Newmark Security (LSE:NWT) — Final Results

0:00 Good afternoon, ladies and gentlemen, and welcome to the NEWMARK SECURITY PLC Annual Results Investor Presentation. 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 will review all questions submitted today and publish responses where it is appropriate to do so and these will be available via your investor meet company dashboard.

0:33 Before we begin, I would like to submit the following poll, and I would now like to hand you over to the executive management team from Newmark SECURITY PLC. Mary Claire, Paul, good afternoon. Good afternoon. Thank you very much. Thank you. Well, good afternoon. I'm Mary Claire Thweck, CEO of Newmark Security. And today, I'm going to share with you an update on our annual results for 2023, as well as giving you an exciting inside look at the key developments that are happening across our business for the year ahead.

1:08 First, for those who don't know us, let me explain in the simplest possible way what we do. We protect people in safe spaces. How we do this is by providing secure cloud control of people's access, timekeeping, and identity data at work. And how we do this so the experience is always safe, seamless, and secure, by which we mean safe spaces, seamless operations, and secure data. Everything we do is about protecting human capital, people in safe spaces. For over thirty years, NEWMARK SECURITY has delivered long term value through products and services and enterprise security. We focus on three segments of the market, human capital management, otherwise known as HCM, access control, and physical security.

2:04 And we employ a great team of experienced specialists, extremely skilled in each area. Because of this, we know our markets very well and really understand the needs of our customers and their industries. All of our products and services are delivered through two market facing brands, Glovenor Technology and Safetel. Glovenor Technology or GT is our people and data business and is a well established provider of time clocks, access control, and all of the software and services that run these devices. This business has been growing rapidly in HCM. Safetel is also well established and is a physical security business where we deliver long term full life circle value for our customers by manufacturing and servicing products like water doors, retail protection screens, and building security.

3:02 I'll explain the strategy for both of these businesses in just a minute. But before we dive into it, let's go into the numbers. Let me say how pleased I am with our performance for 2023. This has been a milestone year in several ways. Most important, of course, is returning to full year profitability. And what might look like a modest overall top line growth hides the key story underneath, which is the launch of our strategic cloud platform, GT Connects, accelerating GT shift from being a hardware only to a hardware enabled software services business. This combined with the return to growth in Safetel shows the success of our '25 growth strategy.

3:51 By securing increasing recurring revenues with exciting developments to tell you about, we are making NEWMARK future ready towards an even bigger '24. But first, let me hand you over to Paul, our CFO, to give you a summary of our most recent group wide performance. Thanks, Marie Claire. As usual, all of our results announcements are published on our website at newmarksecurity.com. So let me now take you through the financial highlights. Group revenue has grown once again, increasing 6% year on year to £20,300,000 with key improvements across the business and strong business unit performances within both our people and data management and physical security divisions.

4:44 Once again, it's been another solid year at Grozner with top line revenue growth of 7% to £15,600,000, primarily driven by strong growth of the HCM business and our expanding relationships with software partners, which have been particularly strengthened in the European market. This is now the eighth consecutive year that HCM has delivered revenue growth. Headline revenues at Safetail grew modestly by 3% to £4,700,000,000, benefiting from its new leadership and numerous reorganization measures, which have started to take effect. These are now expected to have a greater impact as we move forward. With a number of exciting national opportunities in the pipeline expected to come through in f y twenty four, this puts the business in a very strong position to plan for more aggressive growth in the year ahead.

5:43 As Marie Claire has mentioned, 2023 has been a milestone year with strong underlying performance benefiting from the significant steps the team made in 2022 to ensure growth is sustainable. This included a combination of customer price increases, cost savings, and improved commercial measures. And we can see the positive impact of these steps in our full year results.

6:14 So gross margin in FY '23 increased by 4.1 percentage points to 37.6%. Full year profitability delivered an EBITDA of £1,500,000 from a virtually breakeven position in 2022. Operating profit was not £300,000, up from a loss of 1,100,000 in 2022 due to the strong performance of growth. This had a strong knock on effect into profit after tax, which was naught 400,000 up from a loss of naught 800,000 in 2022. The positive results mean our earnings per share rose to 3.8p, up from a loss of 0.8p per share in 2022.

