Velocity Composites (LSE:VEL) — Investor Presentation

0:00 Good morning, and welcome to the VELOCITY COMPOSITES PLC Investor Presentation. Throughout this recorded presentation, 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. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company will review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I'd like to submit the following poll, and I'd now like to hand you over to Andy Beden, nonexecutive chairman.

0:32 Good morning, sir. Thank you, and welcome, everyone, to, our presentation for the full year results of 2022. And I have with me today as well as myself, John, and Adam. And if we just move move on from the bios.

0:57 Yeah. So I think the key message for 2022 is this was a year of investment and development within the business. And ultimately, leading after the year end to our announcement of our largest contract to date, which is a $100,000,000 new deal over five years in The USA. The that contract starts during this current new financial year, ramping up to full production by the end of the year. The what has underpinned the success of winning that business and hopefully winning more business in the future is the execution of our current strategy, which has involved a three pronged approach.

1:50 The first is engagement at a senior level within our customer base and also its buyer base, where we are able to explain and pitch and articulate the service offerings that we can now provide to the composite aerospace industry in particular. It is the creation of a full business plan and total cost of ownership for each new customer, which sets out both material savings, cash and inventory management, sustainability advantages, quality advantages, labor efficiency and productivity advantages, and adopting our services within a specific plant.

2:39 And then we do a detailed analysis for the customer, and then we come back to that original business plan and pitch. So the whole thing becomes validated. And that is the process we followed for the new business in The States and what we now follow for all customers, whether it's expanding on a current contract or or looking at a brand new customer. And underpinning all this has been some heavy investment in terms of manufacturing technology and supply chain systems and services and, of course, the people behind that. And you'll look that both at board level and below board level, we have invested in people who have significant credibility within the industries that we serve.

3:31 In terms of our targeted businesses and where we'd look to operate, we look to operate servicing what we would call either OEMs or the large tier one manufacturers in the composite materials industry, particularly aerospace. But we can also service non aerospace who are using similar types of materials. We now have a new facility in The States, which, you know, we have set up. It is very close to entering production in the next couple of months. You know? And there is a huge investment, which is to the benefit of ourselves, the business, our customers, and, of course, our investors.

4:22 And we continue to have developments in business within The UK, where it shouldn't be lost on people. The size of The UK is the size of US the market. You know, there is a significant difference in in those scales, but we continue to look to grow in The UK and also in the future in Europe. In terms of the market, there is now showing significant growth opportunities again in the overall markets and the use of composite materials, particularly in the aerospace industry. And we're seeing that recovery coming coming out of COVID where production has either stopped or reduced rates significantly. You're able yourselves, investors, to go and validate analysis around the growth in the markets, looking at data that comes from Boeing or Airbus or other OEMs in the side and how all those project very significant growth in composite focused aircraft going forward.

5:31 And even during this period of investment and future growth opportunity, continue to look to manage cash very tightly. We've delivered this new facility within our current resources. And just as we look to help our customers in terms of cash and working capital management, we ourselves apply the same disciplines to our own business. So I will now hand you over to Adam, who will just give a little highlight of the financial results that are being released at the moment. But I just emphasize that the important messages are around this was a year of investment, which now leads into 2023 and beyond, which are years of significant growth.

6:27 So thanks thanks, Andy. So as Andy just pointed out there, these are the results for FY '22. So to the year ended 10/31/2022, and and therefore don't incorporate any of the The US sales contract, which is a is a post balance sheet event. I've reached that. There has been a a sales increase of 22.4%, taking revenue for the year to 12,000,000 as the market begins to recover, from the pandemic along with some of The UK contract wins in the year.

7:00 However, gross margin has seen a slight sort of, underlying margin has decreased slightly from from the previous year. So it's moved down to 23%, which is largely a result of some of the cost inflation coming through. That said, we've had conversations with our customers, and, obviously, we're looking to pass some of that cost inflation through. And that's been sort of positive we received, and we anticipate that sort of that will return to a more normalized level in 2023. In terms of adjusted EBITDA, we've got the number of loss of of 500,000 is consistent with the previous year, and that's actually a really good effort despite that we obviously we've had an increase in volume, but we've also had put a a significant investment in in overheads in the year to to help us sort of, I suppose, deliver that growth in in f y twenty three. So, actually, the the the the the maintaining that that EBITDA level, in in terms of following our investments in overheads is a is a fantastic achievement for the business. And going forwards, we anticipate that that overhead base will will you know, a good chunk of that overhead base will support our growth in in f y twenty three.

