Refuels (Oslo:REFL) — Q3 2023/24 Earnings presentation follow up and Q&A

0:02 Good morning, ladies and gentlemen, and welcome to the REFUELS Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. Just please simply type in your questions at any time and press send. The company may not be in a position to answer every question received during the meeting itself. However, the company can review your questions submitted today and publish responses where it's appropriate to do so. Before we begin, we'd like to submit the following poll, and I'm sure the company will be most grateful for your participation. And I'd now like to hand over to

0:32 CEO, Philip Fjall. Good morning. Thank you. Good morning, everyone, and thank you for showing interest in what we do here at REFUELS. It will be myself today, Philippe, CEO, and also got Baden Gary Smith, CFO, who'll take us through our financials later on. And I'm gonna go through our third quarter, report today, which will not only, touch upon, what we did in that quarter, but we'll also have a fairly comprehensive section about what we do as a company, and and the market. Just moving on.

1:17 Okay. So who are we, and what do we do? We're on a mission to decarbonize, Europe's truck fleet. Our focus today is to put as much biomethane or bio CNG into as many trucks as possible. As of today, we've got 13 large public access refueling stations in operation in The UK. We've got two under construction. Get a bit more into that in a bit. We've got north of 1,700 trucks that use our stations every day. And for the last nine months, we have saved more than 120,000 tons of greenhouse gas emissions. If we then take a look at what does one of our stations look like. When people hear, you know, the word refueling station, they think of a typical Shell BP SO forecourt.

2:14 That couldn't be further from what we actually do. This is our Newton Eight Cliff station up in County Durham that we opened, in June 2023. If you take a look at this one, it's a two acre plot. We can refuel 14 trucks simultaneously, approximately 60 to 80 trucks per hour, and north of 800 trucks per day. These are grid connected stations, meaning they bring in the biomethane from the pipeline grid. They are unmanned, and as such, very efficient energy dispensing facilities, if you want. And as you'll see in the economics later on, they provide, good, good margins, and have great scalability.

3:03 Some of the key highlights, we had, or we're now starting to see true mass adoption, occur. We founded the company ten years ago, but in the last two to three years, we we are are finally, seeing mass adoption. Annualized growth of, 65%. As I previously mentioned, we have now about 1,700 trucks on the road. It's, of course, taken us about ten years to get to 1,700 trucks. More importantly, however, over the next twelve months, we do expect at least a thousand new trucks to be put on the road, which we we have good confidence in because our customers have already ordered those trucks. In addition, once again, I'll touch upon this later on. I'm getting a bit technical here, but there there there are essentially two types of of CNG heavy duty articulated trucks out there today, a so called four by two and a six by two. The six by two market is by far the largest one. That's been one we haven't been able to penetrate yet, and that is one that we're very excited by because that will further accelerate our growth.

4:13 If you then look at, the EBITDA coming off our station portfolio, once again, showing a strong growth there. Going forward as well, we've got five attractive, very high capacity stations that we'd like to put into build over the coming quarters, and, of course, then further stations, beyond that. And finally, we have progressed, discussions with with Foresight Group, the entity that has the company that has provided financing so far for our station rollout to fully consolidate the existing station portfolio and bring that in under, the REFUELS umbrella. Just to look at some of the key figures here, already mentioned them, or the majority of them. On the right hand side here, you there is a slightly odd looking graph.

5:03 It looks like we are generating less certificates than we did for the same period last year. That is not correct. That is a timing timing issue from the accounting period, etcetera, which Baden will highlight a bit further. Sorry. A bit later on.

5:26 If we then take a look at our our operational review, we founded the company in 2014. If you look at this graph, it takes us about six to seven years. We we typically say towards the end of twenty twenty before we really start to see true mass adoption and where customers really start to to to buy into the thesis that that that running by methane trucks is as reliable as diesel, is a lot greener, and provides very solid, economics. I think what's important here also, is the light green, area here, which shows what we are able to, to dispense using our so called mobile refueling units.

6:12 Now what is an MIU? I'll get into that in in a bit, but an MIU has been essential and and critical for us in the sense of in in in driving growth because we are then able to allocate and to put an MRU into operation before we have a grid connected station built. So this is what a typical MRU looks like. We today have seven of these and two in spare, and we have another one in build. I've already mentioned, you know, we can deploy these to a customer site or to a to a a a location where we are already building a CNG station so that customers have confidence that they can indeed go and order trucks, get them refueled ahead of of a grid connected station actually being built.

