Capital & Regional Plc (CAL) Earnings Call Transcript & Summary

Good morning, and welcome to our 2023 half year results presentation. I'm Lawrence Hutchings, Chief Executive. And I'm joined today by my co-presenter and our Finance Director, Stuart Wetherly. In addition, we have members of our team here in the audience to assist with any questions at the end of the presentation. It's great to be back in person once again and here at Numis and to see so many familiar faces. In addition, we have a good turnout today on our webcast. So welcome, everyone. You will have seen our announcement earlier this morning, that we've exchanged contracts to acquire The Gyle Shopping Centre in Edinburgh. We're excited to announce our first acquisition in the 6 years I've been at Capital and Regional, and an asset we have a high degree of conviction on, one that we've been following closely for several years. We're looking forward to providing more detail on The Gyle later in this presentation. I'd like to turn now to the results highlights. Sorry. It's pleasing and a reflection of the hard work of our team and the quality of our portfolio, coupled with the relevance of our community strategy that enabled us to present another robust set of results this morning. We're seeing growth and recovery across all our operational metrics, including footfall, which is 5.1% up on the same period in 2022 as the return to the store and the maturity on the line channel continues. We've seen an increase in occupancy to 94.5%, driven by a strong leasing performance, with 42 leasing deals signed at premiums to both previous passing rent and ERV. We've also seen a post-pandemic record performance on rent collection at 98.4% of the first half rents. Combined, this operational performance has driven growth in our NAV, and importantly, an almost 19% increase in our adjusted profit from GBP 5.9 million in the first half last year to GBP 7 million for the first half of this year. All of this has provided the confidence to our Board to declare a 10% increase in dividend to GBP 0.0275 for the period. I'd like to hand over now to Stuart to take you through the details of the financial performance.

Thank you, Lawrence, and good morning, everybody. Pleased to stand here and report a strong set of results, demonstrating the further operational improvement and recovery of the business. Net rental income has improved by 13% on a like-for-like basis, driven primarily by improved occupancy, with the period finishing 0.7% better than 12 months ago. This like-for-like improvement has largely mitigated the loss of income from the Blackburn sale 12 months ago. The reduction in interest payable from the loan repayments made in 2022 alongside an improved trading performance from Snozone has helped deliver an increase in adjusted profit of 19% versus the prior year. Profit for the period is GBP 6.1 million. The change from the prior year reflects the one-off gains in the Hemel Hempstead debt buyback and deconsolidation of Luton. NAV and group net LTV have remained both stable, with valuations having increased by 2.1%, reflecting the CapEx invested in the period. The improved profitability is reflected in interim dividend of GBP 0.0275 per share, as Lawrence says a 10% increase from 2022. Drilling down into adjusted profit. NRI on a like-for-like basis has, as noted, benefited from the improvement in occupancy, but it's also supported by very strong rent collection, 98.4%, and car park income being up almost 10%. Interest payables reduced by GBP 1.2 million, reflecting the impact of GBP 60 million of debt repayments made during 2022 skewed towards the second half of last year. Snozone doubled its EBITDA contributions of GBP 1.6 million benefiting from its first peak Q1 trading season, unimpacted by COVID since 2019. It also includes GBP 0.4 million from Madrid, reflecting the progress made to enhance profitability since taking over operations in February 2021. External management fees have fallen due to the sale of Luton in March. Redditch, the other property the group acts as a third-party asset manager for, is due to change ownership in September, from which time our involvement will cease. I'll pick up costs on the next slide, but overall the combination of the above that resulted in that 19% increase was 17% on a per share basis. On costs, we're on track to reduce our central overhead by about 10% this year. This reflects efficiency improvements, offsetting wage and cost inflation. This includes the enhanced use of technology and sensitive selective outsourcing of some primarily back office functions. Further initiatives in progress or planned target delivering a similar reduction in 2024. This continues progress over several years in driving efficiencies. Our total central costs in 2022 were 13.5% lower than 2016 despite cumulative inflation of 25% and the operational intensiveness of shopping centers having only increased over this time. Valuations have remained stable over the last 2 years. Like-for-like movement over the first 6 months of 2023 was an increase of 2.1%, an outperformance of most real estate sectors. This reflects improvements in valued rent and ERV, partially offset by a 15 basis point expansion in net initial yield. We retained a long-term secured debt position with more than 75% of the debt book fixed until at least January 2027. On Ilford, we anticipate triggering in Q4 the extension option to extend maturity by 18 months to September 2025. The existing interest rate swap on Ilford matures in March 2024, and therefore, we will bear an increased interest charge from that point onwards, potentially more than GBP 1 million per annum. This is a slide we included in our year-end results presentation back in March, detailing the pathway to increasing our annualized adjusted profit by more than 20% in the medium term. Despite the anticipated increase in interest on Ilford, which is largely factored in, we remain well on track and indeed slightly ahead of schedule to deliver this. And the fact that most of the CapEx driven income from the major projects that Lawrence will go on to talk about such as Crate, Ilford, NHS and Wood Green, The Bridge -- catering has yet to come on stream, provides us with confidence of meeting this minimum target with potential for some further upside. The improved operational performance and stable valuation and balance sheet position has provided the Board with confidence to increase the dividend. And as such, we are pleased to propose an interim dividend of GBP 0.0275. Dividend is healthily covered by adjusted profit, approximately 1.5x. It also fulfills our minimum PID requirement for this year and makes a good start to the contribution of next. In line with previous periods to mitigate the impact on cash and leverage, we'll again be offering a scrip option. And we expect the final dividend for the year, which will be confirmed at the time of our year-end results in March, to be at least at this same level. With that, I'd like to hand back to Lawrence.

