Severfield (LSE:SFR) — Investor Presentation

0:00 Good afternoon, and welcome to the SEVERFIELD PLC investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time by the q and a tab situated in the right hand corner of your screen. 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, but the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to CEO, Alan Dunsmall. Good afternoon to you, sir.

0:30 Good afternoon, and welcome to our half year results presentation. I I'm going to give a a brief introduction overview of the the highlights. I'll hand over to Adam Semple to talk to the financial results in bit more detail, and I'll come back and talk a about strategy, a deeper dive into the different business units in The UK market, bit of India, and then we'll wrap up and take questions at the end. So just starting with a reminder of the five pillars of our investment case, built around exciting growth prospects. We've aligned the business over the years with strong growth potential in The UK and Europe. And also we have significant opportunity to grow profits and build value with our Indian joint venture. I think we've proved over the years that the business is resilient through the economic cycles of a range of different sectors and they all have their own cycles, which in effect means they largely cross out and provide a good resilience for the business as a whole.

1:35 We've been developing the kind of the platform for operational excellence over many years, involves both capital investment, operational efficiency, and most recently, our project horizon, digitization program, which we'll see a little bit more about later later on. The business has delivered and will continue to deliver strong returns. The cash generation is good and we've got kind of rolling return on capital employed of an excess of 15%. I think the value of that can be seen as the business progresses. And finally, importantly, the underpin of sustainability, which we've been developing over the last few years. And we believe we have a kind of market leading position there and it's become increasingly important in everything we do across the whole business.

2:24 So moving on to the headlines. For us, the kind of the important part is the further increase in profit before tax, up 17% to GBP 14,200,000 for the six months on revenue of GBP £215,300,000 which is slightly slower than the comparable period due to slightly softer market conditions, which Adam will expand a lot on a little bit later. The

2:48 increase in profit really comes from continued good execution of the order book, which is a key part of what we try to do. The balance sheet is in good shape. We've got net funds of GBP 400,000 at the end of the period, reflecting good cash inflow and working capital improvements in the period. And that positive 0.4% includes the debt from the acquisition of Firtgen at the beginning the period as well. So that's a good performance, we believe. The order book at GBP 42,000,000 is steady over the last few months compared with June and September. If we unpack a little bit, looking at moving from the June position, we had a cancellation of an order for Sunset Studios in July, that was kind of well publicized.

3:35 So that resulted in GBP 50,000,000 coming out of the order book. And if look at that and also ongoing revenue, we've actually taken in about GBP 200,000,000 worth of new orders over the last few months, which we think is a strong performance. The value continues to build in the Indian joint venture. The share of profit was GBP 600,000 in the period. But an important news and development is that we've now secured a plot of land to facilitate the build the building of a second factory, and that plot of land is in is in good draft. We'll say a bit more about that later later on. The Indian order book, a £165,000,000, say, from September, but represents a step up from where we were in June, and we see the pipeline of future work continuing to grow as well. So all in all, another good set of progress over the last few months, and that gives us confidence to increase the interim dividend up 8% to 1.4p per share.

4:39 I'll now hand over to Adam to give you the numbers in bit more detail before I return to talking about the strategy and the markets. Good afternoon, everybody. As Alan said, we've had another good set of results, and we've reported a step up on profits and also a period of strong cash generation. You can see from the P and L that revenue for the period was GBP 215,300,000, and that was a decrease over the previous period, reflecting the continuation of some challenging market conditions that we flagged at the time of the AGM statement. Underlying operating profit was £14,800,000 and that was up 22% over the previous period. And this increase reflects improved profitability from our core construction operations, which now includes development and also improved result for modular solutions, which we're pleased to say has reported a profit for the first time.

5:27 The share profit from JVs and associates of £800,000 That includes £600,000 from JSSL, our Indian joint venture, which represents an unchanged profit position whereby an improvement in the operating margin is helping us offset slightly lower activity levels in H1. So overall, underlying PBT is £14,200,000 is up 17%, and the interim dividend of 1.4p per share is up 8%. Overall, our expectations for the full year are unchanged despite the current market backdrop. And given our strong track record and diversified operations and high quality order books, we expect to deliver further progress in the second half of the year.

