Kelly Partners Group Holdings Limited (KPG.AX) Earnings Call Transcript & Summary

Welcome, everybody, to the FY '25 results presentation for Kelly Partners Group Holdings Limited. My name is Brett Kelly, the Founder and CEO and I'm joined by our Chief Financial Officer, Kenneth Ko. Our planned format is to share the presentation which we published this morning and take questions through the chat function of the Q&A. I expect we can get through this quite quickly as our business is very consistent for those of you have followed the business for some time, I think, most of what you can see you'll be very familiar with. There are now 660 team members, 102 equity partners across 38 businesses in 5 countries and revenue this year grew 25% to $134 million. Our revenue run rate is approximately $150 million. We did a first-time equity capital raise since IPO of $4 million to essentially new partners from firms that have joined the group since 2017 and then we have grown free cash flow by 8%. You will see the reduction in return on invested capital. Organic growth is up 50% to 45% and a return on invested capital plus organic growth remains strong at 27.5%. On Slide 3, which is shares we like to do some of the learning that informs our thinking fares mentality has always been on our book list is a tremendous book, and it shares the information that is on this diagram that growing companies face and choices a scale to follow the default path or commit to the journey north. In the default part, you'll see really lead you down a path of Australian bureaucracies and the behavior of incumbents or we maintain our insurgent mission and try to scale our mission northward. That's not easy, but it's worth a challenge, and we are in serious pursuit of that challenge as we speak. Two other books that really inform that is there's a rack we built by our friends at rack space in the motor by Patrick Lencioni. What's interesting is that is for -- in particular, I have for a long time informed the things that will help us maintain this insurgent mission. The motor talks about making sure that the people that move through the business inter leadership positions are there for the right reasons that they have the right motive and in our terms, that's to make other people better off to be people for others who keep their promises and work as part of a team our 3 core values and directly built tells the story about what goes wrong when a business grows, but doesn't maintain that insurgent mentality around the talent that it brings in and in particular, lateral hires from large companies that can push you towards being the incumbent. So on Slide 5 is our familiar telepartners in 1 page for those who haven't seen 1 of these presentations before the history pre-IPO and IPO people would say, hey, Brett, can you give it to us short and sharp in 1 page. And so we do revenue growth there, margins, so strong EBITDA margins, arena Return on equity, net debt to underlying EBITDA remains very conservative at 1.42x cash flow strongly up 23.3%. It's a good number to watch and cash conversion at 99.8% remains very, very efficient. Down the bottom left hand corner billings per full-time employee still are very high. And so we can see that the key measures indicate that we are scaling rather than simply growing and what I mean by that is that we are scaling our long-standing excellent financial metrics off the back of our long-standing values on it's important to understand that we have a business system that knows how to double. We believe that because the business has now doubled 6x the 19 years on average, every 3.2 meters is a sustained long-standing performance that indicates that KPG has a business system that knows how the double itself and whether we have excellent people or doubly excellent people, no matter who has been in our team over a very long period of time, the business has outperformed the individuals as the team has delivered the business that creates people love and allows people to be the best versions of themselves at work and deliver these industry-leading results on Page 7. There's been lots of nice little pictures around revenue successful programmatic acquisition strategy, higher returns on equity higher returns on invested capital and cash -- strong cash conversion. And while those numbers are, I believe, a testament to our team and their efforts and of the business start. On Page 8, you'll see, again, we outlined early on that we had a start-up and foundation phase at IPO. We said we built a foundation that we believe we could build and then we announced that we believe we could accelerate. And in that period from IPO to 2020, we grew from $30 million, $25 million pre-IPO. I think it was $30 million in the first year and $50 million 5 years later, 4 years later, to now 135 and 150 run rate. And so it is important to understand that since June 2020, we will grow the revenue from, say, $50 million to $150 million that is revenue that's controlled by the group. In tripling that revenue, we've done that in a particularly capital efficient man on a per share basis across every metric. One of that is EBITDA per share, whether that's our strong net profit per share really whichever way we look at it, we haven't until the recent part of offer issued a single share and we still next year on issue than we had an IPO. So we've reduced the total number of shares on issue since IPO, while taking the revenues from 30 to a run rate of $150 million which is obviously in 7 years, this is our eighth year completed. We've taken revenues by 5x. Now the good news is that when I started the business with Moor better, we were