7:06 And we maintained our forward investment focus, sustaining a £500,000 investment in r and d and benefiting from slightly less capital being required as a consequence of the significant investments we made in 2022 and prior years. Net assets grew slightly to £7,900,000 from 7,600,000 in 2022, leaving the business in a very healthy trading condition. With a clear focus on our 2025 growth strategy, the key metric we've been transforming has been the growth in recurring revenues, where we continue driving strategic momentum with a superb a 133% annual recurring revenues growth.

7:57 And I'll talk a bit more about this on the next slide. The group's cash at 04/30/2023 was naught £600,000, up from naught 200,000 in 2022. This increase was due to a significant improvement in operating cash flows driven by higher revenues, increased gross margin percentage, and lower overheads. As I mentioned earlier, during FY twenty two, we implemented a program of strict cost control and increased prices to mitigate the effect of higher componentry and freight costs. With a full year of these price rise and the cost savings taking effect, this resulted in improved performance in f y twenty three as we begin to use our recent investments in products and infrastructure to accelerate growth.

8:52 Supply chain challenges have also been successfully managed by building inventory to satisfy ongoing customer demand, and the inventory levels are expected to ease in FY twenty four allowing for further cash flow generation. Bank borrowings less cash at bank decreased from £3,800,000 at the last year end to 3,300,000 at this year end.

9:21 Thank you, Paul. As I mentioned earlier, Glovner Technology is a specialist people and data business that responds directly to the challenge of keeping people and their data safe when they enter into the workplace. And this creates long term customer value by providing them with high spec hardware devices, which are built to last and equally high spec software control, which is cloud based, enables us to deliver a single solution with a blended subscription that combines hardware, software, services, and device warranty.

9:58 And then, essentially, this is all about giving the customer better control, time clock control, access control, identity data control so that we can deliver complete solutions by enterprise subscriptions. Thanks, Marie Claire. As you can see, GT's performance was primarily driven by continued success in HCM sales, up by 10% to £12,600,000 with a greatly improved gross margin contribution, up 32% to £6,000,000. As I've already mentioned, at the time of this success is the rapidly growing high margin recurring revenues contribution with software as a service SaaS and clock as a service class ARR increasing by a 133% to £2,100,000 in April 2023.

10:55 This represents 12% of our f y twenty three divisional revenues, triple that of f y twenty two, which was 4%. As our clear strategic priority, we expect the growth in HCM to accelerate in f y twenty four with further significant gains in annual recurring revenues. During the year, overall HCM growth was achieved in both the North American and rest of world markets. However, another strong US based performance was masked by the termination of our partnership with UKG. This had always been foreseen following the 2020

11:36 merger between Ultimate Software, our original HCM partner, and Cronos, a competitor in the time clock products. Although UKG's corporate policy decision is entirely unrelated to the performance of gross new products and services, the notification in q three f y twenty three left a shortfall in sales against our original plan. But we are able to offset this with substantial gains across our other HCM partnerships, which combined to result in an overall flat 1% growth in the North American region. Progress with European HCM partners gathered pace as rest of world markets delivered underlying growth of £1,000,000 resulting in a 37% year on year improvement and contributing most of the 10% growth in HCM revenues overall.

12:35 Our access control business declined slightly by 3% year on year to £3,000,000 as it underwent an important rebalancing, transitioning away from the end of life legacy Janus product with revenues declined by £1,000,000 and towards a new Janus c four access control product with those sales increasing to £1,700,000 representing an outstanding growth rate of a 108%, together with a small 5% in sales of Saturn Advanced to £1,100,000 and the new Janus c four Ultra product in the pipeline, the future growth outlook in access control is extremely positive. All of these gains contributed to an impressive divisional uplift in gross profit, which increased to £6,000,000 from 4,600,000 in FY 2022, with gross margins growing from 31.4% to 38.6% underpinned by all the measures we've been taking, recurring revenues, price uplift, and careful cost management.

13:45 And this puts us in a very strong position as we expect recurring revenues to build strongly in 2024. More about that from Mary Claire in just a minute.

14:00 Thank you. NEWMARK also has a well established physical security business, Safetel, where we drive long term value for our customers contracting directly with end clients and also major contract partners. We are The UK's leading provider of high specification physical security solutions. And as you can see, we co focus on three key areas, auto doors and entrances, screens and counters, and building security and asset protection, constantly innovating. Our broad portfolio helps us create the safest and the best protected physical environment for workers, enabling us to provide end to end solutions for physical security. While screens are still a large part of our business, today, we're serving much broader range of customers across private, public sector, and retail with a particular focus on auto doors where we are winning major long term servicing contracts.

