Keystone Law Group (LSE:KEYS) — H1 Results

0:01 Good afternoon, ladies and gentlemen. Welcome to the KEYSTONE LAW GROUP PLC half year results investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged. They can be submitted at any time via the q and a tab that's just situated on the right hand corner of your screen. Please just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today, and we'll publish those responses where it is appropriate to do so. Before we begin, as usual, we would just like to submit the following poll. And if you'd

0:33 give that your kind attention, I'm sure the company would be most grateful. And I would now like to hand you over to the executive management team from KEYSTONE LAW GROUP. James, Ashley, good afternoon. Thank you very much, Jake. I'm James Knight, CEO of KEYSTONE LAW. These are the results for the half year ending 07/31/2024. Just for those who are not entirely familiar with, Keystone and its background, this is a law firm regulated by the SRA, the Solicitors Regulation Authority, a firm that I founded myself in 2002. Since that time, we have enjoyed, a journey of, growth, whereby we have now reached the point of about 550 lawyers that are, operating as part of KEYSTONE.

1:30 KEYSTONE is an unusual firm in as much as our lawyers operate from their own offices, wherever that may be, at home or otherwise, even the client's offices. Sometimes our lawyers are self employed, and we operate on a simple paid when paid remuneration structure, which effectively means that they receive a high percentage of the fees for work undertaken. They actually the lawyers themselves, certainly the senior lawyers who we call principals, introduced 98% of work to the firm, and they do so because they wish to take advantage of all of the resources and the infrastructure that makes up Keystone.

2:20 In this way, our lawyers benefit from all the freedom, flexibility, and autonomy of being self employed combined with all of the conventional infrastructure of a mid sector law firm. And that best of both worlds is in many ways what has made Keystone so successful. We, we make good use of technology to help to drive efficiencies and to improve economies of scale. As I mentioned earlier, the firm has grown well since in our twenty two year history, and continue to to do so. Growth is predominantly by way of the recruitment of those principal lawyers.

3:08 They have good client, backgrounds. They have good legal backgrounds. They have good client followings. We vet them extremely closely. We're extremely selective as to the lawyers that we take on. We only really take on the best, and we only take on the best lawyers with the best clients to bring to the firm for themselves and for their new KEYSTONE colleagues. 30% of the work is cross referred from one lawyer to another and, which effectively means at a £100,000,000 almost turnover, it's a considerable amount of work, is cross referred through the firm. This is a profitable firm. We are cash generative.

3:55 I believe this is a low risk, business, excellent track record since IPO in 2017. Many people believe that this is the operating model of the future in the mid sector commercial law firm world where we operate. That is a sector worth about £10,000,000,000, and so we have a very significant opportunity for growth, from where we are at the current time. Moving to the results for the, period that has just gone, I'm pleased to report that the turnover revenue was up 8.3% on this time last year.

4:45 Adjusted PBT was up 7.2%. Operating cash conversion, which is always quite a, strong as a result of this business model, was at a 106%. The business is debt free, and we have 8,300,000 in cash. I'm also pleased to announce that we will be, declaring paying a dividend of 6.2p, per share for the period that has just gone. Recruitment activity, as I mentioned to you earlier, is the fundamental driver of growth at, Keystone, a very important metric, and the KPIs are all positive on this time last year.

5:37 We took on 30 new principals during the period, 16 new pod members, and I'll explain a little bit on that in a second, and total fee earners have reached 557. Pod members are junior members, are junior lawyers who are recruited by the principals. Because our principals are self employed, we contract with a service company that they set up. That service company can in turn employ junior lawyers to help improve the, earnings of the senior lawyers. They become KEYSTONE LAWYERS and have KEYSTONE email addresses, etcetera, and are covered by the work undertaken by the firm in the usual way.

6:36 Turning now over to the and focusing a little bit more on the recruitment activity of the firm. As I mentioned, all the KPIs are positive both in terms of the applicants. Now this number, a 153, it is refined applicants. It is vetted applicants. It's not just people who sent through a CV. These are people that are of interest, and then they go into the pipeline. We then interview. We assess. We see if there is a good fit much in the same way as a conventional employer. Yes. We do not employ, but we are responsible for the work that is undertaken, and they the the lawyers of Keystone reflect upon KEYSTONE.

