Costain Group PLC (COST) Earnings Call Transcript & Summary

Good morning and welcome to the Costain Group PLC Q&A session relating to the 2023 Full Year Results. [Operator Instructions] Before we begin, I would like to submit the following poll. And I would now like to hand over to Investor Relations Director, Paul Sharma. Good morning to you.

Good morning and thank you very much, and welcome to the Investor Meet question-and-answer session. And with me today I have Alex Vaughan, our CEO; and Helen Willis, the CFO. Before we start, just a couple of things. You may have seen that we do publish our consensus now on the website, and we expect that to be updated next week once we have the results from some of the -- more of the analysts to come through to me. And secondly, I'd like to go to Slide 2 and just note that we have a cautionary statement. This is also on Page 33 of the presentation and also in our RNS. So now I'd like to pass through to Alex Vaughan, who is our CEO for some instruction statements, and they'll be followed by Helen Willis, our CFO. And Alex will be covering some of the top line points from yesterday and also our preferred book and order book status, and Helen will be covering off some of the issues regarding the pension. Thank you, Alex.

Thanks, Paul, and good morning, everyone. Thank you very much for taking the time to join this call, and we look forward to receiving any questions that you may have. If I just sort of reflect on the results for 2023, we're really pleased with the continued momentum that we've built in the business over the last few years. It's another strong financial performance for the business, and it is ahead of the market estimates that were out there. And if we look at it from an adjusted operating business point of view, which I think is the right measure to look at the underlying performance of the business, we've had a 10.5% increase in the operating profits of GBP 40.1 million. We've now broken through the 3% delivering on a margin basis, adjusted operating margin of 3%, and we're on track to meet the margin targets that we published for 2024 and 2025. And I think something that's a real feature of the business today has been the cash generation, and we've added 30%, which is a GBP 40.6 million increase in the net cash balance of the business. And the business now enjoys having a cash balance of GBP 164.4 million. So a really strong set of results. And I think with that momentum, we look forward with a lot of confidence to the future of the business. We have a forward workload, which is now 3x the revenue that we have on the annualized revenue of the business. We've got a number of notable wins, extensions and growth of secured frameworks that gives us a really positive outlook across the whole business, and we're very busy tendering work at the moment. So the forward momentum in the business is really growing. And if I look at what's exciting about the future is that Costain is operating in critical long-term investment markets and our markets represent the critical national needs that the U.K. has in order to drive economic growth, deliver positive social change and meet the decarbonization targets that the U.K. has. The National Infrastructure Commission recently published its second national infrastructure assessment that turn around and talked about the infrastructure that is critical to be invested in. And the government recently published its construction pipeline, highlighting over GBP 700 billion worth of investment over the next 10 years. And we've purposely positioned our business to work and deliver under those major investment programs, and we've got good long-term visibility in those markets. So it's a really exciting space for us. And we've made some really good progress on some of the strategic priorities that we've got as a business. If I look at that GBP 3.9 billion of the work that we've got secured and the quality of the tech work that we're tendering at the moment, it's of a really good quality, lower risk, higher margin. And I think that's demonstrated by the fact that we're delivering 3% margins already today, and we've set out the targets of where we're going. The group is also very positively positioned in significant growth markets. So if we look at water and energy, both of those are going to go through existential growth going forward to meet the challenges that we have for them. And if you looked at that, that's only 28% of the business today. So for us, it's going to become a very significant part of a larger business as we move forward and present a very exciting opportunity for us. And we've also been very successful in building a much stronger, broader Tier 1 customer mix, which brings great resilience and balance to the business. So we've been -- rather than being very focused on an HS2 program, which is going really well for us. We've been growing our positions with other customers, including Heathrow Transport for London, Manchester Airport's group, just to name a few. So now we are building a really strong resilient and balanced business, and we're very excited with what's going to go ahead. So I'll look forward to any questions that you've got around that, but I'll hand over to Helen to talk about some of the financial highlights.

