Acusensus Limited (ACE) Earnings Call Transcript & Summary

Good morning, and welcome to Acusensus first half of financial year 2026 results presentation, where we have the company's Managing Director and CEO, Alexander Jannink; and the company's CFO, Anita Chow. Before I hand it over to Alex to go through the presentation up on the screen. [Operator Instructions]. But with that, Alex, I'll hand it over to you. Thanks.

Thanks very much, Simon, and thank you, everybody, for attending this first half presentation. Look, there's a lot of content in this deck, but I'll try and get through it quite quickly. It's been a really big half year for us across lots of different metrics from operations to sales to technology. So I'll take you through some of those highlights and those achievements before going into the market segments we play into. Anita will take you through the financial performance and then finish up with the Acusensus moat and our advantages and then the outlook and forecast for the rest of the year. So I think, it's good to take a moment to just pause and reflect on the impact that Acusensus has in this world. Our programs change behaviors, and they save lives. That's why we do what we do. And from Queensland to Minnesota, our pioneering technology measurably reduces fatalities and injuries. We see that correlation wherever we deploy systems. In our new roadwork safety product, Forsite, that's already generating measurable risk reduction to workers around Australia. And the way that we can enhance our impact is to get more kit on the road. Everything is directly tied back to a physical asset, a piece of hardware by the roadside. And this has been an incredible half year of development for getting more kit out on the road, 46% more life-changing assets are deployed from this half. So as I said, it has been a very big 6 months. And it's not just mobilizing the work that we've previously won, I'm going to talk to that on the next few slides. We're also winning new work and we're winning that across Australia and internationally. We have record work remaining, $212 million still to be delivered in the years to come, locked in long-term government revenue. And that doesn't even include the additional work that we've already won in this calendar year. You will have seen with today's announcement, that's over $24 million of new work in Western Australia secured this month. And we've also had the expansion in scope in our New South Wales mobile phone enforcement camera program with the government announcing that from Sunday, bidirectional enforcement will be activated. And that's an innovation that we've been developing quietly in the background for some time, and it's good to see that deployed out on the road network for the first time. So the Australian business keeps expanding. You'll see that 80% of our customers gave us an extension or an expansion since the start of this financial year. So I said, it's been a record first half. Revenue increased by 40%. Pleasingly, in the international business, there's been significant expansion. It's now over 1/5 of our revenue. That's mainly driven this half year by the mobilization in New Zealand. So through the half, we continue to expand and mobilize that. It's now at its full run rate. So that should lead to some great results in the second half as that gets its full contribution throughout the 6 months of the second half. We're mobilizing Connecticut really well, that should contribute much more strongly in the fourth quarter of this financial year. We're also starting to see some operating leverage come through the business with a bit of focus on the overheads as well, and Anita will talk a little bit to that, as well as recognizing or mobilizing a record amount of new work and winning further work. We've also continued to innovate across multiple areas. So further increasing our technology lead in our space across enforcement products and in the new Forsite road worker safety product as well. Revenue was up by a stellar $11.5 million, that's a 40% increase to $40 million, as indicated by our 40-kilometer an hour sign at our site here. Gross profit was up. Adjusted EBITDA was up and at a record even with the investments in growth in the business. We finished the year with $41 million in the bank and an untapped debt facility of up to $25 million. So very good strong balance sheet strength there. We settled the litigation matter with Redflex, that was for $6 million in cash and 6 million shares. So it clears away any overhang that may have existed with Acusensus. I think something to mention on that settlement is the license agreement granted to our payments. So I want to make clear that we're not giving away any knowhow or any technology in that. The purpose of that agreement is that if Redflex wins a contract in front enforcement and if they are then to use technology that might otherwise have infringed one of our payments that they would be free to do that, that we would not commence litigation against them. And so with that balance sheet strength, with the mobilizations that we've had, I think we start the second half in a really awesome position from which to grow unencumbered and seize all the opportunities right in front of us. With that, I'll turn to our key markets. Looking across Australia, we have programs in the majority of states and territories. We have expansions in Queensland and the ACT. As I mentioned before, we've had expansions to both of our contracts in West Australia recently as they look to continue deploying multifunction enforcement assets across their own network, both fixed and transportable. There's still plenty of room to grow in Australia, in my opinion. There's still more opportunity. South Australia and ACT have room for expansion when you look at the sort of limited sets of products and services that we supply in those states. And of course Victoria and Tasmania should come back to market at some point in time in the coming months or years. As I said, the Australian business doesn't stand still. 80% of our customers increased contracted revenue or contracted value with us in this financial year. Revenue was up now to $31 million for the year. Adjusted EBITDA was up by a corresponding amount. There are more assets that are contracted to go into multiple states over the coming months and even into the next year. So again, something that should further improve our second half results and beyond. I'll turn to international, and I'll start with the United States. We have enforcing systems in almost 1/5 of the states in the U.S.A., that in itself is a really massive achievement that not many traffic enforcement camera companies can actually match having systems across so many different states. That number does keep growing. The majority of the states that we supply are using the real-time enforcement, which is very unique within the market. So working in conjunction with law enforcement and police to enforce phones, seatbelts, streaming. Those real-time enforcement programs have now been joined by our first automated enforcement camera program. That's with the state of Connecticut, a 5-year USD 23 million deal. And in our U.S. team, we've recently appointed industry veteran, Kevin, Kevin Tenbrunsel to General Manager our business in the U.S.A. and he hits ground running with lots of great plans to use our technology and service to pursue multiple different market segments that we think we can play into quite strongly. So it is certainly an active area of growth for us as it has been in previous periods as well. Overall, international revenue grew extremely strongly that more than tripled to $9 million for the half. And very pleasingly, we are now EBITDA positive in our international business. A lot of that does come from the contribution of New Zealand, which is now at its full run rate, and that will be at full run rate for all the months through the second half. Our U.K. business hasn't progressed as well as we would have liked. Although, we can now directly contract with government being on the framework tender. We had a program with Devon & Cornwall extended for another year, and then we're in some conversations with a number of other potential counties or customers. As I said on the previous slide, we are feeling very good about our U.S. business. We are investing in it further. We're further increasing with our sales team. We're further increasing expenditure on legislative change efforts. Of course, in the second half, we expect Connecticut to contribute, that really wasn't contributing in the first half. And Kentucky was a really pleasing program for us. It's actually our second largest program in the U.S.A. It's a very recent program, and it expanded beyond its initial pilot given all the positive feedback and success. So yes, a great business, a great state to be in with Kentucky there. On our Forsite segment, we released Forsite only a couple of months ago. Forsite is a road worker safety technology product where we detect risks to roadside workers. So general public vehicles that might hit them or plant and machinery within the work site and provide targeted alerts to those workers, also provide a lot of data about what's happening on each roadworks site that's of value to our customers. I think it's been very good and pleasing to see the commercial model being validated that we're approaching the market with a recurring as-a-service revenue model and that has been embraced. We've now seen 4 customers sign on to long-term contracts with us, so contracts of a year or more. We are still learning and developing with respect to how we scale our operations and support a higher volume of units and a higher volume of customers. So there's still that work in the background to scale up. But we see a very large addressable market for this technology in Australia and in overseas. And so we keep investing in developing the solution in that market further. With that, I'll pass over to Anita. She's going to start with my favorite slide in this deck.