7:30 And the most important thing for KEYSTONE in driving quality and improving, driving our brand reputation, everything is to ensure that we deliver a fantastic service to our thousands of clients, and that starts with the selection of the lawyers. Principles, 30, I mentioned, and the pod structure, remains a very important, growth factor for Keystone, as we take on more and more sophisticated work. I'll pass over to Ashley Miller, our CFO now, who will take you through some of the financial highlights.

8:18 So as mentioned by James, revenue in the period grew 8.3%, taking us to 46,500,000. The gross profit margin was 26% and we had adjusted PBT up 7.2% to 6,100,000. That represented a margin of 13.1%. The operating cash flow of 106% was remained very strong. The first half is typically stronger than the second, and our long term average is just between 90100%. Net cash at the end of the period was £8,300,000 with adjusted EPS of 14.6p, and we're paying an interim dividend of 6.2p. Just giving a bit more detail behind some of those numbers. So in terms of the revenue growth, the 8.3 growth was driven very much by the recruitment of new principals, with the average number of principals increasing 7.6% in the period. Whilst we've also seen a continuation of revenue growth per principal, which was up from 105,500 to 106,003 in the period.

9:23 The gross profit margin of 26% was down marginally from 26.2 last year. The reason for that is that the margin only business that we get, which is through our lawyers in the Isle Of Man and our centrally employed lawyers, remained flat year on year as we saw the growth coming entirely from our principles and the and the pods as a result of that change in mix that impacted the margin slightly. In terms of the overheads of the business, we continue to invest. We are a business that needs to continue investing in both people and the various facilities and infrastructure we provide to our lawyers as we continue to grow. So we saw growth in headcount in the period from an average 63 to 69, which was up 9.5. And, again, the investments in retaining and attracting the best and brightest that we need to support our leading lawyers goes to inflationary rises

10:18 in in costs as well. Within the other admin base, the increase of 7.6% very much reflects that growth in the lawyers and the volume there. Finance income remains strong in this period compared to last year as we've seen interest rates remain high for longer than people had anticipated in many cases. So overall, we've ended up with a strong growth in the adjusted PBT, 7.2% to the 6,100,000. And the margin at 13.1%, as I say, the step down or the move down slightly from 13.3% last year is really the effect of that flow through of the mix at gross profit margin. Moving on to the balance sheet. We are a debt free business and remain cash positive with net cash of £8,300,000 at the end of the period.

11:09 The alignment of interest that the pay when pay model has on the lawyers very much reflected in the debtor days, which were thirty three, pretty much consistent in this business in the low thirties. It was 32 at this time last year. The payables, just to reiterate, because we have the lawyers are on a pay when paid, there is a correlation between the debtors and the creditors as a circa seventy five percent liability to the lawyers is always outstanding on any debtor balances. This year, we resigned our leases. So we have two floors in our offices in Chancery Lane. In April, we resigned those two leases for a further five years, which means from the balance sheet perspective, we have now recognized again the right of use asset for the entirety of the five years with the correlating liabilities for leases on the other side of things.

11:58 And again, for those not familiar with the business, the intangible asset on the balance sheet relates to the way that the private equity investment in October 2014 was structured and has no investments in the business.

12:13 Excuse me. The investments there relates to our investments minority stake in Keypoint, and it's one of the questions raised during the so far has been in relation to that. And that was revalued last year, which is the reason for the step up in the value there. Corporation tax is is a feature this year both in its absence on the balance sheet as a liability and also a big step up on the cash flow. And I'll come on to that in a moment. But from a cash flow perspective, the business is fundamentally cash generative, which by its nature is such, and that's representative all the way down really with the cash conversion being very strong and with negligible outflows thereafter. In terms of the outflows thereafter, CapEx was very small.

13:01 We are actually in the process of doing

13:03 refits to the transfer relaying offices, which is why those of you read the analyst notes will have seen there is a forecast increase in CapEx this year of a further 0.7 in relation to those fit outs, which will flow through in the second half. Corporation tax steps up because as we've grown as a business, we've now moved through the boundaries which HMRC set for becoming what they define as super large.

13:28 The advantage of which is entirely for HMRC, I'm afraid. Up until the point we were super large, we were on quarterly payments whereby half of the tax charge for the year is payable in the following year. However, once you're super large, you have to pay all of the tax in the in the financial year. That means in this transition year, we've had to pay the second half of last year's corporation tax plus half of the tax in for this year in this first six months. So we'll end up paying, one and a half times the tax bill this year. Pure cash flow acceleration. As a result of which, there's a cash outflow or an additional cash outflow of circa 1,600,000 during the period.

