications initially from JNEO Fleet Systems and JNEO Passenger Systems. But in due course, it will bring in across the systems such as that are embedded within JAVELIN and also within JNEO groups, EPI, which is an executable program, not cloud based currently. So we've seen really over the next twelve months, the number of connections to our our cloud based application will more than double.

10:03 And also that will then give us the opportunity to license the micro services which are within them, which we currently don't do. So we're expecting our SaaS revenue to increase and the margins as a result of that to increase. And that will see the the recurring revenue drive up from the 16, I think, is the number that Nick indicated looking forward. We can think we we can see how we can punch through to 20% and beyond with this strategy. And then the other thing really just to to bear in mind is that millions of journeys now every day managed either by JNEO or Inpatec or MultiQ software. And obviously, we're heading through to sort of 50,000,000 revenue and then now 200 people in JNEO group.

10:54 Okay. The next slide really is just a snapshot of the people that we work with. And we're obviously delighted to be providing services to some of these people, local authorities, transport operators, media companies, rail companies, variety of businesses here. Some of them have been buying our services or by buying our products, but over the last few years, we've actually been embedding ourselves within their operations. So some of the the the fleet enterprise and the airport enterprises now are running on the back of JNEO JNEO software and systems. This next slide really is what excites us about. It is why Nick and I and the board have actually invested our own money into this business with shareholders.

11:47 And it's what we've seen really coming for a number of years that the public transport infrastructure and the systems on board the vehicles are fragmented. They don't interoperate and don't interconnect. And due to things like urbanization, that's driving up congestion. And it's just an inexorable move to have to connect these these systems together to enable people to continue to move around increasingly congested cities. We see an opportunity for JNEO to be the convergence partner both at the systems level and at the product level. And we've been acquiring market share in the local infrastructure and also on the fleet market to enable us to do that. Then have the sort of climate change and a move to decarbonize public transport and also freight transport, which again is going to require interconnected systems.

12:43 I won't go through all of these, but there's some amazing technological breakthroughs on the horizon, particularly coming out of artificial intelligence and also solid state battery technology, which are going to drive fundamental change into the way that we all move around our urban landscapes. JNEO is well positioned to be the sort of partner of choice to to provide these systems. There's also very significant government stimuli to enable this in The UK and in other countries now, but The UK is leading leading the charge here. And there's three sort of main financial pillars that I'd like you to draw your attention to. So number one is the b SIP plus service improvement plan. This is initially 1,200,000,000 and that's aimed at local authorities on fleet operators who form enhanced partnerships to gain access to

13:35 this funding and that started we have received contracts already under the b SIP program and we're starting to see now fleet operators increase their renewals back to sort of the five to 7% per annum for electric vehicles and in due course hydrogen fuel cell vehicles. It's a great catalyst and obviously it poses a number of challenges to the

13:59 domestic vehicle market manufacturer because the Chinese electric vehicles are lower cost and they have higher range. But it's a really good good sign for JNEO and we expect this now to to to continue. And on the city regional sustainable transport settlements, it's not easy to say the CRSTS. That's 5,700,000,000 that's been allocated to local authorities over over five years, about one just over 1,000,000,000 a year. And and that's to improve the whole amenity around public transport, so creating parking ride applications, pedestrianizing parts of the inner cities, and increasing

14:41 safety systems around cycle lanes and reducing pollution. Again, plays very, very strongly into JOURNEO's sort of core core capabilities there. And the third one, there are others, but the third one actually is the rail control period seven. Sort of 45,000,000,000 or so has been allocated to that over the next five years. It started in April this year. And whilst we're seeing some uncertainty about timing in Great British Railways, the the labors plans appear to support increased

15:22 ridership on the train network. And the digital signal programming is already underway where the signals are gonna move from being out on the track to inside the the driver cab. And all of the systems about optimization and safety are proceeding. So we we will JNEO is looking forward to these sort of three main funds, funding pots as being a significant market driver of our growth over the next three to five years. And it's that that really gives us that confidence.