7:05 Max capacity of each one of these is about a 100 trucks per day. And today, as I say, about 500 out of the 1,700 trucks that we've that today got got going through our network, today operate or refuel pretty much exclusively through through these units.

7:26 If we then look at stations that we've put into operation and stations that we've gotten built, we opened Corby and Banga in North Wales, Banga being the first Welsh station that we've opened. In addition, we've got Aylesford, once again an important station of opening up a part of the country that we today have not been been serving Southeast Southeast Of London, and then we've got Doncaster as well. Aelesford, we expect to open around May time, and Doncaster is in the September, October time frame. So if you look at some of the, customer logos on, on the left here, for those of you who are who are viewing this, from The UK, most of those logos should be, should be well recognized, as blue chip blue chip companies.

8:21 And the majority of these companies, have got very, I'd say, ambitious and pretty near term

8:29 greenhouse gas emission reduction targets, from their fleets. So what does a typical replacement cycle then look like for a customer? Well, if we start on the on on the left hand side here, you see that they'll typically start out by by trialing a vehicle, and then they'll gradually sort of ease themselves in in year one and year two, by replacing, their fleet. Why they're easing themselves in? One, because it's something new to them, so say they wanna go a bit so initially, but it's also limited or their adoption rate is also limited by the amount of stations that we can have in operation. Once you get beyond year two, however, you see that the adoption really starts to kick in, and that's where it becomes seen as business as usual. And as such, when a diesel vehicle, which which is typically kept for, you know, five, six years, comes up for replacement, then they would just replace one diesel vehicle with a typical CNG vehicle. And that is where that is the sort of from year typical year three onwards, that's where the majority of our customers, have now well, that's the point the majority of our customers have now reached, and that's why we're also seeing truck orders, now, accelerate.

9:44 So if we look at this graph, and we sometimes get a question. So, Philip, alright. You guys founded the company in 2014. You know, it takes time to build a new industry. It takes time to convince customers, etcetera, etcetera. But how do we know that bio CNG or biomethane as a fuel for trucks isn't just something that's that's that's here. It's a fad. You know? It will it will it will it will rapidly move through the system. Well, we have been as a company, as a concept, as an industry, we've been stress tested probably through every imaginable external stress if you want. If we start here with Brexit, you know, Brexit was challenging for the haulage sector. Supply of trucks was challenging. We continue to grow. Then we had COVID hit us. Once again, we continue to grow through that cycle.

10:36 Yet again, very challenging to get trucks. You know, truck leads at times typically went from four, five months to north of twelve months. Then we probably have the biggest test we've ever had, which is the the energy crisis where we had spiking gas prices because we price the product or the the the fuel to our customers based on the wholesale price of gas in the grid. And, of course, as as the Ukraine war kicked off, gas prices, shot up. Through that period, our customers continue to utilize their trucks, and they continue to order. And finally, we've we are hopefully coming out of a high in inflationary period, but we're still in it. Once again, orders continue to flow.

11:23 So, yes, this is the real deal. We've we've we've been stress tested, and our customers have continued to order as you've seen also from the order book, just mentioned.

11:34 If you then look at the existing stations, so this is important to understand that these these are the existing stations that we've got. These are not stations or this is not including potential stations that we may or may not build in the future. If you look at the current utilization of our stations, we have an EBITDA run rate of about £7,000,000. If you then include, basically, the the existing order book and you also assume that the rest of the stations or all of our stations will come up to what what we today see as a, you know, current run rate through our busiest station, which is Warrington, that gets us to £40,000,000. By the end of twenty twenty four, calendar year 2024, we are expecting to be at a run rate of about £1,000,000 of EBITDA per month, and that will just continue to grow going forward as we as as additional vehicles are delivered. And the full potential run rate, once again, this is from our existing stations, not the new ones, that gets us to about, £44,000,000, per annum in EBITDA contribution.

12:44 And I will hand it over to Ben. No. I won't. Sorry. I've got a couple more slides there, and then I'll hand over to Ben. So we have we have since December 2020, we've had a funding arrangement with Foresight, a large infrastructure investor here in The UK that have provided us with £106,000,000 of financing that we have deployed into station network. That facility is now maxed out, and we have progressed discussions with Foresight Group to acquire those stations and therefore bring them back inside the group because currently they're sitting outside of the group, in an off balance sheet, funding vehicle.

