Facilities by ADF plc (ADF) Earnings Call Transcript & Summary

Good morning, and welcome to the Facilities by ADF plc investor presentation. [Operator Instructions] And I'd now like to hand you over to Mars Proctor, CEO. Good morning, sir.

Good morning, everybody. So if we can start with the overview, please, Neil. Okay. So ADF continues to work with many of the world's largest film and TV companies, supplying productions such as Star Wars and Marvel's Fantastic Four, Apple's Slow Horses and Netflix' The Gentlemen. With a fleet of over 730 vehicles that include costume, makeup, artist trailers, production offices and technical vehicles, our ambition is to be a one-stop shop for film and high-end television. And to support this, ADF acquired Location One in December 2022 and Autotrak Portable Roadways in September 2024. Next slide, please. So moving on to FY performance. FY '24 performance reflected a slow return to normal levels of market activity following the U.S. strikes in 2023 and continued project delays with revenue of GBP 35.2 million versus GBP 34.8 million in FY '23 and adjusted EBITDA of GBP 7.2 million versus FY '23's GBP 7.3 million. The 6 productions that were delayed in Q4 2024 and with the reason for the profit warning in November '24, have all started production in Q1 '25. We supported a total of 87 productions in FY '24 versus 84 in FY '23, including some high-profile shows like Adolescence, Mr. Burton, Young Sherlock, The Diplomat and Quarter Life. We completed the acquisition of Autotrak in September 2024 for up to GBP 21.3 million on a cash-free, debt-free basis. The acquisition was accompanied by a GBP 10.05 million fundraise. FY '24 was a very challenging year and continues to be so as production companies are faced with frozen budgets, reduced production spend and rising costs. Additional revenue uplift consequently fell from 60% in FY '23 to 50% in FY '24. With the market becoming increasingly more competitive, we've implemented a [ beat any quote strategy ], combined with multi -- selling of Location One and Autotrak services. Until Mr. Trump's announcements on Sunday night, the underlying long-term market outlook was looking favorable for ADF, buoyed by the sustained high levels of investment in the U.K. high-end TV and film industry. We remain focused on our growth strategy through organic investment, acquisition and continuous improvements to operations. The Board is recommending a final dividend of 0.9p per share. Next slide, please, an action slide. This slide gives you an idea of a typical unit base. It's a great example demonstrating the different products and services the group provide to the same end user. ADF has an established reputation built over many years with key decision-makers within the TV and film production supply chain. Where there are significant barriers to entry, the purchase of American Trailers, the manufacturer of bespoke equipment like makeup, costume and production offices. Transport compliance, before you can even move a vehicle, you need to be in possession of an operator's license. To have a license, you need to provide VOSA with evidence that you have the finances available to service, repair and maintain all your vehicles on the fleet. The industry contacts, which are essential, it's a very insular industry. And without established reputation and relationships with producers and production executives, it would be extremely difficult to secure any contracts in high-end TV or feature film. Our logistics and planning capabilities and infrastructure enable ADF to deliver across complex productions in the U.K. and throughout Europe, with the ability to react to any changes in customer requirements. ADF has established and enviable reputation built up over many years and consistently delivering a high level of service