6:10 We're now reporting results under our new divisional structure, which we announced around a year ago. Our core construction operations include the combined results of our commercial and industrial division and our nuclear and infrastructure division. And overall revenue of GBP $2.00 8,000,000 was a reduction of 9% over the previous period. And breaking that down into the divisions, in CI, revenues decreased by 9% to GBP 166,500,000, representing the impact of some softer market conditions in the distribution sector and also the pause in construction of Sunset Studios. And those two in combination have reduced revenue by £48,000,000 and that's been offset by the new revenue from Vertmont of £28,000,000 In NLI, revenue has decreased slightly by around 7% to £41,500,000 and that's driven by the market conditions in the infrastructure, but also the normal nuclear timing differences that we see in revenue in that business.

7:05 From a profit perspective, underlying operating profit has increased by 16% to £14,700,000 and that reflects an increase in underlying profitability of £500,000 the new profit from Vertman of 1,500,000 And you'll see that the increase in overall profits reflects continued contract execution improvements, which again is helping us offset the drop in revenue sort of H1 and H1. Our strategic targets, which we announced back in our Capital Markets Day back in March, they're unchanged. And in C and I, we're targeting revenue growth in line with GDP with margins of 8% to 10%. And in N and I, we have a medium term target to grow revenue to £125,000,000 plus, again, with margins of eight to 10%.

7:51 Modular Solutions. This consists of our wholly owned subsidiary, SEVERFIELD Products and Processing, and also CMF, which is our cold rolled joint venture business, which is based in Wales. Although revenue is down slightly at £10,700,000 for the first time, modular solutions has reported a profit, reflecting an improved sales mix of higher margin SEVERFIELD PLC products in SPP. The divisional result of £200,000 also includes the share of profit of CMF of £100,000 and the lower profitability at CMF reflects some under recovery of overheads as the business ramps up its new expanded production facility in Wales, which became operational over the last twelve months. Strategic target in modular solutions, that is also unchanged. And we have a medium term target to grow combined CMF and SPP revenues to between £75,000,000 and £100,000,000 at margins of 10% plus, so slightly ahead of our core construction business.

8:48 In India, JSSL has reported a profit after tax of £1,200,000 of which our share was £600,000 This reflects revenue of £48,000,000 which represents a decrease of 30% over the previous period, following a reduction in output to 32,000 tonnes from 44,000 tonnes, reflecting the timing of work in JSSL's order book. And it's worth pointing out that similar to our main group and taking a six month snapshot of India doesn't paint the full picture because with majority of our contracts lasting between nine and twelve months, you need really to look at the full twelve month picture to get a fuller understanding of the results. Nonetheless, operating margins have increased 8.2% compared to 5.5% in the previous period, and that reflects improved mix of work and strong operational delivery.

9:35 Finance costs, they were GBP 2,500,000. They're unchanged from the previous period and reflect a continued high level of borrowing or higher level of borrowing in the joint venture, which is partly to do with the impact of inflation and working capital, but also higher letter of credit costs, which are linked to higher value steel purchases. Overall, looking forward to the full year, despite the lower activity levels in H1, GSSL's output for 2024 is expected to exceed 100,000 tonnes, including subcontracted work for the second year running, given the volume of the work already secured by business. And 100,000 tonnes definitely doesn't represent our full aspirations for the business, which Alan will cover on later. On to the balance sheet, not a huge amount to say here, only that the pension liability has decreased again by around £1,700,000 to £11,200,000 since the year end. And that mainly reflects another increase in the discount rate and the ongoing deficit contributions of 2,500,000 which were made during the year.

10:35 The Terenial funding valuation is currently in progress, and that has a valuation date of 03/31/2023, and we expect to finalize that in the New Year. And then finally for me, on cash flow. Our balance sheet and cash continues our balance sheet and cash position continues to remain healthy. We have another period of strong cash generation resulting in period end net funds, excluding the IFRS 16 lease liabilities of GBP 400,000. And this includes the acquisition loans that are outstanding of £26,000,000 The improved cash position reflects an operating cash inflow of £18,200,000 and also an inflow from working capital of £15,600,000 which represents an improvement in underlying working capital of around £6,000,000 and new advanced payments on a large project of £10,000,000 which we secured in H1.