told, well, you can only go so big so far this, so that. And we were never focused and still 1 on the numbers. We believe that if we got the right people into the business and build the right system to those -- that combination with the right clarity around our mission, values and vision that, that internal momentum will grow the business, create a flywheel frankly, of mission, values and vision captured by the right business model, we believe that the business would have its own internal drive to deliver better outcomes for our people and clients and that, that new result ultimately and wherever the numbers we've been that [indiscernible] the case. Our business, I would stress is still small in the global context. Global peers inevitably larger. And so we see our intention has been to build a 100-year business we see 80 years of growth. We don't see 8 minutes of growth, and we see no reason to materially change the model that we've developed that really deeply aligns the interest between our partners, our people, our clients at community and also shareholders. On Page 9, you'll see earning power. It's always been my view that the whole cores pulling together businesses that share the sign mission direction to improve those businesses and help them deliver better outcomes for our people, quality communities. And in doing that, there's an inherent level of earning power that will sometimes be reflected in our statutory numbers, but not often, there's all sorts of good stuff that accounting standards require that we disclose in a way that we might not otherwise choose to disclose in order to best represent earning power and a long-term recurring nature of the earning power of the business. We remain very confident in the model and its ability to continue to do really great things in the accounting industry for a long time to come. On Page 10, you'll see some correct stuff where our profitability remains very strong industry-leading profitability. And you'll notice that the U.S. and Ireland are running at centrally average profitabilities for that market. And the challenge will be for us to deliver the results there in turning their profitability around it in the way that we do in the Australian market over time. Our development of the business is such that the U.S. business is now as large as the Australian business was an IP took 11 years to get to that position in Australia. It's taken 2.5 years to do that in the U.S. That has meant that we use a little more capital to do that than we get in Australia and we've spent less time moving profitability because the our confidence in ultimately being able to do that over time and importance of getting to scale to justify frankly existing in this market. On Page 11. Capital allocation will lead to a review. But I'm very, very pleased we've how clear that slide is Stage 1. And obviously that was represented here in other for shareholders to appreciate. On Page 12, a we've tried to make clear that the coal pounded annual gain in book value since inception is 35.4% per annum. We think that that's a pretty good effort over time, and we're confident that we can continue to deliver those types of returns for a long time. If we stay many in our timeshare emphasis on parting sort confidence. We have used a very small amount of acreage capital to grow the business. And I'm pleased with the discipline that's been demonstrated over a long period of time. On Page 14, we see has some free cash flow per share continues to grow as the business grows. We dantrolene continue to make that happen. On Page 15, recession buyback outlined. Now in the section beginning of 16 really just share about the business takes has largely been removed through very quickly to 5 operating businesses on Page 17, across these geographies, we're particularly pleased with that we have the international growth of the business in can the robustness of our position in strain being able to have a of that as wins sort of lapping at the same time is a testament again our tangent systems on Page 18. We see that team members, office locations, client groups, et cetera. I point out there that largely, this is a recurring income business on Page 19, which continue to strengthen our position in the Australian market, where we see -- we exclude the big 4 as competitiveness and not our competitors. We take out index sort of financial planning group might then that we may have that and we just look at who are actual accounting groups that we're looking are looking at competitors we're well positioned versus these people. absolute sizes is not as important as excellence at this point, and it's always been our case that if we state grow. On Page 20, the programmatic nature of our partnership approach. I think it's quite clear for all to see there. Again, we're not looking to just through partnerships for their own sake, and they see the right people with the right values and reasons for joining Keepers are not particularly interested. On Page 21, capital allocation will lead this year to review. But on '22, we've seen our continued strong performance on this measure on Page 23. We have put a new slide in the I quite like and I hope you like too. It shows that we raised equity pre-IPO of $11.6 million. We raised equity post it of $6.7 million, including the recent $4.2 million for a total of $18.3 million. We've done additional investments of 11.3%, which is the excess amount above the 9% we take from the partnerships that we've reinvested in the business. We have a current remote EBITDA of $52.5 million and KPG share at [indiscernible]. So for 2.6 million better, we believe that we put together about $26.8 million