Thank you, Alex. Before I turn to first half FY '26 performance, I want to provide context on how the business has performed over the last 3 years. As you can see in the first chart, we've maintained double-digit top line growth, with a significant step-up in revenue this half. This is a direct result of contract wins and expansions mentioned by Alex earlier. The scale has translated directly to gross profit and adjusted EBITDA growth, leading to record performance across all 3 metrics for the first half of FY '26. Let's dive a little deeper into the profit and loss for the first half. We delivered outstanding top line performance, with revenue increasing 40% to $40.3 million. This was primarily driven by new contract wins in both Australia and overseas, along with increased scope from existing customers and inflation increases. The company generated $16.4 million of gross profit, which represents 21% increase. While our gross margins moderated to 40.7% due to contract mix and temporary pricing change, we expect these margins to remain stable through the second half. Adjusted EBITDA, which excludes share-based payments expense and one-off costs, increased 8%. Operating expenses increased 25%, driven by continued investment in headcount and contractors to support future growth. I will touch on this later. NPAT declined to a loss of $20.8 million, mainly due to the litigation settlement and related legal costs. Due to the timing of the Redflex settlement, there was a requirement under accounting standards to make a $16 million provision in the first half of FY '26. So in terms of the revenue growth, sort of put down 2 charts to show the key drivers by revenue business segment, as well as customer classification. On the left, you can see in the orange bars that both Australia and International Enforcement delivered strong growth. Australia Enforcement added $4.4 million of revenue and delivered 17% growth, while International Enforcement added $7 million or 338% growth, as was mentioned earlier. Pleasingly, International Enforcement now contributes 22% to group revenue, up from 7% a year ago. On the right-hand side, as anticipated, the bridge shows that new contracts was a primary driver of the growth with a smaller contribution from existing contracts. The key new contracts included Western Australia multi-function, New Zealand mobile speed program and the real-time enforcement programs in the U.S. Drivers to the existing contract expansions mainly include the increased units for Queensland mobile phone and seatbelt. Now moving from our group-wide results, let's have a look at the performance by segment. I'd like to highlight 4 things. Firstly, the Australian Enforcement division has achieved significant growth and scale with further growth locked in through recent contract wins. Our International Enforcement business is now delivering positive EBITDA. The increased scale in New Zealand has successfully offset our ongoing strategic investments in the U.S. Thirdly, as the business expands, we are seeing improved operating leverage as evidenced by reduction in share cost contribution, with a reducing from 18.7% to 17%. And then lastly, following strong customer validation for Forsite, we are continuing to invest in this segment to capture its long-term potential. Now to the balance sheet. As Alex mentioned earlier, the company will continue to pursue its wide-reaching growth plans. We have a strong balance sheet to support us with $41 million of cash and a new debt facility with Citibank. Other items, I'd like to call out include; firstly, trade receivables. The step-up in revenue would normally have led to a corresponding increase in receivables, but this didn't happen in December due to one of our large customers paying their invoice earlier than usual. We also saw $5.3 million increase in property, plant and equipment. The amount that is presented is net of depreciation. This has nearly doubled in the last 12 months, driven by increased CapEx spend for new fixed assets to support our growing revenue. Thirdly, there's been a greater increase in contract assets compared to contract liabilities. This does impact working capital and is mainly just due to the way the new contracts have been structured in relation to mobilization. And then lastly, you'll see there's been a $16.4 million increase in provisions. This is due to the $16 million provision related to the Redflex litigation settlement. This will result in a $6 million cash outflow in the second half of the year. Turning to cash flow. The business ended the year with a high cash balance, driven by the net proceeds of $28.8 million due to the equity raise undertaken in December. Operating cash flow was positive for the first half, but lower compared to the prior year, driven by higher litigation and legal fees as well as negative working capital movement. Capital expenditure remains elevated at similar levels to second half FY '25, just driven by the requirements of new contract wins and expansions. Of the $8.6 million spend you see, 70% of it was spent on trailers and 15% on cars, car cameras and fit-outs. Another way of looking at it was that 50% of the spend were mainly for the Connecticut and New Zealand speed contracts. Now I'll pass over back to Alex.