11:26 And that takes total advanced payments in the business to £20,000,000 at the end of September. Year end working capital, excluding these advances, was around 5% of sales, and that's back within our normal range of 4% to 6%, which we also measure excluding the advance payments. And these inflows have been offset by the acquisition of Vertman for a net cash consideration of £23,000,000 and contingent consideration payments of £1,200,000 which relate to the acquisition of dam structures in 2021. And as a reminder, the maximum consideration for dam was £27,000,000 with £12,000,000 paid upfront, pounds 7,000,000 paid up in 2023, and then a further £8,000,000 contingent uncertain work winning targets spread over a four year period.

12:11 And the payment you can see in the bridge here of £1,200,000 that represents the second of these annual contingent payments, taking the total contingent consideration paid to date to £2,700,000 In the first half of the year, we also spent money on CapEx of 5,300,000 again, as we've continued our capital investment program and also share purchases of £2,700,000 as we've now stopped issuing shares for our LTIPs and share save schemes and are buying them in the open market instead. And we've also invested in corporation tax and interest payments of £4.3 and these are just the normal run rate payments for these. Returning to working capital. We expect an outflow of around GBP 20,000,000 in the second half of the year as the customer advances that I just referred to unwind.

12:57 And given this, we're continuing to guide to an unchanged net debt position of GBP 28,000,000 to 30,000,000 by the end of FY 'twenty four. And I'll now hand back to Alan, who'll take you through the rest of the presentation. So moving on to strategy. Our strategic priorities are unchanged. They've been pretty consistent for the last few years and we believe have delivered clear and the once more progress for the group. And we believe the same priorities will continue to deliver further progress in the coming years. First and foremost, we're trying to drive growth. We've improved our kind of central position. We've improved our geographic position. We're pleased with the acquisition of Zurchman. We've got opportunities to pursue organic growth on a wider geographical area.

13:48 In the Nuclear Infrastructure business, we've developed framework agreements, which gives us good long term visibility and pipelines of work. We've got a new and growing small and growing module solutions business, which is showing strong growth potential, as Adam said earlier on. And we continue to have an appetite and the cash flow to support further acquisitions and support of all of that in the coming years. Underpinning all of that is the continued improvement in operational efficiency involves an ongoing capital investment program, it involves relentless improvement in efficiency in our production and design and most recently, the launch of our digitization project, Project Horizon, which we'll say a bit more about in a second. India, we we we referred to already. It's a venture there. It's it's it's developing strongly.

14:37 We've refreshed strategy there, and we see significant potential for long term value creation in that business, which we'll expand upon a little bit later. And finally, really an essential part of pretty much any business this day is the is the ESG position, and we've tried to adopt a leadership position there, which is is standing in good stead commercially and and and and and with clients. We just touched a little bit on the next slide on Project Horizon. This is our kind of long term plan to sort of digitize really as much of the business as we think can be digitized. We launched a year ago and there's a roadmap to that full digitization of over a 100 clearly scoped and defined projects.

15:27 Of that 100, about 50 are short term. We've completed 11 of these already. There's another 20 in progress, and we hope to have completed most of the first 50 by the end of the next calendar year. A lot of the converted stage projects are fairly low key system upgrades, integrations, better transmission of data and so on. But there's enough kind of tangible benefits coming out to cover the cost of the full time team we have there. But that that team is now fully populated. We've about 14 people on the team with a range of different disciplines, and we think we're we're off to a good start in building good momentum. That will continue over the next few years, and we think as we build more momentum, we'll start to see more net tangible benefits over the next two to three years.

16:22 I'll pass over this briefly. It's just some examples of where we're taking leadership positions across the whole spectrum of ESG. You you know, I think it it is something that's important to us. It's important to our clients, and and we're always looking for sort of new new ways to add value and maintain the leadership positions. So some of you may want I'll also look into questions on that later, but we we we just include this to illustrate what we're trying to do. Also from a strategic standpoint, we see quite a big influence, from the whole, the transition to the green economy over the coming years. We had this slide a lot during the last presentation, but since then, we've added a kind of sixth bubble for energy infrastructure to incorporate some capability we acquired with the development acquisition, which revolves around the modular construction of transformation transformer stations for electricity grids. So there's a lot of work coming out of this from this whole green economy transition. And there's another slide later, which gives a bit more flesh around some of the opportunities that we're beginning to see there.

