DXN Limited (DXN.AX) Earnings Call Transcript & Summary

Okay. I think we have a full house, so good morning to DXN shareholders and other participants online today. Welcome to the DXN First Half FY '22 Results Webinar. My name is Tim Powditch, I'm with the corporate advisory firm, TMT Partners. Presenting today is the recently appointed Chief Executive Officer of DXN, Shalini Lagrutta; and the Head of Finance, also recently appointed, Craig Beatton. So what I'll do is pass over to Shalini and then Craig, just to give a short introduction to themselves because for most of you, they will be new people just to meet. Over to you, Shalini.

Hi, everybody. It's great to be here. My name is Shalini. I've been in the industry for about 20 years, mainly in telecom and data center companies. I worked in multinational competition in the U.S. and in Europe, we cover mainly Asia Pacific, Australia and New Zealand as well. Great to be here. In the last 3 years, I've been the Global Head of Sales at DXN, mainly looking after the modular data center side of the business for the past year starting to look at all of the data center sales for, not just our modular data center our local data centers in Sydney, Darwin and Tasmania as well. And I've recently been appointed by the Board as the CEO of DXN. Great to be here, and I'll just ask Craig to also introduce himself.

Good morning, everybody. Welcome all to the presentation. My name is Craig Beatton, I'm the Head of Finance. My background previous -- Oh well, I started here in middle of January, so I've been here 2 months now. Prior to that, I was at ASX-listed company, LawFinance Limited. We were a litigation funding and medical disbursement funding business. We have medical disbursement funding business in Australia and the U.S. I was a CFO there for 3 of those years. And prior to that, I was at a leading stock-broking firm, Shaw and Partners Limited. I was there for 12 years with more than half of those as company's CFO. Though I've had at least 8.5 to 9 years' worth of experience as a CFO, as I said, the last 3.5 of those in assets and bonds. So there we go. Tim, back to you.

Yes. okay. Thanks. So Shalini and Craig will run through the presentation and upon conclusion, we'll take questions. [Operator Instructions] So the presentation, if we run down, you've got the normal disclaimers, which you can read at your leisure. But otherwise, I'll hand over to Shalini who can kick off proceedings.

Okay. Thank you. Thanks, Tim. Before I go into the highlights of the first half that we're talking about, I just wanted to sort of highlight a couple of points that we've made over the past year. DXN changed the direction of our [indiscernible] in March 2021. If you look at some our comments in March 2021, we articulated what has changed. And we started changing and focusing on our core strength or DNA of our company, which was around the Edge data centers side of the business, building Edge data centers and managing and offering that to ourselves. At the same time, focusing on modular data center manufacturing part of the business and this is for the [indiscernible] that we have globally. We are also quite clear about the target market that we are growing to start and there were 3 main segments, they were cable landing stations or subsea market, mining, as well as Edge data center. This change had been put in place about a year ago, and I think that's what we're trying to present in terms of what we've seen in growth. This is what comes through in this half. So the first thing here is what we've seen. Very strong momentum in modular data center manufacturing sales. So I just want to highlight here on the first point, we have had 3 years of strong year-on-year growth, and there's been a big focus in this part of the business. So if you think of our FY '19 result, we're down about $1.5 million in sales. And then in FY '20, we went up close to 5 -- [ 5.1 ]. In FY '21, we were closer to [ $6.9 million ]. And in this financial year, year-to-date in our -- and is highlighted in our report, we have achieved already to date, year-to-date, 12.5 million, and this is year-to-date. And what is clear is that growth is happening year-on-year, and we're getting more and more into blue chip companies, companies who are on the -- where -- that award us good contracts and also repeat business that comes through from some of these customers, and that subjects come through. And the other thing that's really good is from a geographical expansion point of view, we're just getting a lot of opportunities, not just Australia, but also, in Asia-Pacific, in Latin America and other parts of the world. So our global expansion and our global recognition is certainly there. And that business reaps itself, so it comes back to us as well in terms of people reaching out to us for -- because of our reputation that's growing in this business. So the momentum certainly is there. The other point -- the second point that I'd like to highlight here in terms of what this report shows is -- is this a cash flow positive half, and we want to highlight that. This is very much because of our growth in modular data center sales that we've achieved in the strong half and also, a very strong second quarter of $1.9 million. We'd like to also just highlight one of the key highlights of the last half is that we've raised a total of $7 million in equity and debt with pure asset, and this enabled us to successfully complete the acquisition of Secure Data Centers in Darwin. And that funding, also, was allocated into working capital for the modular business, which clearly has a lot of growth. The other point there is around Melbourne and our Melbourne Data Center dispute that's been long-standing, that's been resolved and that essentially frees up $0.5 million of costs that DXN is freed off going forward, and that's a huge achievement for us. So -- and since then, we've come on board, I've taken the role of the CEO, we've got a -- we've reinforced our management team with Craig coming on board as the Head of Finance. And also, a new Chief Commercial Officer, and subsequently, in this particular financial year as well, we've signed our largest ever contract with Multiplex and that was $3.5 million and that is for a data center in Bullsbrook with the Department of Finance as well as -- this is for the quarantine center in Western Australia, as well as 10 communication modules that comes along with it, and that's well underway in deployment. And that's really the highlight that we have covered of the first half. What I'm going to do is I'm going to just ask Craig to just go through very quickly what is our -- just key highlights around financial snapshot that we have, just to present, Craig? I think you're on mute.