15:02 Thanks, Marie Claire. As I've already mentioned, Safetail revenues grew modestly by 3% to £4,700,000 benefiting from its new leadership and numerous reorganization measures, which has started to take effect. In fact, f y twenty three was a pivotal year for the business with a rapid turnaround conducted by MD Nick Shannon reversing recent years declining revenues and getting back to growth. This clearly demonstrated the positive effect of organizational changes implemented in f y twenty three and the value of our strategy to focus on growing service revenues up 31% year on year, increasing the proportion of income from services, which rose to 40%, up from 32% in 2022.

15:52 This transformation was achieved despite the growing contraction of physical branches in the banking sector, reducing demand for legacy rising screen services. Our strategy on services and moving away from the one off supply of products had a notable impact with a 9% contraction in product sales, largely caused by temporary order delays. These now plan to q one f y twenty four and which was more than offset by expected gains in service in the areas that we prioritized. Although trading throughout the year was in line with expectations with top line revenue rising, gross margin decreased to 34% from 40% in FY twenty two. This was primarily due to the underutilization of field based engineers as we grew capacity in order to build up services revenues.

16:50 As we secure additional service contracts in FY twenty four, we expect this to normalize and return to net contribution. All of these improvements were expected to have a positive impact as we move forward with a number of exciting national opportunities in the pipeline and expected to come through in early FY twenty four. This puts the business in a very strong position to plan for more aggressive growth in the year ahead. Again, Marie Claire will give you more details about this in just a minute. So I'll now hand you back to her to give you an insider's look at the operational highlights from 2023 that we're most excited about propelling our growth into and through 2024.

17:46 Thank you, Paul. Let's begin with Grosvenor. In 2023, we extended our range of devices and expanded our opportunity across all customers by offering services attached to all our devices. With the introduction of a g t four light terminal, we now directly address a full market from end to end and can demand a greater share of wallet with customers capturing the lower end of the market previously dominated by a Chinese low cost manufacturer. Rather than compete on cost, our goal has been to offer an affordable and a flexible alternative that comes packaged with advanced services.

18:33 And the only option and the option of rolling a device replacement service that can be used to modernize device estate over a long term. This entirely changes the way customers think about upgrading their HCM services without being restricted by the limitations of their existing investment in hardware. By offering customers this freedom, we are now able to address a larger market segment that was formally stagnant by bringing forward the time when alternatives can be sought, opening up a large dormant opportunity. This shift has already started to translate into fast growing pipeline with some exciting prospects, particularly in The US market, and this is anticipated to be a key growth contributor in 2024 that will continue to research and develop.

19:29 Hardware enabled software and software based services are at the center of our strategy to focus on growing recurring revenues, or as Colin, Grosvenor's MD puts it, services with everything. With hardware comes the need for software based control and services to monitor and maintain often complex device estates. GT Connect gives users secure cloud control in one place by linking hardware devices such as time clocks with enterprise software such as HCM applications. We also provide an enhanced hardware warranty and replacement service called GT Protect, where we aim to provide direct device replacements on the next working day, meaning customers are never without a working device.

20:18 These high levels of service completely remove the friction of managing devices, especially for HCM software partners who are not set up to support hardware and who need to maintain security and compliance. By offering these services as enterprise subscriptions, we're able to create long term recurring revenues that are linked to physical hardware with the obvious benefits that peace of mind we are able to provide our customers and partner translate into long term success for us. Let me explain this in a little bit more detail.

20:58 GT Connect is our best in class cloud platform that makes data and device management simple. This year, we placed the software element of our services with the launch of our next generation of secure cloud control platform GT Connect. This significantly upgraded platform offers greater efficiency and scalability in a new highly secure cloud architecture that runs on Android, bringing the advantages of a modern mobile first architecture that is easy to scale and fit for the future.