17:38 So moving on from the strategy to have a deeper dive into The UK and Europe, we referred in our press release on some more challenging market conditions. And that there's two or three points to kind of unpack there. Firstly, the distribution side, distribution market, which has been quite strong for us in the last three or four years, it is quite weak. We highlighted this back in June. It wasn't clear when it was starting to recover. And we're still we're still in a fairly weak position just now. We're starting to see some signs of recovery there with how quick that will be. It remains to be seen. More broadly, we're seeing we saw the cancellation of the Sunset Studios contract Adam referred to back in back in June, And and we're also seeing some delays in some sectors in decision making, which we can generally relate to the kind of a the wide economic environment. So we we were just flagging that we're

18:38 not not immune from that. We are seeing some delays in the whole decision making process, which we were miss misspelled expecting a few months ago. Notwithstanding that, you know, think inflation is is much more manageable now and is reducing, so that that that that's the bonus. Steel supply continues to remain stable and we were pleased to see the recent announcements from British Steel who are going to invest in some new electric car furnaces in The UK. So that will secure the kind of UK's steel supply pipeline for the long term future in a low carbon way. So we're pleased with that. And looking beyond some of the short term kind of delays in decision making, we believe we have a really favorable outlook which is longer term in many of our market sectors, and we'll expand on that as we go along. Many of those relating to the sort of little carbon economy as I've already touched on.

19:34 This puts the order book in context relatively stable over the last couple of years, and we're beginning to see a bit of growth in the kind of Mainland Europe order book, and expect to see more of that as we build momentum following the acquisition of Vertex earlier in the year. The next slide really continues to reinforce the breadth and depth of the group's capability, the breadth of the order book that gives us, which reinforces the kind of resilience that we believe we have across the whole economic cycle. If we take a deeper dive into commercial and industrial, the order we make up snow and also where we see the pipeline developing in the future, industrial remains the strongest element of it. That includes car battery plants, includes wind turbine, monopodial plants.

20:35 And we see that whole sector continuing for the foreseeable future as part of the whole green energy transition. Commercial office have seen a step up in recent months as we expected with a good visibility of that pipeline. If we've made one comment, the step up probably hasn't been quite as great as it would because of some of the delays in decision making, but it's stronger than it was nevertheless, which we're pleased about. Distribution you can see is fairly low at the moment at 3%. Two or three years ago, that was as high as 2025%. So it puts a kind of current weakness in context here. So we look forward to this with the return of that market over the next six, twelve months or so. Data centers are picking up a bit. There's still quite a lot of data centers in the pipeline in in The UK, Ireland, and Continental Europe.

21:24 And steady and leisure has dipped in the last six months partly because we've worked towards completion of the new Everton Stadium from our perspective, but also this sector included the Sunset Studios contract which was canceled. So that's now at an unusual level, but it is pretty steady stream of projects in the pipeline there, which we'll see that to pick up in in in in due course. Just looking more generally, the European position we made, acquisition which is described to you as VSCA, stands for Richmond Steel Construction Holdings, back in April. The integration of that is going very well. We're we're well through our kind of six month integration plan and we're now planning to sort of rebrand that business early in the new year with the full support of local management. And we're also going to sort of integrate it more fully with our preexisting European business to sort of really solidify that kind of European presence and start to sort of look outwards in the build in the months and years ahead. So I think we feel really quite positive about our position there.

22:39 And I think we're going to scope for further acquisitions and European market consolidation in the years ahead. If we move on to nuclear infrastructure, reasonably stable kind of order book there as we expect, which which which reflects this general more stable nature of that market sector, less susceptible to cyclical trends. The other point to to mention there is that there's a lot of work in nuclear which comes from framework agreements, which we have visibility of, which aren't yet in the order book. The underlying position is perhaps stronger than the kind of headline order book would suggest here.

23:25 There's on infrastructure work we're we're doing all the work for HS two, on phase one. We're well on with some of the bridge programs there. The tenders are beginning to, come through for some of the station work, and we're to start work on the old old common station, but some of the other stations are still to be tendered, we're hopeful of getting good positions there. So that'll keep us reasonably busy for the next two, three, four years or give us a steady pipeline of work from HS2 for the next two, three, four years. We've had a question on the impact of the cancellation of the phase two from Birmingham to Manchester. Will that impact us? Will some impact in the longer term? But no real impact in the short term. By longer term, I'm probably talking four or five years out. We might lose a kind of, I don't know, pounds 20,000,000 a year of work or so from that, but we believe that there are more than enough opportunities elsewhere as we'll come on to, which will than compensate for that. So no real major impact from the the cancellation of HS two phase phase two.