14:07 On the lease repayments, there's very little cash outflow in lease repayments in this period because as a function of resigning the leases, we have some rent free periods in there for six months, which will benefit from that. And the dividends represents the payments of the final ordinary dividend from year end.

14:25 Thank you, Ashley. So I am delighted to say to bring you these results, which we are pleased to with the performance across all KPIs has been strong. The demand from clients, the legal market demand has been buoyant, and yet the recruitment market has not been too competitive.

14:56 That has helped us to pick up to recruit the sort of lawyers that we are interested in recruiting, helped in no small way by the increasing reputation that KEYSTONE has in the legal market and the strength of our brand generally. The I am confident that the market forces, the market conditions will continue in much of the same vein as for the rest of the year and that we will be able to bring results that are slightly ahead of market expectations in six months' time.

15:43 So thank you for that. I see that we have some questions that have been submitted on the q and a function, and I'll be happy to run through those. And Ashley and I will do our best to answer fully those points that you have have made. First of all, Richard l, asks, how do you closely vet 550 lawyers to ensure that they provide a top class service to clients and comply with the rules and regulations? A very good question indeed.

16:24 It starts with recruitment. We select in every way the as rigorously as an employer would do for the for the employees of a law firm. We assess CVs. We meet with them usually in person, on a number of occasions.

16:51 Questions are asked. We we look at particularly very strongly the legal background of these potential lawyers, the clients that they are hoping, expecting to bring to the firm. And, obviously, this is a sector the mid market law firm sector is an area we know extremely well. It doesn't just finish there, though, because as with a conventional law firm, compliance, managing risk is an incredibly important part of what we do. And and for that, we have a a team, a compliance team, who is there very much to help our lawyers to ensure to help them to maintain compliance, but and also to be there if there are any problems, any complaints, etcetera, to assess if something does go wrong or what went wrong. It's a huge part of what we do, but a fundamental one at the same time. And I think that we do it very well. We have a very good claims record and a very good reputation in the legal market, in the conventional legal market for being a a very real operator, a very good law

18:21 firm with great integrity, and one that delivers great service to our clients.

18:30 A question for Ashley coming up. Have you ever thought of reducing the the share of the revenue that goes to KEYSTONE as in increasing the share that goes to the lawyers? If not, can you please explain why?

18:49 Ashley, I think you're on mute. There we are. I'm off to mute. Yeah. So the margins we operate are on are we feel appropriate, quite frankly. So when we first started well, when James started the business, perhaps he was slightly more generous than than he might have been. But where we are today is really where the market as a whole has settled. It's certainly a we have to work hard to ensure we return a decent margin to shareholders, which we believe we do and a good return both in terms of the margins, capital the growth and the dividend stream that we generate. But certainly, now having established the margin where it is as in the 25% of the share, we would be loath to try and touch that. It would have, I think, massively detrimental effect on the business. We'll want to start tinkering with that. We have a single deal.

19:38 Everyone has the best deal in town, and really that's how it should stay. Yes. And the

19:44 the margins that the firm make give rise to the net profit, which is it works for everybody, and it's I think it's considered very fair. The a couple of you have asked about the gross figure and the net figure of principles. Also, a very good point.

20:04 We did recruit 30, new principals during the course of the six months, just gone. However, the net figure is 10. We during that period, we had 20, levers. That is not, unusual. The vast majority of those are made up of, retirees and possibly some that have joined and did not make it work. This does happen. About 5% of the no. One in 10 of the, joiners do do not make it work. They maybe they've come from in house. They don't have the clients to bring over, but we and they think that the they have the contacts, etcetera, to build up a client following.

20:55 Usually, they do. Sometimes, they don't. I would just mention to that add to that that the average of the 20 lawyers that left in terms of their revenue is likely to be less than the average of the 30 lawyers who joined us once they get going. So it is a progression in the right direction. Moving I'm sorry about the valuation of key points and assuming metrics, etcetera, etcetera, and dividend streams. As I highlighted, we did revalue key points upwards last year following a a small raise they did.

