Infomedia Ltd (BGLOBAL.BO) Earnings Call Transcript & Summary

Good morning. You can sit in the front row. I'm Bart Vogel, Chairman of Infomedia Limited, and it's my pleasure to welcome you here today. We have a quorum, and I declare the 25th Annual General Meeting of Infomedia Limited open. I'd like to acknowledge the traditional owners of the land in which we meet today, the Gadigal people of the Eora Nation. Our respects to them, past, present and emerging and extend this acknowledgment in respect to the first people in all the countries in which we operate around the globe. I'd like to extend a warm welcome to our shareholders joining us in person and online today. A warm welcome also to those who have supported Infomedia as our advisers, and of course, to the executive team members who are here; welcome to all of you. A special welcome to representatives from the company auditors, Deloitte represented here today by Mr. Damian Cork. Also joining us today is our CFO, Chantell Revie and other members of the executive leadership team. Before we commence for proceedings a few items of housekeeping. All attendees should now have registered their attendance and should be holding a yellow, blue or red admission card something that looks a little like that. If at any time, you have questions regarding your registration or voting procedures, please seek assistance from our registry provider, MUFG Market Services formerly Link Market Services represented here today by Andrew Martin at the back of the room. Finally, please ensure your mobile phones are turned to silent mode. I could completely trip us up if that goes off during the proceedings. Please note that today's proceedings are being broadcast via the Internet and will be recorded. If you wish to ask a question during the proceedings, please raise your admission card and wait from microphone or just talk loudly so that the question can be captured for audio recording purposes. Our agenda. Today's meeting will proceed as follows: I'll provide an opening address, commenting on performance during the year, and then I'll ask our CEO and Managing Director, Jens Monsees, to speak to the company's performance, strategy and outlook. I'll then deal with items of business in the order in which they appear in the AGM notice of meeting. And for expediency, I will take the notice of meeting as read. There will be an opportunity to ask questions and make comments about the operations or management of the company and any related matters at appropriate times during the meeting. Before I commence, let me -- I should have done this earlier. Let me welcome my Board colleagues. This is the largest appearance of directors at any point in the company's history. So we should acknowledge the extended size of the table, Jens Monsees, our CEO and Managing Director, Jon Brett, we then have Kim Anderson, Joe Powell, Edwina Gilbert, Jim Hassell and Lisa Harker. Thank you all for joining us today. All right. So let me then move to the Chairman's address. Although it's my last address to you as Chairman of Infomedia, I'm proud to have presided over another strong year as we continue to execute on the strength and phase of the transformation strategy that Jens outlined when he joined the company. The team has worked exceptionally hard this year and some of the achievements over the past year include continued growth across all products and all regions. That's not happened every year in the last 10, I should assure you and is a very significant achievement. Successful renewals of our largest contracts, including price increases. We further expanded our footprint in Mexico, Canada, Malaysia and Japan and extended our OEM contracts with Chinese manufacturers. Total revenue for 2024 financial year increased by 8% to $140.8 million. This strong growth was reflected in the exit ARR, which grew by 9% to $144.1 million. Importantly, the top line growth and cost management drove growth across all our profit measures. Underlying cash EBITDA increased by 17% to $33 million, and we delivered a 1 percentage point increase in underlying cash EBITDA margin to 23%. For FY '24, we introduced an additional new measure, net profit after tax adjusted NPATA, which increased 26% to $20.9 million. This measures the performance of the group by excluding the impact of acquisition costs, purchase price accounting and earn-outs so that it truly reflects the underlying financial performance of the business. Our earnings per share increased 33% to $0.0338 per share, and the company announced its final dividend of $0.02 per share, taking the total dividend for FY '24 to $0.042 per share which is up 5% on FY '23. Infomedia continues to generate strong cash flow from operations, with underlying free cash flow of $27.2 million. Additionally, we retain a very strong balance sheet with $70 million of cash on hand at 30th of June 2024 and no debt. And we continually assess our capital requirements and capital