Thank you, Stuart. I'd like to take the next few slides to walk through the highlights of our first half operational performance. In addition, to provide some insights into what we've seen or what we're seeing post the half year close. Our community center strategy remains more relevant today than when we launched in December 2017. We continue to invest time and money in developing a deeper understanding of the critical success factors for community centers. These include our positioning in merchandising with grocery and destination services like the NHS, which drive footfall and frequency of visit. Affordability, ensuring our space remains both relevant and affordable to our needs-based and service retailers. Connectivity and access, our proximity of transport nodes in the urban areas such as London, and then transport and car access in the less urban trade areas. Most importantly is that our centers are tailored into the needs of the local communities, developing a deep understanding of demand and how our creativity and innovation can allow us to unlock those opportunities. First and foremost, in our community and retailer customers' minds is what do our centers offer? We call this the core pillars of our customer proposition, the retail offer or tenancy mix. Our expanding presence in grocery and medical services are 2 key examples, along with our growing exposure in the health and beauty category. In addition, our focus on general merchandise and apparel is very much at the value end of the sector. Food is an emerging category and a growth area for our business, but more on that in a moment. Importantly, we're seeing retailer demand in all these categories across our centers and across the full spectrum of store formats. We've undertaken a considerable amount of remerchandising in our centers, and we have more remerchandising to do. This improves our centers, grows our income and ultimately will grow our value. An additional benefit of our remerchandising is that we have transformed our income, diversity and exposure over the past 6 years from department stores to pharmacies, grocery, value apparel and sporting goods. Our income statement today is less exposed to single tenant risk, and we have more leasing activity in our pipeline and our asset repositioning master plans that will further diversify and strengthen our income statement. These needs-based nondiscretionary and value retailers have continued to trade well despite the cost of living and inflationary headwinds. There is a clear distinction between discretionary and nondiscretionary spending. And the lower margins and price points in the nondiscretionary retail sector have the added benefit of being better suited to the lower cost base of physical stores over the online channel. Looking closer at our footfall, we've enjoyed one of the strongest periods of footfall growth during Q2 as consumers continue to embrace the need for physical stores. Our footfall is up 5.1% over the same period last year, and we're now at 87% of the 2019 unaffected base year and growing. Our retailers have seen changes in frequency with people spending more per visit, which translates to retail sales often above the 2019 levels. Pleasingly, Ilford has seen the highest growth in footfall as we benefit from Crossrail and a new station that distributes traffic from the railway station directly opposite one of our major entrances. And we're also seeing the benefit in Ilford of our transformational CapEx program, which is repositioning the center into the community center format. The strong footfall is pivotal to our leasing activity, which is driving our asset repositioning and our income growth. We completed 42 transactions in the first half. That's an increase over the number of transactions in the same period last year, which benefited from a couple of large leasing transactions. Leasing spreads continue to be positive against both ERV, up 13.7%, and the previous passing rent, up 5.7%. This reinforces our affordable rents and the demand for our centers. The chart on the right highlights our