React Group (LSE:REAT) — Investor Presentation

0:01 Good afternoon, ladies and gentlemen, and welcome to the REACT GROUP PLC 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 can review all questions submitted today and will publish those responses where it is appropriate to do so. And before we begin, as usual, we would just

0:31 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 board from REACT GROUP PLC. Sean, good afternoon, sir. Thank you very much. Yeah. Thanks for joining us all today. So my name is Sean. I head up the group as CEO. I originally joined the business back in March 2019, originally as managing director. And then eleven months later, I was appointed to onboard.

0:57 So I've got a a track record of growing businesses in the specialist cleaning, the facilities management, and the HVAC service sectors. And with a background that's, you know, heavily immersed in sales and operations, having a a BA in business management. Spencer, over to you. Thanks, Sean. My name is Spencer Dredge. I joined the board in January this year as CFO, chief financial officer. A little bit about my background. As you would expect, I'm a qualified accountant.

1:25 Last twenty years plus, I've spent supporting or sitting on board, often listed businesses in the AIM market. And within that period, I've done three and a half years in corporate finance. I'm very pleased to be at REACT.

1:39 Thank you, Spencer. I'm Mark Braun. I'm the chair. I've been around for quite a while. I was here at the start of the turnaround of the business and brought Sean and the team into to the business four or five years ago. And, you know, here we are again with some great news. So back to you, Sean or Spencer? It's me. If you Perfect. So looking at slide four, summary of the transactions. So many of you would have would have followed the REACT story, which has been of strong organic growth complemented by successful acquisitions. And REACT operates in in The UK market, which is very fragmented, and we look for acquisitions to further accelerate our growth.

2:30 We've got a good track record previously with acquisitions. If you look back to Fidelis, which was bought in 2021, that business now on a revenue basis is over a 120% higher than it was when we bought it. And not to similarly, Laddus Free, which was bought in '22, we are now over 50% higher in terms of revenue since the acquisition. So we've got good track record in acquisitive strategy, and we've got a very well defined criteria for our acquisitions. And we you would have seen the announcement this week for our latest acquisition, which is twenty four hour Aquaflow. And that's met all of our criteria, that we, that we've defined for our acquisition strategy. And the business is profitable. It's got high margins.

3:16 It generates cash. And what is it? Well, it sits within the commercial drainage and plumbing space, and it operates in in and around London and Southeast Of England.

3:26 And, we expect the acquisition to be immediately earnings enhancing and will be accretive on an adjusted earnings basis, 31% in its first full year. The acquisition, is very complementary to our group. It brings with it a new service offering. In in addition to that, it brings with it an enlarged customer base for the group, which will give us, further opportunities to demonstrate our cross selling and upselling capabilities, which we have good track record of today. Diving into the '24 Aqua AquaFlow business just for a moment, looking at some of the key data points. Its year end is April. So, for the year to April 24, on a revenue basis, it did 6,100,000, which was up from 4.7 for the same period prior year. And on an adjusted EBITDA basis, 1,200,000, up from a million from the prior year.

4:25 Turning our attention as to the transaction. In terms of consideration for the acquisition of twenty four hour Aquaflow, it is capped at 7,360,000. And at a summary level, that breaks down into two key components. We have initial consideration, which is at 4,980,000,

4:45 which if you look at it on a trailing EBITDA basis represents 4.1 times an EBITDA multiple. And in addition to the 4,980,000 initial consideration, there's some deferred contingent consideration, which we'll we'll touch on later in the presentation, but this is based on a two year earn out, and I'll go through that in in a further slide. And should the, the 7.3 be fully paid out, that would represent an EBITDA multiple of 4.3 on a forward looking basis. You would have seen this year this week that we, we've gone to market to raise some more, some money. We put 1,100,000, through an equity placing, and that is purely for working capital basis.

5:35 Would you like to turn the slide? Thanks, Mark. Taking a step back from the acquisition just for a moment, looking at the REACT GROUP, our year end being September, we are about to go through our year end audit in preparation for the annual report and accounts. We're taking, at a summary level, the trading performance for the REACT GROUP for the year. We've, seen revenues of 20,700,000, a gross profit of 5,700,000, and a gross margin of 27 and a half percent. And we expect EBITDA, adjusted EBITDA, to be at least 2,400,000. Taking a step back from the data points, I think it's safe to say that the group is very healthy at the moment. We've got a very strong pipeline, but we are experiencing some longer sales cycles certainly in the second half of the year.