Sorry about that. I was on mute. There's feedback happening here. Thank you, Shalini. Look, a lot of what I'm going to say has already been brought up by Shalini, and a lot of what I'm going to also say will be in the rest of the presentation. So apologies if we're are repeating ourselves throughout this, but what we are repeating is the good news. So if you have a look at the first box there, you can see that we're 60% up on revenue growth, half year on half year. So our total revenue for the 6 months to January or to December '21 was $6.6 million. That's up from $4.1 million in the half year to December '20. Strong modular manufacturing sales drove that, particularly Wingu and Sub.co so good strong growth there. And if you have a look at our revenue projections for the next 6 months, you'll see that our income to -- our total revenue was [ $8.035 ] million in financial year '21. Budgeted for financial year '22 is $12 million, so that's another, effectively, 50% growth year-on-year. So that indicates strong growth, and that's coming off a strong pipeline and good sort of contracts to come for us. Moving along to Slide 2, you'll see $7.9 million in new module contracts secured for the first half of '22. And as we go through in the appendix on Slide 12, you'll see that Year-to-date, those modular contracts secured are now up to $12.5 million, including Multiplex. So again, good strong numbers, and we hope to continue with that strong pipeline that we have there as well. Box 3, our positive cash flow for the half. I went back and had a look at our half year and annual reports since the company has been listed, and it's pleasing to say that this is the first report that we've been able to provide to shareholders, be it annual or half year that's had positive operating cash flow for the reporting period. So that's encouraging, and we anticipate that, that's going to continue into the coming periods. Again, off the back of strong sales, a strong pipeline of potential new work, and things are looking good. If I go down to Boxes 4 and 5, they both tie back to the operating segment note of the half year report. Modular manufacturing growth was up 61%. That was $5.7 million as opposed to $3.56 million in the previous half year. Again, strong pipeline of work is going to continue. And we hope to see that, that number stays at that growth level. We'd like to think that what we've proven thus far is that we can deliver on top of what we've already given. And you'll see the data center growth there. That excludes Darwin. Darwin came on board in October of this current financial year, and it's exciting the revenue that comes through from Darwin, but that 7.5% is purely year-on-year, excluding Darwin. And if you move across to the last slide there, you'll see that we had cash at bank of $3.1 million as of 31 December. Again, we've got strong cash in the bank at the moment. It's forecast to stay strong. And when you take into account the Melbourne lease now not being around, that drew away about $250,000 worth of legals in the last 6 months. So that's now finished as well. And we can see that, that is going to continue with, again, the strong modular contract pipeline that we have. Cash at bank should remain strong going forward as well. Shalini, back to you.

