ikeGPS Group Limited (IKE) Earnings Call Transcript & Summary

Good afternoon. On behalf of the Board, management and the staff of IKE, thank you for attending our 2023 Annual Meeting. My name is Alex Knowles, and I'm the Board Chair of ikeGPS. We welcome you as an online participant through our virtual meeting platform provided by our share register, Link Market Services, a special welcome also to the many new shareholders who have joined IKE since our last AGM. We note that you can vote and ask questions online and encourage you to do so. I'll provide you with further instructions as we progress through the meeting. If you encounter any issues, please refer to the virtual annual meeting online portal guide or you can phone the helpline on 0-800-200-220. I would encourage you to send through your questions as soon as you can. This will allow us to answer these questions at the appropriate time. In the meeting today, we have the following Board members. Let me introduce them. Rick Christie, Fred Lax, Mark Ratcliffe, Glenn Milnes. Also present today is Brian Musfeldt, our CFO, and representatives of our financial year '23 auditors, Grant Thornton. Ladies and gentlemen, with the introductions out of the way, let us move on to the formal part of the meeting. I will make some opening remarks and then our Managing Director and CEO, Glenn Milnes, will present and outline some of the performance highlights of the last financial year. After that, the resolutions that are before you today will be put forward, just to cover the formalities involved in that, the company's constitution prescribes a quorum requirement of 3 shareholders. I can confirm that this requirement has been met. Proxies have been appointed for the purposes of this meeting in respect of 22 million shares, representing over 13.9% of the total number of shares. I'd like to thank shareholders on the level of participation in today's meeting. My fellow directors and I intend to vote all discretionary proxies we have received in favor of Resolutions 1 and 2 as set out in the Notice of Meeting. Voting on all resolutions in today's meeting will be conducted by way of poll. Those participating online through the virtual meeting website will have the opportunity to ask questions. To ask a question, you will need to click Ask A Question within the online meeting platform. Select what item is regarding in the drop-down window, type in your question and then submit. I encourage shareholders who are attending to send their questions through as soon as possible. The financial statements for the 12-month period through 31 March 2023, together with the auditor's report are set out on the company's -- set out in the company's annual report. The annual report was made available on the ikeGPS website on the 30th of June 2023. I would like to now just present my commentary moving forward. As you know, my name is Alex Knowles, I am the Chair of IKE and based in Los Angeles, California. Through the financial year '23 period, I was pleased to continue in the Chair, having been appointed in the financial year 2022. At this time, I'd like to again introduce my fellow Board members. They're being Fred Lax, Mark Ratcliffe, Rick Christie, and Glenn Milnes. On to our company. The 2023 financial year marked another significant period for IKE, a year in which we deepened our foothold in the North American utility infrastructure market and made meaningful strides in financial and operational performance. We were very pleased to deliver a robust financial performance with revenue growth of 93%, reaching just under $31 million, with 89% of this revenue coming from recurring subscriptions and recurring transaction sources. Gross margin was $16.4 million and EBITDA was a loss that narrowed to $2.1 million. This performance significantly surpassed our internal targets. The uplift can largely be attributed to the continued demand for our productivity solutions in the North American utility and communication sector, along with our strategic investments into technology development. Our market is comprised of approximately 3,000 electric utilities, 200 communications companies, and over 2,000 engineering service providers across the United States. Today, IKE serves approximately 400 enterprise accounts constituting about 6% of this potential customer base. This underscores the vast untapped market and a long-term growth opportunity ahead of us. In financial year '23, a significant part of our investment went towards advancing the next generation of our product suites, including the next-generation PoleForeman and our AI-driven solutions. IKE Insight being one of the major areas of our II focus. These advanced products, which are launching in this financial year, designed to dramatically improve the way our customers operate. By harnessing the power of artificial intelligence and advanced engineering, we anticipate IKE Insight will enable faster, safer and more precise network engineering outcomes. The upgraded capabilities of our next-generation PoleForeman solution will also allow us to further meet the unique needs of our customers while enhancing our software's value proposition. A key part of our sales strategy is to land, embed, and expand the use of our software within these large enterprise infrastructure accounts. This can take some time. However, our software is sticky and directly supports network engineering activities, a necessity in the face of several macroeconomic tailwinds. This includes the anticipated investment of over $350 billion into fiber and 5G infrastructure, an additional $60 billion into rural broadband network developments. The urgency to increase electrical network capacity to allow carbon 0 targets to be met and the pressure on electric utilities to harden and maintain their distribution networks. Looking forward, we expect to see continued overall growth, noting that for Q1 and Q2 of this financial year, transaction revenue has been softer on a run rate level due to the traditional engineering practices of our 2 utilities where our 2 larger customers are building the fiber networks. We extend our thanks to our shareholders for your support and the belief in our vision as we continue to innovate and grow, we do so with the confidence that we are building something meaningful. Thank you. Glenn, now over to you for more detail on our performance for the financial year '23 and performance as it pertains to this financial year.

