Transense Technologies (LSE:TRT) — Interim Results Review & Markets Update

0:05 Good afternoon, ladies and gentlemen, and welcome to the TRANSENSE TECHNOLOGIES interim results review and market update. To start with, if we could cover a couple of housekeeping items. Before we begin, we would like to submit the following poll, which you will see on your screens. Throughout this presentation, investors will be in listen only mode. However, 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 or if anyone has dialed in via transcentwarbrookpr dot com. The company may not be in a position to answer every question today. However, the company will review all questions submitted and publish responses where appropriate. These will be available via your investor meet company dashboard.

0:54 Finally, we would like to remind you that this presentation is being recorded. I'd now like to hand you over to Executive Chairman, Nigel Rogers and Chief Financial Officer, Melvin Segal. Nigel?

1:07 Thank you very much, Tom, and welcome everybody to this presentation. It's nice to see, once again, it's very well attended. So I hope that you find what you're looking for from the update that we're about to give you. I'd like to begin the presentation with a short recap as to what we do. And if anybody who is not familiar with the company, hopefully, a brief introduction. So I'll start by talking about our business commercializing highly specialized sensor systems which are used across a variety of high value, high growth markets and we'll be talking in quite a bit of detail about some of the markets that we're involved with later on in the presentation. Currently, our income streams come from three different sensor technologies: Surface Acoustic Wave or SOAR, Translagic Tyre Probes and from the licensing of our iTrack technology which is mostly used in mining haul trucks and was licensed to Bridgestone last summer.

2:07 Taking each of those in turn, firstly the SOAR technology. This technology performs a very rapid and accurate measurement of torque, which is the rotational force on a rotating shaft, and doesn't need wires or batteries. The technology can also be used to measure other parameters like temperature or pressure at the same time and it's extremely responsive and gives very frequent and very accurate readings. So our technology can be used to provide virtually instant feedback to an engine control module or a telematics system. This enables our customers to use the information gathered to increase the power or range of their products, to reduce emissions or fuel consumption, and to predict and avoid future failures. So our technology, which is protected by several patents and is subject to many years of know how, is competitively priced against other alternatives and is especially rugged so it suits its harsh environment and we'll be talking again later in the presentation about it.

3:09 Secondly, our TRANSLOGIES range of tire inspection tools. These are handheld devices which make it extremely quick and easy to read tire tread depths and also tire pressures. Very quick and convenient and this handheld device then transfers the data by Bluetooth to be captured in a variety of different fleet management systems. So this would typically be used by a truck and bus fleet manager to manage the tires across his fleet. Our hardware is fully compatible with the proprietary systems developed by several global tire manufacturers including Bridgestone, Goodyear, Continental and others that are household names. So we consider our tire probes to be pretty much an industry standard part of the toolkit.

3:57 Finally, coming on to the iTRAK technology, this was developed over a number of years to monitor and improve the performance of mining haul trucks and it achieved significant market share under our ownership before being licensed exclusively to Bridgestone last summer. Bridgestone being the world's largest tire producer and the world's largest producer of tires specifically for the mining industry now deals with the sales and marketing of this technology and pay us licensing the royalty. So that's our introduction. If I come on then to the highlights, this covers the trading period from July 1 to 12/30/2020, so the immediate aftermath of the licensing deal with Bridgestone through to the end of the year.

4:45 And as you can see, these main results, the first time that we've produced we've reported results on the basis of a a a clean business after that transaction was completed. We've delivered a threefold increase in revenue from continuing operations compared with the same period last year. So strong revenue growth,

5:06 excellent progress in the installation of iTRAV system, and some very good momentum building, which I'm gonna talk about in more detail. We've seen strong growth of probe sales for TRANSLOGIES, and there's been lots going on in the commercial activity of our SOAR technology, which again, I'm gonna provide some depth on. So putting all of that together, we've delivered a profit at EBITDA level and also at tax level, first time p and l that contains black ink. Net cash at the end of the period exceeded £1,000,000, so strong balance sheet also. And with all of that put together, we, today, filed with the registrar of companies seven months accounts to the end of January.

