Team (LSE:TEAM) — Investor Presentation

0:01 Good morning, and welcome to the TEAM PLC Investor Presentation. Throughout this recorded meeting, investors will be in listen only mode. Questions are encouraged and can be submitted at any time via the Q and A tab situated on the right hand corner of your screen. Just click Q and A, scroll to the bottom, type your question and press send. The The company may not be in a position to answer every question received during the meeting itself. 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 Mark Club, executive chairman. Good morning.

0:29 Good morning. First of all, thank you very much for hosting. So thank you, investor meet. I'm just gonna start with first of all, thank you to the audience that I'm assuming are all individuals not representing our institution. And I just wanna deliver to you a message which is that we as a company and I as an individual value our shareholders, all of them, whether you own one share or 10,000,000 shares. And I believe that it's appropriate to and we believe it's appropriate to allow individual investors to access our share registry, and that's the reason why we we have a wrap offer out there.

1:18 Retail investors are the the the bedrock of the foundation of the London Stock Exchange, And I I really believe that this marginalized community on which the Stock Exchange was founded on remain a great force, and so I welcome addressing you all. This presentation is based on our September 23 numbers, which frankly seems and is an awful long time ago, and a huge amount has happened. I think that let's start with what who are we and what do we do? Okay? We are a broad wealth and asset management business.

2:06 It was we're headquartered in Jersey, and there's good reasons for that. First of all, it's where I live, and I founded the company. But there are also good reasons, robust regulation, advanced infrastructure, lawyers, tax advisers, banks, etcetera, etcetera, etcetera.

2:23 We do all the usual things that you would expect from a wealth and asset management business. We've got some complementary services, but I'm not gonna zone in on those because they are a small part of the business. So the main thing is we look after people's money. We advise people on how their money should be looked after and what structures they should be in. We have a range of customers from individuals

2:47 contributing to what you might call a SIP in outside the outside world that might be a Cure Up, Cure Up, regular savings plan, structured, not structured, life rapid, not life rapid, and then we actually manage money as well, and that's the asset management business. We listed on AIM in 2021.

3:11 You can see on this slide who the main shareholders. The the takeaway from this that I would have is that John and I, John is head of TEAM International, we own over 20% of the company. So we have real skin in the game. That's quite unusual. I have no options, no MIP, neither has John. We bought out shares just like you or any other shareholder. The top right hand slide is what you'd expect to see from a company presentation. Guess what? We've grown. And I I I would argue that we've grown very satisfactorily, and the key now is to convert that growth, which will continue into EBITDA, what I refer to as escape velocity.

4:04 And we are very, very close to that, and you'll see through the rest of this presentation as to why I have such confidence in making that statement.

4:15 So here's a little bit about how it all began and the journey to where we are today. Theta was the bedrock Foundation acquisition, very small asset management business, typically defined as a private client business, direct clients, sleepy lifestyle business, but it had all the approvals, which made it a good acquisition for me and my fellow shareholders in a private company to enter the arena. We we we acquired a business called JCAP, which is treasury management. Back then, people have forgotten about cash because it didn't earn any return. But cash is an asset, and it should be in every suite of assets available to invest in.

5:01 Omega was our first foray into the advice market. And the reason why we did that was because we identified that advisers

5:17 had myriads of different strategies for the for the investment of their client monies, and we wanted to bring them into a disciplined manner for investing. Omega was the first very profitable little business, two man business, didn't pay a lot of money for it, integrated now quite well. There were some regulatory issues. We were aware of that before we bought it. Then we bought Concentrix, another advisory business, but interestingly, also with a consulting business, giving advice to high net worth individuals, family offices, quasi institutions in terms of risk reporting, investment manager selection advice, all data driven. Those were all Jersey centric.

6:06 Matthew, my finance director, likes to use St Albans as an analogy for Jersey. It's about a population of a 100,000, relatively affluent, but we needed to go further afield. And our clients were actually taking us further afield. So the GlobalEye acquisition gave us the licenses that we needed in Singapore, Middle East, South Africa. And and and then finally, with John and NEBA, that gave us, firstly, John and his management experience and expertise, his network, and a fund distribution business. HBF on the on the slide is a proposed acquisition, Jersey based.