21:43 So we're confident that it's it's reasonably valued in line with its current valuation. In terms of future payments of dividend streams, the business will have to make its own decisions on that. But it's it's not a significant part. It is a you know, we don't really report on it because it is insignificant in the quantums of the group and to make assumptions in terms of looking at the metrics we have in KEYSTONE today as a fully scaled business versus a business in a much earlier stage of its development is is not comparable, I'm afraid. And, yes, following on from that key point being the Australian entity, international expansion as asked by Arthur b is not a is not on the horizon any more Australia has been successful, and it is operating in the name of Keypoint rather than Keystone because of licensing, the fact the name was taken in in Australia.

22:48 It has been as successful, but for for various reasons, we have determined to focus, for the future on the domestic legal market in The UK, partly because it is such a significant market, £10,000,000,000, and there was such a great opportunity that is got a long runway for us, and this is where we have chosen to focus for the time being. Another question for from David b. You appear to have started the two h with a strong recruitment.

23:39 Are there any color on the sector trading you can add, please? Not particularly. We've we've grown I mean, the the the mix of business across the year in the first half, the mix of business looks very much in terms of the shape of the business has looked very similar to that which we experienced during last year. So there's been no significant shifts or changes to the the shape of KEYSTONE as we stand. We've been fortunate enough to have to hold up demand across the the firm and see no particular outliers either from a positive or in a a slowdown perspective. Thanks, Ashley. And, another one for you. What are the limiting factors that could result in KEYSTONE being unable to grow its principal numbers further? And do you have any sustainable target of new principals to recruit per year?

24:29 Well, I'd say there aren't really any limiting factors. The market, I suppose, is the only limiting factor. But as it is a 10 a $1,011,000,000,000 pound market, there is no foreseeable limit in that. Obviously, at any given point in time, we are limited by the number of high quality lawyers and that is the key function here is the caliber of the lawyers who are looking to move across and become available to market. We will always focus on maintaining that caliber because it is that which will drive and continue to drive the sustainable long term growth of the business and continue to lead position us as the leading business in this sub sector of the platform law firms. Thank you. David b asked whether we would contemplate assisting client source litigation finance.

25:21 We do undertake some work for clients that is financed by litigation finance. The process of sourcing the the finance is often assisted by our lawyers. It's a matter of for for the client to sources the finance that that's needed, and often, we will be able to provide some help and give some direction in doing so. Charles Robert asks who pays the professional indemnity premiums. This I mean, KEYSTONE, in that respect, operates very much like a conventional law firm.

26:12 We are a regulated law firm. We are responsible for all of the work that is undertaken by our lawyers. It is irrelevant or the the fact that they are technically self employed. Though what is, the relevant factor is that they are, doing the network in the name of KEYSTONE and under the coverage of KEYSTONE. KEYSTONE was, therefore, responsible for all of the insurance premiums. We have coverage of £50,000,000 at the current time. And in terms of our risk profile, insurers, you know, you ask about underwriters, how they assess our risk. We have a a very good risk rating as with the insurers and our underwriters. So we're well priced.

27:01 A few of you have asked which branch of the law is more, successful, whether we target any specific sectors, in, in our sort of growth plans. In actual fact, with this particular model, we are there were no sectors or sections that are more profitable than any others. Essentially, our gross revenue, our gross margin of 25% is the same whether it operates in, let's say, the conveyancing sector or in the corporate sector. Some areas of law are slightly more administratively heavy than others, but that's something that really just goes into the mixture, the mixing pot, so to speak, and we are fairly agnostic.

28:04 We sometimes if we get a collection of lawyers in a particular area that will identify opportunities, then we will certainly apply budget centrally to helping them raise awareness and develop opportunities in that particular sector. Lawrence c's asked in relation to the the numbers of offers made versus the numbers of applicants in the period, then it appears there's an increase in the percentage. We did rate that these are not subset of each other. So the 56 offers made weren't 56 offers made to the 153 candidates who were who were applicants in the period. So I'm afraid it's just a question of timing. They are the 56 offers made during the period would have been two candidates, risk applicants in the period, but also two days from a prior period. So there's there's not really much more to read into that, I'm afraid.

29:03 David c asks whether we can give more color as to the drivers of revenue per principal. A very good question. And as much as the revenue per principal is an important factor that we track and report on. It's not actually directly relevant to our financials in some respects because we our principals are not employed by us and not an overhead. However, it's a very good indication of the average amount that principals are, let's say, billing at KEYSTONE. I mean, that is an average that ranges from it is approximately 200,000 at the current pounds per annum at the current time and rising.