6:26 So there are some headwinds in the market. And in addition to that, we've seen some of our service frequencies, reduce. And, again so, again, further headwinds. So when we look at this year's trading performance for the REACT GROUP, we're very pleased with it. We're maintaining strong margins with in light of the headwinds that we've been facing. In addition to that, we've got strong cash conversion. And as we exited the year end, we had 1,800,000 in the bank. And on a net cash basis, we had a million, which is offset with the debt and the higher purchase arrangements that the group has. I'll hand back to you, Sean. Thanks, Spencer. So just looking at the acquisition target a little bit more, depth.

7:14 So what are they? They're they're a commercial drainage employment business, being founded over twenty years, and they operate within London and parts of the Southeast. They cover all aspects of of drainage, commercial drainage from, block drains, leak and pipe work, planned preventative maintenance, and reactive callouts. 79% of the business is repeatable, and 43% of that is planned preventative maintenance.

7:43 As Spencer just said, you know, very strong financial performance within that business. FM companies account for 95% of the customer base, and many of them are actually new to the rest of the REACT GROUP. So some great synergies and some fantastic cross selling opportunities that lie within the the acquisition of a twenty four hour app flow. Importantly, they've got a very strong management team who are gonna stay with the business, some excellent customer relationships, and that was evident from the the commercial DD that I carried out myself, having spoken to to those customers. Could not have scored twenty four hour AquaFlow any higher if they tried. And they've got some very solid management systems within the business and a fantastic training academy that graduates and progresses new engineers who come through, get trained in the the AquaFlow way. So very different to to the rest of the industry, you know, looking at that that top end and looking out for opportunities when they're on-site, and that will help support growth.

8:45 So moving on to the next slide, we'll look at the acquisition rationale. As Spencer said, you know, it's a materiality the accretive deal. It's immediately earned in enhancing, and it gives us an excellent platform to pursue further growth for for not just this business, but the rest of the group. It's forecast to be 31% accretive. It provides us with sought after and complementary services that REACT's FM customers will buy. It's a it's a service that that service line at the buying right now. So we're going to spend some time mapping out white space, not just of the the twenty four hour Aquaflow customers, but also across the the larger group. And it gives us a leading service to continue the REACT growth strategy in the FM sector, which you'll remember we've always been strong within. But this gives us a a a particular focus on on London and Southeast.

9:35 As I said, we've got some quality people. You know, Spencer and I went down there on Monday, spent the whole day with the entire team. Absolutely fantastic bunch of very positive people who are chomping at the bit to to see what, you know, we can do and how we can help facilitate the growth and what else we can do cross selling across the rest of the group. They've got some strong management systems in there, as I said earlier, and it'll provide REACT with the ability to further scale and, support our growth ambitions.

10:03 Key management locked in with the equity, as Spencer touched on earlier. And the final component for me as an aside to the financials is that we've got an excellent cultural fit, which is absolutely key for me. We we've built a fantastic team here at the REACT GROUP, you know, fold and and merging with with this business as part of the acquisition just gives us a greater depth of of people and skill sets. We can learn from the Aquaflow process and procedures and look at evolving our systems and and processes across the rest of the group.

10:36 Moving on to value creation. So how do we add value? Well, quite simply, we we add management support through the next phase of growth. We know that we're very good at sales and marketing. We've got fantastic organic growth engine here at REACT, and we've got the capability to to grow both the core Aquaflow business and cross sell the complementary services across the rest of the group. So really exciting times.

10:59 In terms of the integration, it's gonna be very light touch. It's gonna be more velvet glove as opposed to to box and glove. Myself and Spencer will be, you know, joining the the the SLT within the Aquaflow business, and we'll work with them to to map out, you know, where we want to take the business and how we want to grow it. And as I said earlier, I've met with the top three customers during a very successful commercial BD process, and I'll continue alongside the the AquaFlow SLT to pick those up and and develop those relationships further and get

11:30 us opportunities across the wider group. In terms of the first ninety days, we'll apply head head, counts to coordinate integration. As I said, we'll focus on providing sales and and marketing focus and and efforts, and we'll mitigate any risks. We're gonna spend some time mapping the customers, not just within the the Apple flow business, but, you know, again, across the group to identify white space and devot to to define our plans to to target our sales and marketing efforts and and evolve that as AquaFlow, you know, are now part of the group.