15:55 The next slide really is about our strategy. Our strategy hasn't changed from day one. It's to form a technical capability and the services capability such that we can create a scalable product and software and services platform as we build our market share in the local authority spaces and with the fleet operators. And across the last four years, JNEO effectively came to market in 2020 when we launched our cloud applications and the brand changed. And we've had some landmark deliveries in each of the last four years. I won't go through all of them, but in 2021, we launched Stanford Airport and we secured our first wins in Wales. In 2022, we secured fleet wide rollouts of our cloud based application and we secured our largest software only order.

16:48 And at the end of 2022, we commenced our M and A work. In 2023, in January 2023,

16:55 we raised £8,500,000 with Cavendish's help in a four times oversubscribed place and then we acquired Infotech. We have further adoption of our software in Wales. And in September, we acquired MultiQ for €2,500,000 from Swedish parent company. And in 2024, we've continued that growth, very strong organic growth.

17:19 We've begun the JNEO design center and very recently, we've started something called project odyssey, which is to unify our production and manufacturing with the Inphatec methodologies, which will give us the EMC, UL, and FCC approvals. So the products that will come out of that, which we're gonna be launching in January well, sorry, in q one twenty five will be world class products that can be sold on the world stage. We've also continued our m and a work, and we are anticipating completing one or two acquisitions early in the new year. These will be bolt on levels sorry, bolt on acquisitions, not at the sort of transformational level, although we do have some discussions about transformational level acquisitions, which we may be completing during 2025.

18:14 We will need to come back out to the market for those. These are beyond the cash and debt facility that JNEO Group currently has. But a very say, very strong

18:25 and well focused strategy there that's delivering for us. So to sort of bring this together before we sort of move on to the Q and A, our strategy is to continue the development of JNEO through technology enabled growth both organically and acquisitively and to take JNEO up through the 100,000,000 revenue into the 100,000,000 market cap by delivering on our ambitious targets for increasing recurring revenue, increasing the software component within that recurring revenue.

19:01 And the reason that we believe that this is achievable is back down to these these sort of global stage effects of the megatrends effectively. Rapid urbanization, driving congestion, that's going to require autonomous levels of, intercommunication between infrastructure and the vehicles and five g, very low latency networks. JNEO has been positioned itself in that place. The climate change is gonna move

19:29 from diesel based propulsion into electric and hydrogen fuel cell. That means that the vehicle is effectively online continuously. It's gonna change the market for telematics, but it means that things like the artificial intelligence, machine learning, and the sort of, interoperability of the systems is gonna be required, and JNEO is being building our market share for doing that.

19:53 We see, lots of opportunity now for consolidation and acquisition, and that is in turn going to increase our operating margins as we if it's a consolidation, as we take out duplicated cost, or if it's acquisition, as we share our technology with these businesses. And we're also now being attracted to opportunities in adjacent markets that could be adjacent territories, for example, into North America or further into Continental Europe or it could be businesses that are working in other sectors of the market that JNEO currently doesn't have the domain expertise, but our scalable technology can magnify the capability of these businesses.

20:41 So I would describe those both bolt on and territorial expansion. So that completes the presentation in terms of our results. I'd now like to hand back to Lily before we move into the q and a section. Ross, Nick, thank you very much for your presentation this afternoon. Ladies and gentlemen, please do continue to submit your questions just post the q and a tab situated on the top right hand corner of your screen. Just while the company take a few moments to review those questions submitted today, I'd like to remind you that recording of this presentation along with a copy of the slides and the public

21:15 q and a can be accessed via investor dashboard. As you can see, we've received a number of questions throughout today's presentation. Can I please ask you to read out the questions and give responses where appropriate to do so, and I'll pick up from you at the end? Okay. Let's take the top one. We should be gonna talk about the the dividend one. Sorry. A bit small on the screen. Sorry. Got it. Okay. So this is from David c. Question for us. Where do dividends featuring boards thinking about future? That's a really good question. The groups have retained losses for some time, but due to our profitability, we're going to punch through that and they will be wiped out during h two, actually. So in theory, a dividend would be possible.