13:33 To acquire those stations, bring them back under the REFUELS umbrella, and thereby consolidate. The total acquisition price there is approximately a £145,000,000. That is a, you know, combination of debt and equity, and we are currently working hard on our end to execute on that deal. And, of course, we will provide additional additional information to the market over the coming months as to the progress we are making on that.

14:11 Sometimes we get a question, which is, okay. You guys grew 65 last year. I mean, that's that's that's a great number, Philip. But, you know, is that sustainable, and could you actually do more? And the answer is yes. We today are not constrained by the amount of customer interest that's out there, by the amount of customer trucks that that, the manufacturers, can can build and and deliver to our customers. We today are constrained by the amount of stations that we have in operation. And if you look at the five next stations that we'd like to build, and and and here we we we have a large portfolio of stations here that we'd like to build going forward. But if we take the the five most initially attractive ones and we were to build those over the next year, which we would like to do and and secure the financing for that, Those five stations alone have an IRR, unlevered IRR in the range of 25, to 45%.

15:10 Just an example, I mean, Tesco, the largest, food retailer in The UK, has more than, you know, 3,700 stores. As an example, you know, if we were to build those those five stations, they have more than 600 trucks diesel trucks today, in key locations near those stations that, you know, they would then have the potential to transition away from diesel over to to running on, on biomethane. And another five stations here would increase our total capacity across our network from about 13,000 trucks today or sorry. 13,000 trucks in total and would, would give us the potential to to save more than 440,000, or, sorry, dispense more than 440,000 tons of biomethane per year.

16:00 And with that, I will definitely hand it over to Bateman. Thank you very much, Philip. So, yeah, so the very strong and growing earnings, from our station portfolio are not consolidated into these figures, and that's important to note. And one of the key reasons for wanting to obviously bring that portfolio back under the CNG fuels and REFUELS umbrella. Nevertheless, revenue was up was 33,700,000 in the period, up from 29.6 in the last quarter.

16:29 And importantly, we recognized a gross profit in both CNG fuels and renewable transport fuel services, the operating businesses. CNG fuels recognized a gross profit through the through the successful commencement of the EPC contracts to develop our station at Doncaster. And REFL recognized a positive gross profit from the sale of RTFCs over and above the biomethane cost, the biopremium as we call it, in the period despite the fact that they were that that we that the RTFCs were at very low prices. We've been doing a lot of work on our operating costs, and our core operating our core operating costs and activities have really been trimmed, in order to focus on maturing the near term development pipeline for the year ahead. Research and development costs are obviously continuing for the very large, very large pipeline we have after that. We're trying to prioritize the next five to 10 stations so that we can have those and build very rapidly when we've secured additional funding for them.

17:28 The benefits from our cost cutting activities so far should be more clear in future quarters because these are principally started towards the end of last quarter to allow us to have that focus. We have had a lot number of large one offs and accruals that were realized in the quarter and impacted the operating costs and the profitability. And then we also had an interest charge due to a new facility, which I'll discuss shortly, which impacted the profit and loss before taxes. When we consolidate the operating business operating businesses, we're required to recognize the r t f c r t f c sales on an invoicing basis. Hence, the r t hence, the consolidated gross profit was substantially reduced because because that that basis changes from when they're separate. In this period, there was a large RTFC sale, which came a few days after the end of the period due to the timing of the issue of those certificates by the Department for Transport.

18:21 However, the biomethane was purchased was purchased in the period had to be recognized, so that's led to a large mismatch in the cost of the earnings, and we correct that in our adjusted EBITDA, which I'll show you in a minute. As we previously mentioned, we've done a lot of work internally. We mentioned that in our last quarter quarterly earnings on the ramp up plans and the required overhead costs that we see to be able to manage the 30 to 40 state CNG stations we want to have in build or operational in 2026, 2027. Believe that a modest increase over the next three years around 15 to 20% should be sufficient in order to manage that this this growing portfolio. So here you can see our negative EBITDA of 3,340,000 in the in the quarter. Once we adjust that out for share based payments from the issue of of of options to employees and the fair value remeasurement, that obviously takes away some of the noncash items. EPC timing is from the large inflow of funds due to the starting of of the contract to develop Doncaster, but some of those revenues are not able to be recognized yet until the work's carried out. So whereas in previous quarters, that has benefited us, in this quarter, we, we we well, so we we'd have to strip it out for the adjusted EBITDA.