8:11 In terms of our our cash position, as Andy's already mentioned, we've we've had to we really monitor our our working capital position very closely. We and but we've also, at the same time, invested in sort of both technology and in, our growth over in America as well, which you can see there through our our capital expenditure. So but there has been an increase in CapEx in in the year, but that's obviously support the the development of the business. Thanks, Adam. It's John here. Just wanting to pick up on some of the the strategy points that Andy touched on earlier and and really sort of explain how some of those have had a a bearing on our current and future business development opportunities.

9:03 And, you know, really, the the three, you know, individual points there, but they're all very, very much linked and inter intertwined really on how they change the the sort of perception of velocity with with customers and help us to engage on a more strategic level with customers as well. So first first there, as you can see, the you know, one of the big changes is how we the level that we engage with customers. So I think some of the changes at board level and below board level, We opened up those relationships to a much higher level with our customers, you know, really at the c c suite and the VP level to really get these programs supported at the the highest level. Again, I think historically, where we've gone at more sort of middle or lower management, there's a lot of work to do to engage with all that, you know, the customers and the all the levels and all the functions within each customer to get, you know, some of these business improvement opportunities supported.

10:09 Whereas now, you know, as from the last year where we've engaged at a high level, we get a more senior level sponsor that really cascade down as, you know, a significant, well supported initiative within our customer organizations. And and as we say, you know, it speeds up decision making. It gets the support that these need, and it gets the awareness of the benefits they bring throughout the organization. And what helps to drive that as well is the next point there around the the TCO business case. And this is where rather than, you know, supply, ultimately, the the the smallest domination, the kit prices to customers, we actually get a lot more involved, use their data, work with them collaboratively to develop a full, fully costed, TCO model, which shows what their, you know, previous spend would be doing it internally and providing the service themselves and what the future state would look like working with VELLOCITY and shows clear benefits across those key points there. It's not just about the, you know, the kit purchase price. There's a whole host of additional benefits, wider benefits, but actually compare that to actual performance, previous performance with customers to show that total benefit across all all those key areas within the business.

11:23 And, this is now a a very well templated model. It's a very well received model with customers. And, you know, our aim really is to get this document to the point where it you know, you can change the the the heading on it, and it becomes the customer's internal business case as well. So a lot of work's gone on to develop that and, obviously, linked with the the small senior level relationships with customers. And then finally, underpinning all that is, you know, our continued investment in the the the digital technology to actually really digitize the whole front end of the COMPOSITES supply chain to really look for, you know, and deliver key benefits around the the main points there around, you know, not just the the efficiency that that the kits that are cut, but also, you know, the whole demand management piece, the material management and material ordering piece, standardization, you know, logistics, optimization, traceability, quality performance, all the key areas that VELOSITES service brings and actually digitize that under one very powerful system to help deliver, you know, more compelling business cases, better information into the senior levels.

12:32 And, really, you know, what what we're seeing is all these three combining to give a real compelling, very well supported senior sponsored business case with our customers that they can decide quickly and then move on to the, you know, the the contract and implementation stage. So, hopefully, that's given a bit more color around, you know, how that strategy has has paid off as we engage with, you know, more customers at at a higher level. The next slide, really just talking about our US market entry. And, you know, this is something that we've been engaged in for a while. We've talked about it, obviously, previously. It's been obviously hampered with COVID and, you know, the inability to travel. But, obviously, as that came off, you know, those restrictions eased sort of end of twenty one and we got into '22 proper, we could reengage that strategy.

13:30 And that always, you know, focused on, you know, entering an area that's you know, has a significant aerospace cluster, lots of potential customers, and, you know, that was always looking at the the sort of Atlanta area, that sort of Southeast cluster there. And, you know, what we've done is, you know, engage with key customers and got to the point with a launch customer now to sign significant contract. And linked to that is the standing up of our facility in in in Alabama to support not just that initial contract, but the, you know, other business development activities that we have ongoing in that part of the world. And I think, you know, having a facility also transform transforms those other business development activities because, again, engaging with customers, you can have those conversations, but without a facility, that was always the sort of challenge. Now we have a facility, you know, and people have seen that facility and the the approvals are gained, and that facility moves into, you know, significant volume production.