Thank you, Alex. And Brendan, if you're okay to stream the slide show, please, and I'll just prompt the page turn. And I'd like to first thank everyone for taking the time to meet today and to hear an update on the business. So what I'll do is try to pull through a number of slides bringing. I'm on Slide 4 at the moment, so IKE at a glance. Just Alex has touched on this, it feels like a long time ago now, but we grew the business 90-plus percent last year to $31 million of revenue. I think importantly, to understand is that 89% of that revenue is flowing from recurring and reoccurring sources, which is a very important part of our business model transition. And a consequence of the product development that we've done to move from a very early stage company back in 2015 to where we are today. This is 380 enterprise customers. Right now, it's more than 400 North American enterprise customers that are building networks or supporting the build of networks. And the other -- the other metrics are documented there, and we closed our EBITDA loss position to $2.1 million, maintained a strong balance sheet. Next slide, please. Again, just a graphical representation of our revenue growth through these past few years. So we grew from $9 million. That was sort of in the middle of the COVID miss to $16 million in FY '22 and to $31 million in FY '23 and with gross margin growing in line with that kind of trajectory. Next slide, please. And again, for shareholders, I think it's really important to note the quality of the revenue with -- close to 90% of our revenue mix now coming from either recurring subscriptions or reoccurring transaction sources. And this has been a really important transition for us based on investment into products and also into our business model. There's just a third bullet down there around efficiency. So our revenue per employee has trended up. It's more than $300,000 per employee and they grew in the period from prior to being at about $190,000 per employee. So that's a key metric for productivity and efficiency. Next slide, please. Every quarter we publish the same table in terms of key metrics. And through FY '23, we saw just strong growth across all of these things. We obviously -- we talk about transactions that shows the usage of the platform. Clearly, subscriptions is really important. It's the number of people that are subscribing to use the software in-house themselves and also hardware and other revenue. So field devices and field software drives some of the IKE office platform revenue. So that's another critical thing for us to continue to track. And obviously, the other key thing for shareholders is to look at the number of customers and logos that we're winning. We're targeting the very biggest infrastructure companies in the U.S., and they start small, but they can grow to be large, and they can be very sticky. It's sort of a decades-long customer opportunity with our customer base. Next slide. So what I'd like to do in terms of this presentation is to focus a little bit more on the market opportunity that IKE is addressing and what we do within that market and why customers are making purchasing decisions. Next slide, please. Brendan. So there's 3 segments of our addressable market. The first are the electric utilities themselves. So these are the folks that keep the lights on and provide power -- to power homes, businesses and now the electrical vehicle market. And they're all facing common challenges across North America. The first is around resiliency, so not having a network or a part of the network failed, of course, a fire or an outage. There's a big requirement for capacity. So how do you move from having 20% of the nation's energy sitting on the electrical grid to 50% by 2050 to meet carbon net 0 targets and empower electrical vehicles. There's a lot of liability risk in North America for causing a fire or a death or an outage, and the challenges are common across more than 3,000 electric utilities in the North American landscape. So it's pretty staggering in terms of just the number of electric utility customers that IKE potentially addresses. Next slide, please. And this is just a math. Again, some of this might be really obvious for some, apologies. But just trying to visually represent the scale of the network challenge in North America. So think of the U.S. as its 50 countries, it's bigger than Europe. Everyone speaks English, but they're very different in terms of how they operate. So the electric utility markets dominated by about 106 investor-owned utilities that serve about 75% of the population, they are the very biggest and most important electric utility companies in the country. Next slide, please. And in addition to this, there's more than 2,800 municipalities and co-operatives that also serve the more rural or smaller communities across the United States. And so yes, market timing is just everything. And what we're dealing with here in the U.S. is aging infrastructure, a need for much greater capacity and a need for much higher network resiliency. And IKE, we've built software that just helps to digitize the assessment process and also the design and maintenance process for power and electric utility companies. So we've got quite unique value, bringing technology into what's been quite a traditional market in terms of engineering practices. And I'll talk a bit more about our products in due course. Next slide, please, Brendan. And this market trend is not going anywhere. It's just going to grow and grow. It's -- if we look ahead