6:56 Whether that happens or not, we'll be reliant upon the fundraise. Sorry. Just a bit back, a couple of slides. Matthew is CFO and COO, joined me pre IPO. Matthew, do want to just say a couple of words about yourself?

7:14 Yeah. Hi. Yes. So I Matthew Warren, the CFO. I'm a qualified chartered accountant. I had a a career in the city working at Bearings and Casanov before working for Close Brothers in their wealth division, and I've been the CFO and the COO of three IFA businesses, one owned by Aegon, one owned one Close Brothers, and one owned by a USP company, that was recently sold for £600,000,000. So I've I'm I'm very experienced in the world of fund distribution and in wealth management. John, I I sort of half sung your praises. So, two minutes on John. So, John, I was the founder of NEBA Financial Solutions, which, as Mark mentioned, was a fund distribution business to the offshore expatriate, financial advice community.

8:06 I also founded NEBA Wealth Management, a financial advisory company with offices in many locations around the world. That's basically it in a nutshell. Okay. Thank you.

8:21 So let's get to the meat and drink of it. We have indicators pointing upwards, AUM, AUA, staff, all those usual things. But but the key takeaway is that strategic progress. Going back to what I just said. Prior to June last year, we were Jersey centric. Now the world is our oyster. But importantly, we have moats. We have deep moats, and they're called regulators. So we have regulatory approval in the places where we wanna be, and there are a couple of other places where we would like to have regulatory approvals and add to our collection of moats.

9:14 And I'll explain a little bit later on, or John probably will, in terms of of why these moats are so valuable and that are the bedrock for revenue growth, recruitment of advisers, and consequently money going into our asset management business. I can pick and choose from this, again, numbers based highlights. Again, this is this is very much historical. But, you know, we we have grown the AUA and the AUM very successfully, and and I think that trend will continue. And, I can say that with some confidence because of I think it's the next slide that we're gonna go to, which is the the the the performance of our bedrock models, which are cautious balanced growth, 100% equity, and diversified income, are very, very market competitive, and they are priced market competitively.

10:28 There's a question later on that I'll answer which deals with the investment management side of things in a bit more clarity. So if I may, I'm gonna answer that at the end. But if you're gonna sell something, it needs to be a good product. We have a good product, and it's highly scalable because it's systematic. The reason why we can have some confidence in the growth in AUA, is because of this slide. And I'm gonna hand over to John to, run through this one. John. Thank you. So TEAM International was formed out of all the acquisitions outside of Jersey.

11:14 So NEBA is included in that, and most of the rebranding in there will from all the different offices will come under one brand, which will be the NEBA brand for wealth management. The the wealth management company has a huge expatriate focus. Why do we focus on the expat market? Well, there are millions of British expatriates living overseas. In fact, the vast majority of our clients are British people who live overseas, and the, advisers are British financial advisers who also live overseas. I'm speaking to you from Singapore where I've lived for the last fifteen years. So expats, generally, when they live overseas, they get a bump in pay. So you'll have someone who maybe earns £200,000 as the instead of paying huge amounts in taxes and, housing costs, a lot of those things are either paid for by the companies who send them overseas, or they live in much lower tax jurisdictions.

12:19 I think I paid £900 last year in taxes in total in Singapore, so it's a very cost effective place for me to be tax wise. So without all these expenses, it gives a much higher disposable income for these, people who live outside of their home countries. We don't just deal with British expatriates. There are some other nationalities as well. These expats would probably have a much larger savings plans. So instead of saving maybe £2,300 a month, they can save £23,000 a month or more. We've even had some that are as high as $20,000 a month into a savings plan. So there's a lot of disposable income, with these expatriate communities.

13:12 So we we basically are using the the growth of the, wealth management division to take the money that we've got, 319,000,000 as you can see from this slide at the moment. At the moment, none of that is invested in TEAM asset management's models. So the idea is to take that and move that into the TEAM asset management models and in which will create revenue from the management fee, which will only benefit the shareholders. The regulatory offices that we have in Singapore, The UAE, South Africa, and Malaysia, these are the building blocks which Mark has spoken about before.