14:37 And, again, that supports all the other, you know, new new business development and, obviously, also supports the delivery of that key contract with our key customer. So just a bit of an update in terms of that, you know, the FAI process, the the the process to verify that our kits are in line with, you know, the the customer's own previously supplied kits is is ongoing and on track. And, you know, our the the sort of contracted plan with the customer is to deliver all that business transferred by quarter three, calendar year '23. So as you can imagine, a lot of work going, and I think we pick it up on the next slide Two, really, about, you know, having this asset now, and it's it's a fantastic asset. It's a great facility.

15:24 You know, we've the the training has gone well. You know, the transfer of that knowledge from, you know, Europe to to North America has gone well, assisted by, you know, the fact that we've digitized a lot of it, and we have, you know, some really good standard processes that we can export quite, you know, relatively straightforwardly. But it's very close to our launch customer that will obviously aid the delivery of that project. The capacity wise, it's been scaled, obviously, to support that initial launch customer, but also other customers in that part of the world as well. And, you know, we have a great plot there. We have good relationships with a landlord who's been very supportive, and, you know, that that facility can, you know, deliver the current customer's program and more, but also even further expansion, you know, is is required. We've got a decent plot there to to utilize.

16:20 That site has been stood up with, you know, its own team, you know, US team supported very well and successfully by lots of knowledge transfer and people transfer and support from The UK

16:35 on rotation, which continues as that as that plant rolls through its stand up processes. And as I say, the team's there now to, you know, start and deliver on the FAI process, move into, you know, rate volume production. And I say the the processes it uses, the digital manufacturing systems that we use in The US are identical to UK. The approvals, the processes, you know, it's it's all identical. And, you know, to stand that facility up has been a, you know, a great effort by the team. And, you know, we look to moving forward into that detailed contracted transfer plan with the customer and into into volume production. But, yeah, I think we're pleased with the the facility, the location, and the the further opportunities around that can be supported from the team and the infrastructure there.

17:32 And so that really brings us on to the focus of of this year, you know, building on the the sort of huge steps forward we made in f y twenty two. Clearly, scaling's important, and, yeah, we want to absolutely focus on completing the the launch customer project in North America, you know, successfully completing FAI, moving into volume production, and delivering the the the plan as as is for that. Also, you know, we do want to look at other opportunities and continue to progress other opportunities there on a targeted basis, utilizing the strategy and utilizing the infrastructure that we now have in there as well. But also, you know, in also in The UK, continuing with the the activities there, both in the aerospace and the non aerospace applications, which we've we've discussed. There's still still opportunity in in in both locations, and they will, you know, utilize the the investments made to deliver on those.

18:33 As as Adam said, the also, the focus just from the, you know, the calendar year phasing of, you know, discussions and agreements with customers. We'll we'll implement some of those new pricing activities with customers to look at mitigating some of those inflationary pressures, particularly around, you know, people and and energy. Energy in North America seems to be a bit more stable and probably into something similar to what we were used to historically. But, obviously, energy costs in Europe have been significant, and we're obviously looking at ways to mitigate those costs, but also looking at ways to to to pass them on where they can't be mitigated.

19:20 We're obviously gonna continue to look to ensure that the resources are in place where they need to be to deliver on our our projects and really continue with the, you know, the full embodiment of the The US subsidiary into the wider group. As as Adam said, cash obviously continues to be managed effectively across all all contracts and projects and really align our business development, not only on the key opportunities that we know around aerospace, particularly in the large opportunities in in North America, but also, you know, non aerospace opportunities as well to ensure that we stay,

20:01 you know, tuned into any evolution within our industry, you know, particularly as, you know, we look at urban air mobility. We've talked about some high end automotive, you know, alternative fuels, and, you know, all the other developments to, you know, the the wider composite supply chain.

20:24 Just I'll hand you back over to Andy to summarize. Thank you, John. Thank you, Adam. And just so just a summary, really, that, you know, the key element here is that our global market, particularly in the areas that we're focusing on, is growing. That means that we've got existing contracts, which will continue to grow over time as production rates increase. And don't forget that our business is all underpinned with long term contracts, And we're now seeking to add new contracts, some of which could be quite significant as just as the one that we've just added and yet is yet to be baked into the numbers going forward.