5:51 And the purpose of doing that is in order to get access to the distribution of the reserves shown on that balance sheet of just over £500,000. Melvin will take you through some numbers on that later in the presentation. But overall, a very positive set of highlights during the period. Melvin, I'm going to invite you now if you could take over the controls and go through the figures, please. Thank you, Nigel, and good afternoon, everybody. The full accounts are set out in the appendices, and I've used a mixture of charts and summarized financial information for my presentation. So we're now looking looking at slide five and looking to the left hand side, which compares the first half from last year with the first half from this year.

6:38 As you can see, the royalties which commenced at the end of June, so they have no comparatives. They started at an annual rate of 600,000 and have creeps up to an annualized rate of over 700,000, which puts it broadly in line with our h one expectations. In the next six months, we expect to see an accelerated growth in new trucks with the resultant steeper increase in royalty income. I should mention that whilst there is no comparative, the iTrak subscription income, which is effectively what it replaced for the equivalent period was 650,000. So our royalty represents over 50% of that income, but of course, without the associated overhead cost of over 1,500,000. Looking now at SOAR, you can see that that's fairly flat year on year, but that belies the level of activity which is taking place in SOAR, which I'm sure Nigel will cover later in the presentation.

7:37 But we're dealing with our existing customers, GE, McLaren, and a US automotive OEM, plus our new SOAR MD, Nick Hopkins, is working very closely with the SOAR cap. The new

7:59 pleased and the very technology and in 20. To in 20. Year And we I fully expect this that momentum to to be carry through into h two. And The chart on the right identifies the bridge from the loss in h one f y twenty through to the eventual profit in f y twenty one. Now unless you're looking at this in a cinema screen, you're gonna have difficulties looking at the actual numbers. So I'll just read through the numbers for you quickly. It is 1.2 FY twenty loss for the first half of last year.

8:50 And then that moves to iTrack royalties of 0.03 sorry, 350,000. The removal of the cost of the continued iTrack operations being 620,000. The additional contribution on from the other divisions being TRANSENSE TECHNOLOGIES and SOAR. The r and d tax credit of 100,000, Just on that point, I'll pause because the actual tax credit was 200,000 rather than 100,000. We've only bought in 50% of it as we're dealing with six months. Then there are some other small positive changes, and this this results in a post tax profit of 50,000. I'm gonna repeat that because I haven't said it before, a post tax profit of 50,000.

9:39 In EPS terms, a substantial swing from a loss of 3.49 p a share to a positive of 0.29p a share. As a result of the increasing revenues, the analyst at Allenby Capital, Ian German, has revised these FY 'twenty one figures from iTRAQ from seven sixty up to eight sixty, probes from five sixty up to 800, and saw a small downward revision from two fifty to 200. Taking into account a small overhead increase, this combined to produce a positive increase in the bottom line of 100,000, something also that I've never had to say before in a TRANSENSE presentation. Now I'm not sure, Tom, if anyone has asked the question yet in view of the upward revision and current momentum why we haven't seen the FY '22 and '23 numbers also revised.

10:37 If there isn't the question yet, I'm going to preempt it. The answer is the BBC. No. Not the British forecasting company. The first b represents Bridgestone. As I mentioned, the forecast numbers look very exciting. However, I've been caught out by exciting forecast before. And under our new regime of cautious forecasting, I want to see the actual February to April royalty statements backing up the projected growth before considering discussing with our brokers a revision to the FY 2022 and 2023 market numbers. The second b is Brexit. The transition period ended on the 12/31/2020, so it's not affected our H1 performance.

11:23 However, we are aware that The UK is seeing signs of slowing down the movement of goods in and out of Europe and an increased requirement for paperwork for goods being shipped to the EU. To date, that extra paperwork hasn't been too much of a challenge for us, and we are confident we can manage Brexit. But, again, we will be reviewing this situation

11:45 in April, May. Finally, I'm sure you will guess that the c represents COVID. We recognize that COVID has been devastating to many families and businesses. However, with regards to TRANSENSE, the only noticeable impact has been the slowing down of customer decision making. Most of our customer base has not been materially affected by COVID, and hopefully, with the new vaccines, we should be getting back to we in We are very progress

12:19 pleased in shows in pie charts our revenue and customer base. The main takeaway from these slides are the income levels of royalty and probes, which I have discussed to some extent, and the global appeal we have for our business products and innovation. Turning to Slide seven. We now have the financial position in the post balance sheet capital reduction. You will see on the left hand side a healthy balance sheet with positive working capital of nearly $300,000 and cash in excess of $1,000,000 The cash flow for the six months on the right hand side shows a burn of 140,000.

