Me Group International (LSE:MEGP) — Final Results

0:02 Good morning, ladies and gentlemen, and welcome to the ME GROUP INTERNATIONAL PLC 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 our responses where it is appropriate to do so.

0:29 Before we begin, as usual, we would just like to submit the following poll and if you could 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 team from ME GROUP INTERNATIONAL PLC. Vlad, good morning, sir. Good morning, thank you. Welcome all to the ME GROUP twenty twenty four annual results presentation. My name is Vladimir Krasniewski, I'm Head of IR and Managing Director of The UK. Alongside me is Stephane Gimont, who is our CFO. The agenda for today's presentation is as follows: We will start with an overview of the 2024 financial highlights, we'll remind you about our business model and growth strategy for those who aren't so familiar with it, we'll then talk about the group's financial performance, followed by an update on operations, and lastly we'll conclude with a summary of 2024 and the outlook for 2025.

1:19 So, the highlights. We're delighted to report a strong performance across our key financial metrics and another year of record profitability for 2024, which was £73,400,000 Strategically, we have continued to rapidly expand our laundry operations, and we installed a record eleven sixty eight Revolution Laundry units across our key geographies, and that basically means 900 new machines net and two sixty eight relocations. Just to explain, we relocate machines where they're not meeting revenue requirements or where, for example, a supermarket may have closed down, etcetera, etcetera. So that's why there's a difference between number of installed and the number of relocated machines. We've also launched a new automated key cutting service, KEYMIE, which is in its trial phase.

2:10 As always, we remain focused on delivering value for shareholders, and the total dividend for the year was up 6.8%. We're also pleased to report a record pipeline of machine installations with key strategic partners, for example, Morrisons and MFG, and we'll discuss those more as we go through the presentation. So, about us. In following slides, we'll provide a more detailed overview of the business, the business model and the growth strategy. So, ME GROUP is a leader in automated service equipment, aimed primarily at the consumer sector and we're listed on FTSE two fifty Index. We operate more than 48,000 machines across 18 countries, spanning three key regions: Continental Europe, which is our largest region by unit and revenue, The UK and The Republic Of Ireland, and the Asia Pacific region.

3:02 We have long standing and well established key partnerships with site owners across the three geographies in which we operate, and on the right hand side, you can see some of these major brands from around the world. So the business overview. So our core activities are photobooth operations, known as Photome, and laundry operations, known as WashMe. These are our two largest business areas by number of machines, revenue, EBITDA and PBT. They provide significant geographic scale and growth opportunities and drive complementary benefits for customers such as increased site footfall and repeat business. We also have ancillary activities, which include our smaller businesses in terms of contribution to the group. These are PrintMe, so that's our high quality digital printing services, and our other vending unit, which comprises of FeedMe, AmuseMe, and CopyMe.

3:59 These ancillary services are often co located with our core businesses, leveraging existing site owner relationships and benefiting from maintenance by our dedicated field engineers. To give you a bit more insight, our field engineers service all machine types, including from all our different divisions. Our in house R and D team enables us to innovate and diversify our product range to meet the ever changing needs of customers, and we're focused on maximizing return on capital with target returns on investment of 18 across the Photome and Washtenew operational divisions. We will cover these business areas in more detail further along with the presentation. ME GROUP also has a significant competitive advantage across its key markets, a dominant market position and high barriers to entry.

4:47 Our key strengths position the group well for long term success, and these include the highly cash generative nature of our business, which provides predictable cash flows and strong financial position, our strong relationships and long term contracts with site owners at attractive high footfall locations, which gives us very good visibility on future cash flow, our rapidly growing laundry operations, which continue to benefit from further opportunities in existing and new markets underpinned by a market leading offer and strong consumer demand, and our machines operate over an extensive life cycle, which generates long term profitability supported by incremental maintenance costs and technological upgrades, And finally, we have a proven track record of innovation and diversification of services, which allows us to meet the evolving needs of our customers and consumers.