21:14 Entry into The U. S. Market is critical in terms of our ability to scale much more significantly given the size of The U. S. Markets and individual customers are much larger than in The UK and even in Europe. And that split of business also is between more even between defense and civil aircraft, both of which now are expected to grow significantly for different reasons. And we are at a point where the facility is there in The States. We're working through the preproduction activity, approvals, everything else. We're gearing up to move into production in March, I. E, the back end of the first half of this current financial year, which ends at the end of April.

22:10 The strategy and the people and the technology and everything else is now coming together, and you're seeing that with the engagement with senior executives within our customer base. If you look at our own board, that has been

22:28 strengthened and revamped with some senior experts within our industry joining our board to help support us both from a technology point of view, oversight, but also their own contacts and relationships. That development of a business case modeling, which comes from many years of experience and credibility, now able to be rolled out onto large facilities and be validated through engineering work. And as I said, the technology has taken many years to develop. There is a, therefore, an absolute high confidence not just of growth from where we are, which was a $1,012,000,000 with the new contract that has been won, but the opportunity to grow further.

23:22 Again, new business and these existing contracts growing as the end demand and end production increases.

23:33 And we, therefore, do have new business opportunities that we're evaluating and working on at the moment. The and and we have a team that are always working on those things, and, you know, we've invested in that team. And, therefore, absolutely, the prior year result shows a level of overhead, which is more than was needed for a £10,000,000 business, but will support a £30,000,000 business. And I'll come back to some of the questions, which

24:10 are pivoted around some of those points in a minute. So I'd like to thank you all for listening to the presentation side. And in a minute, we're going to move to the Q and A side of the presentation.

24:32 The Q and A tab situated on the top right corner of your screen. While the company take a few moments to review those questions submitted today, I'd like to remind you that a recording of this presentation, along with a copy of the slides and the published Q and A, can be accessed by your investor dashboard. Andy, John, Adam, as you can see, we have received a number of questions throughout today's presentation, and thank you to all the investors for submitting their questions. Could I please ask you to read out the questions and give response where appropriate to do so, and I'll pick up from you at the end? Thank you. Okay. So what I'll do is I'll, go through the questions, and I'll bring in Adam and John, as appropriate. So the first question is a general is a three point question, but it's on The US asking, you know, what's what's the staffing, how is The US gonna be funded, and a and a point an obvious point that, okay, The US has started with one very big customer, you know, which obviously we're reliant on.

25:28 So let's just take that third point first. That customer is a five year agreement, not a six month agreement. So it does underpin the investment in the business over the next five years. And, normally, when we have these long term contracts in the past, they have all rolled over at least once again and usually lead to even more business longer term. So but as John and I have said, you know, we are working on other opportunities in The States, and this facility has been set up to absorb other customers from the same facility. So we would expect it long term strategically to be servicing a multiple of large Tier one customers, but it is underpinned with that five year contract.

26:25 We funded all this so far for our current facilities, cash, equity and debt. And, you know, we've costed that we can do that from where we are today.

26:38 I noticed a couple of questions about funding. The only issue for VELOSITI in terms of what sort of funding it might need going forward is if we have a number more of very significant contract opportunities that start to come through, and we need to look at how the capital base would work in that case. But however,

27:05 where we are today, you can see the facility is built, and we have two types of funding in working capital that we can draw on. The first type is traditional banking, finance and supply chain invoice discounting. The second is that these large customers also provide supply chain finance themselves to support their supply chain. So GKN, which is a customer here in The States, provides a specialist facility, which enables us to be paid very rapidly under this contract.

27:51 And that has all been built in to the contract. And in fact, the onboarding of inventory and everything else in this contract has been built into the actual terms to enable VELOSITES to take on the contract over this year. So we work very closely with the customer, and we do work very close to the customers in terms of how do you finance these large contracts. And the staffing, we're already onboarding staff.

28:24 I think, John, what would you expect just at full rate The US staffing to be? However, the key point is that they're really all in production, aren't they? They're they're not we're not talking about any major overhead, administration overhead here. It's nearly all production direct costs, which are built into contract costs. That's right. Yeah. And and again, the the other advantage of having a digitized system is we can share a lot of the the back office stuff with existing, you know, people in The UK. We don't need to sort of completely duplicate everything we've got in The UK and in North America. So, again, we can be flexible where where those people are and and how they're supported. But, yeah, the, you know, the the direct staff will grow as the as the contract transfers across. We've got a, you know, a sizable team there already.