for the next 20 to 30 years, and these numbers are in billions in terms of distribution network CapEx. The requirement is just to keep building more and more and more capability. And these companies just -- they're in need of productivity solutions. There's an aging workforce. They've got to go fast, way faster than they have gone before. And again, we play a small part, but we play an important part in terms of this network development process. Next slide, please, Brendan, to Slide 13. And what we've been developing over these last number of years is a suite of solutions to support, very specifically support distribution network assessment, design and maintenance. So we've got 3 core software products, 1 is called like IKE Structural. It's in now 7 of the 10 largest investor-owned utilities in the United States as their standard for designing and looking at structural analysis for their network. We've got a product called IKE Office Pro. This is all around digitizing the way that utilities capture and assess their network information. And then we've got a more recent product called IKE Insight, which is all around the ability to process like massive amounts of data, think of drones, think of Google Street View and being able to pull out power infrastructure information and give a utility customers and decision-making criteria. So those are our 3 core products. And then we've got a bolt-on solution called IKE Analyze. This is when we use technology-enabled just to process data on behalf of our customers and give them back an engineering output using technology rather than using a lot of people. So that's the core of our business, and we see opportunities just to continue to sort of build out capability around these key themes. Next slide, Brendan, please, on to 14. We go to market directly. This is a bit hard to read, I apologize. But we've got quite a deep team now of segment experts. We've got a group that focuses on the utility part of the market. We've got a team that focus on the engineering service providers that do a lot of the work, and we've got a team that focus on the communications company. So these are the groups that are deploying a lot of the fiber networks and 5G networks across the nation. Next slide, please. This is probably 1 to read at a later time, but we've now got a really well-defined sales motion that speeds our sales close time frame. So the go-to-market strategy that looks at the -- obviously, the market opportunity, the go-to-market approach and in these 3 verticals and then sales playbooks that support different messaging to different customers. They buy the same products, but they've got different painting points that we solve for these groups. Next slide, to 16. Thanks. Just trying to provide, again, a visual view of how -- this is a look into IKE software. This is Crown Castle, they're the biggest deployer of fiber across North America, looking down at the bottom of the state of Florida and looking at projects, how they're using IKE to use our software to go faster to get their fiber network deployed more quickly. Next slide, please, to 17. Again, just another map view. This is a dashboard for AT&T. These aren't projects. These are cities where AT&T is the biggest communications company in the world, where they're using IKE to again help build their fiber network in a more efficient and faster high-quality manner. Next slide, please. So we've talked a bit about the electric utilities. The other big macro market drivers for IKE ties back into what's happening with communications network. So across North America, fiber network deployments are still in the early stages. So most fiber goes overhead. So they're attached to power poles because it's 3 to 4x cheaper and it's about 2x faster than having to put a network underground. So the IKE solution just dramatically speeds up this network assessment and deployment process. And I'll show you how in just a minute. Next slide, thanks. And it's slightly counterintuitive in terms of where this investment super cycle was in North America. So it's different to how you might think about Japan or Australia or some of these other markets. There's probably another 5 years of just massive investment, there's 200 fiber companies racing to be first to pass homes and to pass businesses. And again, we support them to go faster and get their networks stood up and let quicker. Next slide, please, 20. And from a customer footprint perspective, it takes time with all of these huge infrastructure companies to, a, get through the door; b, to run proof of concepts; and then c, it become standardized in the way that they use your technology across their networks. And that's the, I guess, the exciting part for where our exits at the moment is we're now sitting inside groups like AT&T, Bell Canada, again, mentioning Crown Castle. These are all multi, multibillion-dollar businesses with 5-year or decades-long investment plans that are using IKE for aspects of their fiber deployments. And I think that's really important for our shareholders to understand. We get in, we land and expand. So we get in and then we aim to develop accounts and grow over time. And there's obviously a big chance for us to expand into new logos, new customers. There's probably 200 communications companies deploying fiber here in North America. There's also about 2,000 engineering companies that are doing lots of this work for customers. Next slide, please. So overall, it's a really big market top down. It's just an enormous opportunity. We assess