19:35 The RTFC timing, as you can see, was a was a very substantial adjustment. It's at 3,750,000 off about 10,000,000 RTFCs, would have been recognized in this quarter but wasn't able to be. So that brings the adjusted EBITDA loss down to about a million pounds. Total assets in the period were 213,000,000, of which number was good goodwill and intangibles. Current liabilities were 54,000,000, of which 44 was trade and other payables. Equity ratio is at 57%. Trade receivables and both and both trade payables have increased substantially in the period due to much higher volumes going through the stations, and, and higher biomethane, through the stations, as well in the same by by a premium being dispensed through the stations in the same period.

20:28 Probably net cash flow, roughly stable for the end of the period at with a with, yeah, with a small a small decrease. However, there was obviously, as I said, we've had a large cash flow operations to cover those one offs and accruals, and this has been offset by the by the agreement of a working capital facility with the Foresight Group, our existing funders, with whom we have an ongoing relationship,

20:55 of up to £10,000,000, which can be drawn as required. As the end the quarter, we have drawn £5,000,000 of that to cover those costs, and and it isn't anticipated that we will be repaying the working capital facility in the near term out of the proceeds our capital raising activities, which are ongoing.

21:19 And with that, I'll hand back to Philip. Thank you very much, Vaden.

21:27 I mentioned it previously, the four by two versus six by two truck truck market. What is a four by two? What is a six by two? The majority of trucks on the road in The UK have the ability to run up to a total 44 ton of of of combined weight. In order to do that, you need two rear axles, and that's what that is the vehicle you see here on the right hand side. On the left hand side so that's a six by two. On the left hand side, you have a four by two, which has the ability to run up to 38 or 40 tons in total combination weight. Now you might then say, well, hang on, Philip. That's just a four or a six ton difference. Yes. But over the lifetime of a vehicle, that adds up to a lot of payload, difference.

22:16 So if we then look at the total market, in The UK, there are about 145,000 so called articulated trucks on the road registered in The UK today. 21,000 of those are four by twos and 124,000 are six by twos. So how are we doing in each market? Well, so far, we've got about seven and a half percent of the total four by two market are using our stations. By the end of this year, calendar year, I'd say, by the end of twenty twenty four, we expect to be north of 10%, of The UK's four by two market and just continue to grow from there. However, if you look at the six by two market, which, of course, is a far larger market, pretty much a factor of six, six times larger than the four by two market, we today have pretty much zero.

23:04 We have 41 trucks on the road today, so basically negligible. However, that's changing. Both of the leading CNG truck manufacturers are bringing out or have brought out or in the process of bringing out six by two trucks, factory built trucks later this year. We see that as a as a as a game changer. Today, we've got about a thousand trucks, that we know our customers have ordered that will be going through, our network.

23:33 North of 900 of those are four by twos. So once again, very few six by twos. A year from now, I probably estimate that we'll be more close to the fifty fifty, or maybe the majority of those will be six by twos. So this is something that we're very excited about. And as I've said, it is a game changer for us. You know, we've managed to to to grow the company by purely having an addressable market of 21,000 trucks. Now our total addressable market goes from 21,000 up to a 145,000. Once again, game changer. So what does that mean, and where are we on, you know, customer adoption? Clearly, out of 145,000 trucks on the road, 1,700 is not a lot. You know, we are barely north of a percent of the of the total addressable market. However, our customers have ordered 950, well, close to a thousand trucks now.

24:27 And we know that from our existing customer base, it is not including any new customers that we're bringing in. We estimate that that those existing customers will order another two and a half thousand trucks in 2025 and '26. Now why are those estimated? Why aren't those firm orders? Because there is no logistics company. There's no haulage company in The UK that orders trucks more than nine to twelve months in advance. Meaning, if you want vehicles on the road, you know, sometime in 2025, you likely haven't ordered those vehicles yet, and you certainly haven't ordered anything from 2026. But based on discussions we've got with our customers, two and a half thousand trucks we see as a fairly conservative estimate for the future orders for 2025 and '26.

25:15 And I'd just like to add here as well an another data point. So we release monthly you know, we did a quarterly release at the end of February. Since then, we have released, our monthly stats for February. And in there, we gave a data point with regards to demo vehicles on the road and trials that our customers are running because the majority of new customers will not just go and order a CNG truck. They'll want to run a a demo period of two to three weeks to see if it fits into their operation, what their refueling experience is like, what the driver feedback is, etcetera, etcetera. If we look at the the the January to March period of 2023, so a year ago, there were five demo vehicles on the road in The UK.

