Mediazest (LSE:MDZ) — Final Results for the Period ended 30 September 2020

0:02 Good morning, ladies and gentlemen, and welcome to the MEDIAZEST final results investor presentation. Throughout this presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time via the q and a tab situated on the right hand corner of your screen. Just simply type in your question in the box below and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company review all questions submitted today and publish responses where it is appropriate to do so. These will be available via our investor meet company dashboard,

0:34 and you'll receive an email notifying you when they are ready for your review. I'd also like to remind you that this presentation is being recorded. Before we begin, we would like to submit the following poll. And if you could give your attention, we'd be most grateful. And I'd now like to hand over to Jeff Robertson, CEO of MEDIAZEST. Good morning. Good morning. So thank you for joining us first and foremost. My name is Geoff Robinson, as Mark said. I'm the CEO at MEDIAZEST PLC. I'm gonna talk this morning a little bit about about the business for those who may not be familiar with what we do and also a little bit about the financial results for the eighteen month period to the September 30, which we just released a couple of weeks ago.

1:19 So down straight in, there are three of us on the board of directors, myself, Lance O'Neill, who's nonexec chairman, and a nonexecutive director, James Abdul. The business proposition for MEDIAZEST is that we deliver innovative turnkey audio visual solutions to our clients, and we generate revenue in two ways. One of those is through projects, and that would be through hardware and software sales and installation and project management costs around that. And the second way is ongoing recurring revenue streams from service and maintenance contracts, content hosting, content management, things like that based around those installations. So it's an ongoing stream of business. We work in three key sectors. So retail, where we typically work, you know, with the evolution of customer experience using technology as the enabler on that.

2:13 In automotive, a new new dealership business models, electric vehicles, and the increase in those is a is a really interesting area. Lots of frequently asked questions lends itself to digital technology, so we're seeing a lot of interest in that area. And corporate offices where we use audiovisual technology to enable our clients to manage their resources more efficiently.

2:37 Our strategy has got sort of four pillars. Firstly, to try and improve business performance visibility and the value of the underlying business by focusing on long term contractual revenues and clients that generate repeat business. That means focused on client with long term opportunities to deploy solutions typically across multiple sites, so retailer chains, dealerships. We have a very diversified client base in different sectors, and the common thread is innovation in audio visual. We also collect data from those installations, and we use that to help provide actionable insights to our clients. So a good example of that would be a touch screen kiosk in a retail store, where the customers are encouraged to explore products or have their own journey.

3:24 What we'll be able to do is give our clients data about how that's being used, whether it's been effective, whether we're getting the right messages across, and then they can change that model how it works to improve it so it's yeah. Maximizes the return on investment we deliver for them. So case studies and market opportunities, probably the best way to explain what we do and and show people is to to show some examples. So we'll dive straight into that. First of all, retail. So this is a good example of a client of ours, pets at home. We've been working with them for a couple of years. We provide audio visual solutions to them as part of their store refresh program. This is the Stockport store. It recently won the large format store of the year at the last retail week awards, which is, you know, great news. I'm really proud to be, you know, a small part of that.

4:15 What we deliver for them is digital signage in those in their stores. And we've done about 20, I think, so far. What we do is that could be just a way finding. It could be giving information about product services. It could be giving tactical offers to the customer, you know, what's on offer this week. But also, we give them an experiential element as well. So this is what they call the pet village as it welcomes you as you come into the store. And you can see it's on a a selfie spot, so there's the opportunity for customers to engage and just have a great experience. So it's all about, you know, making the store visit better for the customer, more enjoyable.

4:55 Another good example, this is Ted Baker we've worked with for many years. For Ted, that we did we deliver a sort of a standard digital signage network, we think of it as. So we're giving them the ability to push content to all the screens across all of their estate around the world and from their headquarters here in London. And that means working with them across Europe, Middle East, Asia, Africa, Australasia, and North America. So for us, it's our it's our most global client. It's a great, really strong brand. They've got really strong imagery and video. They spend a lot of time and money developing that around their clothes. What we give them is the ability to to put that message in the right place at the right time and do that consistently consistently across the world for all of their stores. In terms of the retail market, there's obviously a lot of talk in in the press about, you know, how the high street's evolving, what's gonna change. You know, I think the the COVID pandemic will obviously inevitably bring changes, but I think a lot of those changes have already been coming.