Thanks, Alex. Good morning, everyone. So I'll just be focusing on cash and the pension, as Paul mentioned, and the impact on dividend, and hope I can give some clarity to that for you, but welcome any questions if I [ mentioned to ] that. So on cash, really strong performance for the year, as Alex mentioned, GBP 164.4 million cash at the end of FY '23, GBP 40 million up on the previous year-end. And that's split into 2 parts as: Cash that we hold-in in joint operations of GBP 59 million, that is Costain cash still, but it is held separately, and GBP 105 million of cash in our own bank accounts. Really consistent performance through the year. So we report average month end net cash, and we've just introduced a new measure of average weekend net cash, and both of those are GBP 141 million. So you can see that, that is studied throughout the year. And it's a clear indication of how consistently we pay our suppliers, which is really important for us. And I called out in the presentation yesterday that we are still one of the top fastest payers in construction. And we view that as very important for our supply chain and it's a really key focus for us and securing the best possible supply chain for the work that we do. So really strong cash building year-on-year. I'm really pleased with how that is moving. That, of course, strengthens the balance sheet and gives us plenty of options in terms of where we would like to invest and indeed for dividend. So just moving on to dividend. We introduced dividend at the half year, and we are hoping to pay 0.8p at the full year as we announced. And there's a natural ceiling of about GBP 3.3 million to the dividend. And this comes from something called dividend parity with the pension scheme contributions. So I'll just explain what happened with the pension scheme negotiations this year and hence this ceiling of GBP 3.3 million. So we agree with the triennial valuation with the pension scheme during the summer of '23 and managed to significantly reduce the contributions from about GBP 12 million to about GBP 3 million per annum. So that's a really nice uptick to our cash and that became effective in July of last year. So that in itself was a really good move forward. But in years gone by, we had agreed a dividend parity between the pension and the dividend, which means that any dividend paid must be matched by contributions into the pension scheme. So at the minute, we have annual contributions into the pension scheme of GBP 3.3 million, and therefore, we're choosing to pay dividend to the same level. Any additional dividend that we would pay would have to be matched into the pension scheme. The really important point, though, for us is we also managed to agree an annual check with the pension scheme. So each March, there's a test, its from -- and if at the point of that test, the scheme has tipped into an actuarial surplus, and we believe we're close to that. The following years, payments to the pension scheme would pause, so we wouldn't have to pay the GBP 3.3 million. And importantly, the dividend parity for that future year would cause. And therefore, we wouldn't need to make any dividend matching payments into the pension scheme. So that gives us much more flexibility in terms of potentially increasing the dividend or potentially thinking about other types of dividend. So that's a really important point for us. It gives us flexibility, but we will have to carry out that test every year. I think that's probably all I'd like to pull out at this stage, but very happy to take any questions that might help to give further clarity on that. I'm going to hand back to Paul.

Great. Thank you, Alex and Helen. So there's actually quite a few questions come in. So I'm really just going to start the top with the chronological orders look way down. So there's quite a few questions from John H. So first one is basically asking about giving more than EUR 1 billion of business secured for '24 and the volume of bidding and tendering you have, can we expect a revenue increase for '24?

Thanks very much for the question, John. We've certainly got a really good solid volume of work. I think naturally, we're probably expecting and guiding a slight reduction in revenue for '24. And that really is us being very cautious around as we move into the election, the sort of cycle around decision-making and we just feel that we need to be very prudent from that side. However, we do see operating profit should increase. And the opportunities are building that we'll then see as we get through into the next parliament we'll have revenues increasing.

And also from John, Balfour Beatty's numbers are out this morning, and they were discussing about U.K. power transmission and distribution starting in '25, they think that's a big growth area. Do we think it's a growth area? Are we positioned in that [ area ]?

Yes, again, another great question. And we certainly see the whole energy space as a significant growth market. And yesterday, we saw the government make announcements around gas, energy generation and cost savings core capability has come around from gas process engineering. And we're very active with Beatty on carbon capture and then working with another number of energy companies around hydrogen, then -- and we certainly see opportunities in the electrical transmission market as well. So I think that marketplace is very exciting. We're very well placed and we look forward to taking advantage of the opportunities there.

So this is really a question for Helen, that's on the operating margin. So the second half operating margin adjusted was 3.8%. We basically said we're going to be achieving a run rate of 3.5% during FY '24. So basically, any reason why we can't be getting to 3.5%. And just John did ask this question but some analysts have been asking. Can we beat 3.5% in FY '24?