26:02 Today, there are 11. We have con we have completed 16 trials so far this year. Last year, we had completed five or six. Now what does that show? Well, first of it shows a lot more vehicles available to trial, which is good. We also we also historically have seen a very high conversion ratio of customers demoing a a vehicle and then going to order, vehicles. So, therefore, the fact that we have now got so many ongoing trials is a good indicator that out of, you know, customer potential customer orders that today we haven't got any visibility of, we expect that to be very strong, into the future. When we put biomethane into vehicles, we also generate something called RTFCs, renewable transport fuel certificates.

26:55 For those of you who followed us a while, will know that the the biofuel market or for for road transport in Europe has had a very challenging time in 2023, and it continues to be a challenging time now. Why? Because there was a a large influx of predominantly Asian and predominantly Chinese biodiesel that came in in 2023, which may or may not have been totally, you know, correctly labeled as biodiesel. That led to an oversupply of biodiesel in Europe, which again has had a negative impact on these renewable certificates. However, various measures are being taken by the EU and UK government when it comes to investigating, what has been going on, and we do expect, the, the market to start to rebalance. It already is slowly rebalancing to rebalance in 2024 and thereby provide, support for certificate prices going forward, which then yet again should become, a significant part, of our earnings, for the quarters ahead.

28:09 As of today, putting buying methane into trucks is not a, you know, is not a large margin business for us. However, we only need a modest recovery in RTFCs, renewable transport tool certificates, in order for that to to become a large driver of, of our gross margins. If you remember a couple of slides ago, I said we had a run rate of, you know, £7,000,000. EBITDA current from from the current stations, we're expecting that to be a million pounds towards the per month towards the end of this year. That is not factoring in the potential upside from certificates. That is purely from stations from trucks using our stations. That does not include, as I say, any potential upside from certificate prices recovering as the market starts to rebalance later on into 2024 or later on in '24.

29:04 So just a brief summary, before we, hopefully take some questions here. So we have you know, the company's ten years old. What we're doing is is ten years old. It takes time to build an industry. And I would say the first six years up until from 2014 to 2020, that was when we had to build confidence in the stations, in the trucks, in the fuel, and really start to get a critical mass of customers together. Since then, we have started to see mass adoption, but we are still only at the very early stage of growth. Why? Because we're only currently servicing about 1.2% of the total addressable market. If you look at the amount of trucks on our road on the road today using our station network, It's north of 1,700.

29:55 We know that there's a fourth firm order book placed by our customers of close to a thousand trucks, and as I previously mentioned, estimated future orders into the thousands. So once again, this here isn't about us, you know, saturating a market. On the contrary, the total market size by 2030 could be any anywhere in the range of 50 to 90,000 trucks. Once again, we're only at the very early early stage of growth here. And finally, on the stations, our growth is held back by the amount of stations we have in operation today. Currently, we've got 13 stations in operation, two in build. If we would have had twenty, twenty five stations in operation, we wouldn't have 1,700 trucks going through our station network.

30:40 We would have several thousand more. So once again, us building more stations is critical to our future growth. And with that, I'll hand it back and open up for questions. That's great. Philip, Baden, thank you very much indeed for updating investors, and I'll shortly bring back up your cameras for the Q and A. 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. As well as the guys take a few moments to review the questions 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 will be accessible via your investment company dashboard. Philip Baden, if I may ask you just to open up that Q and A tab. You've had a number of questions from investors today, so thank you for your engagement to investors on the call today. Philip, if I may just hand back to you. If I could just ask you to read out the questions and where appropriate to give a response, that'd be great.

31:32 I'll do so. And thank you once again. I can see we've had some questions in already. And, yeah, so feel free to continue to send those through. Alright. First one. Annual growth rate of the company was 65% in calendar '23. What is a sustainable growth rate going forward? Well, I think I've partially addressed that already. Yes. We grew 65% calendar year '23. We expect to be growing at fifty, sixty, 70% ish per annum going forward. You know, it's always easy to grow from a low base than it is to grow from a higher base. But we expect, as I say, to be to be in the fifty, sixty, 70% growth rate per annum. What is critical for, you know, for us to achieve that growth going forward? It's it's more stations and the the adoption of the the six by two truck, which is now coming. So as such, you know, 65% last year was good. You know, we're not complaining. Any company shouldn't complain. It's gross 65% random, but we could certainly have grown even more had we had more stations and the six by two truck was available last year. But once again, it's available this year, so that will start to kick in second half of this year.