Thanks, Craig. Okay. So there's a -- Thanks for that. So just to highlight again, I think I just briefly mentioned this change in strategy that we announced at the beginning of last year. Just to expand on that, we are on the same track with additional double down on this strategy that has proven well for us. So if you look at these 4 quadrants, I'll address each of these one by one. First of all, modular center manufacturing that's from the first highlight slide that I mentioned. Clearly, our original plan of going after subsea customers, mining customers, edge data center, modular data center requirements have shown results and proven results. We continue to fill the pipeline with great opportunities on the back of that success with global internet companies, satellite operators, telco, even health providers who are looking at Asia-Pacific expansion. This continues to be a big part of our focus going forward and we expect repeat modular data center business from them. This is on the modular manufacturing side of the business. We continue to have strategic focus in defense and government, being Australian -- being public listed, we are well positioned for supplying modular data centers, and this is clearly a new market segment for government, but not for a modular data center company globally. But for government, this is something that's going to be quite critical as a need going forward. In the world that we live in, defense and government certainly is a focus for us. In terms of strategic priorities, it is absolutely critical as well that we continue to reinvest, which we have been doing in R&D and product development. Being Australian locally manufacturing local manufacturing in pulp, we have the ability to continue to innovate into emerging markets. Two such ones that I mentioned here is crypto, and we continue to do that for crypto customers who are looking for modular data centers, that's innovation in power utilization efficiency, Edge hybrid hyperscale market for Asia is also growing, and what I mean by that is, these are large operators who are looking at deployments in Asia, but in a hybrid form fashion, so part modular, part brick-and-mortar, which is suitable for that type of market. And we continue to innovate ourselves, but as well as with partners. That's really the focus of the team at the moment in terms of continuing that modular manufacturing pipeline. The second quadrant there is around our recurring revenue growth. Part of what we believe and we absolutely need to continue increasing the regular revenue growth. So the modular data center projects are a few -- 1 or 2 per quarter. But when we talk about regular recurring revenue, it's important to continue to focus on that. In terms of all of our data centers, the DXN data centers, we continue -- we have started investing back into it by introducing cloud solutions. And this is something that we've been working on for a few months, but we will have a new revenue stream to introduce cloud solutions into our data centers. And that's something that we see is going to reap results for us. We tend to do lots of work with DCA, who is an investor in DXN in cross-selling products with [ PADC ], which is the data center in Perth. So between the 4 data centers and you'll see the appendix, there's a bit more description around how that looks like, but there's cross-selling data center products between our 3 data centers that we own, as well as a partnership with DCA that's ongoing. We also continue to further enhance our maintenance revenue for all fully deployed modular data center sales. So as you look at some of these modules that have been contracted after the period of COVID that we've had, it's been deployed. It gets into warranty period thereafter, it gets into a maintenance requirement. So that's when we find that these multiyear maintenance contracts will start kicking in, and we continue to focus on and ensure that every module that we deploy, we will bundle maintenance as part of it and that becomes part of our recurring revenue model. We also start seeing that quite a few customers are requiring us to do turnkey solutions. And what that means is if we build a modular data center or an edge data center, we will always be asked for -- to do additional project management services as part of it. So a big part of our revenues, going forward, will include that. And finally, one of a very interesting model for us that we can start doing as we have a stronger balance sheet is data center as a service, which is being explored with mining companies who are looking at a complete lease of a solution. So we would own it, operate it, maintain it for them, and that's an interesting model for us as well that we're starting to see quite a bit of now. If you look at the third quadrant in there, when it comes to capital-light -- greenfield and capital-light model, we've announced that as part of our strategy in the past. In this calendar year, as far as my team is concerned, we are focusing on double down -- we doubled down on the existing data centers, make sure that we build revenue vertically on the existing data centers -- on our existing data center portfolio. But opportunistically, because we're an Australian-listed company, we are present in Northern Territory, we're present in New South Wales. We, very often, get edge DC build opportunities, which are customer-led contracts with underpinning agreements, as well as capital underpinning as well. Those are -- that's something that we look at all the time. Being an Australian builder ourselves, we understand the cost and so we can very clearly understand what that business model looks like. So opportunistically, we always look at these critical opportunities. And then finally, when it comes to international opportunities, our growth is significant for the edge data centers in APAC, so I see a lot of that coming through. And we have already, to date, assigned design orders with global internet companies, not of material value in terms of dollars, but material in terms of us being able to be part of modular deployments going forward in the future. And that's the precursor for great opportunities we have. So partnership with DCA for regional bills is also very much on our radar. Now -- and so that sort of covers off the strategic priorities. I'll take I -- know there's a lot of questions around that. We'll take the questions after. But just before I sort of end and break for questions. One question that we always seem to get back is around Edge market teams and drivers and why is DXN uniquely positioned. And I just thought I'd highlight that here before we break the questions. So we know that the global demand for data has no -- shows no sign of slowing down. There is a massive growth there. And what you tend to find is distribution of data networks, and this primarily, is driven by global internet companies will continue to drive Edge growth. And when I say Edge, it's distributor's network. It's not core networks, it's distributor networks closer to people, closer to where we live. And people are distributed, especially in Asia-Pacific, which is where our greatest opportunity lies, that growth will always be there for a long time to come. The demand of this infrastructure continues to also accelerate because of mobile phones and 5G. And the more that grows, the more the demand for Edge data centers are required. So -- and then you step back and you look at global Internet companies, what do they need? They need suppliers and partners locally, and it has to be local or regional. Delivering on these solutions, and they demand high-quality resilience, operational reliability -- sorry, operational excellence, and it has to be reliable. So if you think of that, that's why being an Australian company that's listed, that is manufacturing in this region is -- positions us really well for that growth. So that's one part of it, which is the global internet companies. And then you've got -- just within Australia, the mining sector is set for growth over the next 18 months. We know that our team in Perth have been in semi-lockdown within WA for a while. That's opened up and the WA government is working on a recovery plan. And so we know mining features very, very strongly in this. Prefabricated modular data centers or Edge data centers fit these 2 above scenarios. And so that's why we see this is set to grow. So if you think of why DXN, for all the reasons I mentioned, Australian standards, design, electrical compliance, firefighting, bio-compliance standards, solutions into Asia-Pacific and -- is ideal for a company like us. We also build the spoke solutions for each of these market segments, which is exactly what people want. And so if you think of -- as well as our ability to actually have access to R&D and talent pool in Australia, that puts us in a unique position. So if you compare us say, with other companies competition. They're very large competitors, but they are either in the U.S. or in Europe. There are very few companies like DXN well-positioned, uniquely positioned to capitalize on the growth that we're going to see in this market. And that's sort of a bit of a highlight there that I thought I'd just put in there before we break for questions. Tim, I think that's -- Over to you.