Thanks, Anita. Very good. So I thought I'd just take a moment to reflect on the technology moat that Acusensus has. And that technology moat is in addition to our relationships and our customer service, which are really essential in this market, remembering that our customers are government. They trust us to continue to deliver a risk-free, reliable service as we've done successfully for the last 8 years. And in return, they provide us with locked in long-term contracts. In advanced AI-based enforcement, we've supplied the most number of clients, to my knowledge, at least 25 across multiple continents. And every deployment is an opportunity to further improve our technology and our AI. In the past 2 years, we've processed over 1 billion vehicle detections, and each one of those is an opportunity to improve our systems. This is a very niche AI technology that we've been developing since 2018. And the task that we have in hand is effectively finding a needle in a haystack. And we continue to get better every day, and we continue to increase our technological lead. There are competitors on this call, so I'll refrain from talking about the specifics in AI accuracy that we've improved over the past 6 months, but there have been some very good improvements. I think also very important to recognize that, it's not just the data, it's the hardware, too. So behind every dollar of revenue is a real physical asset that was deployed by the roadside. Those asset designs are also constantly improving, as you have seen in the notes earlier in this deck. So for us, it's the combination of very good hardware with software that leads to industry-leading performance. And ultimately, that performance translates to more violations detected each day for our clients, which leads to more behavior change, which leads to more lives saved. I'll just finish up on this outlook slide. We're going to be continuing the growth strategy that we've set in place. The key pillars of that growth strategy are to grow the United States and the international and keep building that share of international revenue as a percentage of group revenue. We're going to be expanding the Forsite division, improving the technology, engaging with more customers and then ultimately taking that on to a global stage. We'll continue to be innovating and solving problems with our world-class R&D team. And we're going to keep growing Australia and seizing the opportunities that exist for us within our local Australian market as well. And so when you look at the contracts that we've won, the contracts we've been mobilizing, we do expect that FY '27 will also be a growth year. And at this point, we're reaffirming the FY '26 revenue guidance of $83 million to $87 million. And we're introducing our forecast for adjusted EBITDA, which we expect to be in the range of $7.2 million to $8.2 million. With that, I'll hand it back to Simon to coordinate the Q&A. Thanks for your attention.