13:12 But if you actually remove the Bridgestone related sums, which are the two sums near the bottom, proceeds on disposal and repayment of loans, and the 300,000 of working capital that related to Bridgestone or iTrack creditors, the burn is actually less than 100,000. Turning now to page eight, where we have the post balance sheet from the capital reduction. But before I look at the bottom half of the balance sheet, which is the relevant part for that, I just want you to have a look at the cash figure. As you can see, that cash figure has written risen in January 21 where we are now cash generative for the seven months. And the reasons for that are that the quarterly royalty we received in Bridgestone, which is the usual quarters to March, June, September, December, we received that thirty days after the end of the quarter.

14:12 So that quarterly royalty came in in January, and at the same time, the r and d tax credit also came in. Looking at the bottom half of the balance sheet with regards to shareholders' funds, we filed a set of accounts this morning to January 31. And the reason for doing that is in order to effectively frank those positive reserves, we need to file those numbers with Companies House. And the last numbers filed prior to this would have been the June 30 numbers showing a deficit. So they've now been filed, and we now have positive reserves of 525,000, which can be used by the company initially for share buybacks, mopping up small sellers in the market, and in the medium term, potentially dividend payments.

15:02 The effective date will be when companies house list the accounts on their website, which I've noticed is taking a little bit longer than normal.

15:11 Finally, to conclude, whilst we have had a number of poor storms in the past, the results of H1, the continued momentum we have moving into H2 marks our FY21, in my view, as truly transformational year for the company in both terms of strong cash, working capital, and positive results. Our shareholders will be relieved, I'm sure, that we have moved into a period of achieving profitability and away from the culture of looking over our shoulder to the next fundraise. And on that point, I will then pass back to Nigel. Thank you, Melvin. I'd like to now take you through a business review in which I'll focus on each of the three income streams.

15:56 I've also seen one or two questions coming through the live line, and I'll attempt to answer those as we go through. So first of all, I'm going to talk about the iTRAQ royalty income. So people who've turned into the presentations previously will recall that ITRAK had built a market share of around four or five percent of the very largest mine gold trucks as an independent business before the deal with Bridgestone. So our market share as iTrack is part of TRANSENSE TECHNOLOGIES around four or 5%. And we estimate at that time that Bridgestone's own market share for their b tag system was in the range 12 to 15%. So the conversion of iTrack customers by Bridgestone I beg your pardon, b tag customers by Bridgestone across to iTrack would offer a multiplier of around three or four times the level of royalty which was applicable on day one.

16:55 And in the early months of the transition across to Bridgestone, we have seen the benefit of an increase in the installed base by about 15% by the end of twenty twenty. I think it's worth saying that a significant part of that increase was actually in trial units which had gone into global customers of Bridgestone. And so we'd expect to see additional volume installations once those trials are complete, would typically be between three and nine months. And that's a big part of the feeder as those global key accounts convert to our optimism for the growth in the second half of the year. We have very good indications that those conversions will be successful. Towards the end of twenty twenty, Bridgestone announced the major worldwide launch of its new market leading master core tires.

17:45 You'll recognize that in an industry like this, there's a very significant investment in new product launch, and it's typically a once in ten years, maybe even once in a generation event to launch a wholesale new tire architecture. So this is a really big deal. And the new tires actually offer customers flexible operation mode depending on the mine conditions and the customers' own unique practices within the mine. And to get the full benefits of that, it makes perfect sense to pair the new tires with the data analytical capabilities of iTRAQ. I'd like to just pause there. There's a reference you will see next to the bullet point four on this page, a reference to a web link there to a promotional video which was produced by Bridgestone and is on their website now.

18:37 And I'm gonna take a pause and show that live. It's only about two and a half minutes, but I think you'll find it very interesting.