22:01 At the moment, there isn't any agreement to do that. It's obviously something that is being discussed around the board table, but the sort of view so far has been that we have a number of acquisition opportunities and that it's it will probably be a better use for the for the funds to be used in that regard. But that situation may change due to the very strong cash generative nature of the business. So it's there's no decision being taken and we are increasingly being asked the same question. So it's a good question, and I'm not ducking the question. At the moment, a decision hasn't been taken. So I hope that's okay. Katie, do want take the next one? Yeah. So question. In the cash flow statement, there is what's the meaning of cash inflow and acquisition in 2023 of 3,030,000?

22:56 So in 2023, we did two acquisitions. The first one, Infotech, came with a large cash balance. So we actually had more cash come in than we paid out. So I believe that the net movement on that was just over 4,000,000, which we showed in H1 twenty twenty three. The full year movement of 3,000,000 is the acquisition we did in the second half of the year multi queue was obviously a net cash out. So that in effect was the movement, but fundamentally we gained cash on acquisitions last year. Thanks Nick. Stephen P, you mentioned in the last webinar that we're progressing with the European regulatory permissions.

23:43 Can we give an update? Yes. We can. So there's there's a number of dimensions to this. So if we look at it from the, IT for PT point of view, there's been harmonization between German regulation and the ITXPT, so they're now harmonized. And we have an ITXPT development program effectively being led by our team in Denmark who we've also Denmark is more advanced. In fact, the whole Nordic area is more advanced in connected vehicle technology. So that's going ahead and we would expect to be having a fully RTXBT compliant solution sometime during h one next year, which means that we can actually sell it worldwide. The other areas of regulation are actually to do with the design for manufacturing process that we're going through at Infotech.

24:33 So Infotech's products actually are all EN five five one five and have UL approvals for sale in The US, Continental Europe and worldwide in fact. But JNEO products didn't. They were only had the approvals for sale in The UK. And so as part of Project Odyssey, we're we're going through this design for manufacturing and design for service approach, and the products will actually be fully approved. So they'll have ULC, FCC, and all of the TUV approvals for worldwide sales. That's going to start in q one. So great deal of work going on in that regard. So I hope that answers the questions. Can take the next one? Yeah. Okay. This question is there's there's been a debate between a few investors about our net cash balance and whether this is really just upfront payments against deferred revenue or whether anything nets off against it.

25:28 So so we we do have a large deferred revenue balance of of 9,700,000, predominantly comes from our passenger business where where we usually take, upfront payments on on the contracts. There is there is a there is a fair amount of offset against it. So so within the 9,700,000, we have just under 2,000,000 of of the balance relates to construction contract accounting, which is which is a pure offset between debtors and creditors. So you you can remove 2,000,000 of it. There is obviously stock purchased against the contracts, which will easily be another 1 to 1,500,000. And some of the balances would have been invoiced right at the end of the period, so we'll actually sit in in the sales ledger. So so so you can you can you can half the, the deferred revenue balance to actually get the true, impact of how much cash we've actually got, yeah, ahead ahead of that.

26:30 Great. Thanks, Nick. Rob b, question here. With the change in the UK government who appeared to be positive on public transport, have we seen any significant change in the contracting environment or approach? We have we seen this actually since the government change. We actually saw it in the run up to the change where some of the sort of inquiries. This is sort of mainly affected in for tech, I should say. And and that's the rail not sure how much you know about this, but the rail network rail the rail industry works in control periods, They're five year control periods, and c p six ended in March this year, and c p seven started in April.

27:17 And the Williams Shap's report came out on rail pointing to sort of funding that was likely to be happening in CP. So very, very complex picture here. But it looked like there's there's something like about 45,000,000,000 gonna be allocated to CP seven, but it needed to be matched with savings and efficiencies. And what we've found in the JNEO fleet system side of our business is that it's had sort of the opposite effect. We've it's actually stimulated opportunities and we recently announced 3,000,000 of wins with Portobroken or EVA train care. But but but the Inphatec, it's actually sort of put a delay in terms of projects which he was expecting to be working on through with Network Rail.