5:57 Retail has been focusing on changing to a model of sort of fewer better stores for many years now, and that's really as well about integrating the online Internet platforms with the offline store experience and providing a sort of seamless experience for the customer when they go into the stores. This is a great example as well of the sort of the high streets not dead, I guess. Amazon recently launched their first Amazon Fresh store in The UK, meaning Broadway. Just to be clear, it's not a client of ours although we do do some small audio works with Whole Foods which they also own. But the point of showing that on the slide is really to just to emphasize that yeah, the high street is evolving. Digital is a massive part of that, and it will continue to evolve. But even online retails, you know, maybe the archetypal online retailer, you could argue, Amazon, they're also looking at bricks bricks and mortar.

6:46 You know, bricks and mortar has a huge part to play and will continue to play on the high street. So the second area I talked about at the beginning was automotive, and that's been, you know, a really good market for us over the years. Since 2014, we did our first, what I would call, like, a shopping center store with Hyundai in Bluewater. This is one of our most recent. It's Porsche in City Life in Milan. This is all about putting the brand dealership in a space where there's lots of footfall, lots of traffic, lots of opportunity to people to walk by and get involved with the brand, to engage, to come in, to find out more without them having to make a conscious effort to drive out to an out of town dealership, which is, you know, obviously the more traditional model in automotive retail.

7:33 And what it gives the customer is a chance to really just wander in and wander out. There's no high pressure sales. It puts, you know, the control of the journey in their hands. If they wanna just browse, that's fine. And that's really something that wasn't part of the automotive market sort of ten years ago. And for Porsche, we did the LED video walls. You can see the big screens there. But also, probably even more importantly, the the smaller screens that you can see on the table. They're they're browsing screens that give the customer the ability to to have their own journey, to look at what they're interested in, to be able to to explore as they want to and at their own pace. So really, it's about customer experience innovation, you know, giving the control back to the customer in the same way they would have it if they're sitting at home online, but with the added benefit of obviously being able to see the car and the brand in the flesh.

8:25 The second example I'm just gonna pick out from that market is this is a a traditional car dealership. This is Jardim Motors Jaguar Land Rover in in Reading. This is one of the first projects we did at the end of the first UK lockdown. I think really interesting to see its touch screen. No one's shying away from that. Obviously, they're taking extra precautions with the screens and with the the wipes for their customer and their client their colleague's safety. But what this is really doing for them is it just shows the evolution is still towards adding digital technology. Again, it's putting the customer in control. They can come in and browse the range. They can build their own model. They can do it themselves. There's no high pressure sales. But, also, they've got the cars in front of them. They can get in and out. They can walk around the vehicle. They can experience it. They really feel immersed in the brand in a way that you can't do online. You know, that's where your physical retail really has its role. This is, you know, combining the best of both.

9:23 So the third sector that I mentioned was corporate offices. This is a recent example we did for Cawone for their headquarters. And this is the sort of typical of a trend that we've been seeing with, you know, meeting room solutions, whether that's room management, so booking the meeting room, whether it's a video conferencing technology, so high quality audio so everyone in the room can hear, everyone in the room can see, etcetera. And also, there's a sort of rise of what we would term the sort of town hall meeting areas and using audio visual for that. So display areas where people can present. We can get the whole team together, you know, and talk in the in the flesh, have meetings, have events, and so on and so forth. And AV plays obviously a big part in that. That market is obviously changing, and and I think it's been changing for a while pre COVID. But post COVID, we believe we're gonna see an acceleration of what we've been the trends that have already been happening.

10:18 So in particular, what we've been seeing in that market is people taking smaller offices. So smaller footprint, saving some costs, and moving more to a virtual model that was happening before the pandemic. And obviously, with lots of us at the moment working from home largely, that, you know, we believe is gonna you know, is obviously exploding that that whole area, and that's gonna continue in the future. I think as we come out of lockdown, we're gonna see a mix of people going back to the offices. I think people will welcome that, but they won't want to be there five days a week. So there'll be even greater emphasis on this sort of trend. We term it sort of bring your own meeting is the sort of the the classic term. And that really means just being able to walk into any room with your laptop, plug it in, and have a really good experience with a a meeting with your colleagues physically in the room, but also with your colleagues who may be virtually working at home. And and, obviously, you know, as I just said, with the COVID pandemic and how things are likely to evolve after it, that's becoming ever more important.