32:44 I think on to the next one. Okay. This is about the six by two truck. Please, can you provide some additional clarity why the six the six by two CNG truck is seen as a game changer? Well, once again, I probably just mentioned that, but it's really about the addressable market. You know, there there there are the total addressable market for us, the four by two and six by two is 145,000. We've only really been able to tap into that that 21,000 bubble if you want. As such, we've had close to a 125,000 truck market that we haven't been able to address. That's now changing. Really, really excited by that. Yes. It will take time because people need to trial or companies need need to trial those vehicles. So we're not expecting a huge impact on that for '24. From '25 onwards, as I say, based on feedback we're getting from existing customers, interest in that vehicle, we're we're expecting that to be a true game changer for us because our addressable market just just, you know, increases basically by a factor of six.

33:48 Are you only planning on building five additional CNG stations? Very good question. I should probably have clarified that one a bit better. So we've got 13 stations in operation today. We've two more in build, as I mentioned, in Kent and Doncaster. We've got plans to put another at least another five into build this calendar year. That doesn't mean we're gonna stop there. We have a midterm target as we call it. By the end of twenty twenty six, we want to be around 30 to 40 stations. So the answer is no. We're not only going to build another five stations, but, you know, for an investor's perspective, let's focus on the here and now. Let's focus on what we're gonna do over the next six, nine, twelve months.

34:34 And for this year, we're looking to put at least five more into build and then additional ones from '25, onwards. What's the timeline for executing the outline deal you've reached to consolidate the joint venture with Foresight? Very good question. That is something that we're working very hard, at at doing. I mean, we can't give exact timelines on that. What we have provided of guidance in the past is that we will update, the market over the coming months. It's something that we are definitely looking to to do sooner rather than later, but I can't be more specific because, of course, this this is a this is a moving, yeah, moving target as such, but it is something that we're looking to do in the in the near term rather than the longer term.

35:30 There seems to be a lot here's another one. There seems to be a lot of talk about hydrogen and battery electric heavy duty trucks or heavy duty vehicles. Please can elaborate on REFUELS or on how REFUELS looks at these vehicle options with will these compete with biomethane as a fuel? First of all, it's important to understand here that we are a customer driven company in the sense that we want to provide a any fuel vector or any fuel, any energy vector to our customers that they are demanding. Alright? So if they want hydrogen, we'll find a way of putting hydrogen in into into in hydrogen trucks. If they would like fast charging for for for battery electric trucks, we'll find a way of doing that and so on and so forth. However, it's important to distinguish between what you read in the media, what the ambitions of politicians, the ambitions of policymakers, and what is actually happening in the industry.

36:27 As of today, we are probably speaking to 70 to 80% of the largest fleets in The UK. Not a single one of those fleets has got plans to mass adopt hydrogen or battery electric trucks today. Now I'm talking about the large trucks, not necessarily the box vans and the small ridges you see going in in and out of city centers. These are the large articulated trucks you see going up and down the motorway. Why is that? Because the trucks aren't here. The trucks aren't able to carry out the work that they need them to do. The the supply of green hydrogen isn't here. The challenges around charging, building mega charges on an already constrained electricity network, you know, are are very big challenges.

37:16 That doesn't mean that this isn't gonna happen, but it will take decades for this to mature. And when it does mature, we will be there. Why? Because we and through our customer relationships, we will take our customers on that journey. But the bread and butter for this business is going to be by methane for decades to come. Alright. Then I'll continue. How confident are you that the growth profile of the company will continue? How many new stations you plan to open over the next twenty four months? And our locations driven by existing customer demand. I think I've addressed the growth profile of the company continuing in the fifty, sixty, 70% per annum. Also, the station as such, you know, we've got five that we wanna put into build this year and additional in 2025 and 2026, and that we can then get to 30 to 40 stations in operation or in build soon to go into operation by the end of twenty six.

38:15 And our location is driven by existing customer demand. Absolutely. So these are not locations that we build. We hope someone's gonna use them. No. This is existing customers who are coming to us and saying, we want to move away from diesel, but we can't do that until you've built stations in certain locations where we have large distribution centers and we want to move those fleets away from diesel. So, absolutely, this is entirely driven by customer demand. Is your focus on here's another one. Is your focus on UK expansion, or do you have plans outside of The UK? We have plans outside of The UK for sure. Will that be this year? No. Unlikely to be so. We have been offered some very interesting opportunities in other countries, but, you know, this let's be honest as well. You know, we have we have pretty strong growth here in The UK.