allocations. On behalf of the Board, I'd like to express our satisfaction with the progress made by the Infomedia executive team as they execute on Phase II of the transformation strategy. Turning to our outlook. Changing macroeconomic conditions have contributed to a more conservative view by the company around the timing of revenue growth to mitigate some revenue churn and integration delays that had been previously signaled. Customer churn event of approximately AUD 4 million occurred in October of this year and we also experienced DMS integration delays in the U.S. due to lower availability of our partners' IT resources following a cybersecurity incident at that partner. As a result, we recently announced updated revenue guidance. Infomedia expects to deliver total revenue in the range of $142 million to $149 million in FY '25. This is down slightly to our -- on our previous expectation of revenue of $144 million to $154 million. It's a 2.3% decline, in the midpoint of our revenue outlook. But it still represents a position where we will find ourselves having modest ongoing growth in a year of strengthening the business foundations of Infomedia. While slightly disappointing, it does represent variability in business conditions, but it does not reflect the continued progress in the execution of the long-term strategy. Importantly, we do not expect the healthy margins in this business to change. Following a successful first phase of the transformation strategy that delivered cost reductions and improved our operating leverage, Infomedia commenced on this phase -- the strengthen phase last year in FY '24. This will continue as we strengthen our revenue while driving further efficiency, operating excellence and ongoing global expansion. I will say that throughout the 9 years I've been on this Board, Infomedia has steadily grown its revenue and its profitability. I have every confidence that FY '25 will again deliver record revenue and profitability numbers for the business. As part of the Board transition process, the Board has engaged with our major shareholders, over the past few months to introduce our new Board members, who will vote on shortly and to invite broader discussion. We've received some very useful feedback from shareholders to consider, including remuneration issues and capital management. These are always a subject to a very active discussion on this board, and we welcome the input of our shareholders and look forward to continuing constructive dialogue on these matters. Let me reflect for a second then on Board renewal. In July, I announced that I would retire as Chairman at the conclusion of this AGM. And Jon Brett will be joining the Board as Chairman Elect. Jon will introduce himself shortly, but he will -- but he does bring extensive board and management experience with a strong background in finance, technology and corporate advisory. I'm also delighted for Joe Powell to have joined us on the Board since the 15th of October 2024. Joe has extensive executive experience across online, digital and business -- education businesses, telecommunications and sport technology as well as corporate advisory. Kim Anderson, will also be standing down at the conclusion of this AGM. Kim has served on the Board for 5 years and brought invaluable leadership to the remuneration people and culture subcommittee of the Board. She's been an outstanding director and a mentor to the executive team and frankly, to me as well. Thank you, Kim, for your contribution. So in closing, it's been an honor to serve on this board for the past 9 years and as Chairman for the past 8. I stepped into this role during an interesting time for the business, a transformational phase for Infomedia and we've seen the company achieve 9 consecutive years of growth since then. We've entered new markets, new regions, further expanded our product portfolio and overseeing the establishment a very strong executive leadership team and a renewed Board. I'm pleased with the progress that the company has made under Jens and the leadership team, and I leave the company in highly capable hands at both Board and management levels. Let me give a big thanks to the executive leadership team. You're here and you know who you are. I really do value the hard work that you've put into this business and look forward to seeing continuing great results from you as you deliver for Infomedia's customers and continue to strive to create shareholder value. I'd also like to acknowledge the dedication and hard work of our employees around the world without which the results in FY '24 would not have been possible. My personal thanks to my fellow non executive directors and I wish you all well as infomedia continues to grow from strength to strength and a very big thanks to our shareholders for your ongoing support. I'll now hand over to Jens, and I'll turn to run through the formal business of the meeting in a few minutes. Over to you, Jens.