of EBITDA, which is great. In the second part of this slide, we sort of show -- as I'll talk about later in this presentation, we're considering our capital structure and the way we think about that capital structure is a fever dollar equity remaining range either externally or internally if we add $2 of debt, and then these -- we expect to continue to be able to drive a very strong return on invested capital. And you can see the sort of shares you should quote on the buyback. I think if we added that the money that we've made on the shares that we bought back in than that time line plus additional investments in you might reduce certain profit on buybacks, and that number might be even lower and significantly lower. So the business has been particularly disciplined and [indiscernible] capital. On Page 24, this is the additional investment side. So on the additional investments in the past. I just wanted to have the equity investment slide as well that we've added in there. And you'll notice that we've significantly invested above the 9% this year. But I would point to the fact that in the last 5 years, we've invested about $8 million above 9%, and we tripled the revenue. So we don't feel too bad [indiscernible]. On Page 25, financial highlights. I'm going to hand over to Kenneth Ko, our Chief Financial Officer, to share some of the highlights of the financial highlights. Thank you, Ken.

Thanks, Brett. Great to speak to everyone again and present the financial hires for the group for the year ended June 2025. Slide 26. This is the financial highlights for the group. I won't go through this in detail because as with prior years, we have slide essentially covering all of these information as presented here, but we think that this presents a good summary of the finances of the business for the year. On the next slide, income statement. Revenue of $104.6 million, up $26.5 million or 24.5% on the prime driven both by organic revenue growth of 4.5% and contributions from the acquisitions we completed in the prior year and this year. Just noting that in terms of the organic revenue, excluding the impacts of subscale businesses where we have merged those subscale businesses into our larger and more established businesses our organic revenue growth rate was 6.2%. In terms of the acquisitions we completed and the acquired growth of 20%. This mainly comes from the Florida business that we partnered with in August last year and the NCD firm that we tucked into the business in December last year. In terms of the operating margin, EBITDA margins of the business 38.1 million for the year, up 19.2% on prior year. The margin is, as represented earlier, 30.8% for our seating businesses, 28.3% for the group, which we think is strong. In terms of the underlying NIA attributable to shareholders increased by 13% to $9.1 million compared to $8 million last year. As always, note that the significant increase in amortization expense, again, due to the acquisitions that would complete it resulting in higher customer relational assets recognized. That's the income statement. On the next slide, in terms of the balance sheet, our lockout is at 58 days. Again, lockup being the totals of WIP days at 7.7 days and data dates at 5.3 days, which is comparable to what we have in terms of lockup debt in the prior years. In terms of net debt to underlying EBITDA ratio of 1.42x net debt to underlying EBITDA compared to 1.28 million in the prior year. And that increase is attributed to the acquisitions we completed this year. We completed 6 acquisitions this year and as mentioned before, mainly in the Florida business, the Sydney business tuck-in as well as the Ireland business that we completed in March this year. Our group return on equity remains very strong at 38.8% parent return on equity of 31.9%. Our total assets, $199 million increased 24.9% again, driven mainly because of the increase in intangible assets from the acquisitions and net debt increased 29.4% from the prior year. On the next slide on debt and liquidity. Our net debt here on the right compares the net debt position at the third of June 2025 to 2024. Our net debt is $58.5 million as at 30 of June 2025 compared to $45.2 million last year, the increase is $13.3 million as point here on the slide and is, again, due to those acquisitions we completed, not that we completed $20 million of acquisitions during the year and the net debt increased $13.3 million. In terms of the gross debt, excluding working capital debt, it's at $57.6 million. and it increased $14 million. The increase is actually the same as the net debt increase. So there's no increase in the working capital debt essentially. On the left here, looking at the dissection of the debt and the cash and headwind that continues to be sufficient headroom at $23.7 million. And we continue to review our capital structure to support our continued growth. On the next slide, in terms of cash flow, our cash from operations of $24.9 million increased by $23.3 million. It's very in line with our revenue growth of $24.5 million. Our free cash flow to firm after scheduled debt reductions increased 7.2%. Now that differential between the increase of 23% and the 7.2% is primarily due to the increase in scheduled debt reductions. We are paying our debts of in an accelerated manner over 5 years. So if you look on the right there on that table, last year, our scheduled debt production is $8 million, and that has increased to 11.6 million 3.6 million increase in the scheduled debt reduction. In terms of the distributions, I just want to highlight the distribution to noncontrolling interest there is a significant increase there. There