leasing performance since 2019 and the progress we are making in rebuilding our occupancy and income post COVID. This leasing demand and activity have an additional benefit in closing the gap between total occupancy and permanent occupancy. Put simply, the number of temporary lets we have in our portfolio has reduced from 8% to 5%. Looking forward, our leasing pipeline continues to be robust. There are 39 deals that are either exchanged through [ Regional's ] hands, representing GBP 2.6 million in income. We have a very, very low value rate of deals once they're either exchanged through [ Regional's ] hands. So we're confident the vast majority of that GBP 2.6 million will move down to the income statement over the coming months. Central to our repositioning, income recovery and growth is our accretive CapEx program. I'm pleased to say that we've completed 2 projects during this period. Our grab-and-go food precinct at Wood Green called The Bridge and our flagship food catering environment known as Crate in Walthamstow. We're making excellent progress at Ilford, as mentioned, with TK Maxx due to open before Christmas. And the Medical Center, our primary care facility due to open in Q2 next year. In addition, our ESG investments are ongoing. We're investing to reduce our energy consumption and to lower our carbon footprint. Expanding on ESG, we've made excellent progress over the first half of this year. Our Scope 2 electricity consumption has reduced by 29% against the 2019 base year. Total energy consumption has reduced by 39% and natural gas has fallen by 78%. This is not just good for the environment or for our communities, but its good business. It enables us to reduce costs for both our business and for our retailers. Now our attention is increasingly focused on Scope 3, or our retailers and occupiers' emissions. We've collected 69% of the Scope 3 data. We're now working with key retailers to create prototype e-stores with a view to sharing the learnings across our occupier base. On social impact, our work supporting the communities we serve remains a priority. We supported 78 charities across 112 community events and provided 235 volunteering hours. There's always more to do in this area, and we're working with our council partners to ensure that our investment is targeted to where it makes the most difference. I mentioned earlier food catering. We continue to see this as a growth area for our centers. Our communities are diverse and vibrant, representing many different cultures and demographies. The way our community centers are using -- are being used, sorry, is evolving. People are shopping locally, the changes in how and where people work and demand for a wider, better quality grab-and-go food offers beyond the traditional fast food options. People are also responding positively to having a meeting place at the center of their community to simply have a coffee or grab something to eat with family or friends. It's also an area of retailer demand. And we've been trialing new food users in kiosks across our centers for several years, which has been providing us valuable insight and confidence to make the next steps. We're proud of the 2 food projects that we've launched in the past few months, The Bridge Link and Wood Green, which replaced an underled area with some vacancy with 5 new independent food operators. It opened in May, and it's trading really well. And over in Walthamstow, Crate, which is 20,000 square feet of food hall in the former food court. We have 8 operators. It opened a few weeks ago and the feedback has been overwhelmingly positive. We're growing our income and improving our customer proposition through this innovation. We work closely with leading architects and interior designers, with our independent retailers to create compelling, relevant and tailored offers. We have more to do in Ilford, Hemel and Maidstone, and we see the opportunity to incorporate fresh food into some of these precincts. We have a video today to share with you on both -- highlighting Crate and The Bridge Link. [Presentation]