13:57 That allows us to give a proposition to the expatriate financial advisers, which no other, company can match. Not only are we listed, but when expats who are mobile, including financial advisers, some of which who work for us have lived in five or more different locations, when they move or their clients move, this having multi jurisdictional licenses allow us to carry on the flow of advice from one location to another. That means we don't really lose,

14:30 AUA when when clients or or the advisers move locations, and we can continue to look after that client's money in our models for a much longer time than any of the competitors in the offshore market space. The the whole proposition for TEAM International is aimed at financial advisers, not necessarily the clients. If we do a good job for the financial advisers, they will do a good job for the clients, and we'll give them all the tools to do so. There's not too much difference between financial advisory companies apart from those building blocks which we have, which will help, the financial advisers, give a much better global service to all their clients. And it will also help us to

15:17 bring their clients into into into the fold. One of the top things that financial advisers, like about our proposal is the guaranteed buyouts that we can give them after five years of service. This will enable there most financial advisers in the offshore world find it hard to find an exit for their business. They can't sell their book of business. It's invested in too many things. So over the five year period, we will take their money and put it into TEAM's models, making it of value to us. We will help other financial advisers purchase that book, and we will keep the assets with us. And it gives the financial advisers an exit strategy. This has given, a lot of financial advisers a a great incentive to join us. So over the last few months, but since NEBA has been purchased, we were purchased in December, we've already increased the assets, AUA by 47,000,000.

16:18 We have 500,000,000 550,000,000, sorry, in our pipeline to join, of which 180 millions worth of AUA. Those financial advisers have signed contracts with us and given us a list of all their clients' data who is who are coming over, and we will be able to, increase that AUA figure more and more and, again, funnel that money into TEAM Asset Management's model portfolios, which, again, the with the management fee will benefit our shareholders. Okay. Thank you, John. So talking about benefits, because this is the the the the sizzle, if you like, that will come through, and it is very well articulated in a research note recently published by Ben at Hannam with a target share price of 70 p.

17:15 Matthew, do you wanna just quickly run through the p and l and then how

17:20 how this flow of assets will impact our earnings?

17:29 You're on mute. There we go. Thank you, Mark. We've run a fairly simple set of accounts. So we receive income from investing clients' money. So that's the investment management business. We receive fees from clients for giving them ongoing financial planning advice and for treasury services.

17:54 And we also have various ad hoc other fees that come through our consultancy work. That's the revenue line. In the last year, it went up from 2.2 to 5,300,000, so we are up 152% year to year. We are up 300% since our IPO in March. And whilst we can't give guidance for the future, if you look at the research note that was published as Mark refers to, the revenue forecast for next year is 8.5, and the year flat is 10.5. So you can see there's there's a rapid rate of growth in the early years of our of our development. Now the cost base of the business is people and officers and licenses. We we share the revenues that we earn with the advisers, so there's typically a a fixed revenue share. It's different in different parts of the world. In Asia, it's around 70%.

18:47 In Jersey, it's more like 40 to 50%. We then have salary off who are the investment managers, who are the support staff, and the management, and then we have the physical offices. Most of those costs are now fixed. We do not expect to need further physical offices, further management, and further salaried staff. So we expect the incremental revenues to be coming through without much additional costs attached to them. Our profit for the last year was an underlying basis. We we we we lost £700,000, which is all good to lose money. We recognize that. But as part of the early year development of the business, we think that was an okay result. It's better than the year before where we lost £800,000, and we expect to be producing a cash breakeven position not next year, but the year after that. It'll take a while to get the client's assets from where they currently are managed

19:47 into our investment management business. But once they are there, we expect them to be very sticky. So they'll the client retention, expect to be in the high nineties. We expect them to be growing because they're invested in sensible long term, secure portfolios. And and and we expect clients to continue to add to those portfolios through their regular savings and pension contributions. So everything is pointing towards a fairly static cost base but an increasing revenue line.

20:17 It might be worth pointing out, Matthew, just in terms of the loss, the 700. There's a certain amount of synchronicity in numbers. Our p l we do have the one other cost that we have is the cost of being a listed company. Yeah. So if you if we now report the business in three divisions. So you've got investment management, which is running the money. We've got advice, which is the Jersey businesses, and we have international, which is John's business. As Mark pointed out, we then have head office. Head office is Mark and myself, plus the nonexecutives, plus the other things required to be a listed entity. But as you can see there, that costs in the region of £700,000 a year to maintain. So, again, it's a fixed cost. It shouldn't go up, but it is a real drag on our profitability in these early years.