18:49 What does productivity look like? More durability, more speed, more payload. And at the core of more, there's MasterCore, a revolutionary new line of tires brought to you by Bridgestone. These tires were designed to deliver more productivity because MasterCore adapts to the specific needs of your mind. Compared to conventional tires, MasterCore brings more flexibility than ever before. Up to 5% more durability, 10% faster speeds, or 15% greater payloads. These tires can be customized to meet the needs of any mine, anywhere, at any time.

19:34 When you need more, it's there. With new innovative technology and proprietary design improvements, these tires work for enhanced performance. MasterCore was created with smart technology inside for hard work outside. At the core of the tire is an innovative new casing featuring new rubber compounds and a specialized steel cord allowing for more flexibility. The innovative proprietary casing also provides improved durability with significant decreases in crack propagation, greater resistance to cuts, and improved adhesion resulting in more tons on your equipment.

20:10 Is part of Bridgestone's off the road total value solutions, offering intelligent products, integrated technology, and best in class service. Take your productivity to the next level when you use with iTrac, Bridgestone's new tire monitoring system. ITrac puts data intelligence behind your fleet's operations. With real time monitoring, iTrac provides pressure, temperature, and a host of additional features, allowing your fleet to run at optimal production while preventing issues before they cut into your bottom line. What does the future hold?

20:42 Flexibility and moving more than ever before. How much more can you move? Find out with MasterCore. I'm sure you have found that all very exciting, but I'd I'd like to also, at this moment, just take a question from Tim g who says, are Bridgestone offering iTRAQ to operators who use other tires other than Bridgestone tires?

21:11 And if not, do they intend to do so in the future? They they certainly can offer iTrack to non Bridgestone tire users. I think it's quite plain from the promotional material that they see the combination of the new tires on iTrack as being a real opportunity to consolidate their position as market leaders, and I think that that combination will be extremely successful for them and for us. I'm now going to turn to our SOAR technology, first of all focusing on the near term. Our current customer base has generated revenue in the first half of the year from the supply of components into the GE ITECH program and a really positive degree of engagement with GE and their first tier vendor base on the three successful critical design reviews that have taken place during 2020.

22:04 We expect to see this engagement continue to build. We're moving towards an initial production date of 2024 with first engine to test planned later this year and full production by 2026. You can expect to start seeing royalty income from GE appearing in our market forecasts from 2024 onwards.

22:26 We've also generated further revenue from the IndyCar program, which earlier this year, we thought may have been shelved due to COVID, but, thankfully, the race series went ahead, and our technology was used once again to provide critical data to the race series on power and performance. So primarily, our talk sentencing here is used to regulate compliance with the rules of the game. Our work is ongoing to expand the use of this technology potentially into other race formats besides IndyCar in 2021. We're also working closely with The US customer to incorporate our SOAR technology into their proprietary electronic power assistance steering systems which go into off road recreational vehicles, initially probably niche markets, small volume vehicles, but opportunities to expand elsewhere in the future.

23:26 Looking further ahead excuse me. I'm sorry. I'm sure that'll be answered in a second. Forgive me. Looking further ahead then, we believe that there are opportunities to leverage our existing customer base and develop new applications for solar with existing customers. For example, in the aerospace industry, as they move towards a carbon neutral future, there will certainly be need for entirely new technologies to come into consideration,

23:54 such as passenger cars have moved very rapidly from a 100% combustion engines now into hybrid and all electric. Similarly, we'd expect to see our technology being capable of migrating from motorsport to high performance road cars and see very realistic opportunities to move into higher volume off road vehicles also. So migrating within our existing customer base, very much on the cloud. Looking further ahead, we've engaged a select group of industry advisers, as many of you will know, our commercial advisory panel, SOARCAP, of some very big hitters within our target industry sectors for SOAR technology, and they're helping us to identify some new and potentially very lucrative applications.

24:43 Of course, these are all at a very early stage. I wouldn't want to be guilty of promising quick wins here, but we've had introductions initially to some extremely interesting global companies. Many of them are household names. We set out three examples here where SOAR technology could be used to solve some pretty long standing and thorny technical and commercial challenges,

25:07 rail safety, predictive maintenance for critical infrastructure such as wind turbines, and increasingly interest in condition monitoring for high valued leased assets like agricultural and construction vehicles. So I will expect to be reporting on progress here in coming months and later presentations.