Thanks, Alex. Just a question first up from Owen Humphries at Canaccord. What was the revenue generated by New Zealand and the run rate revenue per annum at full deployment?

I'm not going to give you the exact specifics. But I would say that, in terms of what we've seen in the first half, it's probably around 70% -- 75% of, I guess, a full run rate for the half.

The contract value is NZD 92 million across 5 years. So effectively divide 92 by 5, so it's a little bit short of NZD 20 million per annum. Those are New Zealand dollars expected at full run rate.

Just another question from Owen. CapEx was higher than expected in the first half. Was this related to New Zealand? And what is the CapEx expectation in the second half?

Yes. So in relation to CapEx, I mentioned earlier that 50% of the spend was for both New Zealand and Connecticut. So in the second half of FY '25, we had mobilized all the cars. So the investment in New Zealand in the first half was mainly for the trailers. And then in terms of the second half CapEx spend, it will remain elevated, but not to the same extent as the first half. We're anticipating it to be in the range of $5 million to $7 million.

Question from Owen. Can you talk through the revenue per month on Forsite? It's roughly $200,000 for 2 months of this half. What's the expectation for monthly run rate by the end of the calendar year?

Yes. We don't have those projections at the moment. We're only 2 months into the product launch of Forsite and is a rapidly evolving space. So I don't feel confident in releasing a forecast for our Forsite revenue at this point in time.

Continuation from someone else, a question on Forsite. Seems to have lost a little bit of enthusiasm from you both and is providing a negligible addition to the balance sheet. How confident are you that Forsite will prove a worthy addition to the core business?

I think like that, the market for Forsite is ultimately enormous, and we are opening up a brand-new market. And that always takes some time and takes some energy and effort. But much like you've seen with us in our enforcement side, we, as a business, are used to cracking open brand-new markets and over time, growing those into really good solid significant businesses. I think that, we are confident of the market need for this product. It is unique. We're effectively first to market here as far as I'm aware. There are some other sort of similar products that we can look at that have not quite -- not the same technological advantage or lead that we have in Forsite, but more trying to play into similar sort of work health safety spaces that we can look at that provide us with the confidence. Look, like I said, it's 2, 3 months in, and we already have 4 customers who have been willing to sign up to contracts of significant duration on recurring revenue. So that's probably the early metric that I'd be looking at for where is this potentially going to go.

Another question on Forsite, just in terms of how penetrated you are into the 4 current customers? I'm assuming that's relatively negligible.

Correct, very low penetration at this point. So there's 2 parts to the growth of Forsite. It's expand with current customers into having more and more roadwork crews using the technology. So a greater percentage of the workforce within the current customers we have and to add more customers as well.

Just a question on TZV, where does that stand at the end of the half?

In terms of the way we normally present, it's around $440 million.

How many units are deployed and enforcing at the end of the half?

198, I think we had on the slide.

Do you expect the Victorian contract might be put up for tender this financial year?

That would be a matter for the Victorian government. I guess, I would be surprised. I'll say that.

A question on the ACT tender. When do you expect a result there?

Impossible for us to say there's a government tender process in play at the moment. They control, the government controls the time frame.

And just the $30 million raise in Redflex settlement to fortify the balance sheet, but the hardware as a service model still requires you to front the CapEx for every new global deployment. At what specific active global fleet size does your operational cash flow fully self-fund new contract builds? And are we realistically going to reach that nondilutive inflection point by the end of this financial year?

Thank you. A lot to digest in that question. But I think the big thing to note is this is totally dependent on the scale of the contract wins that we get, right? So we are self-funding if we don't win new business. At the moment, the thing is that we do continue to win new business at almost increasing rate. And so it's totally dependent on our success rate as to when we might get to hear free cash flow breakeven.

The Connecticut win proves the tech works in the U.S. However, the U.S. is notoriously fragmented with intense local privacy pushback against automated enforcement. What's your actual conversion rate of U.S. trials to funded mandates? And are we seeing state run trials love the data but ultimately failed to pass the state level legislation required to award a multiyear contract?