21:06 Thank you, Matthew. Anything you wanna pull out? No. So okay. So so here are my potential investor and team. What am I buying? Well, you're buying a rather unique exposure in terms of the London listed market to markets that John has talked about that display growth to high growth. And and the opportunities are vast and rich, All the reasons that John described. I think John says that there's over 40,000 financial advisers in the international market. Many of them are two man bands. I mean, I'm in communication with a two man partnership in Cayman with all the approvals.

21:59 I've got a two man band in Rome that this is how they tended to congregate. But, you know, demographics are such that these guys and and regulation to a degree, is starting to catch up with them, that we are a perfect home for these people. So it gives you exposure to individual savings markets where the individuals have a much, much higher disposable income to put aside for their retirement or other financial needs. You know, average contribution average monthly contribution per average client in John's world is around about $4,000 a month. You've gotta go a long way to find that sort of dynamic in The UK.

22:48 The next thing we're getting as a potential shareholder investor is the platform's already been built. Your your your your your money is not gonna go towards building the platform. That's built. Much of the growth going forward will not be acquisition in the sense of corporate acquisition, but will be the recruitment of individuals. Most of them of them will be self employed, so we don't even carry the cost of them working for us. That means that our profit margin will improve. As that scale grows, our profit margin will grow. Escape velocity. We are moving towards the path of cash flow breakeven, which means that this last funding round will be the last in terms of getting to that cash break breakeven.

23:43 And you know what? We look forward to paying dividends. There there are just so many opportunities in terms of hiring individuals and teams. You know, John is in conversation with teams. I'm in conversation with teams. You know, we've got we've got somebody who who who who has approached us who I am very confident will join in, say, August, September this year. He has a £350,000,000 book. So our midterm ambition is to hit 20,000,000 of revenues, 30% EBITDA, 4,000,000,000. So just think of it this way.

24:31 We wanna we we will we are aspiring to have more than a 100 advisers by the end of this calendar year. 200 next year, 300 the year after. One adviser, average book of $15,000,000. Do the maths. We will get there. So I think that now is a good time to close the sort of formal presentation and start to address some of the questions that have already come in. Okay. Thank you for the question. It's all good questions, actually. So I think I'll start with you know, first question is, can you give a summary of the performance of your various model portfolios and a commentary on how performance has been influencing relationships with existing and new clients, including net flows?

25:27 Yeah. So so so maybe a little bit about the way we manage money to start with. So the genesis of all of this really was that we decided that the investment landscape of the last twenty five to thirty years was highly unlikely to repeat itself over the next twenty five years. And and what does that mean? Ultra low interest rates, disinflation, basically, a a buy whatever you like, it'll go up. You know, all the quantitative easing, etcetera, etcetera. That that has all now stopped and unlikely to return. To prepare for that, we we expanded our our asset allocation menu.

26:16 So we are asset allocators. We have a multi asset strategy covering 25 different asset classes, five being core, fixed income, absolute return, equities, alternatives, cash, real and real assets, including infrastructure, and that's spread across 50 global financial markets. What we think is that the pandemic was a real shakeout. It was a real shakeout of the foundations of what had been the conventional 6040 portfolio construction. Far too many other managers were carrying way too much exposure to, for example, conventional bonds, which are now much, much higher volatility.

27:04 So we move things. So for example, we had no bond exposure from March 2021 to March 2022. We we invest with conviction, and that means that we minimize transactions because transactions are costs, internal costs, and that improves the overall performance outcome. Basically, we try not to be busy fools. It's about stay in the game, no surprises. And I can't give you the to end March numbers because they haven't been published yet. But as you can see from this slide, we are generating at the very worst benchmark aligned returns over whatever period you wanna look at to actually quite significantly better returns.

28:00 The the longer term returns are better because we sort of it's it's lots and lots of small incremental gains that over time build up. Now this is perfectly set up for John's clients who are making $4,000 regular contributions. Absolutely perfectly set up. So performance is important. The way we manage money is important. It's important in terms of our relationship with our clients. And in terms of inflows and relationships, what I can tell you is close to a 100% of Omega's clients moved into the rain into our model range, 80 odd million, over a period of ten months.