and quality vehicles. A quick look at our market, the market slide. The underlying market drivers remain strong despite a challenging 18 months with the U.K. continuing to receive substantial investment. Film and high-end television production spend in the U.K. in 2024 was GBP 5.6 billion, up from GBP 4.8 billion in 2023. The total spend on features increased to 24%, from GBP 1.7 billion in '23 to GBP 2.1 billion and the total spend on high-end TV increased 11% from GBP 3.1 billion in '23 to GBP 3.4 billion in '24. Across the total of production spend in the U.K., inward investment was up 30% and domestic productions down 26% compared to '23. The total U.K. spend on high-end TV programs that started filming in Q1 '25 was GBP 990 million from 39 production. This is an increase on GBP 691 million from 37 projects in Q1 '24. The government support remains very compelling with corporate tax and business rate concessions for the industry. Our competitive landscape, the facilities market continues to be dominated by 3 volume suppliers, ADF, Movie Makers and Translux with a 1 mid-tier supplier, On-Set. And below this, there is a plethora of small family businesses. Next slide, please. So moving on to our customer base. ADF worked on 87 productions in FY '24, including Slow Horses, Adolescence and Marvel's Fantastic Four. The average revenue per production was GBP 381,000 as opposed to GBP 385,000 in FY '23. Netflix remains the largest end platform with 20.4% followed by Apple at 19.1% and the BBC at 18.1%. However, we did see the level of diversification increase across broadcasters in the -- with Apple and Amazon significantly increasing the share of the group's revenue. FY '24 saw a higher concentration of productions in the GBP 0 to GBP 500,000 value bracket than in recent years. And the booking lead time has reduced to circa 2 to 3 months. However, the FY '25 order book continues to build, and we hope that in H2 FY '25, the market will provide improved visibility of when there will be a return to more normal levels of activity. Next slide, please. So this is about Autotrak Portable Roadways, the purchase of -- ADF acquired Autotrak Portable Roadways in September 25 for GBP 21.3 million on a debt-free basis. Autotrak has accelerated ADF's diversification of product offering and customer base across multiple industries. One of the largest privately owned suppliers of panels to the U.K. to film industry in the U.K. with a client base of 165-plus customers built over 30 years. The temporary roadway market is seeing significant growth in infrastructure projects and events and festivals. The acquisition is a further endorsement of ADF's aspirations of generating GBP 100 million revenue in the long term. Next slide, please, Neil. Moving on to growth strategy. ADF is committed to grow through ongoing investment and continuous improvements to operations at current levels of production in the U.K. TV and film industry. ADF has [ expanded capacity ] without further significant investment in the near term. CapEx will be prioritized for higher-margin revenue streams, new complementary services and maintenance. Location One are now fully integrated into ADF systems and processes focused on revenue growth and operational efficiencies. Autotrak Portable Roadways, the leading supplier of portable roadways to the film and TV industry is providing diversification in new revenue stream, events and construction. And we've invested GBP 2 million in additional panels since acquisition, adding 12% to their total capacity as Autotrak business model and cost base is delivering higher margins than the core group. We continue to assess other M&A opportunities in line with our investing criteria and IPO commitments. I'll pass you over to Neil now who will run you through some of the financial slides.