approximately $5.5 billion total addressable market, if anyone wants to go and get the whole thing. But this obviously is -- it's not a winner take all. We see this market as a winner take best. It's an opportunity to grab customers and to maintain them for decades and decades as a great technology partner, which is our objective. Next slide, to 22. A lot of words here, but there's a good summary. Just in terms of some of these market tailwinds and market tailwinds matter a lot as you're growing a technology business, and we're just lucky to be in the right place at the right time we think in terms of this market. Next slide, thanks, Brendan. And we've showed this same slide before. If you look at the electric utility market, we're in 6th, actually now 7 of the 10 largest investor and utilities in North America have standardized on our IKE performing product to do their design and structural analysis programs. They -- each of them sit on our customer counsel and helping us build the next generation of products. So we feel like we're in a good place, but we've only really just got started in terms of the broader marketplace. So some context on the North American market landscape because I noticed a lot of these logos and names, et cetera, just aren't familiar to a lot of folks. But we truly are serving the very biggest infrastructure companies in North America, but just getting started. In terms of -- next slide, thanks, Brendan, to 25. Just trying to provide an update on the first half of FY '24. That's the year to March FY '24. The first item is, we have had some timing delays with engineering programs across 3 of our largest national infrastructure customers. These customers are not lost. And in fact, we expect -- they're guiding us to be at very high levels of IKE product usage over the coming years that we're looking at. But as a consequence of unrelated slowdowns with some engineering practices, our transaction revenue in the first half of the period would be lower than perhaps analysts forecast. The flip side of that is, we've continued to see very strong growth in our reoccurring subscription revenue in the prior calendar period, which has been very positive. So as we look ahead to the second half of the year, our sales opportunity pipeline and guidance from many of our core customers, we think the second half is going to be extremely strong, which we're optimistic about. So we should see a return to strong growth through 2H of this year. Next slide, please, to 26. I thought I'd just try to highlight quickly some key customer win examples through the first half of the year. We're winning about 1 new enterprise customer per week. And that velocity has continued to sort of step up as we deepen the sales team, but also our brand and the utility of our products in the market. There's 3 examples here. We made an announcement to the market around a Tier 1 communications company. This group operates across 35 of the 50 states in the U.S. We're supporting a project for them in California initially, should generate around $1.5 million in subscription revenue over the coming 18 to 24 months and some -- just some big opportunities to expand into their business in other parts of the country. The second one is a Tier 1 investor-owned utility. This is 1 of the 10 largest groups in North America, up on the Northeast Coast of the U.S. They've adopted our next-generation IKE performing product and the business model. And it's a multiyear subscription contract with more than $400,000 initially, and again, opportunities to expand usage across that business. And then the third one is a Tier 1 engineering customer wins. So the engineering companies are important to our market and our opportunity. They do lots of work for electric utilities and for communications companies, and they tend to have multi, multiyear contracts in place to do the work. So initially, we're supporting this national group with a decade-long process and New Mexico, helping that utility harden their network or strengthen their network. And again, opportunities to expand across a lot of different offices for this engineering company over time. Next slide, please, Brendan, to 27. We've invested significantly into product development and technology development over these last 2 or 3 years. And I think the exciting thing is we're at a point where this starts to pay back strongly. We're releasing at the moment, the next generation of PoleForeman. So this is the structural analysis program. All of the logos at the bottom, that's 7 of the 10 largest utilities in the country are on our customer council and our customers. And we're just going into the process to launch into these groups with this next-generation product. But it's also a whole next-generation business model, so moving to a pure SaaS model, licenses per seat per annum basis. So we just expect to see a really significant click up in terms of annual recurring revenue from the next-generation PoleForeman product. So it's going to be great for customers in terms of productivity and quality. It's also going to be very positive for the business in terms of revenue and predictability. Again, these customers are -- they're acquiring our software on multiyear terms. So it provides us with a lot of certainty as we look forward. Next slide, please, 28. The other interesting item is we've built an automation engine called IKE Insight. This is the ability to process bulk data. We're partnering with Google and using Google data to be able to accrue like a whole network find