28:46 But it's not just our own advisers who are now starting to use our models. We have we have a great relationship with a number of third party advisers. They have nothing to do with us. They just like the way we manage money. One of which is Sovereign Group, possibly the largest Cuneup, Cureop trust and admin company in Europe, but also many trust companies, JTC, Equium, Oak, etcetera, where they have discrete trusts whose assets need to be managed. A very, important point about the models is that the models are all non UK Citus assets, and that's important from a tax planning perspective. Why do I think we'll see continued good flows? Well, first of all, we're establishing a business in Guernsey that will result in good flows.

29:42 We've got John and his team. As soon as we unitize these models, which will come very shortly. We have three options for that. John's distribution and John's advisers can start to access these models. So it's a bit a case of, you know, show me the incentive and I'll show you the outcome. If we go back to slide the very first slide, the name of the game really is to take that green and put it in that blue. That blue is at an investment management fee of between 50, half a percent, and 1%.

30:31 That's that that green will grow for all the reasons that John has given you. It's already grown, frankly. You know, it's already up 47,000,000. And the marginal impact to our bottom line of it going into the blue, Matthew's explained to you. And the conversion of that revenue is going to be somewhere around about 80 to 90%. We don't pay any tax at the moment in Jersey, and we have tax losses. Once those are written up, the maximum tax we will be paying is 10%. So I'm confident we'll get inflows. I'm confident in the models because the models are systematic. We manage volatility.

31:17 We manage risk. We don't necessarily in fact manage investment outcome. They're gonna be unitized, and they're gonna have a very, very competitive OCH or TEAM, however you wanna use it. And underlying those unitized versions will be a named trust and admin company. The decision hasn't been completely made yet, but it'll be somebody recognizable. You don't get fired for buying IBM. The next question is a really, really great question. Given the depressed share price, what is the rationale for deciding to plow on with more acquisitions in the last several months instead of, for example, waiting to see the financial synergies over the first few transactions and then raising funds at a better price once the clean post integration stats are clear to see.

32:15 Does this imply that some of the early transactions were not quite, have not quite led to the synergies and financial results hoped for. Okay. Right. I could have asked this question myself, and actually quite often do. This is a question of three parts. It's really three questions. So let's deal with the first one, which frankly is the elephant in the room. It's the elephant in the room of all conversations with our existing shareholders. Look. The London Stock Exchange is not an not an efficient pricing mechanism. It it it really isn't. And there's been much gnashing of teeth on this. I mean, only this morning into the Today program. Even Royal Dutch Shell are looking to move away from London and list in New York.

33:03 You know, I can't fix the London Stock Exchange problems. Right? It is well known that it is not an efficient pricing mechanism, and we know that because of a lot of the off market transactions that have been going through at significant premiums to the pricing on the market. And it's not just our sector. You know, it can be a paper manufacturer, DS Smith. I think the London Stock Exchange has got real issues, but it does benefit us because when John is in foreign climbs, shall we say, being listed on the London Stock Exchange carries quite a substantial intangible value.

33:53 And for now, given the fact we're so close to that escape velocity, I do believe that we should maintain our listing before somebody asks that question. You know, we're not alone in this. You know, I was looking at some other prices. You know, Premier Maarten's down 71% since January 21. The Enfant Terrible of Saint James' Place are down 73%. You know, AIM is down 38%. We're down about 69% in that time period. But that's the opportunity. That is the opportunity. The disconnect between an off market value of our business versus how the current market is pricing us. Below book value, below revenues, forecast pro rata revenues, there's a research note out there that suggests 70 p as a target price.

34:53 Our Premier Martin shares or St. James Place or any of our other peers, are their shares gonna double in the next two years? Question. Moving on, that's just very lastly. Obviously, I continue to buy shares and and and and and not in a meaningless amount. You know, a couple of weeks ago, a week ago, whatever, I bought another 170,000 shares. So I do follow my money. John has as well, and many of our other staff and and senior management have. Let's just go back to the second part of the question, which is about the last few transactions. Just to be clear, the last transaction was neither. That was all shares.