Good morning. So a quick walk through the P&L for last year, starting with H1. As we previously reported, first half of FY '24 was affected by the reset of the industry after the strikes in 2023, which were obviously very disruptive to the industry. In the first half of 2024, the work available was mostly smaller U.K. domestic productions, while the U.S. streamers realigned all their schedules of studio time, scripts, actors' availability and funding. It was a very competitive market, so we chase work very hard. And revenue in H1 was GBP 15.2 million, which was 17% up on the strike-affected H2 in 2023. Gross margin improved from 30% to 35% over the same period as the volume of work started to build. And we run the business very tightly, still in some strike mode and finished H1 with an EBITDA of GBP 2.5 million, up from GBP 1.5 million in the second half of 2023. So on to H2. Revenue in the second half increased to GBP 20 million, which was 54% ahead of the same strike-affected period. But as we previously reported, this was below expectation after a number of larger productions unexpectedly pushed their start dates forward from Q4 last year into the start of 2025. This was around the time of the U.S. elections and the first labor budget, which has led to some uncertainties in the market at the time. The increased volumes in H2 and less reliance on agency staff and more favorable locations or productions did improve our gross profit in H2 and our EBITDA compared to H1, but the market continues to be very competitive with ADF having to do deals throughout that period. As Mars mentioned, during the second half, we acquired Autotrak, so the P&L includes GBP 2.5 million of revenue from them from the date of acquisition in September. And the P&L also includes the adviser costs of about GBP 0.5 million, which is shown as exceptional costs. The impact of the strikes on Location One during 2023 and 2024, which was very subdued, resulted in an impairment of the goodwill at the year-end attributed to the original acquisition, that actual profits lower than was envisaged in the original valuation. So overall, EBITDA in H2 was GBP 4.6 million. And overall for the year, it was GBP 7.2 million, as Mars mentioned, with revenue of GBP 35 million, which is almost identical to the previous year. Final point in terms of dividends, we paid an interim dividend of 0.5p per share in October '24, and we're proposing a final dividend for FY '24 of 0.9p per share with a record date of the 25th of July. On to the balance sheet. So starting with the fixed assets. In terms of fixed assets, in 2024, we spent GBP 3.8 million on assets that actually went into service in the year, and that was split GBP 2.6 million to CAD core business and GBP 1.2 million to Location One. We then spent another GBP 1.8 million on vehicles that were held as assets under construction at year-end that needed some further modification. The majority of CAD's CapEx in the year actually related to a committed order of DAF vehicles made in 2023 that we deferred throughout the strike period, while the revenue levels were sort of suppressed. So by the end of the year, we've taken our fleet size up to 728 units, and we also capitalized GBP 1.2 million of property leases under IFRS 16 for some lease renewals and Autotrak's main base in Oxford when we took over the business. Further down the balance sheet then, you've got things of note are the hire purchase agreements at the end of FY '24 was GBP 16.1 million. This is how we typically finance a proportion of our CapEx, and that was down GBP 16.3 million at the end of '23. During '24, we added GBP 4.4 million of capital value of new hire purchase agreements. And as I mentioned, these IFRS assets by the end of '24 were GBP 9.4 million, and the largest part of that is our main operational base in Longcross. So net debt at the end of the year, excluding these IFRS leases, was GBP 13.8 million, which is up from GBP 12.8 million at the end of previous year. Other items on the balance sheet of note, the acquisition of Autotrak resulted in goodwill and intangibles of GBP 16.6 million at the year-end and a contingent consideration of GBP 6.5 million discretion just in relation to Autotrak. And as I mentioned, the goodwill for Location One was reduced from GBP 6.2 million to GBP 3.7 million for the impairment. Lastly then, the cash flow more briefly. So we -- our EBITDA for the year, which we mentioned is GBP 7.2 million turned into net operating cash inflow of GBP 11.5 million, which you can see in the table. However, that includes a one-off working capital effect of GBP 4.8 million in relation to the assets acquired as part of the Autotrak deal. So excluding that, the cash generated from operations was GBP 6.7 million, so close in line with the EBITDA. Repayments on hire purchase agreements and property leases was GBP 6.3 million. Cash CapEx in the year was GBP 1.4 million. The rest of the CapEx was financed by hire purchase agreements. Dividends paid, as mentioned, were GBP 1.3 million. There's one dividend before the fundraise and one after as a result of the fund raise [indiscernible], shares increased from 81 million to 107 million. Overall, therefore, there was a cash outflow of GBP 1.2 million. And that meant that the cash balances at the end of the year was GBP 2.3 million. So that's a quick run-through of the financials last year. I hand you back to Mars now to summarize.