Great. Thanks, Shalini. That was very good. [Operator Instructions] So we're going to start with -- I've got a few questions here. Question being, what is the -- sorry. What is the status of potential projects in the pipeline? Management has been slow in getting contracts signed. I believe we only signed 1 or 2 contracts per quarter, how does the company survive on this? And I think the company is clearly signing more than 1 or 2 contracts per quarter, but I'll let you answer that, Shalini.

Okay. Yes. So yes, the question is about pipeline and deals. So if you think of from what we highlighted here in the beginning, we have very strong momentum in modular data center manufacturing. As I said, we came into the business and started at $1.5 million in FY '19, we're at $2.5 million year-to-date today. That's growth. And the team has largely doubled down on the same strategy, and we are reaping results. So I think from a sustainability and signing contracts, the deals that you would notice in the early years, 3 years ago, it would have been the vicinity of $200,000 to $300,000 because that's the sort of risk that companies would take on DXN. But that's changing. Now, we have blue chip companies signing multimillion dollar deals with us, and so that's only set to grow. So I'm not worried about the number of deals. It's more of the quality of deals and the value of them is the point. Just to answer the pipeline question. So I think I highlighted that earlier in terms of pipeline. So we've closed on and proven ourselves over and over again, and we have repeat customers in mining, cable landing stations, which is subsea industry and data centers as well. But where we think we're going to actually see a lot of growth going forward is global internet companies. We're going to see additional -- lots of Edge data center help government, and that's where we're going to see -- we're going to start seeing results. And no doubt, mining and subsea, which is continuing grow as well.

And just a follow-up, I guess, on the same point is, does the company have the capacity to cope with this upswing in business?

Yes. Yes. So our factory in Perth, the team is well positioned to -- We get this question all the time from companies who are looking at a big deployment, absolutely. So from a production point of view, we can most certainly do 100 modules a year. And we can easily ramp that up and ramp that down. Sometimes, we utilize partners and relationships that we have developed within the manufacturing sector in Perth, and we do that in the event that there are requirements that needs to be done very quickly while maintaining quality. But yes, we can ramp up and ramp down as we need to.