12:05 We're gonna spend some time reviewing the the trading academy that I touched on earlier just to define opportunities, look at ways of, hence, improving it or or scaling it, or can we learn things from Aquaflow's trading academy and bring that across other elements of the business, perhaps in in REACT specialist cleaning and and so on. And then we are gonna spend some time reviewing the the operational twenty four hour help desk that AppFlow have within that business and establish, you know, ways in doing things better for the rest of the group and and what we can learn for that twenty four hour coverage.

12:39 And I'll hand back to you, Spencer. Thanks, Sean. So slide nine, can talk a bit about the structure of the deal in a bit more detail. We touched on this, I touched on this earlier.

12:52 So down the left hand side of this slide are the, separate components of the deal. Starting at the top, there's the initial consideration, which was 4,980,000 as discussed earlier, is broken down into 4,000,000 in cash on completion, 500,000 in equity consideration, so that's our shares, and, the first of six deferred payments, and first of which is in June 25.

13:17 The second box, is the contingent consideration, which is five of the six deferred payments, and this is linked to a two year earn out. And you would see that those payments are every six months, finishing in December 27. Like I said at the start, this deal is capped at 7,360,000.

13:37 So looking at the, the right hand side of the slide, you'll see that the performance conditions, or the earn out as such is structured over two years, structured against our, year end being September. First year at 1.6, which increases in second year to 1.75. There is a concept of a a miss that can be transferred from year one to year two up to a 100,000.

14:06 And in the event that the earn out isn't fully achieved, there is a mechanism where we, pay less for the business, and that works on a for every pound missed, it's £4.60 off the deferred consideration.

14:20 We talked about some of the valuation metrics earlier in the presentation, but on a historical backwards looking basis, it's at 4.1 times adjusted EBITDA. And, in the event it's fully, paid out at 7.36, it represents 4.3 times the need the multiple.

14:38 Turning our attention to how we're funding this transaction. You'll note, that the cash on completion is 4,000,000. We are funding 500,000 of that out of our own cash resources, and the remaining 3,500,000 will be funded by way of a new, four year bank loan, which is 3% above base rates, and that's with HSBC.

15:05 Yeah. Equity consideration, Sean touched on it. The vendors are tied in. They're taking £500,000 worth of shares, and they're tied in for three years. So not only are they here to maximize their earn out, they're also here, to, grow the equity value of this business, and they're locked in for three years to do that. So, so that's the deal, in its in its detail. Brilliant. Thanks, Spencer. Just move on. Next slide, please, Mark. Thank you. So just to to wrap things up, really give you a summary. As Spencer said earlier in the presentation, we're we're trading in line with market expectations, so we've had another strong year. Twenty four hour app flow, we believe, is a very compelling acquisition. It gives us diversified services and customer base that not only meets REACT's acquisition criteria, but gives us a massive upside potential, not just to grow that business, but also to grow across the rest of the group.

16:00 We're gonna share share notes. In fact, I have a session next week with the sales

16:04 team down at the Aquaflow office on Tuesday where we're gonna start that process already. It's forecast to be 31% accretive as we touched as we touched on earlier and immediately earnings enhancing. And the experienced aqua flow management team is then involved in the business, which is key, and they're incentivized to, you know, continue that growth alongside our support and guidance. So in summary, you know, it maintains momentum, which is being focused on the organic growth, and that's enhanced by selective acquisitions like Aquaflow. Thank you.

16:38 Perfect. Sean Spencer, if I may just jump back in there. Thank you very much indeed for your presentation this afternoon. 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 company take a few moments just to review those questions were submitted already, I'd just 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.

17:03 Guys, as you can see, 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 Mark, at this point, sir, if I may hand over to you just to chair the Q and A with the team. And if I pick up from you at the end, that'd be great. Thank you. Thank you. And hopefully, gentlemen, I'll do a better job of chairing the Q and A than I have done of moving the slides. Sorry, apologies for that slip up earlier on. So let's get straight to it. The first question was pre submitted, so I don't actually have the name of the person that submitted it. But it says, could we get some detail on the challenges

17:38 that have led to a deceleration of organic growth for the second half of the financial year?

17:43 It's also noted it's the first time or the first six monthly period with revenue contraction since this management team took over, and we've been involved with four or five years. So we know the answer to that. I think we hinted to it in one of the slides earlier on. Sean, do you want to give some color to that? Yeah. Absolutely, Mark. Yeah. That's a great question. Yeah. So in essence, we have continued, to to grow organically. However, we've had two major headwinds. First one, about four years ago, we had a a customer as we still do in in the REAL sector. It's a very large customer who values, our prop as a service proposition. And we were asked to look at a larger piece of work, around about COVID time to help with some periodic heavy cleans.