Okay. So to summarize, trading in the first 3 months of the year is in line with the Board's expectation with Autotrak performing particularly well and opening new markets. We're currently working on 20 productions and are consistently in keeping our market share between 33% and 36%, which is actually 40% at the moment. Timing of products continues to be uncertain as the market has remained relatively subdued as production companies face frozen budgets, reduced production spend and rising costs. The U.K. film and high-end TV industry continues to attract significant global investment, with production companies increasingly choosing its world-class studio facilities and highly skilled workforce. The group is well positioned to capitalize on underlying industry drivers and growing market opportunities in the midterm, focused on growing organically through continued investment in revenue-generating fleet and appropriate investment in our healthy acquisition pipeline in line with our strategy and a robust evaluation criteria. So if we have any questions.

[Operator Instructions] I'd like to remind you that recording of this presentation, along with a copy of the slides and the published Q&A can be accessed via your Investor dashboards. Mars, now, as you can see, we received a number of questions throughout today's presentation. And Mars, could I please ask you to read out the questions and give responses [indiscernible] to do so, and I'll pick up from you at the end.

Okay. We've got a question here, which is probably on everyone's lips at the moment. Thoughts on Trump's tariffs comments and specifically how much of the ST impact results and certain could have on productivity activity in the U.S. even if actual tariffs don't ultimately materialize. I think it's far too early to start really debating it at the moment. We've seen what Trump's done. He's thrown a bomb out there, hasn't he, which raises a lot of questions. He's only talked about film at the moment. What's the definition of a movie? Does it include TV series? Does it include unscripted? What if it isn't a theatrical release? What's the definition of made in foreign land? Is it all film, part of a film? What about if it's only postproduction? Is there a threshold? 100% applied to what entire budget production budgets below the cost line? What about residuals and revenue shares? So I've read quite a bit of it from production people involved in the legal side of stuff, and it's an absolute minefield because of how our industry is run. But it seems that since that statement on Sunday night, the White House has backtracked. And the last statement they issued yesterday was the White House has since clarified that no final decision on foreign film tariffs have been made, that they are exploring all options to fulfill the President's directive of make Hollywood grade again. This is a walk back. This walk back suggests that the administration is grappling with the complex legal and practical challenges of implementing such tariffs on what a service is essentially rather than a physical goods. So I think for the near future, there's just going to be a lot of conjecture out there with nothing. On a positive note, we think or I was thinking yesterday that if there are going to be some tariffs at some stage in the future, it's not going to be imminent. They're not going to be in the next 3 to 6 months or maybe take them years to get through. In the interim, are the studios going to want to take advantage of that and actually try and get as much made and take advantage of the tax incentives that we have in the U.K. and Europe and get as many films done prior to any tariffs coming in line? So there is an upside to that, positive side to that. From an ADF perspective, we've just gone through the strikes, where all productions that had American actors and writers stopped, which are predominantly films. There's a few television series, but not many. So the films actually stopped for that period of time. It did hinder us, but we generally operated on 20 productions at any one time, which is what we're doing at the moment. The television film industry in the U.K. is very buoyant. We're working on some huge projects at the moment. They are hugely popular, things like The Gentlemen, Rivals, The Witcher, that sell all around the world. So if that was to be the case, there wasn't any films. We just carry on doing what we did in the striking period and just adapt accordingly. But I think it's just -- I think it's far too early really. And we'll see how that develops over the coming months, I think. Current thinking of pursuing other complementary acquisitions, which areas available opportunities and vendor value expectations. So we have a strong pipeline of potential acquisitions that we've been involved in over the last 12 to 18 months, and we continue to do so. One thing that has been prominent with all of those acquisitions is that having gone through the striking period, those -- all those businesses have suffered to the same extent as ADF. So their turnover and EBITDA has been hit. Their performance has been hit. And these businesses, when they're wanting to sell their business, want to obviously sell them at an optimum level, which means that they want to sell them with high EBITDA levels and high valuations. So our conversations have been with them that they want to carry on in communicating with us, but want to try and get their EBITDA levels up to a place where it would be -- give them a satisfactory return on their investment. Okay. Next question. Is the original Autotrak CapEx plan reduced? No is the answer to that. We've invested GBP 2 million, as I said earlier in the presentation this year on 2,000 more panels, which is at 12% to their stock. They are probably working at a maximum utilization level even with the new panels, and they're still cross-hiring stuff in. So no, we won't be changing our investment plan with them. We're going to see how this year pans out. We've obviously conscious of what's been happened in the last 48 hours. So we'll just see, we'll just keep our heads down now for the rest of this year and keep working to deliver on the objectives of the year and hit our figures this year. A question here. Why do customers choose you over competitors? That's a good question. I think there are multiple reasons for that, depending on which production it is. We are -- there are a lot of customers in terms of high-end television who are very keen on