35:43 And at the time, the shares were 36 p, not 20 p. Before that, GlobalEye was in June when the share price was 41 p. But let's go back to the point I made on slide, here, slide six, strategic progress. Without those acquisitions, we would still be a Jersey based and constrained business. We wouldn't have the moats. We wouldn't have the building blocks. I mean, John, probably a good time. Why why did you do the deal with me, John? Why why did you do the deal with us? NEBA was expanding in the offshore market space with the proposition we have, not only with the distribution company of Singapore where we have terms of business with a 180 different financial advisory firms to the expatriate community.

36:41 But doing a deal with TEAM allowed us to access their models to promote them to those a 180 expatriates adviser firms, but also NEBA only had one wealth management license, which did cover many of the locations we we were in. But having, more global coverage, South Africa, UAE, Middle East is a huge one for us. A lot of our distribution is in in The Middle East. And and the other licenses like Singapore, so hard to come by, just attracts the top wealth managers in the offshore industry. So it kind of put a a rocket up the backside of the I don't know if I should say that, but, that's exactly what it did is put a rocket up to our recruitment efforts.

37:36 And instead of just getting millions per month, like I said, we've got $47,000,000 and now 550,000,000 in our pipeline, at the moment with a 180,000,000 already signed to move across to us. So the the proposition being part of a listed company is just unmatched and unrivaled in the offshore world. Thank you, John. You know, in terms of the third part of the question, the synergies and the historic acquisitions, look, there is some validity in that statement. I I think there's validity in that statement in any acquisition, in any acquisitive company.

38:27 You know, running a business, let alone integrating a business, is like daily life. Good things happen. Bad things happen. It's not a linear progression. And, you know, the key is adapting to those changes, you know, and that's what we did. You know, we got hit with that inflation belt, you know, where, you know, our wages went up more than we probably would have forecast when we made the acquisitions. You know, there has been I'm sure you'll all be only too familiar with the cost inflation that that that we saw particularly last year and really actually coming in, you know, midway through 2021.

39:19 I don't mind labeling with you. You know, things always take slower. You know? The the the the business plans are great. The thing that goes wrong with business plans is the timing. But but you you just have to work your way through it, which is what we're doing. And, you know, I think the last ten months in particular have seen that we have worked our way through that, and and the single reference or benchmark that I would use is the integration of Omega and the transfer of eighty to ninety million of assets into TEAM Asset Management. If you go back to this time last year, we didn't have any of those assets. Now in the business plan, we did.

40:06 But by by end of April last year, we started to see that flow. But what I can tell you is that I can't give you the exact timing. Unfortunately, I don't have a crystal ball. But what I can tell you is that we'll continue to grow where we can. And and and and, you know, John in particular has got some fantastic growth opportunities. And, you know, ultimately, we wanna be in a great deal many more places. You know, we wanna be in Europe. We wanna be in The Caribbean, and we will. I'm sure that you all in this audience know somebody or or or may even experienced yourself leaving The UK to go and live and work or retire abroad.

40:59 When you do that, you have needs. You have financial needs. All we do is address those needs. It's very simple. Moving on to the next question so you don't get bored of my voice. Matthew, why don't you answer the next one about strategic ventures? You're on mute. Excuse me. Back on. Back on. Yeah. We bought GlobalEye, and there were two shareholders. One was the founder. Another one was a European family office who held 51% of the shares. So they swapped their shares in GlobalEye for shares in TEAM PLC. So strategic ventures is a European family office, and we have a cordial relationship with the the principal behind it. And they're not important to our development. They are a shareholder, and they they they they support what what we're doing at the moment.

42:04 Thank you. I'm actually seeing them tomorrow afternoon. So the next question is what are the key benefits of the systematic active investment process, and can you talk about the usage range? Well, I think that the the the benefits are sort of two sides of a coin, really. There's the client benefit, which frankly is you haven't got a bunch of humans making human errors. We we we manage via a system that is backed by BlackRock technology and their hundred years worth of data without going into the nitty gritty of it.

42:54 What we are looking at is correlation, volatility, the depth of trend, and momentum of that volatility, and what we are managing is the overall risk of that portfolio. So if you were to take a balanced portfolio, it has, if you like, a risk budget of 12 to 14%. And it never never strays outside that because it's a system, so it's hardwired with all circuit breakers, etcetera, etcetera. The active, it doesn't tell us to buy a and sell b. It just tells us the relationship between a and b has changed, and that relationship change has a depth of trend and momentum. The decision the active bit is the decision as to whether to sell a and buy b or vice versa or whether to keep a and increase b or vice versa or increase both.