Thank you, Bart, and good morning to all of you. Welcome to our AGM. I want to give a warm welcome to our new directors and incoming Chair, Jon Brett and Joe Powell, I look forward to work with you closely. Welcome to Infomedia. Firstly, I want to acknowledge and say thank you to you, Bart and to Kim, for your support, your guidance, trust right from the start, the first days. So thank you for all your advice and wisdom. It was very helpful for me, especially at the start going right into Infomedia and driving it from the beginning, together with you. Together, we accelerated the business and successfully implemented the first phase of our strategy. I'm grateful for the experience and the insights we have shared with me and the team over this time. I have enjoyed working with you both over the last 2.5 years, and I wish you all the best for your future. I hope that we stay in touch, and I'm happy that I have found some new friends. So, reflecting on 2024, we delivered a strong result, as you already mentioned, but our company is a much stronger and growing mode and profitability. All financial key indicators have been improved. And in FY '24, we grew our revenue by 8% to $141 million. And underlying cash EBITDA was up 17% versus 2023 now trading at $33 million. Our underlying cash EBITDA margin has grown to 23%. Currently, we are focusing on the strengthening phase of the strategy and have made good progress. All our core solutions are now based on modern scalable technology stacks. The R&D team did a great job of replatforming Microcat, and we have finished the work on the Super Service Solution Group as well. Both are now delivering solid profitable growth. We continue to enhance our products through innovative features such as new payment solution for super service and the tablet version for Microcat Pro. Our new operating model continued to deliver improvements in our processes. We have built a strong and dynamic executive team in Australia, and we have made changes in EMEA. We will now focus on America to strengthen the sales productivity and performance. We have expanded our footprints in markets, including Mexico, Canada, Malaysia and the Middle East, with the entry of 96 new Chinese OEMs, the expansion of our customer base remains a key part of our long-term growth and our go-to-market strategy. We doubled the number of Chinese OEM customers. As a first step, the SimplePart go-to-market team is now fully integrated, and we are able to deliver $1.5 million of synergies. I want to thank both the founders of SimplePart, [indiscernible] for their contribution and wish them well as they are leaving Infomedia business in January '25. Last, but not least, in 2024, we continue to lift our workforce diversity. We now have 30% female representation. We also worked through the year to be awarded a family-friendly workplace certification for our employee engagement scores, and they have steadily improved. IFM today is a truly global and diversified business by all key measures, customers, products and geographies. Our revenue split is 35% Americas, 31% in EMEA and 34% in APAC. The top 20 customers represent 38% of our ARR. Our business is now 99% recurring across more than 195 countries, and our products are trusted by 250,000 users on a daily base. We have made substantial improvements in all aspects of our business since we changed the management team. I could do this not without a very, very strong team. I want to thank your amazing talent -- our amazing talent for their contribution and their effort. I'm honored to lead this amazing team. Looking at the automotive sector, the industry is now in a challenging environment. Many OEMs are facing reduced consumer demand and declining new car sales, which impacts their global profitability. We see the opportunity to support our partners with software and data solutions that are lifting efficiency and productivity in the dealership. As new car sales as search, expect more focus on the service and parts business with an opportunity for us to grow further. Our new client wins and expansion in new markets are strong evidence that our customers appreciate our value. I remain excited by the market opportunities ahead of us. In a fragmented market of single point solution providers, Infomedia has successfully built an integrated global ecosystem with significant market potential. The serviceable market offers a lot of white space for us to further grow our products and enhance our footprint across various automotive markets. We remain focused on our strengthening phase in the business. Infomedia continues to build its world-leading solution side, an ever-growing large and unique data set and presence in all key regions as a world-class workforce. We have a strong balance sheet with $70 million in cash, and we are debt-free. We are exploring opportunities that will add long-term value for our shareholders by continuing M&A as well as active capital management. We updated the market with a revised total revenue guidance of $142 million to $149 million. There were 2 main reasons to do so. First, a result of previous a indicated SimplePart churn of single customer with 4 million ARR. To stop churn on this solution group, we will accelerate the customer success program to roll out into the Americas. Second was an unexpected delay in the DMS integration rollout. Our partner was subject to a major cybersecurity attack. We support and understand the decision of our DMS partner to upgrade their cyber protection with a new API that hopefully will be available shortly. Aside from this delay, we remain committed to our bidirectional DMS integration initiative in the U.S. and also globally. It is part of our growth strategy in the Americas. To understand the positive impact, you just need to look to our home market, Australia, where we are fully integrated with all their major DMS providers. Our main 3 areas of strengthen in FY '25 are: EMEA, we will help our new appointed leader Dirk Marco Adams, to quickly ramp up and drive growth in that region. We will roll out the hub-and-spoke model with our regional office remaining in Cambridge and our client-facing team being much more closer to our customers across Continental Europe. In Americas, after the first successful step of integrating the go-to-market team and seeing the founders leaving end of Jan, we are moving to the product and tech teams of SimplePart and we are moving them under our direct leadership and implement a new seasoned sales leader as Head of Region as well as increasing our presence in Mexico as well as Canada. Thirdly, for Infodrive CX, we are now building a global platform based on the acquired Nidasu solution. To further grow this business, we need to strengthen the dated software and move to a new scalable architecture. I'm very proud of what we have achieved together as a team so far and I remain confident in our long-term strategy to further increase value for our shareholders. I would like to thank you, our shareholders, for your trust. I would like to thank my team and the entire Infomedia staff around the globe for all their great work, a big thank you also to our customers and partners for continuing business with us. I look forward to update you at our half year results in February 2025. Thank you. And over to you, Bart.