5:38 So on to our products. Some feedback we've had over the past is that we don't show our products off enough, so we wanted to show you all of the different types of products and in which division they lie in. On to the next slide, which is on diversification. So though many people will know us best for our photo booths, the group has continued to evolve and innovate over a number of years into a truly diversified business, offering a multitude of instant services. Since 2019, the proportion of group revenue from laundry operations has increased significantly. In 2024, revenue from laundry operations accounted for 32.1% of group revenue compared to 18.3% in 2019. Photo booth operations, remaining

6:25 highly cash generative and our largest business area in terms of revenue contribution accounts for 61% of group revenue compared to 73% in 2019. And again, to reiterate, it's not because photobooth revenue has declined, but rather there's been a really, really rapid growth in Revolution revenue. So onto the next slide, which shows a similar trend for EBITDA. Laundry operations have continued to contribute an increasing proportion of total group EBITDA, and in 2024, this was 34% compared to 22% in 2019. At the same time, EBITDA contribution from photobreath operations has moved from 56% in 2019 to 45% in 2024. This demonstrates how the group has evolved into a leading, diversified provider of automated self-service equipment beyond just photo booths.

7:17 This also evidences our strategic direction of travel as we continue to leverage the exciting opportunity for our laundry business and mirrors the change. You know, we used to be called Photo Me and now we're called ME GROUP, and you can see that change even in the diversification of the business. So I'll now hand over to Stefan to take you through the financial review. Thanks Vlad. We are pleased to report another strong year of performance. It is worth noting that this strong performance was achieved despite foreign exchange headwinds, which saw the Japanese yen decline by 12% and the euro decline by 2.1% against the pounds compared with '23. Revenue was up 3.4% year on year and when excluding FX impact, revenue increased by 6.8%.

8:09 This was largely driven by strong growth in our Revolutionary business. The stronger revenue performance helped to deliver a 7.1% increase in EBITDA. This is an increase of 10.3% when excluding FX impact. We also delivered an expanding EBITDA margin to 37.1% compared with 35.8% in the '23 financial year. Subsequently, we are pleased to report record profit in 2024. We reported profit tax up 9.4% at €73,400,000 an increase of 10.4% when excluding FX impact.

8:56 The Group remained highly cash generative, with 107,400,000 of cash generated from operations during the year. The small year on year decline is a result of an increase in receivables relating to a property disposal and convertible bonds maturing. CapEx for the period increased by 2.1% due to the rollout of our next, sorry, of our next generation photo booths and rapidly expanding our laundry operations. Our lower gross cash position was largely due to the capital expenditure of 54,600,000 compared with 53,500,000 in 2023. Debt repayments of twenty seven million and increased dividend payments amounting to 27,800,000 in respect of '24.

9:51 As shown in the graph, our net cash position increased to €38,200,000 The Group remains well capitalized and in a strong financial position. Our dividend policy seeks to pay out annual dividends of more than 55% of annual profits after tax. As a result of the strong performance, Board recommended an uplift in the final dividend, which shows the total dividend to 7.9p per share, up 6.8% on last year.

10:30 Diluted earnings per share was 7.1% higher at 14.25p. The dividend represented 55.3% of the Group's earnings per share in the 2024 financial year.

10:48 The bridge on this slide shows the change in revenue of our business areas compared to the prior year. As previously flagged, we made record progress in expanding our laundry operations during the year.

11:04 As a result, WashMe contributed 14,200,000 more revenue than in the prior year, which has largely driven the Group revenue performance. PhotoBoost revenue remained stable compared with the prior year. Sales, which included sale of machine service and maintenance contracts, saw a slight decline predominantly due to the sale of Sampa, and consequently the absence of revenue in this activity in semester two. This resulted in a 3.4% increase in total Group revenue, up 6.8 excluding FX impact. The bridge on this slide shows the breakdown of profit performance during the year, which was a record year for profitability.

11:58 Our improved revenue performance was which was €10,200,000 higher year on year, was primarily driven by laundry operations. Logically, variable costs as consumables and spare parts increased with the revenue. Depreciation increased with the increase in regard of the last year's level of CapEx. Indirect costs and overheads relating to corporate cost savings compared to '24 contributed €3,500,000 to profit before tax. This led to a 9.4% increase in profit before tax. This was a 10.4% increase excluding FX impact.

12:45 The bridge on this slide shows the net cash performance during 2024. Our highly cash generative operations delivered an operating cash flow of €107,400,000 during the year. We continued to invest across business with €54,600,000 invested in our estate and infrastructure. This mainly relates to the continued expansion of our laundry operations across key geographies and also the rollout of our next generation photo booths and ongoing upgrades across both our photo booths and printing kiosk estate. Furthermore, the recommended total will return nearly 28,000,000 to our shareholders.