Okay. Great. A question about data centers. Can we have more disclosure around the performance of the data centers individually moving forward?

Okay. Look, we know that Darwin has -- we've just recently acquired secure data centers, and that's a clear what the announcement is and what the growth is, what the contribution is for that. Perth, we start seeing annually 5% to 10% per annum. And Darwin, with the growth in cables, that's coming into that space. Additionally, we're introducing cloud products into that market. We will -- And there's a lot of government support. We will see continued growth there. Yes. So look, in terms of disclosure and how we break that up, I'll leave that to the experts, but over time, for sure, if there is clarity, the more clarity required, we can look at that in breaking up the different businesses. But we've got currently -- What I also want to highlight as well is as a company, we have blended margins that -- or blended revenue that's published. With modular data center sales, we have to be pretty careful, because we have competitors all the time looking out for what it is that we do. So we do not want to shoot ourselves in the foot, so to speak, because that's what competitors look for. They want to know where we're at in terms of margins and pricing, and competitive and commercially sensitive information is not something that we will want to share. Individually with investors, absolutely, but yet, we don't want to put it out there.

Okay. Yes. I've got a question on just the maintenance revenues. What -- How much of the business are they?

Okay. So this is modular maintenance?

Yes.

. Yes. So we have, over the years, after deploying quite a few modules, now, we've started ramping up. I would say we're in the vicinity of 100,000 in modular, in recurring revenue for maintenance business. It's not huge, but it's significant enough. It will be significant and more significant as we start having some of these bills that we've built from 3 years ago going post warranty and into maintenance. So we're starting to see -- we will start to see growth in that. But yes, it would be around about the 100,000 mark right now.

All right. Another question around -- this one is about Asia. Asia has been mentioned by the company in recent times, but nothing to show for it yet. Is it realistic that the company can break into that market?

Yes. So as I highlighted earlier, so we have currently deployed, I would say, 13 cable landing stations to date. And a lot of these landing stations are in -- deployed into Asia Pacific and very much so into customers who are in Asia and companies who are deploying out of Asia. So look, we have engagement already for deployment within Southeast Asia for design services. So when you start a large project, you always have a design order first. And those are small contracts that we work on for a period of time to finalize and ensure the bill of materials are correct, and we work with different teams and work with customers, including civil partners and so on to finalize things before we actually start building in the factory. So those type of contracts are already in play. So I would say yes, Asia is definitely -- I'm confident that we will continue to -- we will have success there.

Okay. Great. So another one. What are you doing about Sydney? It's been nearly 4 years since listing and still, no real progress.

Yes. So look, Sydney is the data center that we're -- I mean, at the moment, with also Craig here supporting the team, once -- now that we've got Melbourne off, I guess, in terms of cost, we are double down now with the Sydney solution that we have. We continue to work really hard on ensuring that we bring an anchor in, and this is critical for us to get going. However, at the same time, we are also developing new product into Sydney, which is something that we've never really done before and I guess, we didn't have the luxury before. By developing new products, you're bringing in new partners and you're bringing in straightaway new customers. And so we will start seeing some results from that in coming quarters.

Okay. All right. Here's a question. How is DXN dealing with the impacts of rising inflation on input costs? So raw materials, labor, transport, et cetera? And what effects it is having on margins for existing contracts and potential new contracts?

Yes. Okay. So I'll answer that. So a lot of our material that we have -- that we use for our systems in Western Australia, so whether it's raw steel or parts, we have a supply chain that's very much local in Western Australia. We have a forecast for some of our suppliers, so that is quite well managed in terms of raw material. What tends to be an issue most of the time is imported products such as batteries or power solutions like UPS and things. But because there's -- and COVID has exacerbated that greatly. So a lot of what we are focusing on is ensuring that our supply chain is secured for the deals that we have upcoming, because a big value proposition that we have with prefabricated modular data centers is doing everything in the factory before it goes to site and securing that forecast is critical. So we focus on trying as much as possible to use local partners and local materials so we can control that. Naturally, the biggest, I guess, if you ask me what's the biggest issue, really, it's more shipping, exporting equipment into different markets. We're at the mercy of shipping still. It's much better now than it was, say, 6 months ago, but yes, that continues to be a challenge. And all that means is we just have to preplan very much with the customer.