the poles, find the wires and be able to provide a customer with sort of a whole of network view of -- to drive some of their decision-making criteria. And I'll just pulse through this pretty quickly. But before I go to the next slide, the example here is, imagine you're an infrastructure company, you're trying to deploy fiber. You want to go over here because it's faster, it's cheaper, but you want to understand where can I go that's going to be easy from an engineering perspective? And where can I go where another fiber company hasn't already gone and won underlying home or business in terms of their account base. So this is just an example. Brendan on to 29. This product has got the ability to look for power poles, find the wires, and augment over those, and try to categorize a power pole from 1 to 4, 1 being it's going to be easy, it's going to be fast to put your fiber up. Category 4 means it's going to be really complicated and really hard. You're probably going to have to go underground. So I'll just step through these example images quickly, but you can see here an easy to attach to pole. We're not interested in the power on the top. We're interested in what happens down below the power, how easy it is to get fiber down into the lower part of the asset. Next slide, please, 30. Here, you can see a Category 2 pole. There's a bit going on below this asset in terms of 2 cable TV attachments, which you can see below the horizontal blue line. Next slide, please, 31. Here's a more complex pole. You can see here there's a street light, which has been identified, and you can see a fiber attachment as well as the cable TV attachment. This is going to be more complicated for a network provider to go and put something else on to this asset. And then next slide, thanks, Brendan, 32, and this is a really complicated pole. This streetlights, these transformers and these other attaches in terms of fiber competitors for this particular customer. And then next slide on to 33, again, just to give a visual representation. If you're a customer, you're looking down at a map view of a city. And the green light means it's going to be easy and you've got fewer competitors, the red dots mean it's going to be harder, it's going to be slower, and there's potentially another provider sitting on your network. So just trying to provide a visual representation of what the products do and the value they can add to a customer. Next slide to 34. And it just drives dramatic productivity improvement. So 10x faster, 4x cost reduction in terms of a communications company being able to deploy their network. Next slide, please, Brendan. Just other first half of the year updates. We've been really pleased to add significant capability into the IKE team. So Brett Willitt has joined us to lead our product management function. This is really important for IKE. Brett was the President of SPIDA Software, which is a structural analysis and structure management software business that was acquired by Bentley Systems a couple of years ago. We've known Brett for quite a long time. He's got a very extensive career in the distribution side of electric utilities having worked for Osmose, FirstEnergy and Verizon. And Brett was leading -- the SPIDA business is a direct competitor to IKE performing products. So we're really pleased to have Brett over to help us lead the charge across all of our products. But obviously, it's timely in terms of our launch of next-generation IKE PoleForeman. Secondarily, Brian Musfeldt joined us through the first half of the year. Brian has just got a huge amount of experience growing businesses in the North American market and our industry and related industries. So delighted to have Brian here alongside our team in Colorado. Next slide, please, Brendan. We also acquired a training and education business, Marne & Associates. And we're a software company and a technology company. But training and education is just the best way to reach our end customers. So Marne specializes in writing a book around the National Electric Safety Code and how it applies to an electric utility or a communications company. And they're of the most respected group across North America for the training on these, they're quite dry subjects, but bringing them to life and applying them to customers. And so for us, this gives us the ability to, a, engage with our end users, and also ultimately have a discussion around how you do this work in a technology-driven way. So it's a natural lead to talking ultimately about IKE products and technology. So we're really excited to have the Marne group join and add to our existing training team, which means we're getting front of hundreds and hundreds of engineers each year to talk about things that they care about. Next slide, thank you. This is illustrative rather than exact, but we do have just multiple avenues in front of the business to grow potentially. So we're expanding logos and winning new customers. The biggest part of our growth is just growing existing customers. That's what you've seen over the last 2 to 3 years is just customers that we've embedded in and then expanded in over time. We've done 3 acquisitions now. The PoleForeman acquisition has been hugely successful, and we'll talk to some metrics around what we've done with that business. Next time we provide an investor briefing. And then ultimately, there's an international expansion opportunity outside of the North American market. Next slide. I think that's where we pause and on to Slide 39, thanks, Brendan.