13:33 The closing net cash position was 12.7% higher at 38,200,000. Now turning to our three core geographies that we report on. Continental Europe is the Group's largest region by the number of machines and revenue contribution. Total revenue increased by 1.9% and excluding the FX impact, it was 3.8% higher. Laundry was the key growth driver with WashMe lending revenue 19.8 higher. Excluding FX impact, Laundry revenue grew by 22.2%. Overall, the region contributed 67.9% of the total revenue, Group revenue.

14:24 Operating profit increased by 8.8%, which reflects the growth of laundry operations. Photobooths remain a significant revenue contributor in the Continental Europe region. In France, we have continued to roll out our next generation Photobooths with 2,000 now in operation. In 2025, we expect to install 300 3,200 next generation photobooths, predominantly in Continental Europe.

15:02 In The UK and Republic Of Ireland, revenue was 2.1% and slightly higher at 2.7% excluding FX impact. Again, this was driven by the strong Laundry performance and further expansion, which RocheMe vending revenue up 15.4% at 27,700,000 This decline in photomerebanding revenue in the region was mainly due to the end of high commission contract. However, this has limited impact on profits. During the year, we secured several new strategic partners, which we'll talk about further later in the presentation. We also celebrated a key milestone with the installation of our 1,000 revolution laundry machine in The UK, making a significant point in our laundry growth strategy.

15:57 Operating profit in the region increased by 4.8% and overall, the region contributed 16% to total Group revenue.

16:08 The revenue performance in Asia Pacific was up 12.2, largely driven by a strong performance from Frotoboo since Japan. Our reported performance was impacted by a 12% decrease in the value of the Japanese yen against the Pound sterling. Excluding FX impact, the revenue increase was significantly higher at 24.6%. The expansion of our PhotoBoost portfolio following the full integration of 3,500 acquired in October 23 delivered a 15.6% increase in photoboost vending revenue of $42,300,000 continue to operate four sixty Frenchie squeezed orange juice vending machines in Japan and Australia, and this market remains a growth opportunity for the group.

17:06 We have also now launched 27 photo booths in Australia, underpinning our expansion into new geographic territories. While the reported operating profit in the region declined, when excluding FX impact, it increased by 9.3%. Overall, the region contributed 16.1% to total Group revenue. I now hand back to Vlad to take you through the business review. Thank you, Stefan. I'll start with an update against the group's growth strategy before going into more detail on the performance of each of the group's business areas. So we've made good progress against our growth strategy as shown on this slide. A few key highlights include the expansion of services into new market segments, which was supported by our new partnership with Motor Fuel Group to install up to 300 Revolution Laundry units across petrol forkort sites in The UK.

18:06 I'll speak more about this later. We're also pleased to complete the integration of our photo booth acquisition in Japan, which significantly

18:13 expanded the number of photo booths that we had in the region. And we continue to focus on delivering against our growth strategy, whilst further expanding our core activities. So, starting with photo me, we are the global leader in the photo booth market, providing integrated biometric solutions for photo ID for official documents, as well as portraits and fun photographs. Our photo operations are well established and remain our largest business area by units, revenue and EBITDA contribution. Photo booth activities performed as expected, generating stable cash flow to support investments across our broader portfolio. Both total vending revenue and EBITDA were broadly flat and revenue per machine saw a slight decline to £5,644 per year, primarily due to currency fluctuations.

19:06 At a constant FX rate, the average revenue per machine was broadly stable at £5,869 While Continental Europe remains the largest contributor to vending revenue by region, Asia Pacific delivered the strongest growth, rising 15.6 year on year and 28.7% excluding FX impact. France accounts for more than half of the group's photo booth revenue, and as mentioned earlier, the region benefits

19:36 from a larger portfolio of machines. In The UK and Republic Of Ireland, the end of a high commission contract led to a 10.6% decline in vending revenue in The UK, however, due to the high commission nature of that contract, the impacts on profits were negligible.

19:53 We remain committed to upgrading our estate, providing multifunctional automated services and enhancing the user experience, and consequently, CapEx increased by 92.1%, supporting the rollout of next generation photo booths and the replacement of older machines in high footfall locations. This additional CapEx should be seen as a sign of confidence that ME GROUP has in the future of this estate. We remain confident in the long term growth drivers and in 2025, we expect to invest between 10,000,000 and 12,000,000 to support our rollout program of the next generation photo booths.