29:56 It does vary and mix is from much less than that to over £1,000,000 per per principal. So whilst it is an it it is an average and by no means a cap or even a a sort of a norm, Revenue per principal does track up, obviously, in line with inflationary issues, increases in hourly rates, but also as a result of the increased, let's say, mainstream nature of KEYSTONE, a lot of the lawyers that joined us, let's say, fifteen years ago were looking to work in a much more flexible, part time basis.

30:44 Now the vast majority of lawyers who join us are looking to work in a much more full time sole breadwinner, basis. And so as a result of that and and the pod concepts as well, bringing in junior lawyers to support the principals, we do, and we expect to continue to see revenue per principal tracking up. Ashley, I think you're on mute again. So a question around lawyers being notoriously poor at invoicing and how do we handle this. Well, clearly, the model itself is self policing in that respect. Lawyers are on a pay when paid basis.

31:29 So until they, a, invoice the client and, b, the client pays the bill, they won't earn any money. So quite frankly, the combination of their partners, their bank managers, etcetera, They're highly motivated to bill on a timely basis. And what I mean by that is at the appropriate point in time when it is right to invoice. So we don't have any challenges in that perspective. Janik has asked about the cost base of our lawyers. Sometimes, KEYSTONE is described as a plug and play operation. By that, it means that lawyers who effectively wish to operate their own business can do so should KEYSTONE accept their application and effectively operate their own business through Keystone. This is what they are. They establish a service company.

32:32 They comply with our manuals and obligations. But subject to that, by and large, when it comes to where, when, how they work, they have a great deal of freedom and autonomy. At the very basic level, in terms of cost exposure for these individual lawyers joining us, it can be very little. A lawyer who wishes to operate from their own office at home will have little more expense than the purchase of a laptop from Keystone, which is then provided fully set up and ready to go. And there was nowadays, as you're well aware, very few extra costs that an office needs other than possibly a printer and a scanner, and even that is often not even required nowadays.

33:33 Equally, lawyers that are wish to adopt a more ambitious approach to their work at KEYSTONE can take an office and employ junior members into their pod and undertake a much more significant level of operation, which, of course, is more expensive, but equally can yield much greater net revenue to them at the end of the day. David sees asked about whether we're seeing an increased cost relating to development such as AI and other tools. As a business, we continue to invest both in people and in all of the sorts of resources necessary for to support our our lawyers and enable them to operate as they would in any other leading mid market law firms.

34:32 So we do see a continuation of investment there. We always have invested and continue to invest. With the particular reference to the point on AI, we would emphasize that we're not a software house, so we're certainly not out there building the next bit of kit for generative AI. But we are through access to the various knowledge banks, tools we provide, gaining access to the various AI tools which those software houses are developing, whether that's the likes of LexisNexis, whether that's Microsoft, whether that is in in in net documents. So we are gaining access to those things, and and, obviously, they will continue to be reflected in the prices of those softwares. But we see that as a part of the future and and just a another part of the ongoing investment required to deliver and support our lawyers.

35:27 Richard l asked how do you win larger, more profitable work where teams of lawyers required where, I think, where it means where teams of lawyers are required when your principals work from home. I would mention, Richard, that not all our principals work from home. Many operate some operate from our actual central office. Some have their own offices. But even so, as the world saw during the pandemic time and the lockdown, law firms were conventional law firms. Even the largest law firms were undertaking, significant pieces of work with everybody working separately from home.

36:16 Now that we, are free of the constraints of the lockdown, of course, there is a much more, allows for a much more beneficial hybrid way of working where people can all meet together in the office when necessary and operate from home when they are able to do so or from their own office. Many of our pods will rent office space so that the pods will all be operating together in one office, and yet they will still bring in other ancillary lawyers such as the property lawyer and the tax lawyer and the employment lawyer to help them complete a larger piece of work. So we regularly have 20 lawyers working on a single piece of client work, whether that involves pods, it's likely to enjoy involve juniors.

37:23 But, of course, in a conventional law firm, people are operating from their own desks. They're they're calling each other by the telephone, more likely just by the email. They're emailing each other, and occasionally, they are meeting in a meeting room together, to discuss a particular sticking point. We operate really in many ways in much in well, we absolutely operate in exactly that way. And, of course, in the post pandemic world, we are helped, significantly by the use of Teams, Zoom, etcetera. Okay.