Thank you, Jens. Let me now move to the formal business of the meeting. And I do need to just go through some of these formalities. So bear with me. Upon registration, you will have received a colored admission card: yellow for voting shareholders, blue for nonvoting shareholders and red for visitors. Those holding a yellow card can vote and may ask questions. Those holding a blue card may ask questions, but may not cast any votes and those holding a red card are attending as visitors and are not eligible to vote or ask questions. The relevant voting rules are set out in the notice of meeting, which I've taken as read. I will invite questions at appropriate times during today's meeting. Anyone wishing to ask a question or make a comment at today's meeting, please raise your admission card and stand and state your name and then ask your question or make your comment. All questions should be addressed to me in the first instance. If appropriate, I'll direct questions to one of my fellow directors, the CEO, the CFO or the auditors. I reserve the right as Chairman to rule questions as not pertaining to the meeting or being out of order. A copy of written questions received from shareholders and the company's response to each are included in the AGM minute book, which is available for inspection by members. Where appropriate, we've addressed these questions in our presentation today. For each resolution, I'll briefly introduce the resolution. The formal resolution wording together with the proxy positions will be displayed behind me. As stated in the notice of meeting, I intend to vote all open proxies held by me as Chairman in favor of resolutions 1 to 4, the voting positions, which will be displayed for resolutions 1 to 4 include the proxy votes that I will direct in favor of each resolution. Please note that based on the previous received -- on the proxies received ahead of this meeting, it appears that Infomedia will receive a vote in favor of the remuneration report of just less than 75%. This means that Infomedia is likely to narrowly receive a second strike and the conditional spill resolution will therefore need to be put to this meeting. As stated in the notice of meeting, I intend to direct all open proxies held by me as Chairman against the spill resolution. The voting position will be displayed for Resolution 5 includes the proxy votes that I will direct against Resolution 5. There will be an opportunity for comments or questions before each vote is taken. Rather than a show of hands, I have determined as Chairman that all voting will be conducted by poll as a means of providing transparency on all voting capital and this, of course, is in line with best governance practice. Let me run through the instructions for voting by poll. Those holding a yellow card are entitled to vote. If you're attending the meeting in more than one capacity, you should have a separate yellow voting card for each separate capacity in which you are attending the meeting. Please mark For, Against or Abstain box for each resolution in accordance with your voting intentions. If you're a proxy holder, you must comply with the directions of the shareholder to lodge a valid vote. To the extent that you're not directed, you have discretion as to how to vote, please mark a box beside the resolution to indicate how you wish to cast any open votes. If you require market assistance, please proceed to the registration table and MUFG Market Services will be able to assist. I appoint the representatives of MUFG Market Services to act as returning officers and results of the poll will be announced to the ASX as soon as practical following conclusion of the meeting. And for those who are able to stay afterwards, the Board and executives would welcome the opportunity to meet you in an informal setting and to take any further questions at that time that you may not have raised during the formal proceedings. I now declare the poll open. The first item of business is consideration of the company's FY '24 financial statements and report. The financial report, the directors' report and the auditor's report for the year ended 30th of June 2024 have been distributed and may be found in your annual report and on the company's website. There is no formal vote on this item of business. However, I do invite shareholders to ask any questions or make comments on either the financial reports and statements. The operation and management of the company or the conduct of the FY '24 audit, the audit report, the accounting policies of the company and the independence of the auditor. Chantell Revie, our CFO, is available to answer any questions about the financial statements. and Damian Cork of Deloitte is available to respond to the questions relating to the conduct of the audit and preparation and content of the auditor's report. Please raise your yellow or blue cards if you have any questions or comments at this point in time. We have no -- if we have no further questions, I will then proceed to the first resolution, which is the adoption of the remuneration report. The first resolution is to consider the adoption of the FY '24 remuneration report. Please note that this resolution is advisory only and does not bind the company's -- does not bind the directors or the company. I note that for the record of 25% or more of votes cast are against the resolution, this would constitute a second strike. As previously noted, based on the proxies received ahead of the meeting as shown on the screen ahead of you, it appears that Infomedia will narrowly receive a second strike and that Resolution 5, the spill resolution will therefore need to be put to the meeting. Voting exclusions apply to resolution 1 as set out in the notice of meeting. The Board has unanimously recommended the shareholders vote in favor of this resolution. The formal resolution, together with the proxies are visible to you now. And as Chairman, I hold 0.015% of voted capital which I intend to vote in favor of this resolution. Are there any questions or discussions on this resolution? There being no questions, please complete the voting paper for this resolution. [Voting]

Let me now move to the second resolution, which is for the election of Mr. Jon Brett as a nonexecutive director. Jon joined the Board of Infomedia on 11th of July 2024. He serves as an independent non-Executive Director and is a member of all board committees at the moment. Jon has been selected to succeed me as Chairman of the Infomedia Board following the conclusion of this meeting. Jon has extensive board and management experience with a background in finance, technology and corporate advisory. He previously worked as an Executive Director -- as an Executive Director of Investec Wentworth Private Equity Limited and as an executive of Investec Bank Australia Limited. Jon is also a Non-Executive Director of Corporate Travel Management Limited and raise investment -- Raise Invest Limited. His former directorships include Deputy President of the NRMA and a Director of the Vocus Group Limited from its listing on the ASX. Let me now invite Jon to say a few words regarding his candidacy.