43:50 We only move in increments of 2% unlike many other people who tinker around and they, you know, increase their exposure to Japanese equities by, you know, 25 basis points. You know, they churn the portfolio over racking up charges internally, which is all you're doing there is is is is dragging on your overall investment performance. So we take take a keen so being systematic, only moving in 2% increments means it's conviction, but it also means because it's conviction, before you make a move, you give it some thought, which minimizes trading. Interestingly, we've just done some back testing going on to the usage point.

44:40 And interestingly, assuming that the usage is above around about 35,000,000 in NAV, unitizing the models actually adds around 10% performance, and it brings the overall charge, so this is everything, down really quite considerably. So from a client point of view, it's very beneficial, cost effective, does what it says it does because it can't do anything else, basically. On the company side, because it's systematic, we don't have skyscrapers full of analysts working out whether to buy Procter and Gamble and sell Unilever.

45:30 Broadly, 80% of investment returns are driven by asset allocation, not specific investment. Hopefully, that answers that one. Anything to add, guys? David, why don't Dave. Matthew, why don't you answer the next one? So can you explain who is HBFS? HBFS is an IFA business in Jersey. We exchanged contracts to buy the business last year. That exchange was conditional upon a number of things, one of which was JFSC approval. Another one was, raising sufficient money to pay to pay for it. At the moment, it's unclear if we have raised enough money to do that. The fundraise is still ongoing.

46:21 So that is a sort of a a that is a live position. In terms of what it brings to the group, it it's more the same. So it would have brought another two or three advisers to our team in Jersey, and, it would have given us some benefits of scale and consolidation. Okay. I think that is questions that I can see. I don't know if there are any more coming in. No. You you've covered all those questions, Mark. Thank you very much indeed. And, course, any further questions that do come in, you'll be able to review those, and we'll be able to publish responses on the investment company platform where appropriate to do so. Mark, perhaps before redirecting investors to provide you their feedback, I know it's particularly important to you and the team, could I just ask you for a few closing comments, if I may? Yeah. Of course.

47:12 Look. Thank you, everybody. Thank you for your time. You know, it's competitive landscape wherever you go. And, you know, in terms of investors, you know, you've got a vast array of things you can invest in. So, you know, we're competing against, you know, god knows how many thousand other people for your for your investment. So I appreciate the time. I I think, you know, everything has risk, but one of the lower risk things you can invest in is sticky regular savings money.

48:01 It's annuity income. So we have a very, very long runway, And we're small, which means that we can double, treble, quadruple our revenues, our AUA over the coming two, three, four years without really bumping into a lot of competition. We are unique. We we we recently, we we would we were told by a very large international platform that what we were doing was unique, that the range of our moats was near to unique, but the way we were going about the business was years ahead of everybody else.

48:56 John has got a fabulous team. Fabulous. We've got fantastic regional managers now that all have deep, deep experience. They're motivated, and they're disciplined. The offshore market in international centers is is is is decades behind The UK in terms of regulation and good practice. It's ripe for cleaning up, not just in terms of recruitment, but also cleaning up practice, industry practice. If we are at the forefront of that, the pioneers of it, we will have very sticky clients and very sticky revenues for long after I've gone.

49:52 And that is a unique opportunity versus our peers. We could double, treble, quadruple. I'm not quite sure that our other listed peers can do that with any sort of confidence or certainty. The UK has become just a merry-go-round of consolidation. There's no real organic growth or limited. We've got organic growth in bucket loads. The year has started well, and I'm very confident it will continue to go well.

50:40 And that's that is the opportunity above, and it is head and shoulders above our peers in the listed sector. Thank you for listening. Fantastic. Mark, Matthew, John, thank you very much indeed for updating investors today. Can I please ask investors not to close this session as you'll be automatically redirected to provide your feedback in order the management team can better understand your views and expectations? This will only take a few minutes to complete, and know greatly value by the company. On behalf of the management team of TEAM PLC, we'd like to thank you for attending today's presentation and good morning to you all. Thank you very much.