21:34 With unlimited scalability and transactional capacity, this has given us the opportunity to expand our relationships across the entire customer base, enabling the attachments of services at scale. This new API first architecture enables easy and seamless embedding of g two connect features into our partner solutions using our technology to enhance their market offering,

22:00 adding significant capability and differentiation by leveraging our strength in biometrics and compliance management, and by providing us with a significant indirect channel for our services going forward. Crucially, this also gives us the ability to connect to non GT devices and still use GT Connect tools and services, opening a large market opportunity with enormous potential. Now we can extend our services beyond Grosvenor time clocks that include connecting tablets, a widely anticipated need. And by connecting with a broad range of other third party devices, we are working towards a future where GT Connect by will be used by customers and Grosvenor to entirely take over and run 30 part third party device estates.

22:51 And as I've already said, GT Protect is an enhanced warranty subscription that protects our customers' investments by placing any faulty devices with new ones on the next day with priority access to technical support. This removes any doubt of over any doubt overgoing ongoing devices and is easy to manage and modernize device estates by encouraging old third party units to be retired.

23:21 And new GT devices purchased with lifetime warranty. And as I said earlier, this creates long term subscriptions. As a mark of the progress we've already made with our strategy and strong anticipated growth, we've relocated Grosvenor's US headquarters to a much larger facility in Florida and brought in third party logistics in house.

23:51 And we've already taken on additional staff to handle our customers' inventory and high levels of retained stock. And bringing outbound logistics in house, this gives us added flexibility going beyond the capabilities of external three p l's to further develop our customer focused hardware services such as GT Protect. We're also extending our ISO 9,001 and ISO 27,001 certifications to our US office in 2024, further delivering our commitment to quality and data security.

24:33 Gloven's strategic growth continues to be driven through key partnerships with HCM providers and some notable partnership success. Our major year partner grew by 24% with recurring revenues nearly doubling driven by increased sales, planned sales, planned price increases, and the compounding annual effect of growing recurring revenue. Direct to end users grew in both revenues and margin, onboarding end users that included notable high profile customers such as Shangri La Hotels, The Shard, Imperial London Hotels, Dorchester Hotels, and Fresco Drinks, and all attracted incremental service revenues.

25:20 We achieved major US partnership success, migrating a new and large tier one HCM provider to GT Connect, leveraging the full range of features and benefits, which has started to drive downstream demand via their channel partner network following a launch at that annual partner event. Another major US HCM partner produced an encouraging growth of 27%, and this was achieved through diversification of products and closely supporting larger projects. The Grosvenor team has also secured key foundations by migrating existing customers from legacy to our newer devices, including a number of one household name brands.

26:06 This essential groundwork for retaining exist existing customers in the future. We continue to support another key partner in The US to enhance the scale and their services and customers. And in particular, with the introduction to one of the large world's largest retailers, we now work with directly winning another major national contract to provide transitional cloud services across all the Mexican stores, which has been delivered and substantial boost to our strategy and a further growth to our recurring revenues.

26:44 As we develop new partnerships, there's also an opportunity to leverage new pricing model that is more closely aligned to the per employee pricing that some of the partners use, enabling our products and services to be more easily bundled and consumed. A player employee model enables GT to monetize the use of software as a security ecosystem broadens beyond its own devices.

27:11 This will be a key step engaging e commerce marketplace that we will be testing and developing in 2024. In addition to time clocks and software, Glovner also designed and makes class leading access control hardware that is easy to scale and extends so it can deliver much more than just access control. And as Paul mentioned earlier, 2023 has been a year of transitioning the focus and resources onto our newest products. We accelerated product rationalization and migration following the announcement in 2022 for the end of life Janus and Satyen Software in 2023.

27:57 This enables us to shift our focus onto Janus c four as a priority for customer growth, benefiting from faster configuration and enhanced performance with the rollout of a new advanced driver. The 2025 access control world map will be enhanced by Janice c four to be launched as Janice c four Ultra with exciting new features including mobile app access and a variety of other functions such as fire and muster and intercom services. Ready in design, this product is receiving a lot of interest across our customer base, and we anticipate strong demand when it's launched in 2024. In The UK, access control market, we've identified clear growth ambitions and expanded the business development team with targeted regional focus.

28:49 This includes the additional addition of a new regional sales manager covering London and the Southeast and enhanced support arrangements that greatly improve our go to market capability to target higher growth in 2024. SafeTel remains focused on creating safe spaces for employees and colleagues where overall demand is strong. This year, under MD Nick Shannon, it has been able to shift its execution to focus on areas of high demand such as retail attack resistance screens. This is driven by strong orders with a million pounds of installations for major national retailers in 2023 and a further £2,000,000 of installation scheduled for 2024.