All right. Well, thank you, Glenn. The floor is now open for any questions after the CEO's presentation. Our CFO will aggregate the questions online, so they can be advised to the meeting. We will also seek to address questions submitted online that was sent prior to the meeting. If we run short of any time, and I'm unable to answer your question today, we will endeavor to respond to you after the meeting via e-mail. Brian, do we have any questions?

Yes. We've received questions. So the first question is for Glenn and comes from Michael Rutland. The question is, does the company have any significant operations outside of the United States?

Thanks for the question, Michael. Yes, well, we focus only on the North American customer opportunity because it's so vast, and we try to focus in terms of our go-to-market, but we have a really talented software development team in New Zealand and Wellington. So we've got a center of excellence there and some finance team members that help in terms of our listing in Australia and New Zealand.

Great. The next question is also for Glenn and comes from Karen Stewart. The question is, you made the statement, "transaction revenue was softer on a run rate level due to the traditional engineering practices of 1 or 2 utilities where 2 larger IKE customers are building their fiber networks." Can you elaborate on what you mean by traditional engineering practices?

Yes. Look, one of the utilities in question is, in Kansas, and they have preferred data standards and vendors and we've had to work with those preferred vendors to be able to access the utility on behalf of the communications company. The other is simply based on utilities inability to process large amounts of fiber application requests and it slowed down the communications company that we're supporting. In both cases, these customers they're not lost. They're slowed down for a period of time. And the long-term customers that have standardized on IKE and they're signaling they're coming back very strongly.

Great. The next question is for Glenn as well and comes from John Andrews. The question is, cash was reduced from $24 million at the end of fiscal year '22 to the $18 million at the end of fiscal year '23. What is the current cash holdings approximately? And where do you see cash burn and spend?

Yes. Thanks for the question, John. So we'll release our half year financials at the end of October. So that will be the next disclosure in terms of our standard sort of quarterly update on cash. But we -- our operational goal is to maintain a strong balance sheet. We've used the term fortress balance sheet historically, but we're going to maintain it strong. We've got levers to control. We expect to can see long-term continued growth, and we can control OpEx accordingly.

The last question is also for Glenn and comes from [ Ben LeBron ]. Who are your greatest competitors? And what is IKE's competitive advantage over them?

Good question, Ben. So we've got 3 products. And so we compete with different parties depending on which product it is we're selling to a utility or a comps company. On the IKE performance side, there's really 2 other competitors in the country, and 1 is called SPIDA Software, that was acquired by Bentley, and we just hired the CEO of SPIDA in to IKE. And the other is called O-Calc, and that's a product by a company called Osmose, and there's really the 3 of us that are standards for distribution power poles. And a lot -- there's a lot of green space in the market as there's a lot of utilities that haven't made a decision yet. So we're excited to be bringing this next-generation product to market right at the moment. IKE Office, I mean, we truly compete against historical work practices, quite manual work practices, utilities, et cetera. They're really good at what they do. So displacing manual work practices is much harder than it sounds. But there's one other technology company in our space called Catapult, who would be the closest technology competitor to IKE. And on the IKE Insight, there's lots going on in AI, lots of hype and lots of nonsense. What we're doing specifically in terms of processing drone imagery and Google data, we're relatively unique at the moment, that's an earlier stage product.