It's absolutely great question. We issued the milestones first time last year and keen to show our confidence in the margin progression. We did use the terminology of 3.5% during FY '24 and 4.5% during FY '25. Clearly, that's a run rate. Yes, we hit 3.8% in the second half of FY '23. I think it's important to note that the half 1, half 2 split, typically, we will recognize more profit and hence, higher margin in the second half of any year as we move through the year and are progressively more confident in contract outturns. So I think it's important to look at the FY '23 full year number of 3% and compare that to the milestone of 3.5%. But I guess what I take from it is that we are doing all the right things to move us up that margin and walk and moving in the right direction and 3.5% during FY '24 feels -- that absolutely feels achievable.

This is another question for Helen. We're talking about one-off costs. So basically a GBP 30 million of transformation costs, et cetera, in '23. Just as to say, obviously, we report both adjusted and reported EBIT. FY '24, there's going to be GBP 5 million of transformation restructuring cost, that's in the RNS. So the question is, assuming that's the case, will the statutory accounts for '24 be much more aligned to adjusted figures than they were in '23.

And the answer to that is yes. So we have pulled out adjusting items at FY '22 and FY '23 on Page 10 of the presentation, just for your information and in the RNS. We've been driving the transformation program over the last 2 years in FY '24 will be the last year of it. As Paul mentioned, we've pulled out in the RNS and expect about GBP 5 million of adjusting items as we come to this final year of the transformation. And therefore, the difference between the adjusted profit number and the reported will be that GBP 5 million, and therefore, much closer. When we get to FY '25, they should be very, very tightly aligned. We anticipate that those adjusting items will be absolutely minimal.

The next question is also from John H. Helen did cover this in her kind of intro, but maybe we're just asking this again. Is it correct the review of the pension level for the pension scheme is due to be funded imminently? And the answer to that one is yes. If so, should the funding level exceed the 110% threshold, is there a prospect of a special TV given the suddenly low share price?

So if we do exceed and to contact our surplus, it gives us scope to consider those options. And that will be something that we will discuss as a board, and we absolutely recognize the importance of coming back and talking about that.

And this is really a follow-on question from Daniel D. In the probable event, the surplus scheme is in surplus. Can you talk about the capital allocation priorities in terms of dividends versus buybacks? So if you are in surplus and we've got a pension holiday, would we choose to basically do some -- do nothing, or do a buyback or do a specialty.

So our capital allocation policy, we're very clear that we are prioritizing investing in the business to drive our strategy and our growth. And that's demonstrated, for example, by the investment in the transformation we've been talking about. We are spending CapEx as well as we digitize the company. So we are investing in ourselves in that regard. And of course, we've reintroduced the dividend. So we are making sure we're considering how we allocate our capital across all of those requirements. If we took into surplus, obviously, that will allow us to think again in terms of dividend away from this natural ceiling that we currently have as a GBP 3.3 million.

And this is really more for Alex. So when Alex stands up, he discusses how the -- well the business is doing and the activity we're seeing -- can you give us some idea of when we might see some contract wins. We see a contract with some [indiscernible]. So what cadence of RNS is do we expect to see from now until the next results basically?

Yes, a really good question. And look, we've obviously made some announcements on some wins sort of this year or last year, which has been really pleasing. But I think we expect to be making further announcements. So over the next 6 months, we should be making announcements around energy, the progress that we're making there around AMP8 in water, building on the Northumbrian water win that we had at the beginning of this year. And also then looking at some of the rail projects that we're tendering at the moment and the fact that we're in the procurement cycle on those. So we would expect a number of announcements to come through. I think it's also -- one of the other things that we're very good at is that we unlock opportunities from the frameworks that we've already secured. So we've got a large number of frameworks that we've secured, and we are every single month unlocking opportunities from those that we don't publicly disclose. So contracts that people like Transport for London, for Heathrow Airport, people are -- we're unlocking that. So -- but to come back to your question, you can expect as we come through the next 6 months to see a number of awards coming through.

Next one is from Kevin C. So given the adjusted operating profit increase of 10.5% and a significant net cash balance increase, what specific strategy is illustrative do you attribute these 2? And how do you plan to sustain or enhance these results moving forward? I mean it's one for Helen. But just to say also, as I mentioned in my intro, we will be doing a publishing consensus probably middle of next week -- towards next week, and I will give you some more numbers to kind of hang half on as well that one there.