Okay. There's a question regarding cash flow. So positive operating cash flow for the half is encouraging, with EBITDA still negative. Is the operating cash flow outturn? So the question is does the operating cash flow outturn suggests a positive working capital benefit. Do you expect that to unwind in this half? Or are you receiving prepayments for new projects? Maybe, Craig can tell a bit of a go at that or Shalini?

I'll ask Craig to do that, yes.

Okay. What was it about the prepayments again, Tim?

Well, so do you expect the sort of -- Well, with the negative EBITDA, but a positive cash flow, suggests a positive working capital benefit I suspect to come. Do you expect that to unwind in this half? Or are you receiving prepayments for new projects?

We received payments of projects as they go. There's -- to the best of my knowledge, there's nothing in the way of prepayments, but it's as we go. So it's stage payments, and that's the contractual obligations on the customer to pay them as we go. We do have on top of that the AASB 15 revenue from contracts with customers accounting standard that we have to deal with, which can distort what we receive cash-wise versus what we can actually book as revenue. That's purely a timing issue. But from our point of view, we're -- yes, jobs go out the door and progress payments come in from customers. So we don't have anything, as I said, to the best of my knowledge, by way of prepayment. But as the job goes along, that's where we're getting paid. And then I suppose, a flow on from that, that I don't know if it's been asked the question in the forum there that you've got the questions for Tim, but from a cash flow point of view, we've had positive cash flows for the first 6 months. We anticipate those to continue. Budget forecast wise, we've certainly got cash is going for more than the foreseeable future. We've got Darwin coming -- Darwin's come on board now, so we've got additional cash flow coming in from that data center. We no longer have the Melbourne lease to deal with, so there's no cash burn there. And with the new award -- the new contracts being awarded and the sales that we've already got that are partly completed, cash flow shouldn't be a problem for us. As for the prepayments, I guess that's something we could look at. But I believe that the model we've got from a payments being made on sort of percentage completion of the job is working well at the moment.

And you might want to refer in terms of the EBITDA so the one-offs in that period that affected the negative EBITDA quite significantly.

Yes, Shalini, do you want to flip through to -- There we go, thank you. What we've done there, you can see that we've effectively normalized the income statement there. The EBITDA, excluding one-offs, was similar to where it was first half FY '21. You can see we've taken out the Melbourne lease rent, which was the 500,000 bank guarantee that got converted to rent plus GST. The $245,000 worth of the legal expenses and then the R&D, which has been expensed. I may -- again, there might be a question that's already come through, but I'll address that as well now. What we've previously done is we received R&D grants through the years. And what we've done is capitalize a lot of that R&D expenditure. And it was decided that a lot of the R&D that we've done has now been completed. So what we were carrying as an asset on the balance sheet where we capitalize the expenses of R&D, we took the decision to move that and effectively expense it in the half year. So that's that $504, 972 you can see there. There is still ongoing R&D. And since 31 December, we have put more expenses to the -- or capitalize into the balance sheet. That is for new R&D that we're going about doing at the moment. And we'll be applying for a new R&D grant on the back of that. So you can see the take out the R&D expenses from the list. __40:33____ And our EBITDA, very similar to where it was this time 12 months ago.

Yes. Okay. Good stuff. So you mentioned -- Sorry, so how certain are you that Tasmania and Darwin will continue to grow strongly?

Yes, let me answer that. So in terms of growth, Tasmania has -- we've actually announced that as 7% growth from the previous half. And that will continue to grow at that rate between 5% and 10% every year is the expectation. With Darwin, for me, that's where the immediate growth opportunities are. If you look at sort of what is happening in that part of the world, so we have cable landing station customers, as we know, from the modular side of the business -- the modular data center side of the business, who have planned for cables to come in all of Asia-Pacific into Indonesia, as well as into Darwin. And so a lot of these customers are looking for back space, cable landing station builds within Darwin. DXN is well positioned to spot that growth. At the same time, what we'll also find is Darwin currently as we introduce new products, like the cloud products that we're talking about, that's going to give us that upswing revenue that currently does not exist in that market. So I think we've got a certain opportunity there. So it is also important to remember that Darwin, specifically from a growth point of view, is important for us because it is reading just a little bit about more about Darwin and if you just do a bit more research about the NT government strategy, it is about backup and recovery for the huge growth that Singapore is facing and that government-to-government relationship that exists and being ASX listed and a local company, we're well positioned to capitalize on that relationship as well.