29:43 In line with our strategy, service revenue increased, were driven by additional wins in auto door servicing and repairs. With new national service contracts contributing to a nearly fivefold increase in recurring revenues to 300,000. We expect this trend of additional auto door works to continue in 2024 with 600,000 in our pipeline already quoted. In 2023, we added 200 doors and now provide call out support across 2,000 doors. This is a substantial national footprint in the market that is estimated at twice the size of Safetail's national markets. With further expected growth, this remains a clear strategic priority for future business.

30:34 Similarly, our entry to entrance control has also gathered pace, building on early wins achieved in 2022 with new installations direct to end users as well as through as well as through the construction sector. With a number of projects tendered during 2023 moving into the construction phase in 2024, we expect entrance control business to grow significantly. We source two alternative product manufacturers in China who can deliver at higher quality, substantially lower cost, and with materially reduced lead times compared to previous made to order supply arrangements. For 2024, we've secured high specification standard alternatives across all key items in our portfolio.

31:24 This will make us far more competitive, improving our speed of delivery and response for the year ahead. Analysis of win loss already is paying dividends. By reviewing recent commercial submissions, we have learned how to improve a compete a key competitive scenarios in a security door, entrance control, and automatic automatic door sectors. Together with very positive demand outlook and a rigorously qualified pipeline, we are confident the business will achieve its ambitious growth strategy. This includes some exciting banner projects. 2024 already contains projects with some well known brands such as Everton FC, Tesco's, and Santander Santander to name just a few.

32:13 In addition to working with Premier League clubs, national retailers, and banks, we've also secured important new public sector clients. Relationships with blue light customers continue to grow with an additional 300,000 of projects from the Metropolitan Police, one of the large UK largest one of The UK's largest police forces, following on from our work in 2022. Other development efforts in this segment were rewarded with orders from five other police forces, creating a strong base from which to expand. Public sector orders in general were strong throughout the year with projects completed in the multiple health settings where our unique counter shield moving screen remains popular for a and e departments as well as prison, transport hubs, and military installations.

33:06 Whilst the overall demand for security products and services recovered, uncertainty in the business environment caused a drag on projects with some clients taking longer than planned. Whilst this caused slight delay in recent project review bookings at the end of twenty two and '23, in most cases, this has only been by a matter of months, with revenues already coming through in early twenty four giving us a very strong start to the year. All of the key business highlights I've shared today clearly show that our forward strategy will be both rewarding and sustainable. Growing revenues and profits and returning to full year profitability is a testament to disciplined execution and confirmation that our 2025 growth strategy is the right focus for sustainable growth.

34:04 Human capital management annual recurring revenues increased by a 133% year on year to 2,100,000 with further substantial growth anticipated as we continue to entrusted long term partnerships. GT Connect has significantly expanded our subscriptions and service opportunity, connecting tablets, adding the capability to connect 30 party devices, and deploying API first architecture that's driving cost effective and seamless integration with the solutions of our partners. Access control is now benefiting from the next generation of product migration and enhanced UK regional sales focus.

34:51 Safetel has returned to growth, delivering 1,000,000 pounds of retail screen installations with a well qualified pipeline, including 2,000,000 of forward orders and exciting projects for 2024. As I said at the beginning, this is an important year of achieving a number of key milestones. Our commitment and that of my team simply to continue on focus of the 2025 growth strategy, encouraging the success we're having and seek every opportunity to increase recurring revenues by enhancing our role in a broader security ecosystem. As data compliance and security needs continue to drive our growth, I'm extremely confident that we have the right team, products, and service in place to live deliver our strategy.

35:43 Thank you very much, and we look forward to your questions. Marie Claire, Paul, thank you very much indeed for your presentation this afternoon. If I may just jump back in there, what I'll do is I'll just bring back up your cameras as well. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab that's situated on the top right hand corner of your screen. But just while the team take a few moments to review those questions that were submitted already, I would like to remind you that a recording of this presentation along with a copy of the slides and the published q and a can be accessed via your investor dashboard. Paul, Marie Claire, as you can see there in the q and a tab, we have received a number of questions throughout your presentation this afternoon. And thank you to all of those on the call for taking the time to submit their questions. But 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, and then I'll pick up from you at the end. Thank you.