So I think it's important to recognize that we're actually playing into multiple segments in the United States. So the segment that we've been growing over the past few [ Audio Gap ] our first one in North Carolina and have then extended and added more and more states to that to 7 or 8 states enforcing using real time. I think, with that segment and that product line, we've had a very good success rate of turning pilots, turning interest from a state into a program. When we look at other segments that we can play into, we've now started moving into that automated enforcement space with Connecticut and looking at work zone speed for Connecticut. We really haven't been pursuing this historically. So there's no real win-loss rate to talk about. Connecticut is the first. It's going to provide us with a fantastic reference point, I think, for other states and potential deals to come.

And just further on the U.S., what different market segments is Kevin exploring?

Like I mentioned, there are competitors on this call. So I probably won't give a large laundry list of the kinds of opportunities that we see in front of us. I will mention the 2, of course, that we are already pursuing, which is real-time -- well, real time across multiple spaces, where it's work zone, real-time speed like we have in Arkansas, like we have in Kentucky, whether it's real-time phone, seatbelt like we have in North Carolina or Georgia or numerous other states. And then also looking, again, particularly those work zone applications where I think Acusensus has quite a technological lead and even a company philosophy lead in looking at automated work zone speed enforcement, for example.

Just a question around the current developments in AI being leveraging its current tech and competing technology. How is ACE going to keep its edge? I think you spoke to that in the presentation.

Yes. It's quite interesting when you look at AI because the developments that everybody is watching at the moment in AI is, of course, on large language models. And there isn't so much crossover between the large language models and the kind of very niche AI that we're developing for the front-end equipment that we have been detecting phone use, seatbelt use and much more -- in a much more difficult way, detecting impaired driving, drink use, drug use. And that's sort of path that we're on, which is a little bit bespoke. In the broader AI sense, of course, as a business, we are right at the forefront of looking at where we can deploy that kind of technology to reduce operational costs. As we sort of alluded to, there are some -- there is some operating leverage coming into the business just in the last couple of months, and we do see -- I guess, we will keep looking at efficiencies on the overhead side with technology that comes available to us.

And just another question. On Forsite, how does it work in terms of the capital investment and the revenue model if it's a subscription model, does it imply you provide the equipment?

Yes. We actually have 2 different models running at the moment, depending which client segment we're in because just to remind you, we're actually right now supplying 3 different segments. So we have customers who are the road constructors. We have customers who are roadside assistants and customers who are traffic management companies. And depending on which of those and what assets those companies own themselves and where Forsite will get installed to, they may prefer to have a fully as-a-service model. That's the majority that we see. So yes, we retain the ownership of the hardware and effectively, on the hardware side, we effectively rent or lease that out. But there's quite a substantial software back end to this to take that data and provide insights and alerting and reports and other value. But there is also a model where we may sell some of that hardware and then have a recurring software license on top of that.

In terms of the recurring side, have we released -- I'm assuming not at this stage, a Forsite ARR number?

No, we haven't -- the commentary that we've provided to the market in the past is a few dollars a day per worker as a rough guide for where this is priced at.

Just a question from James Filius at Morgans, just on Forsite again. Still primarily the focus for Australia in calendar year '26 with a view to taking it global potentially in '27. Has there been any movement in terms of your time lines for that sort of expansion globally?

I think that is still approximately our time frame. Yes.

Question from James again. Well done on the WA contract win announced today. Can you unpack how many additional sites this includes? And will this contribute more in FY '27?

Yes. So the announcement today in WA for fixed sites includes sites to be installed over the next, I believe, 2 years. And so there'll be progressive installs throughout that sort of period. I don't think we're at a position where we could provide the number of sites that would be up to the West Australian government to release that kind of information.

Question, post the recent settlement, does this make every future tender more competitive? What are your views on that?

Every tender that you submit to, you have to disclose any ongoing litigation matters. It certainly generates questions in -- or has generated questions in our tender responses to date, which, of course, we are now free and unencumbered from. So yes, I think settling it is well received by our customers as well.

Broad question. Do you feel like new contract wins are based on or awarded on pricing or technology? Does it defer by geography?

Yes, it very much differs by who is the client, who is the competition, what is the technology, which country is it. So there are a lot of different levers. We do predominantly sell to government. Government is always price conscious that they always will have to -- if they're running a tender process that value for money for the client is always a strong part of scoring. So we have to know and understand where do we price at, where the competitors price, and price at. Having said all that, I think we have very strong technology, particularly in the advanced space. So you saw that on my second last slide on the kind of leads that I think we have in hardware and software there. I think we have an extremely good track record and a good reputation. And so those are all things that weigh into your ultimate tender response and your success rate and your pricing for that tender.