25:30 Moving on to TRANSLOGIK. You can see here on the right hand side of page a magazine cover for the tires accessories magazine, which was done to launch the TRANSENSE TLSGIK range of new TLX TLGX series probes. I'm sure most of the people on this call will be subscribers to the TAIES Accessories magazine and would have already seen it. But for those of you who haven't, it launched a modular range of probes. There are four four probes in the range, each offering progressively greater connectivity and technology at higher price points. Overall, high proportion of our revenue, about 40% of our revenue in the first half of the year was on the new range, so it was very well accepted.

26:18 We saw 71% revenue growth overall.

26:22 Something like 95% of our sales of this product are exported, so great geographical coverage. And it was very pleasing to see three of the world's four largest tire producers buying them, including Bridgestone and Goodyear. So poised for continued growth in this area as well, feeling very positive about our product business.

26:43 So to sum up, the new business model is looking very resilient. We're gaining in momentum. ITrak and TRANSLOGIES are increasing their income contribution. They're looking very good for the future. And our revitalized approach to the SAW technology and its commercialization is making some really exciting progress under the bonnet, which is not yet visible in the numbers, but offers extremely good potential. So with such a solid base, we're now in a position to make sensible investment decisions in the business, and we don't have to compromise our commitment to begin delivering increased shareholder returns whilst at the same time being able to invest in the technology that we have. So we think the prospects are looking very positive, very much looking forward to the next phase of the learning as a business.

27:35 I'm happy now to pause and we'll start to try and round up some questions. Tom, have you been keeping an eye on the sidebar? Yeah. Thank you. Thank you, Nigel. Thank you, Melvin. We do. We have we have a number on the sidebar, we also have a number that were pre submitted. So if we could just ahead of that, if I could just remind everybody that you could continue submit questions via the q and a tab situated on the top right hand corner of your screen. I'd also like to remind you that there is a recording of this presentation along with a copy of the slides and the published q and a. We'll also be able to be accessed via your investor dashboard on the investor me company platform. So you'll be able to come back and visit these. We may not be able to get through all of these in in the time out allotted, but we will revisit them and and and also introduce the course.

28:27 And equally, the feedback is very important to the company. So immediately after the presentation has ended, you'll be redirected for the opportunity to provide that feedback. But while you're submitting questions, if we could just look at some of those presubmitted, what we might do is just group a few together around the product and topic areas so that it allows you to talk around that just a little. And and maybe we can start with SOAR because SOAR was the genesis of the business in any case. And there are a couple of questions around the the competitive advantages of SAW. So can I just group a couple here? SAW is an interesting technology, but what is the advantage of acoustic wave technology when compared to current wireless battery less technologies? Is it lower cost, higher precision, meaningful faster response times, ease of installation, lower maintenance, higher reliability and using hostile environment?

29:19 Is this just another sensor or something that couldn't be achieved before at this price point? We've previously answered addressed the question on on patents, so we won't go there. But there is a question here about who and what is the competition for SOAR. Wonder if you could just group those together for us, Nigel, and and just give us a quick answer to that. I think Nigel is just coming back in. Tom, if you could just bear with us for one second. I don't know whether there's question just in the meantime whilst you can direct to Melvin, perhaps around the financials. Yes. Yes, we do actually. Yes.

30:06 Melvin, maybe you could just address this one. We're looking at the percentage of current revenues from TRANSENSE TECHNOLOGIES PLC. And what would you expect that to be going forward in percentage terms? That's a good question. Thank you. Specifically, I don't see that the revenues are recurring, although we do tend to get POs that cover twelve month period. So to that extent, they probably are recurring over the over the twelve months. But we we generally getting new customers from all over the globe. It's not consolidated.