29:14 And, yep, it is supported by the by The UK, but that'll reduce as the as the, you know, the the site evolves and develops through the project. About 30 people in the direct side? The the rates? There there will be about full rate, that sort of level. Yeah. Yeah. So given we have 70 odd staff last year, so we're sort of moving to around this 100 around that level consolidated Mhmm. With this contract being absorbed. Yep. Yeah. Which is actually below, I think, where we were pre pandemic on a lower level of revenue, isn't it, John? That's That's right. We again, the the developments we've made in on digitizing the process has helped to to streamline it for us as well. Yeah.

30:00 So that's it sounds to me like this is almost a 20% maybe saving like for like pre and post pandemic in overall labor costs. Yeah. And that's the direct labor, but also the back office has been streamlined as well in through VRP. Excellent.

30:18 I think another question came through on the funding. I think we've answered that. You know, we've got various forms of funding in terms of contracted sales that we've already committed to, which are around the supply chain side, and that we work with customers on that as well. So as we onboard and then inevitably, we you know, these contracts are profitable. We expect to move into a net profit in the business and profit after tax, and that will generate a net cash flow as well, which can give us money to reinvest in the business and growth too. We had a question on what are the new contracts, and I think, you know, we can't disclose anything at the moment. Everything is always speculative, but we have some smaller opportunities in The UK.

31:10 They are not on the scale you've seen in The States. And then we have some large opportunities in The States, which could come through piecemeal or they could come through like GKN did in the end, which is a larger, you know, one off big contract covering an entire facility. But we do have quite a lot in the pipeline that we're working through. Obviously, we have to focus resources because it is time consuming and takes time just to get to an agreed business case with customers. And, of course, they have to buy into that, but there is a lot in the pipeline that that we are working through all different scales from, you know, the 500,000 a year type contract to potentially one, you know, at the size of what we've seen in The States already.

32:00 And The UK market because someone's asked specifically about The UK market, we do expect to grow. It's again, it's, you know, it's growing modestly, I guess, out of the pandemic. We saw that 20% growth last year. You know, we would expect the potential for double digit growth again this year, but it it is you know, it's not doubling or trebling

32:30 compared to where it was. And so modest growth potentially in The UK, very significant onboarding of new business in The States is the structure that that we've set ourselves up for. It's just one comment there, Andy, about sort of dependency on one customer. Yeah. And I think, yes, certainly, launch customer by its nature will be, you know, our our sole focus for for for a while and each key project to deliver. But I think it's worth just noting that even this one customer, their their order book is made up of, you know, numerous aircraft platforms, both civil and defense. So it's quite a a nice diverse order book, you know, varied in terms of the the end use and the the the primes as well. So, yeah, it's it's one customer, but it's, you know, eight, ten key projects that make up that one customer. Yeah.

33:29 And the next question, which we should just really clarify on, someone's asked about, you know, is the fact that VELOSITES UK listed business, does it prevent it from working in The US defense and space sector? And the answer is no. Half of the new contract contract in The States is in that sector and in critical supply chain elements of that. So for example, GKNR, world leaders in helicopter blade technology. And, you know, we are supplying our services, therefore, into that market with end customers such as Sikorsky.

34:14 And the space sector would be the same. It's under the same protection. So we are able to supply customers that are working in those critical areas as we are. We've had to get the right clearances and qualifications, but we do already operate in the defense sector in The UK. And we have received very positive support from both OEMs and our customer in The States. There's been a couple of questions about would we have other equity raises. The need for additional finance would come from looking to build the business out strategically longer term.

35:04 And that would therefore come with even more contracts and an increase, you know, in the contracted business from where we are today on on a material basis. So, yes, any business that might expand rapidly beyond where it is may look to balance it at capital base between debt and equity, but it's not you know? And that's really where we would come from. Some of us asked about specifics, EIS, VCT. We're not we're not a point to discuss any of that or or or what it could look like at the moment if we needed to. Our focus is winning new business and also critically implementing and delivering on the contracts that we now already have, which on their own show a significant increase in the business.