18:33 It was a very critical time for this

18:35 customer through COVID for for obvious reasons. And that piece of work just ended up evolving into a a three month commitments, which went on for about four years. Having come out of COVID, the real sector has obviously had some challenges, financial challenges as we're all aware of. It's well documented. And, basically, what happened is it became that piece of work became a larger piece of work and was consolidated, really, and folded into a a much larger multimillion pounds contracts at much larger margins than we would normally go for. So as disappointing as it was that, you know, we we we, in essence, had to walk away from that that that piece of work, what we did do with that customer, because they love what we do, we negotiated a re reactive contracts.

19:26 So fatalities, graffitis, oil, and so on across the whole of The UK, and the margins are not are more akin to what we used to hear at REACT. So there was a there was an upside to that. Sorry to butt in, Sean. Just to correct just correct one thing you said there. I think you said the margins were larger on the contract that's now been assimilated into the very low the the margins are actually single digit. They're much, much lower. So this specialist piece of work, longer critical, been assimilated into a much more general contract worth multi millions, 10,000,000, 12,000,000. And we didn't want to participate in that business. But the nationwide contract on fatalities is more in our wheelhouse and that's good high margin business and it's incremental business for us. Correct. Yeah. Apologies if I said larger yet, it was definitely low.

20:19 Okay. And the second component to that that question is and we've discussed this before on on this platform. We we've had some headwinds on the the Ladders Free side of the business in certain aspects of retail. Now we haven't lost any contracts, but what has happened in some of the customer set within that retail space, and it is isolated, pockets, we've had some reduction in services in terms of the frequencies. So in essence, some of it might have gone from every two weeks to once monthly or once monthly to every six weeks. So we we haven't had any any losses. It's just been some reductions, but they seem to have they seem to have stopped over the last few months. So we believe there's light at the end of the tunnel in terms of that. You know, that that logjam is now freed up.

21:04 And we have, you know if we we remove those two points I've just mentioned, we have, you know, grown the business in the same, you know, same same rate that we've grown it before. Yeah. I think that's the important point is that if you take those two phenomena, and obviously the rail contract was substantial, it was over £1,000,000, about £1,200,000 a year. If you just put that to one side, our underlying business, the business that we know and love, we've actually grown net growth pretty much the same rate as we have done before. Things have got a little bit stickier recently over the last three or four months, and I don't think we're alone in terms of the market, not just our sector, but other sectors that I see and hear. Decisions on opportunities are actually taking longer. Our win rate is the same, but the sales cycle has got longer.

21:53 And I'm just hoping or I think we're all hoping that once the fear, uncertainty and doubt comes out today, things will hopefully begin to return to normal and people start making decisions again. Is that a fair comment, Joel? Yeah. Absolutely. I think it's important to add though, Mark, that our pipeline continues to be, you know, to get healthy with with each quarter. And our conversion rates have actually improved. It's just, as you said, it's a little bit like treading through treacle at the moment on some of these opportunities. Yeah. And people mustn't miss the fact that our whilst we've seen year on year net growth of organic growth of only just over 5%, which when I compare that with others in the market is actually still strong, we as a company have been able to do double digit growth in the past. Our gross margin has grown in double digits, which is really where we focus our attention.

22:47 And our margins have improved 100 basis points from 26.5% last year to 27.5% this year. And that's again an achievement in a fairly uncertain economic period. So we've focused on where the value is and I think you've done a great job. So hopefully that answers the question for the pre submitted question that was asked. Let's carry down the list. This again very much in your area, Sean. How does REACT plan this is from Peter M. How do REACT plan to leverage Aquaflow's strong relationships with FM customers to expand its business further? Are there any specific customers target customers or services?

23:32 And what we ought to make people clear about is that we are a facility management support business. And pretty much everything we do is for facility management organizations. Those that are actually FM companies, the sort of intermediaries, they represent about 65% of our own customer base, whereas here with Aquaflow, it's about 95%. So these are, you know, this is our sweet spot in terms of customer set, yeah? But the question is, how do we plan to leverage Aquaflow's strong relationships? Yeah. Great question again. Mean, look, I'll take the the latter part of the question first. Are there any specific target customers or services? Yes. Obviously, I'm not gonna name them on on this platform, unfortunately, because I can't.