So I guess the top line, Alex have just spoken to some of the sort of interesting exciting opportunities as we work through our winning and bidding and building the order book for the future. In terms of the profit and the margin, we've been working very hard over the last few years to drive operational excellence through the business and a much better risk management and assurance. And I think you can see the sort of proof point of that is the improving margin to 3% and 3.5% in the second half. So everything we're doing is improving the performance in our contracts and controlling our costs and hence, the GBP 40.1 million of adjusted operating profit on that 10.5% increase. So we will continue that work, which will drive us forward in better operational excellence in more efficiencies being more effective and hence pushing the margin up and indeed the operating profit in due course. And we do have to be wary of the timing of some of the contracts and so on and hence the shape of the top line that we've talked about, and you will see some different consensus coming through as also that will give you some more clarity on that. But we absolutely think this is sort of speak, sustainable.

This is from Mark Ellis for Helen. Can we clear with the cash balance, how much is unencumbered group cash contract prepayments? And how much is needed to give customers comfort and confidence in the business in the long term? So how much cash is unencumbered? How much is contract prepayments? And how much is needed to give customers comfort in the business? What cash level do we need to -- think we need to have basically.

So the cash is unencumbered apart from the joint operations cash, as I already mentioned, it's our cash. It's on deposit. We're earning interest from it. There aren't prepayments. We do call out in the presentation in the RNS, so working capital, positive timing differences of about GBP 25 million, but that really is just the difference between receipts and payments on a fairly regular basis. I think the shape of the industry has changed over the years and what was more typical a number of years ago with advanced payments is no longer the case. So that cash is our cash. Our balance sheet is very strong. Certainly, throughout my tenure in 3 years, the balance sheet and the levels of cash haven't curtailed any bidding activity. So we're absolutely in the right place and able to think about where we use that cash, as I always just mentioning earlier.

This is from Nigel and it's also a working capital question. So the year-end cash position was enhanced by working capital. As Helen mentioned, we've got GBP 25 million of working capital -- positive working capital there. Are you able to quantify how much would have been on a usual working capital position? Are there any plans to return some shareholders cash -- given the large amount of cash we have in the business. And that also probably relates to the question of the dividend matching scheme as well.

Absolutely. So I think if you look at that cash balance, the month's end and weekend average cash of GBP 141 million, I assume that sort of gives you a clear indication of cash levels throughout the year. Absolutely, it's the point that we have a very strong balance sheet. We have strong cash balance. We've repaid our term loan. So we are able to think about where we use that cash, but there is this sort of natural ceiling as I mentioned at the outset of 3.3%, which is the annual contribution into the pension scheme. If we were to pay more dividend than that, we would have to put more contribution to pension scheme and that would be strong. So absolutely, we can think about the level of dividend and we gain buyback and specialties, but that will be something the Board needs to consider as and when we do took into surface.

This is one for Alex and that's from Stephen K. The forward work position is described as high quality at around 3x FY '23 revenue. Can you discuss the criteria used to evaluate quality of work and how this forward work aligns with the long-term strategic goals, especially concerning diversification and risk management?

Yes, Stephen, good question. Yes, so look, in how we evaluate that? We have a look at the sort of risk profile. So we've made a lot of changes over the years to set very strict criteria about the type of work that we're willing to sign up for. So therefore, as we go through governance on every single tender, we're making sure that the risk profile of the work that we've got and the returns that we also demand from that work meet the strategic criteria of the business in terms of the forward direction. And that's why -- that's what gives us the confidence to be able to turn around and say that we were highly confident. I think coming back, a lot of that forward or forward work of GBP 3.9 billion is what underpins the future and all of that will drive the growth. I didn't say it at the start, but also that excludes about 50 frameworks that we've got, which are consultancy frameworks. So there is 0 value. And every year we secure commissions under those frameworks, which is over and above the order book, and that is at the higher-margin consultancy work. So that's how that comes through. So I think that also then gives us the added layer that will help us drive those margins at a really high level.

So this is a question, I think, for Alex from Daniel D. There were a lot of takeovers in the U.K. in the last 18 months. Our cost savings should be an obvious takeover target. What's the impediment you have taken out? And do you think that impediment still exist today?

Yes. Thanks, Daniel. Well, look, let me just look at what -- how we're approaching -- how we're approaching this. Look, our job as the leadership team running this amazing business is to run it as well as anyone can run it. So we're running it very hard. And that's about delivering excellent services to the customers that we work for and securing good volumes of the right type of work, positioning the business really well for growth in the future and capturing that growth and delivering really strong returns by being as efficient as we can and how we run the business investing to make the business better and delivering those margins. So that's our single-minded focus. And that ought to be the focus of any business is making sure that we're running our business as hard as possible. Therefore, if anyone was able -- was to pop up and was interested, then it would be good value for the shareholders.