Thank you, Bart. It is a privilege to be nominated to the Infomedia Board and to succeed you as Chair. Having been in Australia for 31 years, I proudly supported every Australian sporting team along the way. I first met Bart a few months ago. And after a rigorous selection process, I was honored to join the Infomedia Board on 11 July. My background includes 12 years with Investec private equity and Investec Bank. I also served on the Board of Vocus Group, a leading Australian telecommunications company for 8 years from its ASX listing. During that time, I helped grow the company from a market cap of 25 million to over 5 billion. Currently, I also serve on the board of Corporate Travel and Raise Invest. In nearly all the companies I've been involved with, the focus has been on acquiring, growing and scaling businesses, many of them global and within the technology sector. I hope to bring this experience to Infomedia as Jens and his management team work to strengthen and scale the business while also maximizing shareholder returns. Rather than going over the rest of my resume, which is included in the notice of meeting and available on my LinkedIn profile. I'd like to share my initial impressions of Infomedia and I would like to address the strike on the remuneration report. The strike. We understand and respect the concerns raised by shareholders regarding our remuneration report as reflected in the votes on this report. These votes highlight the importance of aligning executive pay with shareholder expectations and performance, designing a structure that satisfies all participants and shareholders is always a challenge. As a Board, we must balance these expectations with a critical need to attract, retain and motivate the talented individuals who drive our success. Striking this balance is not straightforward. And we must ensure that our incentives are both challenging and achievable to maintain their effectiveness. We are committed to incorporating shareholder feedback while ensuring that the goals within our incentive plans remain grounded in reality. Targets must be ambitious enough to drive performance, but also achievable to maintain morale and reward the very performance that delivers long-term value for all shareholders. Shareholder engagement. Since joining the Board, I've had the opportunity to meet many of our shareholders, listen to feedback and plan to bring these suggestions to the Board and management for consideration, where there's consensus, we'll move forward with implementation. On the Board, let me say a few words about the Board. This is a very strong team. As Bart and Kim stepped down, they leave behind big shoes to fill. But has done an outstanding job helping diversify the product suite, expand the international footprint and double revenue and cash EBITDA. On behalf of the Board, we would like to express our sincere thanks to Bart for his tremendous contributions. Bart has already acknowledged Kim's contributions, and I'd like to echo those sentiments. Kim has led the remuneration committee with tireless dedication, establishing a structure designed to support the company's growth. On the management team. Infomedia has a strong growth strategy, a solid market position and a talented management team led by Jens. I've had the pleasure of meeting all the local executives in person and connecting with those based offshore via Teams. I'm confident in the ability to execute on the strategy and deliver exceptional results. This is a robust business with an excellent suite of products. Like all living entities, businesses evolve, and we will continue to refine our products and develop our talent in the years ahead. I look forward to supporting management in the execution of the strategy. and have full confidence in their ability to deliver. In closing, together, we can build on Infomedia's legacy of innovation and success, driving growth and creating value for shareholders, customers and employees alike. I look forward to working with all of you on this exciting journey. Thank you for your confidence in me. Back to you, Bart.

Thank you, John. The Board has considered Jon's candidacy, both in respect to his individual merits, his ongoing contribution and overall board composition and we recommend you vote in favor of his election. The formal resolution, together with the proxies received for this resolution are displayed behind me. As Chair, I hold 0.01% of voted capital by proxy, which I intend to vote in favor of this resolution. Are there any questions on this resolution. Let me then move to resolution #3 -- and congratulations, Jon, on your election. Let me move to Resolution 3, the election of Joe Powell as a Nonexecutive Director. Joe Powell was appointed to the Infomedia Board of Directors on the 15th of October 2024. Joe has extensive executive experience across online, digital and education businesses, telecommunications and sport technology and corporate advisory. His previous executive experience includes Director of Consumer Sales at [Singtel Optus], Managing Director of Seek Employment and Managing Director of Seek Education; Chief Executive Officer of Catapult Sports Limited and CEO of elfie.com and Open Colleges Australia. Joe is a Non-Executive Director of TELUS Holdings, the Scanlan Foundation, and he's also a Director of the Richmond Football Club, which is meaningful for our Melbourne based shareholders. I now invite Joe to say a few words regarding his candidacy.