11:14 It's also about maybe pitching remotely to clients. So maybe your clients aren't able to travel because of, you know, safety matters and restrictions. Just everyone wants them to keep each other safe, that places even greater emphasis on the technology in these rooms to have a good experience for everybody, not just those ones sitting around the table in the physical space, but anyone joining from home or joining from another office. And that's leading to the ability to deliver or the opportunity, I should say, to deliver some more advanced audio visual solutions around, you know, audio quality, video quality. We booked a product. We we use a product called Barcode ClickShare, which is is demonstrating the in the picture. And that's really interesting because that gives data as well behind it, which tells the office manager how often the room's being used, who's using it, what they're doing in it. So they can really help to maximize those resources. So, obviously, as you get a smaller footprint, you know, more and more important to have the right tools to be able to do that. It also enables them to feed into things like smart building technologies.

12:16 So things like heating and light. So if the room is not in use, they can make sure that they're not using those services, which is obviously a, cost serving, but, you know, b, extremely importantly, you know, from a sustainability point of view, and, you know, green buildings type point of view, you know, really, really important. We're also seeing in that area the town hall presentation sort of space is evolving. And what used to be a space to get everybody together physically is now also got to work, you know, remotely if people can't be in the office or only certain number can be in the office. And that means that we've we've been adding the ability to record and stream live these meetings to staff. So there's been a real evolution in that as well. We see a a real trend growing there. In terms of the market size and opportunities, we believe there's a significant opportunity to build a leading digital signage business here with international reach.

13:10 The global AV market is believed to be worth around $240,000,000,000 in 2020, and it's expected to grow rapidly to 315,000,000,000 in the next five years. In our opinion, there are many relatively small skilled companies, particularly in the digital signage area, without sufficient access to capital or scale to meet this demand as it grows, particularly as it grows globally. And as that gives us an opportunity to use our public listing to become a consolidator in the market as well as to grow organically, which is, you know, our key focus at the moment. So that gives you a flavor of of the business, hopefully, and what we do for those who maybe are less familiar with it and some of the stuff that we've been doing recently in the last sort of twelve months where we see the trends going.

13:57 In terms of financial results, I'm gonna talk a little bit about the numbers that we put out for eighteen months to September 30, which we recently released to the market. We extended the accounting period to eighteen months as it would have fallen March 2020. Obviously, that was right in the middle of the initial lockdown, your maximum time of uncertainty, I think, of what what was gonna happen and how things needed to change. We took the decision to extend the accounting period to eighteen months to give us more space to be able to concentrate on, you know, making sure the building the business, sorry, was fit for purpose during that time. That enabled us as well to defer certain costs such as audit and push those back, which which obviously made sense during that during that period. So in terms of of performance, obviously, last year, you know, was was very difficult for lots of people, and, you know, there was a resulting loss.

14:51 And I just point out when looking at the numbers, just to remind us, there are different periods we're looking at here. So the revenue looks consistent, though, obviously, the the most recent numbers are over a longer period. Conversely, administrative expenses, etcetera, they've gone up. But actually, they've come down on a monthly basis because, again, it's it's because of the longer period. We had a a very strong period of twelve months to 03/31/2019, and we were we were growing nicely as a business, and things are moving forward well. And various things, you know, obviously impacted last year, particularly COVID, and that meant that that we were we went to a loss making situation. In order to really understand to how the year shaped up for us, it's probably better to think of it in three separate periods.

15:36 And we saw three really distinct changes in the market during the year during the eighteen months as we look at it. So I've broken it down and broken it out here. This all obviously ties into the interim results and the second interim results we've previously released. What we saw in the first six months, so that's 04/01/2019 to the 09/30/2019, was a real pause in demand because of Brexit negotiations. So as you may remember, this was the time of Theresa May government. There were several votes back and forward in sort of three, four weeks where it looked like there was gonna be some certainty over how things would change in the sort of post Brexit arrangements. And what we saw a lot from many clients, particularly in the retail market, was then deferring decisions and sort of putting things on what they call Brexit hold because they believe that in the short term, they would have more certainty over what they were gonna see and therefore could make better investment decisions.