is around a $2.5 million return of capital that we made prior to talking in the semi business and also distribution in general increase of acquisitions we completed in last year and this year. In terms of the cash conversion on the left, 99.8% compared to 96.9% and very consistent with what we have achieved previously in terms of committing ratios. And the 1 debt primarily used to fund acquisitions and new fund buying loans. On Slide 31, parent and MCI waterfall. As always, we get asked a lot why our 51% to 49% equity interest will be tied to the profit attributable and will produce this waterfall to explain it. I just want to go through quickly on the right, this woeful chart. This would include just the prior year waterfall, so we can have a bit of a comparison. You can see that the tax interest and depreciation in terms of percentage of the parent net profit before tax is very comparable, 29.9% this year compared to 32.9% last year. In terms of additional investments, it's $3.7 million, and is to support our growth, as Brett presented the additional investment slide previously. We having 15x our business since FY 2023. And I just refer everyone back to that Slide 24 for that additional investment commentary. On the strategic review costs there of $1.2 million primarily related to the PCE audit costs that we only took this year for the prior 2 years for FY '23 and FY '24 for the acquisition costs. The 6 acquisitions we completed this year, including new regions being in Ireland and also the QOS network, which was U.K. So there was some costs there in terms of documentation, documenting the legal agreements in those jurisdictions. And I believe that's it, Brett.

Thank you, Kenneth. That is terrific. I appreciate all of Ken's work again this year. He's visited the U.S. and Ireland and another jurisdictions probably a dozen times and has made a huge difference to all of those interactions and is a valued and appreciated member of our team. As Ken alluded to there, 1 of the great achievements and large costs of this year is getting agreements up to scratch to operate in the U.K. and also in England where Qdos was placed and also in the Ireland. There is also a heavy cost trying to take the PCAOB or its looking back 2 years to make us comply for the United stands in terms of their stands. Now I think with that, we can probably move to Slide 33. 33, just outlined in -- there are some restrictions around what we can say, but to the degree that we can share, it's always our intent to be very transparent. We can share that we have undertaken the PC of the orders for the last 2 years at great time and financial cost of the group. We've spent a huge amount of vehicles in the U.S. over the last 2.5 years. We've done the partner's internal capital range. We're doing a strategic review of the capital structure at the moment. And to the right is a sort of slide we shared further out. But I just want all of our shareholders to understand that we just won't raise equity at any time where we believe the gap between intrinsic value and the equity that we can raise an evaluation of that equity are as close as possible to each other. We did the partners raise because we believe that the difference between the intrinsic value and the price at which we raised was such that the deep alignment that we were creating made up for what we consider as a genuine and unacceptable gap. As we consider what we do next, we're always in a rush to move the business forward to really reach its potential and sort of get it to where we think it needs to get to be scale insurgent that we showed you on the early picture from towers mentality, which won't move in his, and we won't do things that your interest in mind and every other shareholders, such that we set ourselves up to have to work for the next 5 years to create no real value because we raised very at the wrong place. So we do believe that in terms of getting the business to maximize the value of this business model that we should be operating at much stronger scale across a number of these markets that would require stronger teams, investment in teams and infrastructure on the East Coast, West close to the U.S. and into the U.K. because I believe that our model is sufficiently unique and proven to justify that investment to try and push to the scale that where things possible. We look to see this, the U.S. listed accounting group, the only U.S. listed accounting group, and that's taken end market cap in the last 10 years from $350 million to north of $3.5 billion. So 10x their market cap. And are they by much larger businesses, it makes pretty clear what the opportunity is, we think we can follow a similar trajectory but we won't create value per share if we don't and can't raise the equity capital at the right price. So we have to get that piece right. And we are deep in the development of, and we are confident that we will close a large bond raise if we can agree the right structure with our existing bank West back have been from inception, our most valued partner and a wonderful partner. We're trying to put in place next-generation debt capital to allow us to accelerate the opportunity to deploy our low. So there's a lot of really good things happening at understand that we understand the numbers. We consistently run side by side, raise capital, don't raise capital, grow at its rate go at that rate does it make any difference? It doesn't if we don't get that pace right. And with that comment, we might go to the chat. Where I believe we've got some Q&A. And so for anyone who wants to drop in question. Please feel free to and I'll move through them as quickly as I can.