24:18 But we've already had discussions with the the the SLC in the Aquaflow business. We know where to focus on. We know that there's upside potential in some of the biggest customers already having, you know, had the the commercial DD discussions. But in terms of how we'll leverage the the strong relationships, well, quite simply, we'll help support grow those relationships. You know, I like to get involved with with the larger customers. Sam here with our group sales director does a fantastic job as as as we said before. He'll be part of that process with me. And what we'll do is a starting point. We're starting it on Tuesday's session when we were down in the office. It's just mapping out the white space. So we'll look at, okay, which customers do we currently work with? Are there other opportunities in terms of growing the Apple flow business as well as cross selling?

25:04 We've already had discussions, believe it or not, on Monday about just changing the narrative on the help desk questions just to capture some RSC opportunities or some REACT specialist cleaning opportunities. Because if you can imagine, lot of these are are going in to clear up emergency drainage issues within, you know, two to four hours. Quite clearly, there's opportunities for REACT specialist cleanings perhaps go in and clean up the the mess that's left behind, and that's something that they've never done before. It's been passed back to the customer. So some low hanging fruit there, absolutely, from day one, we're and we're already having discussions. I had a discussion last night and this morning with Paul Monday Monday, the MD over at Aquaflow. So very exciting. The whole team's excited, not just on the Aquaflow business, but the rest of the group. So, yeah, we've got something to focus on next week, and we'll start that process, you know, deep dive on GT.

25:58 Brilliant. Thank you. Next question, and actually, it's a it's a related question. The previous one is from Paul L. Customer concentration in Aquaflow is high. It is higher than ours, but once you bring it into the overall organization, it actually doesn't have that level of concentration anymore. But if you look at the top five customers, they're sort of 60% of the revenue, quite well spread across them. It says what are the risks and obviously we've been looking at that through the commercial DD of meeting all these companies. And the relationship has been there for anywhere between six years and sixteen years. So we're satisfied that the risks are actually being mitigated. And by offering this business help to grow further, think that will reinforce that mitigation.

26:54 But it says, your key question here is how do the five, which we've listed A to E overlap with REACT? Yeah. I think I've just answered that really, Mark, on the on the previous answer. It's that, you know, they go in and and look after drainage issues, but they haven't got a provider at the moment who or they have various providers that can provide the the kind of clear up afterwards. And we we know that in this space, there's a lot of consolidation going on. If we give AquaFlow the tools to to, you know, push that down, the the REACT specialist cleaning business, then it absolutely makes sense. But but there are five customers there. And from from memory, I certainly think at the top four, only one of them we do a little bit of business with nowhere near as close to the customers as Aquaflow, 24 Aquaflow are. They have a stronger relationship with those those and that that cost that one customer where we overlap than we do.

27:53 Yeah. No. Absolutely. My point was that though, you're right. Yeah. Out of the the five, there's four that, you know, we don't do work with at all, but Aquaflow have a fantastic relationship. So that's I want to leverage that relationship that Aquaflow has with those customers. So it's about educating, you know, the the Aquaflow team in terms of what questions to ask on the help desk to capture those opportunities, but it'll be another service provision that we put down on the business. But, ultimately, it's a win win for the group. We mustn't also forget that we already have customers in London and the Southeast that don't use 24 Aquaflow as well. Yeah. We've got some yeah. We've got some huge companies that that we we will introduce. And again, that's part of the plan session on on Tuesday. Yep. Brilliant. Perfect. Thank you. So next one is again from Paul l. Actually got two or three here from you, Paul.

28:45 Do you how do you integrate or do you from management systems perspective, a major REACT project at the moment? I think what Paul is referring to here is that we have said quite rightly that we've been consolidating back office and finance systems and infrastructure across the group. Don't want get that confused with what we call Project Sparkle, which is the digitization of the processes within Ladder's free. But Spencer, do you want to just reflect on this in terms of how do we how will we integrate with twenty four hour AquaFlow? Yeah. Absolutely. I think, the integration is gonna be a management layer. Obviously, Sean mentioned this earlier that we're gonna be spending myself and Sean will spend a lot of time working with the guys down in twenty four hour AquaFlow.

29:37 Really from a back office and and system setup point of view, there's gonna be little by way of that integration. They are quite a mature business in many ways in the way that they operate. They've got embedded systems that automate certain processes. I'm quite impressed with what they do there. There's always a chance we might learn from some of their their achievements. And so there there'll be no immediate plans to to consolidate any back office systems or processes. It it it you will leave the business alone, and we'll just support it, hopefully, with the with the with the management expertise and and some resources. Brilliant. Thank you. Next one from Paul is not sure how we can answer or whether we can answer this for you, Paul, for obvious reasons.