16:32 That carried on until, I would say, roughly August that year, and then we started to see, a realization that I think it was gonna take longer to to make those arrangements. And therefore, our clients came and said, okay. Actually, we just need to get on with these investment decisions. We can't wait any longer. And that led to a really good period, that middle period, where we saw, you know, growth back to where we were, I think, before, and we started to really push on again. That period was was, you know, really busy, lots of good client work, lot some several new clients, but also growing with our existing clients. It would have looked even better, but, obviously, March and to a certain extent for us, February because of the delay to the Porsche install, got hit. So, actually, it was still a small loss. That was really because we we caught the the beginning of COVID in that period. The period as a whole, though, was one of really good growth for us.

17:24 And then finally, the final six months to the September 30, obviously, that included the biggest impact of COVID certainly to date, and that was, you know, closures of the the whole business and all of our client sites, April to May. Our recurring revenue streams really helped us during that period. And then by, you know, sort of June, we were back on-site. August, we had a very busy month, and that period did make some recovery towards the end. But obviously, there was a hit due to the COVID pandemic. In terms of just a couple of things to point out as well, There is a new IFRS accounting standard that came into play for this period for the first time for us. That's IFRS 16 and in sort of in brief terms, it meant that the lease we have on our main premises in Woking gets capitalized and added to the balance sheet.

18:18 And the rent we would pay on that goes for the depreciation line rather than through administrative expenses. So that's why depreciation looks particularly high sort of year on year. In terms of the balance sheet, excuse me, in terms of the balance sheet, obviously, it's reflective of of the loss, but also, as I mentioned, the IFRS assets that we now create on the balance sheet. So what you end up doing is you have an asset called a right of use asset for the lease and then you put the liabilities of all the money it will go out and rent over the period on the other side of the balance sheet. So yes, you will see that in the accounts. Also during the year in terms of improving cash on the balance sheet, obviously, there's a significant jump in cash at the period end.

19:03 We raised £150,000 through convertible loan notes in August 2020. And we also took a bounce back loan of £50,000 from the subsidiaries bankers during the sort of similar period. That was to give us obviously more cash flow as we sort of negotiated our way, navigated our way through the COVID period.

19:26 What I think is important to note and it doesn't really sort of see from the sort of the numbers as you can look at them in summary is that actually underlying those revenue figures, our top 25 clients accounted for over 80% of our turnover in both those accounting periods. So that's the last thirty months we've reported on. I think even more importantly, 17 of that 25 are consistently in that group in both periods. So we have regular clients that we've built and we continue to build. And often, they're doing business with us on a on a repeat basis. So that could be store by store or dealership by dealership. That means that generally, there isn't a large one off deal that we can announce to the market. So we generally tend every quarter to try and wrap up and and give a flavor of what deals have been done in summary.

20:14 We also have the recurring revenue streams on top of that. At the moment, they're in the region of about £550,000 a year annualized value. Some of those are multiyear deals and some are shorter term. That number actually changes a fair bit at the moment because of COVID. So where there were stores closed, some of those were not able to charge for even under the contract. But that will come back to that number we expect to grow in the coming twelve months. In summary and outlook, we've already mentioned in our announcements this year several new business wins, and it is getting, you know, busier on the pitching side. What we are seeing, I think, is some pent up demand. I think that's generally expected by by most people in the business world. And what we're seeing is lots of interest in in what we do as people are hopeful of, you know, coming out of the pandemic in a relatively short space of time now, getting ourselves ready for the second half of this year of 2021, and and really thinking about reengaging with these project the projects they've already begun or the projects that they've talked about and starting, getting those now moving now. It's the more appropriate time.

21:20 You know, we're an award winning audiovisual partner to lots of global brands, and we've got several long term clients that I just mentioned with long term growth potential. Some of those have always to be could begun those projects as as rollouts. As we said, you know, obviously, last year, there was a slowdown because of COVID and initially, you know, with the Brexit uncertainty. But what we are seeing is the ambition to really carry on with those now, and that's our expectation moving forwards. The market in digital signage is really maturing, that is gonna open up opportunities in the coming years to consolidate, we believe. And finally, we believe we are well well positioned to prosper post COVID in all of the key markets we work. So with retail, they continue to focus on fewer, better stores, enhancing the digital experience, particularly with what the world's been through the last twelve months is more important than ever.

22:09 With automotive, they're trans transitioning to digital buying models, but also the introduction of electric vehicle means customers coming and buying vehicles. They maybe have some questions over. Technology has a great role to play in helping with that experience. And finally, in the corporate office space, using audio visual technologies to to manage that greater reliance on on the technology to help keep people safe and also to manage a smaller office footprint.