36:34 Thank you very much. I'll read out the questions. So the first question is, what does NEWMARK expect the average organic growth rate to be over the next three years, and what EBIT margin targets are over this period? Paul, can I hand that over to you? So we we haven't set formal growth targets out in the market for for margin growth. Obviously, in the past, we said, you know, we do expect strong revenue growth in both divisions, and we've started obviously that in f y twenty three, but we haven't put formal EBITDA margins out in that market. We don't intend to do so. Thank you. The The next question, you are nearly five months into 2024.

37:19 How is the company doing compared to h one twenty twenty three, especially with UKG replacement? Well, we've had a strong first five months of the year, and we're sort of to the targets we set, we're sort of overachieving those, and we're sort of very excited about this. And we're looking to replace the UKG contract. We've worked working with a number of software partners at the moment and also not just with hardware sales, with our service sales as well, which has a greater margin. So we're in line to do that. Next question. Can we expect the growth in ARR in HCM to continue to continue to grow as a percentage of sales?

38:04 Paul? Yes. Definitely. That's a key part of our strategy is to get a high proportion. Obviously, we wanna grow hardware revenues, but also those service revenues have got higher margins. So that's our key strategy. And as Mary and Claire said before, we're now selling those high margin services to to most of our customers. So that is driving the growth. Thank you. When do you expect SAFEDEL to break even? Well, we don't have forecasts out there, but anticipation on this year. When do you expect to add HCM software partners in The US as a customer in f y twenty four? Is paychecks already a customer? Well, we continue to onboard customers. We've onboarded a couple of new customers this year, and that's part of our growth project.

38:53 And we're speaking with paychecks on a regular basis. Next question. This is the first I have heard of the loss of UKG, which happened in q f q three f y twenty three. Did I miss an r and s or an update about this? It seems important given the large amount of business carried out in America. No. We've talked about this for the last couple of years. We expected this to terminate a couple of years ago, but they continue to purchase our clocks. Then it came to an abrupt end when they were able to sort of manage their own devices, but we've talked about this on a regular basis. So this is not new news. EBIT fell from 1,100,000 in the first half to point four, and the second half operation was at a loss of point 2,000,000 in the second half that compared to the call. Can I leave you to read this one? Yeah. So, yeah, we were hit by u UKG as we've we've said.

39:54 That hit us in the second half of f y twenty three. Obviously, we are making up that ground. H one is gonna be and we don't do forecast here today, but obviously that will be impacting our first half results. But we expect to have growth, as we said, for the full year for both divisions in FY twenty four. What other options to finance further growth? Is capital increase necessary or maybe the sale of SafeTel? Well, we're not looking at the sale of Safetel at the moment as we're growing it. And Nick Shannon, our MD, is sort of making reorganizations, and we're looking forward to increased growth and profitability in the near future.

40:39 And we continue to look at alternative financing where necessary, and our bank HSBC has been extremely supportive. And we're looking at at alternative products and additional products if deemed necessary. And I think that's the last of the questions. Marie Claire, Paul, absolutely. And thank you very much indeed for addressing all of those questions that came in from investors this afternoon. And, of course, if there are any further questions that do come through, we'll make these available to you immediately after the presentation has ended just for you to review to then add any additional responses, of course, where it's appropriate to do so, and we'll publish all those responses out on the investor meet company platform. But, Marie Claire, perhaps before really just looking to redirect those on the call to provide you with their feedback, which I know is particularly important to yourself and the company. If I could please just ask you for a few closing comments just to wrap up with, that'd be great.

41:30 Thank you very much. Yeah. And as I said earlier, I I see our growth strategy for 2025 seems to be working very well, and we're very focused on that. And the growth of our recurring revenue through services in HCM and at SafeTel remains a key focus for the business. We have the right people in place and the right team, and everyone's very excited about the future and alternative software products that we're sort of working on and researching in the HCM market as well. So the future is looking very exciting, and I'm sure the team will also contribute and sort of talk about the excitement as well. So exciting times ahead for us. That's great. Mary Claire, Paul, thank you once again for updating investors this afternoon. 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 better understand your views and expectations?

42:25 This may take a few moments to complete, but I'm sure will be greatly valued by the company. On behalf of the management team of NEWMARK SECURITY PLC, we would like to thank you for attending today's presentation. That now concludes today's session. So good afternoon to you all.