20:31 So on this slide, you can see the new functionalities offered by our next generation photo booths, along with our deployment strategy. As shown on the right, these new functionalities are designed to enhance the consumer experience,

20:46 being offered under a diversified multi service model. We spent £17,100,000 in the year deploying on next generation photo booths with a targeted return on investment of eighteen months. The company plans to accelerate deployment, targeting 8,000 next generation photo booths installed by the end of twenty twenty seven. In addition, we are upgrading the software in our existing photo booths by installing new cloud based proprietary software to upgrade and aim to install 3,200 machines in France, or upgrade 3,200 machines in France in 2025. On to wash.me. Laundry operations are a state of unattended self-service launderettes and they operate 20 fourseven. We offer affordable, large capacity washing machines in convenient locations, which drive repeat business to partner sites and increased dwell time. This is our fastest growing business area in terms of machines

21:46 sorry, machine installations, but also our fastest growing area in regards to revenue and EBITDA. It's also our highest margin business area as well. EBITDA margin improved during the year and contributed an increasing proportion of total group EBITDA. The total number of units deployed, owned, sold and acquired increased by almost 15%,

22:07 and our Revolution Laundry operations make up the vast majority of total laundry operations. Revolution vending revenue continued to improve as we rapidly expanded our state of Revolution machines, and the Revolution now accounts for around 30% of total group revenue, demonstrating the evolution of our services mix. CapEx in Revolution has continued to increase as part of our estate expansion programme, which we talk about in more detail on the next slide.

22:35 Just for the sake of clarity, because we get asked this question quite often, what's the difference between WashMe and Revolution? The way we differentiate it is Revolution are the self-service kiosks that you've seen in the photos previous to this. Washing you also include some of the laundry shops that we operate and some of our other products such as the smaller Flex, etcetera, etcetera. So on to the next slide, we installed a record number of machines in the year, 1168, which comprises of new units and relocations. This includes our thousandth laundry unit in The UK, which we are really, really proud of. We only started installing Revolutions in The UK in 2017, so now to be eight years later and having 1,000 locations, we're very happy about that. And during the year, we exceeded our previous target of installing an average of 80 to 90 units per month.

23:34 Average machine revenue also increased, up 2.3% as consumer demand for our laundry services continued to improve across our key locations, and the continued expansion of our Revolution Laundry operations remain a core focus of our growth strategy in 2025. And this year, we plan to instal around 1,200 laundry machines net, so that's increasing our rollout to 100 machines a month net. Subsequently, we expect to increase our planned investment for laundry operations to between £28,000,000 to £32,000,000 with an eighteen month target return time on investment. Our WashMe growth strategy is largely supported by the group's long term partnerships with key high footfall site owners across multiple consumer market segments.

24:23 To provide some examples, for this past year, we were able to secure significant partnerships with two leading businesses in The UK, a new agreement with Motor Fuel Group to install up to 300 Revolution ordering machines across its sites over the next five years, and the extension of our existing relationship with Morrisons up to 2029, but we also were able to secure an agreement to install a minimum of 200 Revolution Laundry machines at its sites over the next three years. Through these partnerships, we're able to increase our footprint at high footfall locations and address consumer demand, whilst providing site owners with repeat business, passive income and driving further footfall to their premises. Now, turning to our smaller business areas.

25:10 Our PrintMe operations consist of high quality digital printing services offering a wide range of competitively priced print formats and personalized products. PrintMe revenue reduced by 3.5%, reflecting the FX impact, excluding FX impact, revenue was only 1.8% lower. EBITDA increased by 16.7%, representing 4.3% of group EBITDA, and EBITDA margin increased to 45% compared with 37.2% in 2023. The group has 4,526 printing machines in operation across nine countries, which accounted for 9.4% of the total group vending estate. CapEx during the period amounted to £700,000 primarily focused on a program to install new lower cost and compact speed lab machines in France, and we also redeployed two forty machines as part of a new contract with FINAK.