From Arnold to how would you characterize the business approach of KPG whether ensure even adaptive or is it more fixed than mechanical. I think out One of the great book ever written Jim Collins for. Good grade was preceded by a book that collaborated on core build to last. And 1 of the greatest chapters that any together is the power -- essentially the power and EMV, the answer to most questions isn't it or it. So we believe that our fixed mission, values and vision with our fixed approach to focusing on accounting for $2 million to $10 million that look at the private business owners. So that fixed strategy and our 540 million structure make a lot of sense. And so to that degree, that is fixed and mechanical, but where you go, who you go with the timing of all of those things is really a matter of feel. It is a matter of intuition and being adaptive and a mindset there when you read speed Schwartzman book chapter 1, think bid when you're a 3G Capital took Chapter and bigger it's obvious that work on our mindset and our intuition to break out sort of path limiting beliefs, particularly as a bootstrap business, they're going to be really important and the founder's mentality and unbooked it does talk about. And I think Collins book puts it well and he's got a great book sort of maintain the core and stimulate for progress is kind of a good way to think about it. So I hope that answers the question. I hate to think that would be fit to mechanical and we lose a tuition and that we wouldn't be adaptive. We're still retain our courage and energy for experimentation. And a lot of that is around our sense of the market sense of what our people need to what the clients need. Now there's a question e-mailed in the acquisition of [indiscernible] 100% acquisition and tuck-in within subsidiaries, how do you make sure a smooth transition of is 1 of the strengths of KPG partners remain. Can we expect more? So look, we're not interested typically in doing a 100% acquisition because we'd like to do partnerships and -- but we're well to 100% where it is a tuck-in to existing businesses, how CBE business is a large and very strong business from the perspective of the strength of its partners as is the North Sydney business, which is involved as well. And our business is the largest business in its region and with this is joining will be more than twice as large as any competitor. And frankly, I think we're going there as in many regions of sort of [indiscernible] position. So we want to continue that history of smooth transitions. But can you a smooth transition is the quality for your part with in the words of 1 of my great heroes who chart name in Europe being told that I've named you we can't do a good deal with a bad person. So we continue to try and do deals with good people, the gentlemen that are the partners in that term. We've been talking to since 2020. It's taken 6 years or 5 years to get that business into our group, and we're very, very proud of the partners and the people that make up that business. Another question for you would infer what could prevent KPG from becoming a $2 billion plus company. It's a great question. What can stop a business like ours progressing as it has in the past is if we do something transformative, so something large and undisciplined that would not be intelligent based on the data from McKinsey or observable history across markets. But also, if we just got outside our circle of confidence, if we started going off and doing things that we don't understand that would be our biggest risk question from Tristan historically, domestic funding has been nonrecourse to the payer actually as an important risk mitigator the care company interest. International funding appears to be recoursed to the parish possible structure of future themes lower. It's a great question, Tristan. The piece we're working on at the moment is a bond that would sit somewhere above the prior. It's a mere discussion at the moment might have its own financing entity where we aspire to ultimately is to have a listed holdco probably I won't say much more of that probably came in at holdco and an Australian holdco with Australian interest and a global holdco with the U.S. and other interest maybe in U.S. Alcoa and ultimately for the funding for edge market to be attached to a force of each of those markets and then down into the [indiscernible]. So it's taking a lot of work to try and get that -- the ideal financing it's slowing us down to a degree. But it's better to do something slower well and faster and any need of repair soon after. So it's a very, very good question, and we're very, very conscious risk is always we're thinking a lot about that. What efforts have been made to expand the bearers to scale for volume without increasing the size of the deals. So we are not scaling the M&A deal team at this point to any great degree. We have hundreds of millions of dollars of incoming leads. And yes, we should scale that team, and we will, subject to putting the capital in place to do that. We need to do the next piece before we do