24:36 I think there's a I mean, I think in all these areas, a strong pipeline. Refer to the the nuclear framework agreements. We've we we we have a good visibility ten, fifteen years out in many parts of the nuclear business, which is a real conflict of vision for the business. It's solid platform and allows us to see through much of the economic cycle. We've got a slide here, which I'll just pause on, which tries to sort of develop the theme of the whole green economy transition, decarbonization, call it what you want. Now we call this UK Energy Infrastructure Momentum. It really applies more widely across Europe and beyond. And on that little graphic are, us, tangible manifestations of the types of projects which that will mean. And we have either done or doing or tendering for pretty much all of these different types of projects that you can see there are working on. And we believe there's an enormous wave of that coming down the pipeline over the next five, ten, fifteen years.

25:45 We could broaden this out further to include battery plants. There's some other aspects of decarbonization not here also. We can include our modular business, which is a growing market for switch gear for offshore wind farms, data centers and such like. But it really sort of captures in a tangible way what we think the whole green economy transition will mean for us as a business is all this volume of work and investment builds over the next decade for the changes that has that really has to happen. And I think in terms of the end game, we are fairly neutral on what the kind of end game energy mix ends up being. If it's mostly nuclear, that's fine. If it's mostly renewables or there's a nuclear backup, that's also fine. But see, however we get there, there's an enormous amount of investment which will translate into the built environment with all the steel components, which we believe we can play a strong part in the years ahead.

26:48 Just moving on to modular briefly, as I mentioned, it's still relatively small with quite big ambitions for it. Three different components, our SEVERFIELD product range, is the kind of a containerized steel containerized kind of electrical switch gear, backup power, traditionally used in oil and gas and they're hard to reach real sectors, but increasingly used in renewable energy sectors, data centers and so on. That market is growing and we're looking at we're already developing the product range with more developed in the pipeline as well. Supply chain for us is the kind of steel frameworks for modular buildings of all of all types, commercial and residential schools, hospitals, and such like. Most modular buildings have some form of steel frame either hot rolled or cold rolled, which is made from coil. We have all of that capability and we've kind of team focused on developing that and getting good traction in supporting development of the modular construction market from a supply chain perspective.

27:57 And then finally, bulk handling solutions is our Rotoflow product. It's a niche product which helps bulk handling systems for paint, water treatment and so on. It can also be used for for food production, and we're broadening out the the market access both geographically and sectorally there because that's a good niche profitable product for us. It's never going to be huge in revenue terms, but it can be a good profit contributor and we want to develop that in the years. It's really quite a kind of an interesting business. And the next slide just really summarizes many of the growth opportunities I've been talking about there. So it's small, but I think if we're looking three, four, five years out, we'll see that become a more substantial part of the overall group, which we're very positive about.

28:50 Moving on to to India. The key thing really here to draw is the fourth bullet point down. We've always been very positive about the potential for steel construction in India. The whole thesis was that the economy is growing strongly and that steel has an unusually low market share in construction in India compared with the rest of the world. We're now up 100,000 tonnes. We're now through COVID. The business is now comparable in size to The UK and Europe. And we spent a lot of time and effort early in the year revalidating our strategy and business plan. And that reaffirmed absolutely the potential for the economy and the steel construction market growth over the next few years. And we believe we can grow from that 400,000 tonnes up towards two and fifty three hundred thousand tonnes over the next five or six years, hence the need for a second site for expansion.

29:52 So it's on the growth curve again as it was before COVID and I think that's going to sort of build momentum in the years ahead and become really quite a substantial part of the business, creating lots of value. The order book in context there shows it stepped up from June when now kind of close to kind of record high, and the pipeline is building even more than that. So we'd expect to start to see further and sustained increases in the order book in the years ahead. When we did the revalidation of the business plan, we really we did quite a lot of detail. You can start with the macro picture of the Indian economy, what was the process forecast forecast there, what what what construction department, what part construction play in that. But you get to this level of kind of granular data, what what what will it all mean in terms of these different sectors.