26:09 While group CapEx is focused on growing its core activities, we continue to invest in our ancillary activities as demand for high quality digital printing services remains robust and we believe target returns can be achieved. In 2025, we plan to invest between 5,000,000 and £10,000,000 to further roll out our new Speedlab machines, initially focusing on France, where most machines are currently situated. In terms of other vending, in May 2024, the group announced the sale of its entire interest in SONPAS. This decision was made following a strategic review of operations, where the board decided to prioritize investment in core activities. While Feed Me remains an attractive and profitable business area, it has now been incorporated into the group's ancillary business area of other vending.

26:58 Subsequently, other vending now consists of Feed Me, our food vending equipment business, Amuse Me, our interactive kids rides and Copy Me, which is our photocopier business. Total revenue amounted to £28,000,000 which includes vending revenue and £18,200,000 of revenue from the sale of food, vending equipment and the sale of other equipment, spare parts, consumables and services. Excluding FX impact, total revenue was £29,100,000 and EBITDA was £11,700,000 Our other vending estate consists of 2,400 children's rides, around 3,400 photocopiers, four sixty freshly squeezed orange juice vending machines, and around three eighty miscellaneous machines.

27:46 We continue to sell a small number of pizza vending units, and we expect that this will remain a small financial contributor to the group moving forward. Whilst other vending remains a small business area in terms of total revenue and EBITDA contribution, it provides high margins as an incremental service at high footfall sites where we have existing operations in place. So, to recap the 2024 financial year and provide an overview of the outlook for 2025 and beyond, 2024 has been another record year of profitability, with profit before tax reaching £73,400,000 and we continue to make strategic progress against our long term growth strategy. Most importantly, Revolution growth has been incredibly strong this year, and we feel very confident of that continuing moving forwards.

28:34 We have rapidly expanded our laundry operations, achieving a record number of installations in 2024, and we plan to have a record number of installations in 2025. We remain strongly cash generative, with cash generated from operations totalling £107,400,000 and we continue to invest in innovation R and D to diversify our portfolio and drive long term value creation, highlighted by the launch of our new Kiwi key cutting service and our new printing kiosks. We remain focused on shareholder returns with a 6.8% increase in the amount of cash returned to shareholders through dividend payments. As we look ahead, we remain focused on delivering our long term growth strategy, driven by further progress in our core photo booth and laundry activities.

29:23 We will continue to rapidly expand our laundry operations with plans to install 1,200 net Revolution laundry machines in 2025, and we've made good progress towards that in the first quarter of the year. We will also continue our journey to modernize and upgrade our machine estate through ongoing innovation and diversification of services. With all this, the Board anticipates good further progress in FY 2025 and a profit before tax performance expected between 76,000,000 and £80,000,000 Our business remains in a strong financial position and this leaves us well placed to capitalise on future growth opportunities. Thank you very much for listening to our presentation, we will now take questions. Perfect, Vlad Stefan, if I may just jump back in there, and thank you very much indeed for your presentation this morning. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab that's situated on the right hand corner of your screen. But just while the team take a few moments to review those questions that were submitted already, I'd like to remind you that a recording of this presentation along with a copy of the slides and the published q and a can all be accessed via your investor dashboard.

30:32 Vlad, Stefan, as you can see there, we have received a number of questions, and thank you to all of those, on the call for taking the time to submit their questions. But, guys, at this point, if I may just hand back to you just to read out those questions and give your responses where it's appropriate to do so, if I pick up from you at the end that would be great, thank you. Great, okay well look we will start with this question. You tried to make entries into certain verticals like helping retail bank branches with virtual assistants, pizza vending machines, fruit juice vending machines, etcetera. Some you have already exited. What's the growth strategy for future in terms of new machines, products and verticals? Thank you, that's a great question. Well, firstly, just to talk about future growth, we're very clear that we believe that significant future growth opportunities lie in the revolution launderette.

31:20 We've talked about the large total addressable market that our machines have and the growth that we are driving through installing more machines. We're aiming to get to 20,000 machines in continental, well, in the markets that we operate within the next ten years, and we're nearing the 10,000 mark, getting closer and closer. So that is at the forefront of the growth strategy moving forwards. In regards to other things such as retail bank branches, virtual assistants, pizza vending machines, fruit juice vending machines, I think what that demonstrates is as a company, are always looking for interesting products that are going to interest our site partners and new innovative services that are going to be useful for our end consumers. And we are willing to take risks and when they work, that's great, we can push them very quickly like we did with the Revolution. The Revolution once upon a time was a very small product that we were trying.