Thank you. The other major area of focus for us is our growing relationship with the NHS. We're providing state-of-the-art accessible diagnostics and primary care facilities in the heart of our town centers and communities. In Wood Green, Phase 1 of the diagnostics facility is open, and the benefits, as NHS referred to them as, in the volume and speed of diagnostics is ahead of their own projections. Phase 2 is nearing completion, a further 3,000 square feet in the basement. It's worth bearing in mind that the NHS commitment to the diagnostics facility in Wood Green exceeds GBP 12 million and includes state-of-the-art 2 new MRI machines and a CT scanner. In Ilford, we'll hand over the 20,000 square foot primary care facility early next year to open in Q2. We're in detailed discussions with a further primary care facility in one of our London centers and expect to announce this in the coming months. These facilities are serving as additional destination or anchor stores, growing footfall and reinforcing our dominant position in the communities we serve. Turning to residential. And our Walthamstow joint venture with Long Harbor, where construction is progressing at pace. Phase 1, to remind everyone, is 495 build-to-rent apartments in 2 towers, representing a GBP 250 million investment from Long Harbour. Phase 2 is 43 residential units and 50,000 square feet of new retail on a podium, where we already have retailer demand, including from grocery operators. You can see in the photo on the top right of this slide, the tower construction on the first of the 2 towers is now at 20 of 30 floors. And we continue to actively explore further mixed-use densification of our portfolio to provide much-needed new homes and unlock value. Stuart mentioned earlier that Snozone has been a strong contributor to our H1 following a really good winter season for the business. Snozone is continuing its post-COVID recovery. Nick and the team are doing a great job. The benefits of our Madrid site, which was acquired during COVID, are coming through. We're reducing costs and growing revenue consistent with our underwriting for Madrid. One of the things worth mentioning is that Snozone has no debt attributed to it, and we believe no value in our NAV. We are exploring further opportunities to grow Snozone on a capital light basis similar to Madrid. Turning now to The Gyle. There are 4 charts that we refer to internally that provide us the confidence to make this first step in 6 years to take advantage of the dislocation in the U.K. retail market and to fulfill our ambition to rescale our business. The first is the ongoing stabilization of values. The second, the continued growth in our footfall back towards the pre-COVID levels. Thirdly, leasing demand as evidenced by our own leasing performance, and our ongoing discussions with retailers. And then our ability to convert this demand and the renewed focus on the store into improved income and occupancy. However, our challenge has been: How do we do this in a disciplined, focused, considered and accretive way? We've been tireless in seeking the right opportunity. The Gyle is an asset that is well known to senior members of our team. We've been tracking the center as part of a shortlist of centers we believe fit our proven community strategy for over the past 2 years. It's an asset I know from my time at Henderson Global Investors, where we bid in 2006, we were the underbidder, and again at my time at Hammerson, where we undertook considerable diligence in 2010. The quality of the underlying real estate and its fit with our strategy is clear and exciting. The Gyle is an established 400,000 square foot shopping center anchored by Marks & Spencer and Morrisons. There are 2,800 car spaces, with tram and bus stations on site. It has superb access from surrounding arterial roads. The site represents 50 acres located 6 miles from the city center and under 3 miles from the airport. And it's in Edinburgh's affluent and growing Southwestern corridor. The center is a classic dumbbell design with anchors at either end in a single mall connecting both. This is considered as the most efficient and effective retail plan. In short, The Gyle is well located, well connected and well designed. We're financing the transaction with a 25 -- with GBP 25 million in equity and a GBP 16 million new debt facility led by Morgan Stanley. Equity is being financed through existing cash funds, the new debt facility and new equity through a GBP 25 million fully underwritten open offer, underwritten by our largest shareholder, Growthpoint. The acquisition is expected to deliver significant earnings enhancement in the first full year of ownership. The Gyle is 94% led by income. It has key retailers, including Morrisons and M&S, and the M&S store incorporates a newly refurbished state-of-the-art M&S Food Hall. In addition, there's Boots and Superdrug in the pharmacy category, Bank of Scotland, WHSmith and Next to name a few. The Gyle was completed in 1993, and it's an established successful retail and services hub in Southwest Edinburgh. It's considered the town center for this growing and affluent community, which has been reflected in the council's own local plan. During our extensive due diligence and discussions with retailers, one of the anchor stores said to me that their store in The Gyle was gold topped. The Gyle absolutely fits our community strategy, coupled with an attractive entry basis and stapled debt, all enables the acquisition to be accretive to our earnings in the first year. The acquisition price of GBP 40 million plus costs equates to a circa 60% reduction to replacement cost and an 80% reduction to the peak valuation in 2006. It reflects a 13.5% initial yield, which rebases to 12% post our remerchandising and lease renewal activity. We have stable finance, as I mentioned, at a 40% LTV, 6.5% capped at a 2.75% margin over the 5 years. We're confident that our focus and expertise will enable us to improve center footfall, occupancy and income. The open offer is available to all existing shareholders at a ratio of 4 new shares for every 15 existing shares. The equity raise is fully underwritten by Growthpoint at a 5.43% discount to yesterday's closing price. The offer closes on the 24th of August. We anticipate providing the results of the offer on the 26th. Then settlement and admission of the new shares on the 4th of September. We're excited to be making this first step towards rescaling our business, unlocking the economies of scale and operational leverage in our platform. And this demonstrates how we're able to take advantage of the opportunities that exist in the U.K. retail market. In summary, our balance sheet stability, operational resilience and growth as demonstrated today by another set of strong results, coupled with a clarity around the importance and role of physical retail and stores is providing us the confidence in our ability to firstly continue to invest in repositioning our portfolio and now to undertake a disciplined and selective acquisition on an attractive and accretive basis. Combined, they reinforce our ability to accelerate our community strategy and drive income growth. That concludes the formal part of this presentation. Stuart, James Ryman, our Investment Director, and I are here to answer questions -- any questions you may have. I'd like to move now to Q&A, starting with the floor, and then we'll move to the webcast. Thank you.