that. Functions remain centralized to the core management team of do not. We published a progress pyramid, there's pads that are centralized and treatment and the 3 that the focus of the local operating partners their people their clients and the leadership of the brand. And it's asked a question, given the additional investment expenditures needed recently, would it be feasible to slight increase in central services we made a commitment to never increase that fee. We have, if anything, are aspire for lumber not increase that it makes us the amount we deliver for that fee, again, we think some [indiscernible]. We're not as comfortable with the return that we're getting on the capital that we're attaining and we've been encouraged by shareholders to do more of that, hence the approach. Yes, I think we're on the right track there. I'm not anxious for short-term dividends and other on major shareholders and communicating that very clearly to me, and they want us to grow as a scale business on existing platform and metrics. Martin asked a question ceases highlighted as Parona was the key with U.S. expense-specific ex through the growth partnership platform can provide in color on how that's progressing further more, given the recent seeing on our OTCQX market any color on time for U.S. listing. So Marvin, our partner driver model is now being deployed 5 times in this market. Our Texas partnership or growth partnership platform has stalled in that the partner that took that on his tail to be able to grow that market, that's okay. We remain keenly interested in that with the joining of our recent California business, together with the North Carolina and Florida businesses, we have now nearly 9% of all McDonald's franchised reports as clients through the owner operators in the U.S. That gives us virtually a national presence, takes us and everywhere else. And so our focus is really growing that platform business, it would have been tremendous in that part had been able to take that forward. And it's an example of where we're prepared to experiment, but it hasn't hit us at all in growing Obviously, there's the opportunity here. The CTX is great because it allows our employees and just to go on their [indiscernible] for accounts or there wherever online platform now on it simply buy the stock. That's been very good for building relationships in this market and making company more visible. Listing on a market other than the ASX that might be better for me to pin those terms. We continue to investigate to ensure we come up with the for the company. Quintin's question, what are your thoughts on the development of AI, KPG industry may you keying to from leading pursuing other professions. So to that question, we see AI as a real opportunity. It's helping us in so many ways, like all the technology we've ever used. I do think it's even more powerful than other things we've seen before. And we've recently appointed 1 of our senior executives has been run IT for me 10 years till our approach to AI. To give you an example, we have mapped use cases or key pieces of software across every position in the organization and are now deploying and training our team members in those core applications. We'll be very, very aggressive in the adoption of AI. We think it makes you like a 10 are human someone close to somebody big 2. And so that mitigates the second part of your question, how you hold on to all talent. I think it's the same as treaty need to be an attractive proposition across South wealth and Western Sebastian spread and 1 have been the large challenges associated with the international partnership sort of been the unexpected success. So the larger challenges are really the cost of getting moving in this market personnel or very heavy on me in the family and just a massive undertaking. However, the unexpected successes are that we've built a business now from scrap the size of the business that we listed in Australia after 11 years. And so there's much more commonality in people's values than people don't suspect and our way of working with people is welcoming this market and others, which is tremendous. So I after 2.5 years here, not below the way by the market opportunity, the receptiveness to KPG's model and approach and could not frankly be more excited about I think it will long-term, getting you into a side. But for people that know me, I have an NGMI,I'm very, very excited about what we're doing. More excited than ever to be fair, it's actually getting a lot easier than it ever has been to do what we're doing. And there's a lot more interest in the sector. It's more accepted what we're doing and we have feelers that some 10 years ago for the new product to now what the opportunity is congrats on the results. Can you make any comment about the departure of lines coming in from the board if there's any still. Look, it was an amazing privilege Lauriston the Board for 3 years. He contributed and is contributing there has introduced us to great people, which have helped us level up. Our just understanding of what's possible. For instance, Morris