Thanks very much, Bart, for the introduction, and good morning, everyone. My name is Joe Powell, and I'm delighted to offer myself for election to the Board of Infomedia Limited this morning. I was recently appointed to the Infomedia Limited Board on the 15th of October 2024, and I'm a new member of the Technology and Innovation Committee and the Remuneration, People and Culture Committee. As Bart said, I'm a senior experienced executive and director with a background in ASX-listed online digital and education businesses, telecommunications and sports technology over the last 25 years. I bring a depth of experience from working in purpose-driven customer-focused organizations that have delivered results for all stakeholders over time. I've had director experience over the past 10 years, initially through my executive career and then over the past 5 years, as I've moved into a full-time Board and advisory portfolio career. Together with Infomedia, I am currently on the board of a publicly unlisted company, a private company and 2 not-for-profit companies, and that's it for me. That's all I'm doing. As the Infomedia Limited business moves from the strengthened phase to the scale phase, I believe that my skills and experience will be put to good use through the Board and executive team in achieving its strategic initiatives and ensuring we get resource allocation, performance management, compliance and risk right while ensuring accountability to all of our shareholders. In terms of qualifications, I'm a graduate of the AICD. I've completed the advanced management program at Harvard Business School and I hold a Bachelor of Commerce from UTAS. I look forward to your support today and then continuing to serve as a Director of the Infomedia Limited business, if I'm elected. Thank you very much.

Thank you, Joe. The Board has considered Joe's candidacy, both in respect of his individual merits, ongoing contribution and the overall Board composition, and recommend that you vote in favor of his election. Accordingly, the Board recommends that members vote for this resolution, and the formal resolution now is -- with proxy numbers is displayed behind me. As Chair, I hold 0.01% of voted capital by proxy, which I intend to vote in favor of the resolution. There being no further questions, I assume there's no further questions. Please complete your voting paper for this resolution. And Joe, congratulations on your election to the Board. Let's get to the fourth resolution then. The fourth resolution concerns the issue of long-term incentives to the Managing Director and CEO, Mr. Jens Monsees. The ASX Listing Rule 10.14 requires shareholder approval for the acquisition of equity securities via director issued under an employee incentive program. Equity securities include shares and the rights to acquire shares. Voting exclusions apply to resolution 4 as set out in the notice of meeting. The Board, with Mr. Monsees sustaining unanimously recommend that shareholders vote in favor of this resolution. The formal resolution, together with the proxies received for this resolution are displayed behind me. As Chair, I hold 0.01% of voted capital by proxy, which I intend to vote in favor of this resolution. Are there any questions on this matter. There being no questions, please complete your voting paper for this resolution. Thank you. I now move to Resolution 5, which is the last item of business. This is the spill resolution. As detailed in the notice of meeting, Resolution 5 is only required to be put to the AGM if at least 25% of the votes cast on Resolution 1 are cast against the adoption of the [rem] report. As previously noted, it appears that Infomedia will narrowly receive a second strike and that Resolution 5, the spill resolution will therefore need to be put to the meeting. The Board unanimously recommends that shareholders vote against this resolution. The formal resolution, together with the proxies received for the resolution are now displayed behind me. As Chair, I hold 0.02% of voted capital by proxy, which I intend to vote against this resolution. Are there any questions or discussion of this resolution? There being no further questions, please complete the voting papers for this resolution. Thank you, ladies and gentlemen. That completes discussion and questions on the formal business of the meeting. If you've not already done so, please complete your voting papers now. All voting papers are to be placed in ballot boxes at the registration desk. The poll will close in 10 minutes' time so please ensure all forms are submitted properly. The results of the poll will be reported to me as soon as possible, and the results will then be released to the ASX and published on the company's website. That concludes the formal business of the meeting. I declare the meeting closed and invite you to join us for refreshments. The executive management team and the Board would be delighted to meet with you and discuss any matters that you wish to raise. On behalf of the Board, I thank all shareholders and friends of Infomedia for attending the meeting here today. Thank you.