28:13 And so it's like a there's like a twofold effect of this. There's some question marks about how the the the TOCs are going to operate in the new GBR model and also how the HS two is actually going to spin out. So at the moment, we've we've seen a sort of overall, it's a neutral picture. It's been it's it's better than we were anticipating on on this onboard vehicle side and slightly slower than Inphatec were expecting on the infrastructure side. But I must add the actual pipeline of opportunity that we have is bigger than ever and if Inphatec actually is enormous.

28:58 So at the moment it's given us despite the uncertainty and obviously we haven't got a crystal ball, we don't actually know what the government are going to say. We're feeling pretty confident actually. Well, very confident about 2024 and 2025 in terms of delivery, if that's okay. So do you want to take the next one? Yeah. Should I go can Can I You scroll up. Yeah. Yeah. Could you please provide a little more detail around the recent margin expansion? So so yes, we we were we were down about the same amount last year. We were down about 6% last year. We we had we had three or four factors impacted last year's margins.

29:46 We had we had some one off contracts where where we did have a lower upfront margin, but we've gained on that in the future from recurring revenue. We had the supply chain issues last year, which have very much washed themselves out. And we we had one particular I think we noticed we had one particular product line where where we received an increase from the supplier, and we couldn't immediately pass it on to the to to the customer. So so we we said previously, all all of those, most of those righted themselves towards the end of last year. We we've seen all that come back this year. And then coupled with that, we've also seen that the recurring revenue proportion has gone up, and that's where we see a gain in the margin. We we see that keep keep keep keep on moving forward.

30:39 So so we won't we won't get another 6% gain, next year, but we expect to see, margins still continuing to increase. Thanks, Nick. Question from e and w. When we say 100,000,000 turnover in the medium term, what time length number of years do you foresee? So what we're aiming to do here is we think we can do this in a two to three year time frame. And the way that we think we can we can achieve that is about 50% of that coming through organic growth. So taking our revenue, let's say, currently around sort of 50,000,000 mark to 75 and then the balance through acquisition. And this is quite a we think it's quite an achievable objective.

31:26 A number of the acquisition opportunities that we have would actually take us well past that 100,000,000. So at the moment, we we think it's a fairly cautious view and and we're aiming to to as we do this to improve both the quality and visibility of our earnings. So increasing the recurring revenue and increasing the software component within that recurring revenue. So I hope I hope that's okay for you, Darian. There's a lot of duplication, actually, in these questions. Yeah. Don't don't know. Forecasts are the same sort of questions here, aren't we? Right.

32:13 I don't know. Done that. So just bear with us a few. We we can't see all of the questions. Would buybacks not be preferable to dividends given the shares valuation? It is probably a similar discussion point. Is this Daniel? So let's say we have a good cash position and we're strongly cash generative. At the moment, we believe we've got first mover advantage with some of the technology that we've developed. And therefore, what we would like to do is to capitalize on that through acquiring businesses that are a route to market for it. So again, rather than using the cash for dividends or buybacks, we at the moment, we we prefer to deploy it on on sort of business development type opportunities.

33:05 Shall I do that one? Yeah. Take that one. Yeah. That's a general question. Does the potential raising of CGT in the budget provide acquisition opportunities? At the moment, it's it's I guess it's it's more likely delaying any any opportunities. So there's, what, five or six weeks away from from the budget, which isn't time to complete an acquisition, so it's more likely that certainly, we couldn't complete one by that time. It's it's, it's whether it encourages people after that. So it might it might provide opportunities at the moment. Would say it's more likely, halting, some potential ones happening. Okay. Quick good question from Melville, Dean Melville here. Including potential acquisitions, you do seem to have a lot of balls in the air or at least in prospect.

33:52 Are you confident of managing and coordinating them all whilst maintaining day to day operations? A really good question. And obviously, it's something that Nick and I spent quite a bit of our time thinking about. Obviously, we've got a really active business here that's doing really well and we've got these external market drivers that we think are going to drive our growth for next few years. We want to stay very, very focused. And it's for that reason actually that we've been strengthening this leadership team. So we've made a couple of recruits and readjustments of personnel this year with further appointments imminent. So recruiting a head of software and and other appointments coming down the line with, for example, a head of customer experience probably in next year.