sustainability, accessibility and inclusion. I think we're the leading supplier in that area. And for that reason, we get a lot of work our competitors wouldn't because we are so advanced in terms of sustainability. We have a product called EcoBase, which was helped developed in conjunction with Location One. So we are able to supply a whole unit base with multiple products. So everything from battery power generators to ECOPODs, which are basically are traded with 3 waste streams, 1 for paper, 1 for plastics and 1 for food. Food is by far one of the biggest wastes on the film set. And not only do we provide these products, we provide the reporting that goes with it. So with the generators, it's all data driven, and we give the production a log-in to the generators so they can follow how much battery power is being used. The saving on fuel that would have been supplied so they can actually monitor that and get the feedback, and that helps them do their reporting. And likewise, with the other waste streams with the ECOPODs, that the food goes to an anaerobic digestion center and gets turned into power, and we can provide the reporting for that. So that's really important for productions. And the productions that don't have a lot of money to spend, they can even have things like, I don't know, solar-powered tower lights. There's lots of options there. So depending on their attitude towards sustainability, we can give them as much or less of that as they require and the reporting, which is very important to them. And then accessibility as well. A lot of productions have either crew or cast that may have -- require vehicles and equipment that's accessible, so whether that's for people in a wheelchair or you're working with people with -- they may have sight issues. We basically adapt, we have equipment that we can adapt for them. We recently -- well, not recently, I'm sure everyone is familiar with a series called Sex Education. So when we do a series like that, one of the actors in that, there's a young actor in that who's unfortunately paraplegic. But he's of an age where he wants to be the same as his contemporaries and he has a trailer the same as everybody else's, and we actually just sit down and this is really important at the beginning of shows. We actually sit down with the production and we speak to those productions, and we speak to the people involved to find out what it is they exactly need and want. So rather than just presuming that people are, I don't know, in a wheelchair and handicapped, and this is a ramp and this is what you get. We actually interact with them to find out what it is they need and listen to what they've got to say, which helps develop the relationship and gives them that inclusion that they're looking for. So there's those reasons. The others are compliance. We are -- as a public company, we are very compliant in terms of not just in the financial sense, but in terms of our vehicles. So all our vehicles are of the high standard, but all our trailers that we supply the actors with, they're all IVA approved and MOT-ed. There are companies out there that don't have that accreditation, which is really important, which means that the production has peace of mind knowing that all the vehicles that are supplied are 100% legal. So compliance is important. And the other thing is the infrastructure. The infrastructure is hugely important to production. So when we're doing productions like, I don't know, Star Wars Andor, you're filming on a huge Lucasfilm project, a big Star Wars project and it has multifacets to it. We have to be very -- we have to react quickly. They have multiple units. So they might have 2 lots of 35 vehicles in different places. And they also want to move those around and they may want to go abroad. So when we did the last series of Andor, we actually moved one of the units. It was filming in Pinewood Studios. They finished filming in Pinewood Studios on a Friday evening and the crew went, got in their cars and went home. We then packed the vehicles, moved them to Valencia, to the big science park in Valencia over the weekend, set the vehicles up. Crew jumped on a plane on Sunday afternoon, got to their hotels, had a night in the hotel, came in to work on Monday morning and their vehicles were set up as they left them on a Friday night In Pinewood Studios. So having the capability and infrastructure to be able to move things around Europe, as I've just explained, is hugely important to these large productions and films who have vast budgets, and it's obviously important for them to have security knowing that the facilities provider is able to accommodate all their needs. So that's -- they're the main reasons for that. How does the current situation affect competition and competitors? The market is competitive like most markets. So our competitors, we're all trying and competing for the same work. We will have our own customers and then everything else is up for grabs. So it's a very competitive market. And it can be for some of the reasons I've just mentioned, that you get it or more often than not, it's about being able to negotiate and try and put together a package deal that fits within the [ brand budget ]for those companies. Any short-term industry headwinds helping you take share from weaker players? No, not really. The only effect -- the only thing I would say is that there is an advantage of some of the weaker, smaller businesses regionally based because they don't have the overheads and the cost base that ourselves and Translux and Movie Makers have. Local supplier would be able to do, I don't know, production up in Manchester, a small band to production for the BBC that doesn't have a very big budget. That's perfect for one of those small regional suppliers that can manage to do that at a cheaper cost. So one -- I got another question, apologies if mentioned, but did you just say that ADF is currently 40% of the market and you are planning to maintain a 33%, 36% share of market demand returns thereby aiming? No, you do misunderstand that. It generally averages out throughout the year that we'll be somewhere between 33% and 36%. It's just that when we checked this week ahead of our market release, there are a total -- at the moment in the U.K., there are 50 productions filming, and we're supplying 20 of those, which gives us 40% of the market. That market -- that figure can change in the next couple of weeks. Question for you, Neil. How much of your debt is at a fixed rate?