Okay. Great. Unless there's more questions come through, I've got one more to wrap up, a couple of shareholders have asked about the share price decline, and we -- none of us want to see what the share price where it is, of course, and insinuated that the company has not responded or done enough to improve market confidence. How would you respond to that?

Look, I think I would say that the key to -- the only thing I cannot control the share price, but I can just highlight sort of what we have actually achieved and what we said we were going to achieve 12 months ago and turned around what we had into what we have now. We are very well known in the modular manufacturing part of the world, people reach out to us. We have a reputation -- we have a good reputation. A reliable solution partner. And that reputation is something that we've been able to grow into from what we were in FY '19 to now, FY '22. So that momentum is clear. So look, its results at the end of the day, and the share price, I believe, will look after itself. We said we're going to turn around the company, and that's what we've done. We've also brought on additional revenue, recurring revenue with the acquisition of Darwin. We've resolved the Melbourne issue, and we doubled down as a team on Sydney. I think that's the best we can do at this stage.

Okay. Good stuff. Look, another couple of questions have just come through. Any update or movement on either the connected farms or New South Wales __44:43___ gig opportunities? That's the first one. And do we foresee any engagement on HyperOne and Telstra rollout opportunities?

Okay. Connected Farms is status quo at the moment. They're doing what they're doing. And when they're ready, there will be additional work that we'll be working with them on. What was the second one?

New South Wales gig opportunities.

Gig _45:12__ opportunity, previously, was for 3 locations. And that was about 2 years ago. And that opportunity, clearly, we had participated. It's a government opportunity. It takes time for it to go through and happen. We sort of participate in these opportunities, but you sort of step back and remember that this is government, regardless -- what has happened since then is they have now come out with a new expression of interest for smaller sites, which is actually more suitable. And this is with satellite back call and is public information that has been released, I believe, in the last week or so. And this is actually going to be quite interesting for the extent for sure. So I think gig state, if you asked me a month ago, I wouldn't know exactly where it was headed. But from the last release about a week ago, there is definitely going to be some movement in coming months, I would say. I can't say exactly how -- when it's going to happen, but in coming months. With some HyperOne and Telstra, yes, absolutely. That's what DXN does. We are a builder, modular manufacturer of data centers, Edge data centers, fiber interconnects, telecom market segment is a part of that cabling landing stations are subsea. It means that there, it becomes an Edge data center, and then thereafter, you have -- Telstra have these old exchanges that they'll be converting into Edge data centers. They'll be hosting customers as well. So there'll be a [ colo ] playing for them. We're a builder. We're a manufacturer. We are Australian. We are local. Certainly, all those conversations are happening, both with all of these different parties. Yes.

And as an extension, I might -- If I can, I can just add that there are new standards in defense and government that definitely may benefit DXN going forward. You might want to just flush that out a little bit.

Sure. So as part of government standards are concerned in the past, there's always been hosting certifications for data centers. And these hosting certifications are written up by DTA, so digital transformation agency. And because DTA is -- So they have a framework for hosting services, so everyone who's a data center in Australia complies to these standards and contributes to it. What's interesting is they have now branched out and started defining modular data center standards for host of -- for framework around a hosting certification for modular centers as well. And DXN contributes heavily in that being Australian public listed company and with local manufacturing. So that's pretty exciting, because what that means is, once this becomes standard, then we get really become part of a procurement panel, part of a panel for 96 agencies that are out there for government and as far as government modular data centers is concerned, there's a lot of innovation that's happening in that space now, government and defense.

Okay. Look, I think you've done a great job answering those questions, Shalini. I think we've exhausted the questions. So I'll wait for you to wrap up.

Okay. Thank you. Look, I didn't plan to wrap up, but I -- all I want to say is thank you for dialing in. Thank you to our team who've worked very, very hard over the past 3 years. We still have quite an exciting year coming up. And yes, I appreciate all of the interest, and I'd ask people, I'm happy to have a chat individually as needed. Craig would back me up as well on some of these news. Reach out if you have further questions.

Great. thanks, Shalini. Thanks, everybody.

Thanks.