36:03 Someone John has asked us what USP, what we would consider our USP to be. Mhmm. Do you like to answer that? Yeah. And I think, you know, we touched on it in the the section on the the strategy. It's you know, the the uniqueness of VELLOCITY is is our specialism in that part of the the complete supply chain to really use some clever digital technology, some, you know, very honed processes to deliver not just real, you know, double digit savings to our customers by waste removal, but also deliver growth to VELLOCITY, all paid for by, you know, removing that waste and and eliminating it. So, yeah, there's you know, we're not a software house that just can give customers the the ability to do it themselves. We're not someone that will just do what the customer does, but outsource it. You know, this is a very different proposition to customers where they can outsource.

37:03 They can, you know, get rid of all the issues around managing their own materials and, you know, kit manufacture. They can make savings and significant benefits by doing things better. And, you know, they can lose their whole inventory and really, you know, outsource in in one swoop to to a really technology driven service provider who can continuously deliver those products as they're required, right into the point of use. I noticed the question sort of goes a little bit further and and says around, you know, why would we not supply the COMPOSIT components for our customers? And I think that's really you know, we've we've really become a a competitor then to our customers. I think we've we've carved out our niche space within the supply chain.

37:52 You know, we're not a material supplier. We're not a a component manufacturer, but we sit between those two rather different parts of the supply chain and and deliver our services and benefits, you know, hopefully, on a much larger scale in the in the coming years. And I think the keyword there is, you know, scale. As as we scale up, you know, things get a lot more, You know, the technology can be scaled very quickly. You know, we've done the investment on the development. We have a a really good product and a way of of getting that product to customers now, and, you know, we just want to do that in all the areas where our customers exist. Yeah. And someone's asked about, you know, what what are our top top four customers or what, you know, percentage are they to revenue.

38:41 As we move towards, obviously, focusing on the tier one suppliers, absolutely, our percentage of our larger customers is a significant percentage of our our sales. However, we we should remember that it's also underpinned with long term contracts where we have price flow through And, you know, the customers are committing volumes that they have on facilities into our business. So yes, we do have a small number of large customers, but the way that we are now set up with those customers is commercially, if anything, a stronger position than maybe we have been in the past.

39:31 And they rely as much as us as we do on them. And that gives us the opportunity to scale through other larger contracts with other larger customers, particularly in The US. Someone's asked about currency movements. The main, yeah, sensitivity is around the dollar and sterling exchange rates. And the largest will now be the fact that you know and that we all know that, you know, a large portion of our sales and activities will be coming from The USA. So, you know, we we have quoted some numbers in dollars rather than just in sterling so that people can see what that is. And and then it's for others, I guess. We have our own views on to view what the sterling dollar exchange rate movements might be in the future.

40:31 But we do believe they're operating in The States, operating in dollars in those contracts. You know, it has a strategic benefit to us and, you know, versus being just as operating in in Sterling. So that's all the questions so far that we've now covered. Andy, John, Adam, thank you. And I think you have addressed all those questions you can from investors. And, of course, the company will review all questions submitted today, and we will publish those responses on the Investor Meet company platform. Before redirecting investors to provide you with their feedback, which I know is particularly important to the company, Andy, could I please just ask you for a few closing comments? Yes. Well, thank you, everyone.

41:18 So I think that the key message that we've said you know, that we now have moved from a significant level of investments around our services and technology and people to now seeing that investment move into scale, a large contract in The States, other opportunities opening up for us, and having a key asset in The States as well. So we we see that there is a lot to deliver on what we've already won in our in in in now and have in our contracts, which they themselves have upward pressure in terms of long term volumes. So we shouldn't forget that each of these production facilities where we have these contracts are more likely than not to increase volumes longer term based on industry forecasts.

42:15 So there's a lot that's already baked in in terms of opportunity through our contracts, which should well, will deliver very significant growth from where we are today over the next two years with the potential upside of more new business laying on top of that. And I think that's the key message, you know, that we have for investors today. And, we thank those that have, you know, hung in with us through that investment cycle and some of the more difficult periods of of COVID. And, hopefully, now we can all work together to deliver on what we all see as the, you know, the company's huge opportunities going forward.

43:10 Andy, John, Adam, thank you for updating investors today. Could I please ask investors not to close this 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 only take a few moments to complete, and I'm sure will be greatly valued by the company. On behalf of the management team of VELOSITI COMPOSITES PLC, we'd like to thank you for attending today's presentation. Good morning to you all.