All of it in effect, yes. So those hire purchase contracts, that's all we have is hire purchase contracts. So the rate is fixed at the time we take out the agreement. So we've been sort of financing, as I said, equipment on hire purchase for 5, 6 years. So over that time, the interest rate has gone up. It's come back down or slowly going back down again. So whenever you take out those HP agreements, you agree a rate, you agree the term, you agree the repayment amount and then that sort of just runs on in the background.

Got a question here from John. A lot of talk about the company being taken over. Please comment. I don't know. There's been a lot of speculation lately that Netflix are buying us, which is really exciting. But unfortunately, there's no truth in those rumors. Well, they haven't contacted me anyway. So I'm aware of stuff out there about that, but I think that's -- I think it's just wishful thinking really. So I don't know -- I can't comment any further on that. Question here, how much work do you turn away and how strict are your margins? Well we don't turn any work away, certainly not in the current market. The last time we were turning work away was post COVID. But for the last 2 years, we haven't turned any work away. The only work that we haven't taken on would be things that we wouldn't be certain if they're being financed, independent stuff that the finance isn't in place. So zero on that. And how strict are you on your margins? Well, we have to be fiscally responsible, and we have to manage the business sensibly. So in terms of our margins, what I can say is that since the strike, when the strikes happened, we batten down the hatches and we implemented a strict fiscal control. We stopped CapEx. We put a hold on recruitment. We stopped all nice-to-haves, and we managed the business accordingly to our work streams and the volume of business that we've got coming in. And we haven't come out of that mode, if I'm honest, because the market hasn't fully returned. So we've been sensible in doing all things I've said, and we've mothballed a certain percentage of our fleet, which means that we don't have to service it every 12 weeks and -- because that obviously costs money, and it creates work for our maintenance teams and mechanics, et cetera, et cetera. So we've just been sensible in managing our finances on that. What is the current risk of high debt levels during this weak trading period? Neil?

Say that again? Sorry, Mars.

What is the current risk of high debt levels during this weak trading period?

Well, we've got to carefully manage our cash flow. I think that's what the priority for this year is really, making sure that we've got adequate working capital, but also managing our debt levels in line with our commitments. So that is a huge focus. And obviously, we don't know, as Mars said, what's going to happen with the Trump and his plans for tariffs. But currently, we're sort of kind of managing our cash flow kind of in line with the guidance that's in the market.