32:11 And some new products such as with SONPAP, if we don't find that it's working well for our business or not integrating as well as we'd hoped, we move on very quickly from it. At the heart of ME GROUP is a willingness to innovate and a willingness to bring new products to market to see if they work. We will always continue to try and find new products that are going be useful for our site partners and for our end consumers. And in this presentation, we've talked about two of them, the key cutting machine and the printing kiosks. There's no guarantee that these products are going to become as large as our other products, but it shows our willingness to innovate and to try new products and to try and react to market demand, and we're very excited about the printing and key cutting kiosks. So on to the next question.

33:00 Can you break down the £17,100,000 CapEx in photo ME between new booths and updating existing booths to cloud based performance, please? You have to know that we are now starting a new program of exchange. In the past, to be clear, we have not we have not done a lot of maintenance CapEx. You have to know that the maintenance CapEx for us is only the renewal of machines because we have if not, we have no maintenance CapEx. So in the past, we have not done a lot of maintenance CapEx. We are now, since last year, starting a new program of replacement of machine.

33:49 We can say that this year, it will be around 60% of our total photoboost CapEx. So the next question is, how long does a washing machine last on average? Well, part of the problem Well, one of the answers to that question is unfortunately, we're not totally sure yet. The reason why is the first machines that we've installed nearing fifteen years ago are still in operation. We designed the Revolution Laundrette to be incredibly modular, so we're able to swap out parts and replace even whole sort of drums within a unit without having to change the overall unit. So you can see that the life cycle of the asset is longer than our depreciation cycle or depreciation for the Revolution Lendre.

34:39 On average, I would say we are aiming for the units to last at least fifteen years on average, I would say. So the next question is, of the 52,000,000 total CapEx, how much is research and development, please? So we capitalize, I would say, research and development is represent an amount of around £5,000,000 every year, and I would say 2,000,000 or £3,000,000 of this are usually capitalised. Great. Just looking for the next question. Is there a capability to submit images to be printed at a photo booth from home via a browser for collection in due course, and if not, is there a plan to introduce such a service?

35:33 So, our new photo booths do have a mobile print option, so you can go into the photo booth and print out an image from your phone, but we are not allowing that to be done from home. We find from our research that people want to print things at the booth rather than print at home to be collected in the booth, because of course our booths don't have a locker in them, just pick out the photo from the bin. So you wouldn't know who would be able to take the photo if you see what I mean. But sadly, we're very excited about our mobile to print business opportunity, and again you can integrate that into our existing photobooth business as well, which is exciting. Do you still see opportunities for photobooths across your international markets?

36:19 It's a great question, we definitely do. You can see that in the Asia Pacific region, where our revenue increased by 12.2, driven entirely by the increased our increased photo business in Japan, and actually it was up 24.6% excluding FX impact. But we do see growth opportunities across the photo booth market, in particular countries such as The Netherlands growing at a fast pace and Belgium growing at a fast pace in terms of photo business. But as we always say to investors, the photo booth business is a very stable and strong business, but the growth part of the business is the Revolution Londrette, as you can see in the results. The photo booth business is a very stable business. We always look for opportunities to grow where possible, but it's a very mature estate. We see we can also add Australia where we have started to expand, to deploy some photoboost and the revenue are extremely high.

37:18 Yeah, absolutely. I think that's all we have time for. I would like to thank everyone for their questions. We really appreciate it. Thank you for your attention and thank you for watching this presentation. We'll aim to answer some more of the questions if there are any that follow this presentation afterwards. Thank you for your time. Thank you, thank you for your time. Bye. Perfect, Vlad and Stephan. That's great. Thank you very much indeed for being so generous for your time and addressing all of those questions that came in from investors this morning. And of course, if there are any further questions, we'll make them available to you after the presentation. But could I please ask investors not to close this session as you'll now be automatically redirected for the opportunity to provide your feedback in order that the management team can really better understand your views and expectations.

38:06 This will only take a few moments to complete, but I'm sure will be greatly valued by the company. On behalf of the management team of ME GROUP INTERNATIONAL PLC, we would like to thank you for attending today's presentation. That now concludes today's session. So good morning to you all.