Just you mentioned costs have always been come down a lot, and that's been a good contributor to the [ income ]. You mentioned some of that was from outsourcing. I'm wondering how fixed those costs are and how much more can be expected going forward from further use of that kind of thing.

Stuart, do you want to...

Yes, sure. So there's -- in terms of the total costs that we packaged together there, probably about 90% is fixed versus 10% variable. But then within that, we're always looking at ways that we can drive further efficiencies. And obviously, we set out the target there for 2024 for taking out another 10%. And we think there's ways and means beyond that, looking at how the business evolves further. And I think also an important point to make is the platform is very scalable. So adding The Gyle can really be done at almost negligible incremental cost. And we think that we could -- in time, it's not an immediate focus, but in time, add more centers with very little overhead to add.

[ Alan Carter ]. Just a couple of things. You sort of comment on your exposure to Wilco and will you be happy to take any space back? And secondly, The Gyle is different from what you own at the moment, which are mainly sort of community walk-in centers, lots of chimney pots close by. The Gyle is very much somewhere a location you have to drive to. Does that in any way sort of change the asset management position for you?

Yes, there are 2 visions. Firstly, on Wilco. Stuart, do you want to talk through our Wilco exposure?

Sure. So we've got GBP 0.6 million of rent, which is about 2.5% of the contracted rent, total occupational cost of GBP 0.9 million. So swing to full vacancy would be about GBP 1.5 million. But I mean interesting your question about getting space back. I mean actually in the -- I was going to say the days. I think it was even 24 hours after the first Wilco announcement last week, we had a few unsolicited approaches from retailers sort of sounding out whether there were opportunities to take space. So clearly, it's going to have an impact. I'll not pretend it's not. But I think there's some good demand for those units if it ends up in a full insolvency and no longer trading.

And just to add to that quickly, we've obviously engaged with Wilco for a considerable period of time. They've spoken to us about a couple of proposals, Alan, involved in restructuring. What was clear during those discussions is that 2 of those 3 stores were very important to them. And interestingly, the third store is the one that we've had the most inbounds from a leasing perspective. So we -- as Stuart says, it's very early days with Wilco. There is such a range of outcomes as we've seen before with these situations. It could still be acquired. There could be some form of rescue mounted by one of the existing lenders, for example, as one in particular I'm thinking of, has got experience in this or alternatively, it could finish being a full liquidation we're yet to see. But we're advanced in terms of what our alternate plans are. So to say it's been trailed for quite a while now. So -- it's -- we'd clearly prefer for the sake of all people employed by Wilco that, that continues in some form of going concern, but we have contingency plans if that's not the case. Your question on The Gyle is a good one. And we've obviously Hemel and Maidstone are car driven. As you principally, yes, they have good transport infrastructure links as well, but not to the level of Central London. We are seeing a greater divergence between what's happening in London and what's happening outside London. So the central government and GLA very much policy around creating modal shift, and that was accelerated during COVID with these local traffic zones, love them more or hate them, has meant that average speeds of traffic movement throughout London have decreased. In addition -- I don't want to be too controversial here. I know West London has been very controversial. I live in East London, where ULEZ has been for quite a while now. But clearly, there's a costing position now moving your vehicle around inside the M25. We are seeing modal shift. We've seen that through the car parks, for example, Alan, in usage. The council area that I live in, I saw a newsletter a couple of weeks ago with our heralding the fact that traffic was down 30% in London and in London borough from the pre-covid levels. And I think they said 35% of borrow residents on a car. Now that's all. So we've seen a huge shift in Central London. But once you get outside London, the car is very much an important part of the modal access option. So -- when it comes to The Gyle, what's drawn us first and foremost is --what does it offer, which is one of the things we focused on today because that's a principal driver for people because it doesn't have the stores that I want. And in this case, a very important Marks & Spencer store. Clearly, we know it's important because we've invested a lot of money in the food oil. Secondly, is the Morrison supermarket, both of those stores trade well as we understand it. So it's a very, very strong grocery offer, which is at the core of the community strategy. In addition, pharmacy offers, news agencies, et cetera, et cetera, we feel very comfortable with the vast majority of that tenancy mix and the offering where it's positioned. And what that means for us is it will assist in limiting the amount of CapEx initially and therefore improving the return performance in the short to medium term. There are lots of things for us to do in The Gyle to improve it fundamentally. A lot of those speak to operations in the initial period and where we've got a lot of skill, we believe. But getting back to your question, we think the community approach or strategy can work as well inside London as it can outside London, providing, if we're moving from being public transport driven to being motor vehicle focused, a, we have sufficient car parking, 2,800 car spaces is over 400,000 square feet of retail space is a fantastic -- the retailers referred to as car parking ratio effectively. Number of spaces per 1,000 square feet of retail floor space is the measure. Secondly, that it's access, that it has great access for those motor vehicle movements as we all know, one thing you have in great car park, if you can't get in or out to feed a purpose. The center has superb access. So those 2 factors we believe are really important. In addition, it does have public transport infrastructure, tram and also very strong bus terminus in that location. So we feel confident, Alan, I think it's fair to say. And it's very, very established. It was built in 1993 as the joint venture between the council at that stage was ASDA, which later became Safeway and Morrisons and Marks & Spencer. So -- and it's, what, 20-odd years of trading history, 25 years of trading history.