39:10 It's it's it's it's critical that we look after our existing customers first. However, the way we build our stations, the scale we do them at, how we operate them as unmanned is unique. There's no one else in Europe that does that. Probably, maybe no one else in the world actually that does them at the scale that we do. As such, we've got we've got unique IP that we will be deploying into Europe, over the coming years. Is that gonna be this year? Unlikely. But from 2025 onwards, watch this space. Interesting presentation, thanks. Would you consider a dual listing perhaps in London? I'll let Baden answer that one. Well, I mean, I guess the short answer is, is, of course, we are all all options are open. We absolutely would.

40:01 There have you know, it's it's been discussed, you know, and requested by certain investors previously before as as as whether or not there'd be an interesting opportunity. We do have, you know, we do have a large UK operation, clearly. We are predominantly currently, UK focused, for the station operations, albeit the biomethane. A lot of it happens in Europe. And so there is obviously gonna be a natural amount of interest from UK investors that makes a lot of sense for us to try and address. Is it the right time at this very moment whilst we're busy doing the funding, funding for the next, the next part of the rollout? Probably not yet, but, certainly, we would, we would consider options for how we can, how we increase how increase inter interaction with investors and the ex and access to to be able to, to be able to, yeah, be a shareholder in in the business. So the the answer is, certainly, we'd consider it in the future, and we'll be looking at this, this option, once we've completed our current funding rounds.

41:02 Thank you. If expanding the existing station network is one of the key elements to future growth, what do you see are the key threats to delivering the new station targets? Well, I wouldn't call it threats. I'd call I'd say what is holding us back. Two things. Building infrastructure in The UK, probably any European country is, is challenging. We have to deal with landowners. We have to deal with, you know, councils to get planning permissions, etcetera, etcetera. So all of that takes time. And and and getting station locations is something that we call shovel ready, where we can actually put a put a digger on-site takes a lot longer than actually building the station. Building the station is the easy part. That takes about eight eight months. From a put a digger on-site until we actually can fill the fill the first truck. So the key threats or the key challenges, I'd probably use that term instead, is two things.

41:57 It's funding. So we, of course, need additional funding to build this to build stations. Each station costs about $68,000,000 to build. And the second one is purely the time it takes to mature sites through to something that we call trouble ready. However, that's where we've done a lot of work already. We've got a land team of five people that only does one thing, and that is go out there and and secure sites. And as such, we have a huge pipeline of sites coming through now that will be shovel ready over the next six to twelve twelve months. Okay. Then we have the final one here. Who buys stock at 24 when the share is trading at 15 to 20 in the market? Alright. I'll answer that one briefly. First of all, it's people are free to buy and sell stock clearly as they want. The way we understand that one, that was a large block trade that had been agreed and therefore went through at 24.

42:54 There is also fairly low liquidity in the stock, so therefore, if you want a large amount of shares, then I'm not necessarily sure that the 15 to 20 price is the is the price where you can actually buy that amount of stock from. But once again, we're not involved in in what shareholders do, but what we have understood was that was a large a large block of shares that had been agreed. Therefore, it went through at was basically the price back in back in May last year. That's great. And that concludes our questions. Yes. You've taken every question. Thank you very much indeed, and thank you for everybody for engagement this morning. Philip Baden, I know that investor feedback will be particularly important to you both. I'll shortly redirect those on the call to give you their feedback. But perhaps before doing so, if I may, Philip, just come back to you for a couple of closing comments.

43:46 Thank you. Once again, thank you all. This is our first presentation here. We, of course, will be coming back as as soon as we can. Thank you for for showing an interest. You know, we, of course, believe that it's a it's a very exciting company, but more importantly, we've got some really exciting stuff happening over the coming years. We've we've taken ten years to get to where we are today. Over the next couple of years is when we're gonna really start to see true lift off occur. And as I say, looking forward to coming back later on, and thank you so much for showing interest in in That's great, Philip. Baden, thank you once again for your time this morning. Could I please ask investors not to close this session as we'll now automatically redirect you for the opportunity to provide provide your feedback in all that management can better understand your views and expectations.

44:35 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 REFUELS, we'd like to thank you for attending today's presentation, and wish you all a very pleasant morning.