34:48 Our strategy just in terms of the acquisitions is we look to secure the management. So we're not looking to operationally manage the businesses. What we're looking for is a good team. And and so the the way that they will work will be that they will have access to JNEO of technology so we will see through their businesses as a way of taking what JOURNEO already has to these new markets. And where it's overseas, obviously, the the team have to be very capable. So we we we believe that we strengthen the senior leadership team because there's a cost attached to that. We're doing that at the right time. And as I say, we're looking to double the the the business over the next sort of two to three year period, which we believe we can do with that team.

35:38 Okay. I think we've covered. So it's I can't do that from this. What's that one there? Do Do you envision that company's future for the split? A lot of duplication. There's a few more popping up as well. Do you want to pick? So there's there's a question about InTech sales, which says they were down InTech sales were down 8%. So so so so I guess, yeah, they they were we were down from 9,300,000 to 8.5. It's it's a small deep that's I'd it's a small decrease in terms of it's just a pure timing function, so there's nothing I guess, if we look at full year, we we we don't see that that's anything's dropped in in in the core business there.

36:33 So that's okay. Nothing William d, can you give us more detailed update on the existing contracts and sales pipeline in The US? I can't ask quite easy, actually. So the the Infotech's contract in The US is to supply media company, and the media company have exclusive rights for ten years through to 2030 for the New York subway. The footfall on the subway is only it's less than 60% of what it was pre pandemic and as a result of that, the media company can't generate the advertising revenue. So decision's been taken not to install digital media screens on the next stages of the subway upgrade.

37:21 But we are still in discussion with our media customer about upgrades and replacements due to the quite high vandalization that they have in New York Metro. So whilst there isn't there's a headline grabbing large project going through in 2025, we are expecting additional revenue to come from that. And we also have some prospects which at the moment they're they're not actually on the pipeline because we don't know enough about them. But we've been through our mergers and acquisitions where we've we've identified two potential companies for acquisition in The US and we have actually done some joint bids with one of them, which is independent actually of Infotech that that might lead to sales in 2025.

38:14 So our aim is still ideally to find the right acquisition in The US that looks like a mini JOURNEO that we can introduce JOURNEO technology into The US market because the The UK market obviously is quite large, but The US market is $5,000,000,000,000. It's absolutely huge amount of money the Biden administration has set aside for infrastructure upgrade. So it's great potential there and we think that JOURNEO technology has something to offer. But just in terms of pipeline, it's currently in The US, it's very small and we want to give you the impression that we are expecting or even require any revenue from The US to meet our f y '25 objectives.

39:05 It will be us on the cake if we if we secure any of that. I think we've covered okay. I think we've covered. Let me just look at this. There's a lot of duplication. That's all. I think yeah. I think yeah. I think we've covered them covered them all. Russ, Nick. Yep. Yeah. Thank thank you for answering all those questions you can from investors. And, course, the company can review all questions submitted today, and we'll publish those responses on the investor meet company platform. Just before redirecting investors to provide you their feedback, which I know is particularly important to the company, Russ, could I please just ask you for a few closing comments? First, I'd like to thank you for making time to to hear our story.

39:51 We are still not the finished article where we're trying to get JOURNEO is into critical mass where people are adopting our products, our services, and our software in a significant way in a different sort of highly populated areas around the world. We've got a strong and growing presence in The UK and through the MultiQ acquisition, we now can punch through with greater strength into the Nordic markets. And in due course, we expect to then move into the rest of Continental Europe through the European approvals process which we're going through, and then in due course to build out our capabilities in North America. So we thank you for your interest in us. We welcome any questions that you might have.

40:37 And for the existing shareholders amongst you, we're really grateful to your support. It means a lot to us. We take this very, very seriously. We think it's a great opportunity for us. So thank you. Ross, Nick, thanks for updating investors today. Can I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback in order that the management team 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 at JOURNEO PLC, we'd like to thank you for attending today's presentation, and good afternoon to you all.