22:39 Just as an appendix, this is all available on our website, but and in the accounts. Again, the web the website also has a link to the accounts. Key shareholder and and director shareholders are all there. The aim twenty six secondtion covers all that. Corporate governance policy and so forth. And shareholder loans and the convertible loan notes are broken down there as well.

23:04 Hopefully, that's enough for me to give a sort of brief introduction to the business and a little bit more color around the recent results and what we've seen in the last eighteen months. We believe there's a very exciting future for the business. We also are hoping obviously we come out of COVID very soon and looks like that's going to be a very strong period for us and the appetite to do digital in all of our markets is growing. Just want to say thank you for your time, taking the time to listen to us, and I look forward to your questions. That's brilliant. Geoff, thank you very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions using the Q and A tab situated on the right hand corner of your screen. I just wanted the company to take a few moments to review investor questions submitted today. I'd like to remind you that the recording of this presentation, along with a copy of the slides and the published Q and A, can be accessed via your Investor Meet company dashboard, and we will send you an email to notify you when that's ready for you to review. I'd also like to remind you that feedback is important to the company. Immediately after the presentation has ended, you'll be redirected for the opportunity to provide feedback in order the company can better understand your views and expectations.

24:11 Jeff, there have been a number of questions submitted throughout your presentation. I don't know if you can access the Q and A tab or you have it open already, but if you could just open the Q and A tab. Could I ask you, please, if possible, just to read out the question and give a response where it's appropriate to do so? And then what I'll do is I'll pick up from you at the end ahead of diverting investors to feedback. So if I may hand back to you, Jeff, that'd be great. Sure. Thank you. So just looking at the questions. Thanks for these. So from Nick Jay, how is your business and revenue split between projects and recurring revenue stream? So, yes, so the so the recurring revenue stream is around about five fifty on an annualized basis as we stand today. That is impacted, as I said, by some of the closures at the moment and COVID, and the balances of the 3,000,000 is is project work. So project work is is definitely the biggest. Our long term ambition is to grow that recurring revenue stream so we cover costs at day one before we open the business and go beyond that.

25:10 Second question, Simon C. What opportunities do you see for expansion into other sectors and services? I think there's it's constantly innovating the audio visual market. You know, we work very closely with suppliers on new products. So there's always stuff coming through that opens up sectors and services. I think the one area that we've really focused on recently, and I touched on it in the presentation in our strategy, is data. The importance of big data and the importance of using data to measure ROI, I think, is is really, really interesting at the moment. And what we're seeing that is a is a diff a way to differentiate our business from other suppliers of of digital signage. So we're not just gonna put in a solution that's gonna work and deliver what you want, but but we'll evaluate that solution.

25:55 We'll help you improve it, and we'll help you really generate return on investment from that. And I think that's a really compelling argument to our our customers when we're pitching it, and we get really good feedback on that, really good interest. There's also a follow-up question from Simon. Would you look to organic or M and A to expand? I think at the moment, particularly coming out of COVID, we would look to organic growth, and that's really where we're focusing. That's in our control. So we're really working very hard on that. There's lots of engagement with customers, lots of new potential customers being spoken to as well. As we talked about in the accounts, the pipeline opportunities look strong. It's really gonna be about how well we can close those. And obviously, to a certain extent, you know, does the does the lockdown easing continue in the way that we expect?

26:41 I think in terms of m and a, we do see in the future, we think there will be opportunities there. We're mindful of the share price, which we believe is, you know, below where we think the the market should be. You know, we think we are undervalued. And that obviously you know, therefore, we need to to balance that up if we are gonna use use m and a when you think about how we're gonna fund that, whether it's debt or equity. But I think there will be opportunities. I think, unfortunately, for some people out of COVID, there will be opportunities possibly where where they weren't before, where they'll be looking for for for partners, and we do keep a, you know, a sharp eye on that, and we engage with the market to sort of see where that goes. But, yeah, very much at the moment focusing on the organic growth, and we believe there's a a really big opportunity there. The question from Stephen, what is the cash balance as of today in the business? I think that's probably not something I can probably say in this forum. The cash balance obviously goes up and down depending on when clients pay and etcetera, etcetera. And we obviously, as a as a PLC, just to emphasize, we spend a lot of time in close contact with our nomad, and they need to be obviously sure that we have sufficient cash in the business, you know, for this foreseeable future. And we take that responsibility very seriously, and we continue to do so.