Thanks, Neil. Quite a good question here, very pertinent, from Lars. Do you consider conserving cash for future acquisitions instead of paying a dividend? Well, that's a very good question. We have, and it's something we get asked constantly when we go to do our investor road shows because we have a number of our investors that are invested for the long term and are not necessarily interested in the dividend and would like to use that money to grow our business. But equally, we have half -- the other half of our investors that have invested on that basis to get a return on the dividend. So unfortunately, we have committed to that at the IPO to offer a progressive dividend, and it's something that we have to -- we're committed to and have to follow through. Good question. Do you think it's wise -- here, another good question. Do you think it's wise to be paying a dividend considering the uncertainty around the tariff and the industry and the profit warning back in March? I think I've just answered that. We've made a commitment ahead of that so we don't have to follow through with that. Okay. Here's a good question from Matthew. Based on your response regarding your superior service and the competitive nature of the industry, why do you appear not to work with the larger productions that occur in the U.K., Europe, Mission Impossible, Fast & Furious, Wicked, Barbie, The Avengers, I'm seeing are all made on these shores to name a few. But as far as I can tell, these are being serviced by your competitors. Why is this? And is there a plan to move into this sector? And how is the order book looking this year? So in answer to that question, that's a great question, Matthew. Translux and Movie Makers promptly work in the high end or the feature film industry. We predominantly been in the high-end TV and film, so their contacts in there. They've traditionally done -- Movie Makers have traditionally done all the Fast & Furious and Mission Possible and likewise, Translux, the other productions. Their relationships are with those producers and those transport captains. They also provide them with some -- a type of single-artist trailer called a fifth wheel trailer or an executive single-artist trailer, whichever term you like, that the actors requiring those. So for Avengers, for instance, 2 of the leading artists in that require -- it's in their contracts that they have trailers far superior than the other trailers for the rest of the cast. And they can facilitate that, Translux and Movie Makers and we can't because we don't have those vehicles. We have planned to get those vehicles to have them made. We've had a prototype built for one, and we would have carried -- we would have had 10 of those this year, but we put that on hold because of the CapEx involved in getting that done at the moment and the insecurity in the market. So it's a simple reason that our customers work in the high-end TV and film market, and we've preferred that market over the last 6 or 7 years because that it's a repetitive business. We did 6 series of, I don't know, Peaky Blinders, 6 series of The Crown, et cetera, and the same kind of expenditure as films, the spend levels are the same, and we just prefer the high-end television film. Just see if we've got any other questions. Okay. Is the U.K. film production markets stagnated or is it global film industry? No, it hasn't stagnated. I think the honest answer to that is that post COVID, when the market was booming and there was a huge, huge demand, the demand outweighed the supply in every sector, not just in our sector, but with the lighting, with the studio space, with crews in every facet of the industry. We took advantage of that. We filled our boots and made a lot of money, and we could -- we put our prices up -- continue to put our prices up. And so did the crews and so did the studios and so did everybody else, which makes it unrealistic and unsustainable, doesn't it? So I think all that's happened now is post strike is that streamers, films, studios, all the people that finance and make television and film have had to adapt. And I think that just the rates for everyone from crews, actors and everyone has plateaued out now, it's just getting back to a normal reasonable level where people come back business. The demand is there. Demand is still huge. All the streamers, there's huge competition between the streamers. Netflix are still leading the way, but Apple, Amazon, Disney are all catching up. The problem for Netflix is that those other businesses have multiple revenue streams and huge revenue streams. So they will catch up eventually. But Netflix is still ahead in that market. Netflix that was spending big on series like The Crown, spending GBP 100 million a series on The Crown, GBP 10 million an episode, have clicked on to that. And now they're getting -- they're going to get -- they're getting the same GBP 100 million, they're making 2 different series and getting double for their money or even 3. So the hit series, things like The Gentlemen, they're selling worldwide and they're not spending anywhere near the same amount of money. So I think they're just -- as I said, I think that the industry has just plateaued out and then just we're getting back to what we would call normal levels of rates for cast, crew and suppliers. And that's it for questions.

Mars, Neil, thank you for answering all those questions you can from investors. And of course, the company can review all questions submitted today, and we'll publish those responses on the Investor Meet Company platform. Just before redirecting investors to provide you with their feedback, which I know is particularly important to the company, Mars, could I please just ask you for a few closing comments?

No. I think the only thing to say is we'll obviously wait and see what Mr. Trump does. But just to reiterate, I don't think there's anything going to be. I don't think there's anything imminent. It will create some uncertainty, but I think that's across every sector of industry at the moment with what's going on in the U.S. So from an ADF perspective, we should just focus on our business and our industry and our people and continue to do what we're doing and look to be positive and to hit our figures this year and then start again next year. So thanks for your time, everyone, today and speak to you again soon.

Mars, Neil, thanks for updating investors today. Can I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback in order that the management team to better understand your views and expectations. This will only take a few moments to complete, and I'm sure will be greatly valued by the company. On behalf of the management team of Facilities by ADF plc, we'd like to thank you for attending today's presentation, and good morning to you all.