30:52 It's interesting. If you deal with good year in The States, they're they are totally separate and different even different requirements to Goodyear that might be in Europe or South America. So it it does vary. But specifically, we've built up the momentum of new business in on the pro side. So whilst I don't see it necessarily as being recurring because there's a number of new customers that have come in, It's built the momentum that it's built up effectively means that I've got new income coming in every month. Thanks thanks, Dolph. Okay. Super. I I think we might have Nigel. Nigel, are you with us, sir? Yes. I am. Apologies. I don't know what happened there, I'll have to drop off and come back on again my screen.

31:40 Don't worry. Over to you, Tom. Thank you. Okay. Super. Nigel, I don't know if you heard the the initial questions around the competitive advantage. I'm sorry, Tom. I didn't. I I I was cut off. That's fine. Just just to summarize that, I wonder if we could just have a look at the the the SOAR as a technology and its markets. Obviously, it was the genesis of the business going forward in the basis of of iTrack. So the question the two questions that we're gonna hang together are SAWs a SAW is an interesting technology, but what is the advantage of acoustic wave and how does that compare to other wireless batteries technologies? Is it cost precision installation resistance to hostile environments? Is it just another sensor or is it something that could be achieved could not be achieved before at this price point? And if we could just combine that with the second question which is who and what is the competition to SAW?

32:39 Okay. Yes, of course. So, I mean, one potential competition for SAW would just be a conventional strain gauge which would be attached to an infrastructure and then the measurement of the movement of that infrastructure would be used to measure the strains. There are manual gauges, for example. But the key advantages of SAW I mean, The question actually lists all of them and it's the combination of those things. It's price competitiveness, the fact that it is battery and wireless but extremely fast in response so is able to provide a torque reading many, many times a second and is quick enough and responsive enough to feed back into an engine control system or into telematics.

33:25 Certainly very important as indeed is the ability to work in a harsh environment. So, it's a combination of all of those strengths that makes SAW competitive with its rivals. And I think now is a very interesting time for that technology because so many industries are now looking at disruptive change which has largely been accelerated by the COVID pandemic and the fact that the whole world has had an opportunity to look at its reset button. Many industries are now looking to decarbonize far more quickly than they were before. And also many capital goods manufacturers are looking to commercialize on the basis of subscription or rental or lease rather than the sale of high ticket capital goods.

34:14 And frequently, that will involve the needs to look at performance monitoring remotely and make sure that the equipment that's being leased is not being abused by the by the user. So I think that there are actually a lot of stars coming into alignment for the SAW technology and that's certainly why it's gained the excitement that it has amongst our own advisory panel members which is now being fed out into a target customer base. Great. Okay. And just a little extension of that, if we can look at SOARCAP because obviously that is looking at the extension of your market opportunity. We've got a couple of questions here around that. You mentioned SOARCAP has had early engagement with potential partners with focus on performance optimization condition monitoring and predictive maintenance.

35:07 You give more detail on the most exciting sectors? Now I know you did look at a couple of those in the slides. Just a question of whether you've got any particulars that that you could lift out of that, which have come from SOAR cap specifically rather than from from anything else. Yes. Course. The second question is what the SOAR cap cost is annually with regards to the the advisory payments? Yes. So first of all, the opportunities. I think that the the most exciting opportunities in the first round have probably come from yellow goods. So agricultural and construction vehicles also things like heavy side port handling equipment, indeed up into mining trucks.

35:53 So we've had some very interesting ideas for applications in those sectors. Wind turbines, you know, I have to say we keep forgive the unintended point, keep blowing hot and cold because there are some significant technical challenges but at the same time, it just inherently seems like a really sensible place for source sensing to be. But it's at an early stage at the moment as to whether we'll achieve real traction in that industry. We have had one of our sensors fitted to a wind turbine in the Mediterranean Sea for a year, which gave extremely accurate readings. But whether that turns into a commercial opportunity or not remains a moot point. So, I think yellow goods and agricultural are definitely interesting And also rail, we're seeing some long standing problems of the rail industry, which we think that surface acoustic may be part of the solution for.

36:52 Coming on to the cost of the SOAR cap, you know, I have to say the people that have engaged with us as our advisers are doing it predominantly as part of a portfolio of other interests, you know, they're they're not looking at it as a source of income. They're looking at it as a source of networking opportunities and as a means of bringing something valuable to clients that they're perhaps already working for. So, you know, these are people who are not doing it for the money. The annual cost of our advisory panel will be significantly less than a £100,000, which for the quality and the degree of engagement which those people are offering us is absolutely incredible.