This is I think for Helen. With adjusted operating margin targets of FY -- 3.5% during '24 and 4.5% during '25. What the key recent challenges do you see in achieving those targets? And what measures do you have in place to mitigate them?

So we've have been driving improvements through the business, as we've talked about, and that really is what underpins those 2 margin targets. So working very hard on excellent delivery, working very hard to be more efficient, more effective and to manage risk at a contract level. And therefore, at a portfolio level needs to aggregate all of those contracts, knowing that we are driving margin improvement. Alongside that, we've been investing in other skills and capabilities and looking at our cost base overall to maximize the benefits from that full value from it. So the risk is absolutely about operational delivery, and that's what we work very hard on every day and we've been investing in the right people and right skills to drive that very hard. So we're very confident that we're moving in the right direction.

There's 2 questions on cash. One from Massimo A and Stephen K. So I'm just going to put them together, if you don't mind. So how much -- you've got a lot of cash. How much can we consider the surplus cash, if any? So basically, how much cash you need to own the business? How much could be distributed to shareholders should that be allowed? And this also really a similar question from Stephen K. Could you elaborate on the considerations regarding dividends, M&A, surplus cash to shareholders. So I think the real question is how much cash you need to run the business for that surplus cash? What's your list for -- shopping list for dividends, special buybacks, M&A, et cetera?

So I think we have more than enough cash to run the business as we have been saying that the cash generation has been very, very strong in the last couple of years and the level are at GBP 164.4 million, and we plan for that to increase in '24 and beyond. That means that we do have surplus cash in my mind. We've talked about the investments we're already planning in terms of people and skills, in terms of digitizing ourselves, in terms of the recommitments and then returning to dividend during the half year. How much is the -- just I think if you -- there's a chart on Slide 14 of the presentation, that shows you that there isn't -- it wasn't a very significant swing through the year, and that gives you some feeling for the peaks and troughs, I guess, on cash. So I think we have -- we do have surplus cash. We do absolutely think about where we would like to use that and where best to use that as we drive the strategy and drive the growth that Alex has been talking about. So I think it really does come down to the ceiling of the pension scheme as sort of, I wouldn't say imposed that gives us 3.3%. I think the -- we will think about dividend levels, we will think about buybacks and specials but really for us it would be when we don't have to make the dividend matching into the pension scheme.

So this is another question for Helen from Daniel D. Can you give an approximation of how much of your revenue and EBIT comes from consultancy? Have you thought about splitting off consultancy report, either taking it separately or having it as a separate business?

So we have considered all of that -- absolutely. We've done a lot of work over the last couple of years to be very clear on our strategy on consultancy. We've restructured digital at the half year and really honed in on what those digital consultancy services are as well. So we have a really clear proposition, and that is offered to our customers across all of our sectors. So there's a mix of services that we're providing into our customers. And I think it's a continuum across the sort of life cycle of any customer thinking about where we provide consultancy, where we might partner to help our customers with delivery, where we provide construction -- complex program delivery. So it's really a continuum of services that we provide to the customer where we organize ourselves is by division, by customer and sector. And hence, that's the way we report. But we absolutely drive the business through those different service lines and a really key part of our margin progression is to drive the volume of consultancy to our customer base through the next few years so that -- that you will see that coming to fruition through the margin improvement. Alex, I think you might want to fill on that.

Yes, just absolutely -- everything that Helen said is where we're at. But I think just in terms of coming back to the separating -- running it as a separate business, what we sell as consultants is the Costain people and those are the same Costain people that will be delivering major programs, contracts as a contractor as they are a consultant. So the real value is the core expertise that we have of people in this business. It's just how we go to market and sell those skills and that expertise is different when we come through a consultancy proposition. So actually, to really grow it, leverage it, it's really important that it remains part of the core business. And as Helen said, we're organized around our customers and it's making sure that we really understand what our customers need and are able to help meet those through that broader proposition.

This is one from Nigel. I think we covered before, but it's worth going over again. Is there any consideration of buyback given the market value of the business?