30:47 Most of these sectors will be familiar from from The UK and Europe. But in each one, when you break it down, the opportunities within India are enormous. You could always build a steel fabrication focusing on one individual sector for the next five, ten years and do very well. We can do all of these and our challenge is to make sure that we align our output and our business development focus with the sectors and with clients where they value the skill, the capability, engineering knowledge and value that we can add there along with the the professional service that we that we deliver. There'll be a lot of price competition in some sectors. We're not really interested in that. We want to make sure that we select the sectors where our value is most appreciated and and supports the the long term profitable growth of our our business and generates that value, which we absolutely believe is there to come.

31:42 So finally, just to sort of recap the summary and outlook. With another good period of performance, the profit's up 17%. Cash generation has been strong, the balance sheet remains strong. Now all this is confidence to increase the dividend once again. The order books remain strong and stable, reflecting strong inflow. And we believe, looking at the detail, quality of the books that we have are high. There's some challenging market conditions, as I said earlier on, but we're navigating through these just now, but it it'll be nice when the kind of uncertainty starts to starts to lift, hopefully in the in the near term. We're navigating through that well at the moment. India, really very encouraging, very positive, and very, very exciting for us. And all that means in the near term is that our expectations for the current financial year are unchanged and that the longer term outlook remains favorable with some excellent growth opportunities as I hope we have demonstrated.

32:48 So that brings an end to the the following part of the the question the presentation. Perfect. Alan, Adam, thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab, which situated on the top right hand corner of your screen. But just while the company take a few moments to review those questions that have been submitted today, I'd like to remind you that recording of this presentation along with a copy of the slides and the published q and a can be accessed via your investor dashboard. As you can see, we received questions throughout today's presentation. In fact and if I could just ask you to read out the questions and give responses when it's appropriate to do so, I'll pick up from you at the end. So we have a question from Marcus, which reads, with EU and UK markets difficult, how much of management's focus is on Indian opportunities and what challenges do you see in India?

33:39 I think I would start with the first part of that question and say that we see some sectors in The UK and Europe as being difficult and challenging. Other sectors are fine, as we've said. So that's just enough to give us a little bit of concern in some areas, but we're generally reasonably positive about the kind of growth prospects overall across The UK and Mainland Europe on the back of the acquisition. That is all separate from the Indian focus. I think we our focus is absolutely in India because of the long term value there. And I think the biggest challenge will be, as I said, making sure that we align our growing output with those sectors which will deliver the best returns.

34:27 And I think we'll have a lot of choice there as the market picks up. So thank you for that question. The there's another question from Ben. How are you measuring the impact of Project Horizon on projects completed? Do you see providing a competitive advantage? I think we are we have very detailed progress measurements in all aspects of project horizon. I'd say some are less tangible than others. The system upgrade is less tangible, better connecting of data and system communication less tangible. But as we go through there are other more tangible projects like an automated QA record system which enables us to generate QA records for the nuclear industry in particular, automatically avoiding the need for significant manual effort without which we have to recruit lots more people. So there's a range of examples here, but every single project has been measured to track clear goals.

35:40 And we believe as we build more and more momentum over the next couple of years, we will see more competitive advantage becoming clear either in terms of the service we're able to offer in terms of quicker design, more flexible design, more design options, more than efficiency and also in terms of reducing the cost of project delivery, which will either feed its way into better prices for clients and give us an advantage over higher priced competitors or in terms of bottom line margin support. So I think as we as project horizon evolves over the next few years, we will see more and more material advantage in the urgent, which we will be tracking rigorously.

36:28 And that's all the questions we have at the moment. Happy to take any more if there's any if there's any lingering. Yeah. Alan, Adam, I think that's all the questions. And I think you've actually answered all the the questions you can from investors. And, of course, the company will review all the questions submitted today, and we'll publish search responses on the investment company platform. But just before we direct investors to provide you with their feedback, is important to the company. Alan, could I just ask you for a few closing comments? Yes. I think I thank you all for listening. It's it's becoming a a more important part of our results roadshow. The the the the the this forum and the, look forward to any feedback, and we hope that's been informative for those of you that haven't seen the message before. So thank you.

37:15 Thank you all of you for your time and attention. Perfect. Alan, Adam, thank you once again for updating investors today. Could I please ask investors not to close the session as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations? This will then take a few moments to complete, which I'm sure will be greatly valued by the company. On behalf of the management team of SEVERFIELD PLC, we'd like to thank you for attending today's presentation, and good afternoon to you all.