Brian, are there any further questions?

One additional question came in. This question is from Russell James family. How many staff do you have including R&D and on your sales team?

Well, in total, we have 104 employees, I think, today. So yes, revenue per employee of about $300,000 or just over, and the sales organization, actually, there's a chart in the slides, so I'll get that number precisely wrong. But our sales organization might be 24, 25 people, and R&D is the area where IKE has invested. If you look at a mature technology company, our level of spend relative to revenue on product and technology is higher than you'd see in like a normalized business, and we have about 30 people in engineering building next-gen products.

Great. And there are no further questions from shareholders at this time.

Thank you, Brian. All right. Now we come to the formal part of the meeting that are matters requiring resolution, which are outlined in the Notice of Meeting. You may ask questions on each matter being put to shareholders through the virtual meeting website. Please note, you will only be able to ask question after you have registered as a shareholder. Now moving to the resolutions. I propose to call a poll on each of these resolutions. As mentioned, shareholders will be able to cast their vote using the electronic voting card received when online registration is validated. To vote, you will need to click Get Voting Card within the online meeting platform. You will be asked to enter your shareholder or proxy number to validate. Please then mark your voting card in the way you wish to vote by clicking for, against or abstain on the voting card. With your major selection, please submit vote on the bottom of the card to lodge your vote. Please refer to the virtual meeting online portal guide or use the helpline specified if you require any assistance. Voting will remain open until 5 minutes after the conclusion of the meeting. The results of the vote on each resolution will be announced on the NZX and ASX after the meeting. Each resolution set out in the Notice of Meeting is to be considered as an ordinary resolution and as such, must be approved by a simple majority of the votes cast by shareholders entitled to vote and voting on the resolution. The first resolution is the auditor's remuneration. You will see we have placed up that on a slide for you to view. First, I'd like to acknowledge the work done by Grant Thornton in the financial year 2023 in the second year as the company's auditors. There has been a seamless transition, and we welcome their professionalism. Grant Thornton will continue as the company's auditors for the financial year 2024. This motion concerns the fixing of the auditors remuneration and the Board seeks shareholder's approval that the directors be authorized to fix the remuneration. Are there any questions for the Board concerning the motion?

There are no questions on this matter from shareholders.

Since there are no questions on this matter, you can now select for, against or abstain for Resolution 1 on the voting card. I'll just take a small pause while parties proceed. [Voting]

Brendan, can I vote for on both resolutions, please. Rick?

All right. We come to the second resolution, which will be displayed on screen. The second resolution relates to my reelection. I will now ask Glenn to temporarily take over as Chair of the meeting to introduce Resolution 2.

Thank you, Alex. I move as an ordinary resolution that Alex Knowles is reelected as an Independent Director ikeGPS Group Limited in accordance with NZX Listing Rule 2.7.1, being that a director must not hold office without reelection past the third annual meeting following the director's appointment or 3 years, whichever is longer. Alex has been a Director of IKE since 2014. In this period, he's been part of the growth of the company and it's transitioned to a software and solutions business. The Board recommends Alex to you as ikeGPS' Independent Director and unanimously supports his reelection. Are there any questions for the Board or for Alex concerning the motion from shareholders?

There are no questions on this matter from shareholders.

There are no further questions on this matter. So thank you. Please now select either for, against or abstain for Resolution 2 on the voting card. And I'll just pause here for voting. And Alex, if you want to pick back up following this item. [Voting]

Okay. Thanks, Glenn. We now come to the open section of general business whereas an opportunity for any shareholders to raise any questions they may have that they have thought of about through this meeting. Brian, do we have any questions?

There are no further questions from the shareholders.

All right. Well, in the absence of any further questions, ladies and gentlemen, thank you for your attendance and your engagement today. We will be announcing results of the voting on the NZX and ASX later this afternoon. And based on no further questions or thoughts, thank you for your attendance, and the meeting is now complete and closed.