38:14 Charles c asked how we manage part time lawyers. I support clients in their absence. The model doesn't really work like that. It's not that lawyers are part time and they sign on for this time and they work a number of hours. The clients the lawyers manage their relationships with their clients. So they have the flexibility to work around the needs of clients. And and so even if they are not gonna be working full time flat out every day of the week, they are fully responsive to their clients. They are aligned with the interests of their clients. And consequently, they manage their lives to fully deliver the requirements of their of their clients. To the extent that they bring in resource from elsewhere, everything is totally open and communicated to ensure again that the clients are are serviced as well or better than they would be in any other conventional law firm.

39:10 Thank you, Ashley. Ashley, Gavin KEYSTONE asks what is the average cost to recruit a principal? It really depends on the channel they come through. So we operate through three channels, the direct, which is very much minimal cost per lawyer. We're talking there about response on inbound, response from lawyers following reaction to our presence in the market, brands, LinkedIn campaigns, etcetera. We pay if the other channel is our lawyer referrals, and we pay our existing lawyers £5,000 for introducing a colleague. And if we recruit through the agencies, then that will depend. We have a a deal linked entirely to the as a percentage of the billing generated by that lawyer after them joining. So it's a fully flexible amount. So it it it can be as as much or as little depending on how successful they are. So the key thing is, again, it it's flexible, very much aligning with the rest of our model in that respect that is linked to success.

40:09 There's a question here asking what is the results? Sorry. What is the implications, the changes brought around as a result of COVID and the lockdown. I would say that the pandemic and the resulting lockdown effectively brought the platform model law firm about five years into the future rather quickly. In other words, prior to the lockdown, there was a lot of interest in this way of working, but generally, some lawyers, quite a number, feared that they would feel isolated working in this way. There was also a tendency to think that proper law could not be undertaken except by operating from the law firm itself.

41:13 Now we knew that neither of those issues presented a problem. But when at the point where the pandemic occurred, it was obviously that was going to become known by others. As a result, the platform concept has grown quite significantly, not just ourselves, but other firms that operate in the same model. We're very happy to see other firms operating in the same way because it presents a very real option for lawyers now to consider when they're moving away from the conventional private practice law firm.

42:01 We're very happy for these options to exist as long as Keystone is the market leader, and that is very much the position that we hold within what you could describe as this subniche, as in the platform law firm model subniche. And that has been extremely helpful as indeed has the widespread use of Zoom and Teams and so forth, and the tremendous demand that exists within the legal profession and business as a whole for more flexible working, for more remote working, for greater variations.

42:52 So all in all, that and winning law firm of the year award during the pandemic, which being the top law firm award that any law firm can win, has left a very helpful legacy for this firm. And I think I might just finish with a final question, which is quite a pertinent one to finish on. Charles Robert asks, what is the long term future? The long term future of of Keystone? Obviously, a very a very difficult question in a way, but also one in which I think that I'm extremely optimistic for.

43:44 We're finding the legal profession is moving in the mid sector at quite a pace in the direction of the platform model, the KEYSTONE model. What I'm what I mean by that is, in in essence, the concept, the idea is gaining more and more popularity as it is, such an effective way, to provide clients with a really excellent level of advice. It is absolutely, feasible, if not preferable, for large teams of individuals, of lawyers to undertake very sophisticated levels of corporate work, to the client satisfaction.

44:43 For KEYSTONE, we are able to, grow without, cash flow difficulties. We operate a paid when paid model, so growing our lawyer numbers quickly is very feasible and without restrictions in the same way that other conventional organizations often have when it comes to office space. So the scale, the size of the market, and our ability to scale are all good, and that is, really why we are very, optimistic for the future. On that note, I think we have gone through all of the questions. Excellent questions. Thank you for those, and thank you very much for attending today's seminar. I hope you found it useful, and we are here to help at any time in the future.

45:44 Thank you very much. I think we will pass back to Jake now. Perfect. James, Ashley, that's great. And thank you very much for your presentation and then for being so generous of your time then addressing all of those questions that came in from investors this afternoon. Could I please ask investors not to close this session as you will now be automatically redirected the opportunity to provide your feedback in order that the management team can really better understand your views and expectations. This will only take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of KEYSTONE LAW GROUP PLC, we would like to thank you for attending today's presentation. That now concludes today's session. So good afternoon to you all.