Absolutely. So buyback special level of dividend, absolutely all in our consideration that as I mentioned earlier, until we took into that action at surplus. It's not something that we would like to do because we would have to match into the pension scheme.

This is from Massimo to Alex. So is inflation, materials, labor, et cetera, sort of risk of the business or do you contract protectors from inflation spikes. And just actually to add, Massimo did ask this, but we were asked us on the roadshow. Is there a shortage of people at the moment as well [ surely ] market.

Yes. I think 2 strong issues for us all, actually. So inflation, I think inflation does present a bit of a challenge because it's a challenge to our customers and the confidence that they have in what the cost of their investment is going to be. Now positively, it's much more predictable unforeseeable at the moment. So we're able to help them think about their budgeting and forecasting that gives them that predictability of the outcome. In terms of our contract risk, all of our contracts have protection for inflation. So we're not exposed. But as I say, this has put quite a burden on our customers' budget when they're not able to get the same return from all same budgets from some of the government departments. So it remains -- and it really comes back to how if we can work with them collaboratively, we can drive a much more value engineering better solutions to be able to help offset the budget pressures that they feel from inflationary prices. But as I say, it's much more stable at the moment, which is good, and we're totally protected as a business. Coming back to the labor piece, I think we've had a lot of questions on this. We're not -- we are certainly not struggling with recruiting exceptionally talented people into the business and attracting some of the best suppliers to also work with us and support us, which is fantastic. I think the benefit that we have is the type of work that we do and the fact that we work on long-term programs. We're talking about 5 years and in some cases, 12 years' visibility, that gives us the ability to turbine and attract people with them having strong confidence of the forward workload. And one of the things that we've done coming up the transformation program is that we're investing a lot more money now in developing the skills, expertise and competencies of our team to help them develop their careers at the same time, including the number of apprentices and graduates that we recruit. So it's a point that we take very seriously. We're putting a lot of effort in, but it's not holding us back, and we don't foresee it holding us back at the moment.

This is from John H. So beyond '25, will further growth and profitability to be driven by revenue or driven by margin growth. So if so, does the company have the resources, particularly human to grow or will need M&A bolt-ons to basically capture the growth '25 onwards?

Look, I think coming back to the answer to that question, it's going to be a mix of both. We're going to grow our revenues because, as I spoke about at the start, if you look at the opportunities and the opportunities in this market places for us to deliver economic growth for the U.K. positive social change and meetings in our decarbonization targets are absolutely there. So we will get top line growth, but the quality of what we're doing, and as Helen says, growing the consultancy, growing our consultancy business and continuing to improve the effectiveness and efficiency and performance of our business is all going to add to the bottom line as well. So that's pretty exciting for us and the opportunities are significant.

Last one is at the moment from Daniel D. And I might actually have a crack this myself, if you don't mind. So considering the share price, why not now such a strategic review to unlock shareholder value. Answer to Daniel, I think -- I mean, I've been sitting now over 25 years. And shorter view is normally cut a company code for these problems. And really -- really, this company is not in a situation where we would actually need to announce strategic review. I mean we agree it's undervalued, but strategically is not normally the room taken at this point. And I think that -- is it -- so I'm going to pass over to Alex to wrap up.

Thanks very much again for taking the time to join this call. I hope you found it useful. And thanks for a series of great questions. There's a lot of consistency with the questions that have been asked here with what we're getting from the wider market, which is growing and things that we're very focused on. I think I'll just come back to that we're really pleased with the momentum, and it's another strong financial performance of the business, and we're confident that, that will continue to be a trend that we continue. We've got a really high-quality forward workload for the business, and we've got -- we're excited in the opportunities ahead. The markets that we've positioned ourselves in, and the customers we're working for are absolutely the right markets and the right customers because that's where its long-term strategic investment is going to be made and we're making really good progress on the strategic priorities for the business. So exciting times ahead and we look forward to keeping you updated. So thank you very much for taking the time to join the call, and have a good rest of your day.

Perfect, Alex, Helen, Paul, thank you very much indeed for updating investors today. Could I please ask investors not to close this session as you will now be automatically redirected to provide your feedback and also that the Board can better understand your views and expectations. This will only take a few moments to complete, and I'm sure will be quickly valued by the company. On behalf of the management team of Costain Group PLC, I would like to thank you for attending today's presentation, and good morning to you all.