Just a question from James at Morgans. If we think about the International division, which is now washing its face in the near term and the growth in New Zealand versus U.S., you talked to continued investment in the U.S. ahead of wins. How should we think about this in the context of your full year guidance? And will the division be net EBITDA neutral for the full year?

We have, of course, looked at our expenditure rates in providing the full year guidance. So, all of those expansion plans, revenue increases are built into our model of why we've said, look, we expect $7.2 million to $8.2 million of adjusted EBITDA and $83 million to $87 million of revenue. Anita, do you have anything to add to that?

Probably just to add that, we are continuing to invest in the U.S. So obviously, Alex has talked about Kevin, and we're positive about the opportunities there, which is why we're continuing to invest. And that investment will be offset by the growth of New Zealand because New Zealand will be contributing to a greater expansion in second half compared to first half.

On the competitive landscape more generally, how are you seeing that at the moment?

Competitive landscape. I think I'll probably learn a little more next week or the week after when there's the Intertraffic Conference in Amsterdam that happens every 2 years and where competitors try to show off what have they done new for us in looking at the ultimate metric is contract wins, I think, and there haven't been a lot of contract wins in mobile phone enforcement that haven't been won by Acusensus. The ones to look at the last ones are Netherlands and Victoria from the top of mind other than systems deployed with a very different kind of an enforcement system that you might see through the Middle East, for example, where you might get video camera-based enforcement that just doesn't quite suit the key markets that we are addressing of Australia, U.S., U.K. and New Zealand that need a high grade of evidence and a high performance rate.

And do you expect Redflex or Verra Mobility to remain a longer-term shareholder?

Well, the settlement agreement includes a 12-month escrow. What happens beyond the 12 months is up to Verra Mobility and not up to us.

Can you give us an idea of the number of Acusensus staff by region and how many of those are in IT roles?

Yes. There's around 330 employees globally. If you want to break that down further by region, probably around 1/3 is in New Zealand, 10% U.S. and U.K. and the remaining in Australia. And then in relation to the IT roles, when I talk about IT, I'm talking about, I guess, R&D as well as IT support. That's probably around 10% of the 330.

Question regarding U.K., how that's tracking and expansion there?

I spoke to the U.K. on the slide. And so effectively, while we're having great conversations, we get a lot of positive media. The potential clients are quite slow to move and progress on to programs. And so while we keep having those conversations, they're not yet translating into the actual deployed kit at the moment. I know there was some recent media on Devon & Cornwall, and like tying into the question on competition with Jenoptik putting out a press release. I don't -- I believe that's just Jenoptik installing their own equipment and testing it as opposed to that actually being a contract for enforcement. And our contract enforcement with Devon & Cornwall has been extended.

Question maybe for Anita, if we can answer it. If we exclude the one-off litigation settlement costs, can we talk to the Board's view, which isn't on the call? The sustainable steady-state EBITDA and NPAT margin of the core enforcement business at current contract scale and what revenue threshold must be reached for consistent stat profitability after depreciation, share-based payments and corporate overheads?

I guess in terms of answering that question, you probably have to think about when -- because currently, our business is a combination of our core business and then the other part is investing for future growth. So I think if you take out the investment side of things, the business could easily get to a profitable situation, but then you don't have the future growth aspects of it. There is no specific target from the Board at the moment. We have a combined view, both management and the Board in terms of -- we believe in the company, we believe in the product as well as what we do, and we believe there's a lot of runway for future potential. So we're continuing to invest in that.

Are you leveraging AI in the development of products on the software side?

Yes.

Succinct. Any possibility of working with Verra going forward now they're a shareholder, potentially focusing on larger U.S. tenders?

There haven't been particular conversations on that.

Just on the Texas trial ends soon. How has that gone?

Texas trial start actually got delayed. And so it's only just started rather than being about to end.

I think that's it. There's a number of questions that we probably can't ask just in terms of competitors being on the line. So if we did want to take them up later, more than happy to do so via e-mail or a call. But with that, Alex, I might just hand it back to you for closing remarks.

Yes. Thank you very much, Simon, and thank you, everybody, for attending today. And I think I'm really proud of what the team has achieved and where we've come from and where we're going. I think that we have just such a strong position at the moment where we have great balance sheet lots of funding available to us. We have lots of clients across multiple jurisdictions. International has kicked into profitability. We're still mobilizing more gear. We've got record total contract value ahead of us, plenty of responses in the pipeline at the moment. Sorry, I can sort of go on and on. I guess, it's just a great position for us at the moment.

Thanks Alex, and thanks all for attending. Have a great day.

Thank you.