27:55 P2W offering appears to be quite bespoke. Is that correct? I think that's a that's a really interesting question. So one of the ways we do differentiate ourselves and we have in the past is being able to deliver sort of these wow factor like the Porsche example is a good one, sort of wow factor type experiences. What we've been trying to do in layering on, I think, successfully in the last sort of three, four years is think about the sort of more day to day digital signage. So I think the two examples I showed on the retail side, so pets at home and Ted Baker, where it's more digital signage network and it's at scale, that's really where we think the, you know, the growth is and the the growth of the business. The one off projects are great, and I think they're really good to attract new clients. What we tend to see is that the clients work with us on that. They tend to be pretty tricky projects, quite hard work.

28:45 We tend to find is that that goes well, and that then opens up opportunity for us in the sort of wider parts of the business. So it's both. It's bespoke at the beginning, it tends to be, and then we tend to then widen the spread, and it tends to evolve over time.

29:02 For a question from Ian, how do you sorry. Who do you compete with for new business, and what visibility do you have on projects going forwards? I think that's, again, a really good question. In terms of the market for digital signage, so what we would consider our real core business, and that's not just putting in screens, but putting the the means to push content to those screens behind it, updating it, keeping that content fresh, sometimes doing the content ourselves, taking the data behind it, and then reiterating the content to improve it. And there are very few companies that do that, and they tend to be similar size to us, I would say. So we we tend to compete in the market with specialists. And on some of the projects like the office, the office fits out type projects, there are bigger players who just focus on that area. And so we tend to compete with bigger companies.

29:49 What we tend to find is the innovation sets us apart, I think, and the data side of it, I think, is part of that. But also the sort of like I said, the Porsche example is a great one where we're doing something a bit different that isn't easy to do. It's not out of the box. The ability for us to be a one stop shop, I think, for clients to deliver that from sort of blank piece of paper, what can we do here to this is the solution. Let's build it. Let's test it. Let's install it, and then let's roll it out. I think very few other companies can do that. You asked as well about visibility on projects going forward. That's a real challenge for us. For any of you who might work in retail or even automotive automotive retail, things move very quickly and they get delayed very easily. So, you know, negotiations with landlords, thinking about how the market is and when you want to launch stores, seasonality, that can all have a big effect. That makes it very difficult for us to predict exactly when, you know, projects are gonna fall. And that's one of the reasons why we really focus on on the recurring revenue streams and repeat business where it can be a consistent revenue. So even if it's not contractual, if they're doing store after store after store with us, then we know that's over a period of time we're gonna get regular business.

30:55 And that's why that's so important to give us visibility on on projects and, obviously, to help us manage the business and, you know, drive on to profitability again after, you know, a tough year last year. A question from Vijay. What are your projections for 2021 results? We don't have a projection in the market. Partly, that's because of the the reasons I just talked about. Actually, it's extremely difficult to predict timing. What we are seeing, and we have talked about this in in the accounts and in the recent announcements, is increased appetite for pitching. We do expect that, you know, naturally to then lead to conversion. That level of conversion, it's obviously a little bit uncertain at the moment with the COVID situation. But I think the fact that we are getting so much engagement is is really encouraging.

31:40 And I would say as well from our ongoing existing clients, yeah, they're all seeming to be gearing up to to moving forward again. So again, that's yeah. That that gives us a lot of confidence for the future. A question for Steven again. What are the immediate risks and opportunities for business in the near term? So I guess immediate risks is is COVID. You know, if there's a knockback, if there's a new variant, if if the vaccination, you know, has a problem or something, you know, that's the the immediate risk, I think. And the opportunities in the near term, I believe, is that I think there's a lot of pent up demand. I do think as well that it's given management teams maybe time to think about what they need to do digitally. So it's very hard to drive a retail business and think strategically about how you're gonna roll out digital signage and incorporate it in your business. We think we're good at helping our clients to do that, but it is a challenge, obviously. So I think having some time to be able to do that, hopefully, in the coming, you know, immediate term, that will have have opportunities for us as people, you you know, have projects ready to go because they've had the time to prepare.

32:46 Another question for Michael. Can you tell us the name of the client who was referencing the recent RNS contract win? That's a good question because it gives me an opportunity to address something. One of the challenges for us is, obviously, we want to put RNSs out and talk about client wins, but, obviously, we need to respect client confidentiality. And and we we very often, we sign confidentiality agreements before a project goes in. That typically means we can't release the name of a client or talk about them until the project's been delivered unless in the public domain. So and that's the case with the client we mentioned. So yes. So it's it's a client with ongoing potential. We actually rolled it up. There were several pieces of business within the number that we announced. We will obviously try and, you know, talk about those clients as often as possible, but we need to wait for permission, and we generally need to wait for a successful implementation.