37:39 Certainly sounds very reasonable for the quality of people you've got on that panel and I know a number of them myself. Just turning quickly to Bridgestone and ATMS and the AirTrack royalty. Can I just hang two together here? Since the deal with ATMS Bridgestone was concluded last June, have ATMS continued to invest in the venture? If so, could you give shareholders an idea of how much they've invested since June and how much they might be expected to invest in the coming years? And if I can just hang that together with the question around the applications. So you receive a quarterly royalty payment based on the number of classification of vehicles upon which the iTRAQ technology is deployed, does the agreement contemplate vehicles outside of the ultra large mining category?

38:30 Yes, okay. Answering the first part of that question, yes, ATMS has continued to invest in the business. Obviously, there's a working capital investment for ATMS to be able to build sufficient equipment to manage the deployment and installation. So in the short term, it it would be expected by people, I would think, that ACMS is a cash negative business at the moment. Obviously, I'm not in a position to talk quantum because this is Bridgestone's investment rather than ours. So I wouldn't want to put any numbers to that. But Bridgestone are showing the appropriate degree of commitment to the business by making investment funds available to fund its growth. Looking at the category of vehicles, the ultra vehicles are the most accessible parts of the market because that's where the majority of TPMS systems are already deployed.

39:29 Larger vehicles tend to have TPMS deployed already. So it's a question of seeking to replace BTAG with iTRAQ or displace a competitor. Whereas the smaller mining haul vehicles, not all are fitted. So, you know, one might consider them to be virgin territory in the second wave because they'll be having a TPMS system installed for the first time. But our our royalty rates are differentiated according to the size of the vehicle, but they go right down to the very smallest vehicles including vehicles that are outside of the mining environment if iTrack were to be adapted to work in higher volume later on in the contract. Great, okay.

40:15 Can we just turn to GE quickly? We've got a few questions here in and around GE and ITECH. So the first question, in fact, I'll hang all three of them together if I might. The first question recognizes that activities are due to commence in 2024, but ask the question as to whether there is any revenue before that date from the GE agreement. Does the ITECH project also with GE involve aircraft engines? And finally, a political one, will the change of president in The US have any effect on time for the ITEP program? Okay. So if I take take each of those in turn, forgive me, remind me the first one, Tom.

41:03 So the first one was whether you see any revenue ahead of 2024. Yes. The the answer to that is a certain yes. I mean, we've actually had some revenue in the first half of this year because as the first tier supplier base begins to carry out testing, then it requires components and those components flow through with some revenue to us in the short term. So the revenue has started already, obviously, on a relatively small scale, but that will increase towards 2024. Turning to the politics, there will be political persuasions of all sides on this call, but I feel reasonably confident that most of us are happy that the grown ups are back in the room in The United States. I don't think that it will have any impact on the timing of this particular spending program, although, obviously, that's not been announced yet by the new government.

42:01 And the third part of the question, which was the migration into other aircraft, license agreement which we signed with GE pays a royalty on a non exclusive basis for helicopters and other vertical takeoff aircraft. That is actually the scope of their existing license. So if we were to look at other aircraft technologies, then GE would be in a position to negotiate a fresh license with us. It wouldn't sit under the existing license agreement. Okay. Super. Alright. So there's a possibility there of something in addition. Absolutely. Yeah. Great. Okay. Alright. Well, look, Nigel, Melbourne, thank you for invest updating the investors today.

42:51 Been a very positive set of results, and and the the share price has been very encouraging. The market seems to like what you're what you're telling them. So could I ask investors not to close close this this session? You'll now be automatically redirected for the opportunity to provide feedback. If you access access this meeting from your website, the feedback will appear. If you access it from a link sent to you by email, they'll be you'll be asked to log in and to submit your feedback. If anyone has any further questions or would like additional information on TRANSENSE, please do get in contact via transcent walbrook p r dot com. Many thanks for attending today's presentation. We will be updating you regularly, and look forward to presenting to you again in the future. Thank you.