Matthew Saperia from Peel Hunt. Lawrence, can I just ask on The Gyle asset? How important is the fact that you've got the stapled debt alongside it. And I think you mentioned earlier on that, you've been tracking a few other opportunities. Are they also offered to the market with similar sort of funding structures in place?

The efficiency about The Gyle off-market transaction. The -- one of the advantages of being very, very clear about our strategy is it enables us to filter the U.K. shopping center market, and to be very, very clear on the types of centers that would interest us. So that's the first filter fundamentally, if we're looking at acquisition. The second thing is how much CapEx is involved in repositioning those assets. So to use some indication, we think a vacant department store is representing an investment, certainly from experience in Ilford, are between GBP 12 million and GBP 18 million to re-lease, remerchandise, remove asbestos, separate, put new plant and equipment in. And as you'd appreciate, drawing down equity is at double digits to invest and get an 8% or 9% yield on cost and all the risks that are associated with the heavy lifting of big CapEx projects, cost, letting risk, et cetera. That's the second filter, Matthew, that we'd apply to a potential acquisition. We have CapEx programs in place for our assets. We are very conscious about adding another one and putting another load on the balance sheet in terms of CapEx requirements. And then the third filter, you're 100% right, is the debt. And I think we're in a debt market where availability of debt for any property class is incredibly difficult and difficult for retail. There's no question. So that was another filter that we knew we needed to find something that was where we had the potential of getting some debt. And we've -- Stuart and I have been speaking to our existing lenders. We've been speaking to potential lenders. Just trying to understand what that debt market looks like, what availability looks like, what cost looks like, what margins look like. We've got very good relationships with our existing lenders after everything we've been through in the last couple of years. So we think The Gyle is a fairly unique opportunity from where we -- in the market we sit in today. It's enough market transaction, stable debt, which is being provided. We think on competitive terms. But hasten to add, this is not a piece of financial engineering. And that's something we've been very, very clear about. We have to be happy and comfortable with the underlying real estate and the fundamentals. Is this a piece of real estate we feel good about. And then what does the -- can we get debt, what does it look like? Who are the lenders? And we're very pleased to have Morgan Stanley as part of our lender book -- our debt book. I think it's a great addition. So -- and they have a great team. So I think that's -- hopefully, that answers your question about you. In terms of other opportunities, look, we're always in the market. Fundamentally, we're always looking at these things. As I mentioned, we're very clear on the assets that we think fit the community strategy. There are others -- but our focus right now is really on delivering The Gyle and delivering the underwrite. And of course, delivering on our earnings recovery trajectory that Stuart set out in that slide that we shared at the full year results as well. That's where our focus is today. And we're interested to see market reaction to the announcement we've made today. So we don't rule anything out, but our focus right now is on delivering on the announcement that we've made in the acquisition.