33:35 The one we're talking about in question is due in the sort of beginning of summer. I believe they're on-site now. So probably in the next two, three months, we'll be able to talk about that. Question from Vijay again. Can you talk us through how your pricing works on average? Excuse me. So we can get a typical view of sorry. A view of how much is recurring revenue in a typical deal. So that's another good question. So in terms of the hardware and software, hardware is difficult to make big margin on. Where we really make our money is around services that we provide and the skill set we provide. That's why the core team is so important, and we've built that over the last fifteen years. And gives us a real edge, I think, over over competitors.

34:21 Typically, the recurring revenue element of a project will be around about 10% on average. So if it's a £100,000 project, then a service contract for a year will be about £10,000. That's a that's a rough rule of thumb. It will depend on client to client. Also, obviously, you know, from a repeat business point of view, yeah, that's even more important. It's even bigger part, I think, of our revenue base, which is the the ability to keep working with clients as they do more and more stores. They like what they do, and then they've got the opportunity to refresh or invest in those stores.

34:56 In terms of current pitches, so it's for Michael, what's the likelihood you'll win new clients in the short term? High, medium, low. Well, I would say sort of medium to high. You can never say with certainty, but there are plenty of pitches out there. Lots of clients we're in advanced discussions with, I would say, yeah, new business, as I talked about earlier, when we talked about in the accounts, has definitely picked up since January this year. You can see people gearing up back out there. So, yeah, I would say medium to high, but it can never be certain. Does the business have the ability to be more digitally active on promoting itself on social media platforms where appropriate? That's from Steven. Yes. Yeah. That's is the short answer to that. We'd like to do more. We're a relatively small team, so we're covering a lot of ground. There's a lot of complexity in what we do, and that means generally having the time to do the social media type posting is is maybe something we could do a bit more of. So we we would definitely like to do more of that and do a bit more marketing, something definitely we're looking at in 2021.

36:01 So I think that brings us to pretty much all the questions. I'm just searching through. I think I've covered most of them. Geoff, I think you have actually addressed most of the questions that have been submitted by investors. So thank you for the investors for submitting those and, Geoff, for your time in dealing with them. If we have missed any, obviously, we'll make those available to you post the meeting, Geoff, anyway. Obviously, feedback, I know that you want investors to provide feedback. So before I I divert them to do so, perhaps I could just ask you for a few closing remarks, and then I'll take the floor back. Brilliant. Yep. Again, you know, I think we've we see an exciting future for the business. We think all of the the markets we work in, you know, will be continuing the growth as we come out of the pandemic in the digital transformation arena, and that's where we are, you know, super strong and where we believe, you know, we're one of the leading companies certainly in The UK delivering that. And we see an increase in activity, you know, and we think it's a it's an exciting time as we come out of it. I think everyone's, you know, very much looking forward to trying to get back to business as as usual, business as normal, but that new normal would include, yeah, more digital, I think, in all of those areas that we talked about today. Yeah.

37:08 Hopefully, it gives you a flavor of what we do. It's a it's a very visual business. So if if you can see see what we do, it sort of helps understand it. I think it's a you know, I think for the future, it's it's if you're opening a retail store at the minute and you're not thinking of digital, I'd be very surprised. Same with automotive. And, you know, in terms of buildings, if you're not thinking about how the the the technology needs to work better for what's coming up again, I'd I'd be very surprised. So that that gives us a lot of confidence for the future. Yeah. And just thank you very much for for your time. Thank you for taking this time to to listen to me and and for your questions. That's great. And yes, I look forward to answering more if there's any more we've missed. Geoff, thank you very much indeed for your time today. Could I please ask investors not to close this session as you will be automatically redirected for the opportunity to provide your feedback.

38:00 If you access this meeting from our website, the feedback page will appear. If you access this meeting via the link sent you by email, you'll simply be asked to log back in to submit your feedback. And if you could give your time, I'm sure it'd be greatly appreciated by the company. On behalf of the management team of MEDIAZEST, we'd like to thank you very much for attending today's presentation. That now concludes today's session. Good morning to you all.