30:30 Dowgate 2026 revenue estimate implies a reduction in expectation for current REACT business assuming growth from Aquaflow. Well, I'm not sure that that's the right way to look at it. Anyway, their estimate, but do you have some perspective on why? I don't think we should get involved in understanding how an analyst decides to put their numbers together, but you might want to just give some headline thematics on it, Spencer. Yeah. Obviously, they look at what we're, we just saw our outturn for this year. They'll look at some some market conditions. Obviously, they talk to other people in our sector. But like you say, Mark, these are their, it's their coverage of our business. And I guess, you know, it's their numbers and their narrative.

31:24 Yep. Indeed. Indeed. Sorry about that, Paul. I can't answer that as quite precisely as you'd like you perhaps like us to, but I'm sure Mark Howison, if you reach out to him, might give you a bit more detail on his perspective. That's the analyst at Dow Gate. Next question, question six, Neil B. What have the respective performances of the three REACT divisions in year end September 24 been? Again, I don't think this is a question we're going to be able to give you a great answer to, Neil. We have literally just closed out the year. Our trading update was probably given earlier than we really wanted to, but because of the deal, had to try and bring it forward. And we've got we haven't even started the audit yet, don't think, have we?

32:12 So I really can't or we really can't give statements that are too detailed. All I can say to you is that the performance has been solid across all three. We've got no, you know, issues or challenges. It's been a solid it's been a solid year. Is that fair? I think so. And and you're right. We haven't we can't be drawn. We haven't announced it. We haven't we haven't completed the annual report in accounts yet. So Yeah. Brilliant. Next one from Neil B. Will there be any exceptional costs on the acquisition? Spencer? Unfortunately, there is a cost to doing transactions. It does involve lawyers and brokers. And in the case of, the work we've done with twenty four hour, we've, we've done a full scope, piece of work through an independent financial firm for financial tax and diligence.

33:07 So we it was quite a robust purchase process. So there will be costs associated with those external advisers. Obviously, people on this forum will be aware they're one off in nature, hence the reason they are booked is exceptional, but there will be some deal related costs. Yes. There will be. And in in addition, there will be the same for the placing as well. When you raise money off the market, there's brokerage fees and legal fees associated with that process as well. Yep. Yep. But I think I think the underlying message here is that we we've always negotiated the right fees, but we've actually made sure we've we've run a very full and detailed process. Yeah. Brilliant. Last one from Neil.

33:53 Oh, I'm gonna throw it to you, Spencer. I doubt that you can answer it. What is the tax charge for year ending '24? Well, I think under the same reasons we can't be drawn to too much other detail. We we haven't announced anything in in relation to this, so it it would be sort of kind of wrong of us to to comment. But, look, I think people can see that we are tax paying from last year, but I can't say to what extent the balance is for this year, unfortunately. Yeah. Well, that is the end of the questions. I think, you know, we're going to pass you back, but and Sean makes some closing remarks. All I wanted to say really was that, what we're demonstrating here is that we found another exceptional business to service the needs of what is a very fragmented market servicing facility management companies and facility management of The U. K.

34:48 We're fast emerging as one of the largest and I think actually the best with one of the broadest ranges and certainly one of the best coverages. And we'll continue that consolidation journey and organic growth. But let's pass it back to our colleagues at IMC, and we'll take it from there. Perfect. Mark, Sean, Spence, that's great. And thank you very much indeed for being so generous of your time there and addressing all of those questions that came in for investors this afternoon. 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 and just for you to review, to then add any additional responses, of course, where it's appropriate to do so. We'll publish all those responses out on the platform. But, Sean, 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. Yeah. Thanks, Jay. I think Mark's stolen my thumbs up there. But in in essence, we think this is a fantastic acquisition.

35:45 Spencer touched on earlier. It's a very mature business. Very exciting time for investors, whether you're existing or new. And we think we got a massive potential not just to grow this business, but also grow the rest of the group. So thank you for your time. Much appreciated. Perfect. Sean, that's great. And thank you once again for updating investors this afternoon. Could I please ask investors not to close this session? 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. This will only take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of REACT GROUP PLC, we would like to thank you for attending today's presentation. That now concludes today's session. So good afternoon to you all.