introduced us to the senior team at translation software and loan and I like to attend the conference in last October, which is unbelievable in terms of our life experience. I participate and any of you with we've marketed and it was well received, and that's given us a lot of confidence that we're on the right track when someone like markets to the business things that's okay, that's all very powerful. So it was a huge privilege to have last. We didn't -- we had no right to expect it involve here remains enormous earn consultation Board and now the Mark Channel Insurance Group Board. He's taken a very senior appointment in academia in Delaware to governance academic role. So you simply say to me, Brett I can't keep doing everything about that I counted the thing that pays miles. So I respect that he's been a huge trend of the business. I mean it's continuing to do. Is there a skills gap, not at this point. That was more of a benefit than anything else. So Michael, if you were to raise $100 million there are our target acquisitions to absorb that much over time. [indiscernible] Michael, I think BlackRock recently paid USD 2 billion for the market as be more confident it ever that we could deploy very significant capital to return to justify the exercise and that we've got a model and experience to be able to build the team and handle that. To Tristan [indiscernible] what's the state of good potential listing in U.S. or Canada. I can't really talk about our Christian, but we have done the PCAOB or it's an invested a lot of time and money in that, and that probably tells you something to Jack, unless or a question more of a thank you got into KPG in the early days of October after selling some of my shares recently managed to put together a sizable deposit from my first. Jack, I'm very, very pleased to hear that 1 of the greatest joys in my life is trying to, as I say, do business as an Olympian or do the Olympics, just probably a real commitment to do a good job and make a difference to all of our people that work in the business. All of our partners and communities that we're in and certainly our shareholders. So it gives me huge joy to see that. It's 1 of the many and 1 of the most special efforts of what we do. We also had a person meeting in Man as a phenomenal moment where buffer shared that you didn't have institutional shareholders, and he didn't want them. We wanted people can make a difference too, and that's what that they were doing for 60 years. That sort of comments give me a huge amount of drive and energy to continue to deliver. And thankfully, I had many, many, many of those messages and the good news is I hope you bought a moderate to home so that you can stay invested in KPG and other good businesses, where I think you will be well rewarded over time. There's still a lot left in what we're doing. Christian's asked a question around other firms with a strong base of quick service restaurants, hold any priority for acquisitions. Now we're very focused on the McDonald's piece. We have about 20% of the franchise or market in Australia we have genuine insight and expertise. And there's enough 120 countries with that system to stay very focused. We bought into the Qdos network. It has 6 firms in 48 countries and it doesn't take it greatly to imagine that we might get many of those folks to join us. The first 1 has joined us on a 40 basis in Ireland and that we will get out to the McDonald's business in each of those markets as well to roll it into the scenario at $100 million capital raises outline smarter to in the future. But do you think this is a one and done type raising? Or could you see your stock raising capital from time to time. Look, I think it's important, as Henry Singleton said, to stay very flexible. We put that in our last pack. So I don't think it serves anyone to say never about anything, but I have been an unabashed fan of Mark Lennar's approach. And Mark is on the public record saying that his second larger cap raise, you probably overrated. So I believe they raised about USD 85 million all time. We've raised approximately maybe 15 maybe less. So to say USD 19 million to maybe USD 13 million. So we believe there's a gap of somewhere between USD 85 million and USD 13 million that we might look to fill some of that at some point, if we can do it in the right way. And then if you could add 2 to 1 or even 3:1 debt, you would have enormous firepower to grow the business and so when I'm asked, how you get from where you are out to sort of see bio scale sort of 105, it's no secret that our aspiration has been to be 100 age, but you might have studied on work that we can conceivably close that gap quite easily. The numbers are very straightforward. If we raised USD 70, 100, call it, $10 the 200 daily heads so that by 600 of ships at 30%. They do 2 EBITDA gets $100 EBITDA for the 10 equity has raised net of, say, 30% tax to 70 NPAs of 550 is 35, if you don't like that multiple use another one. and it's certainly a $2 billion cash. So the numbers are very straightforward. I don't think having done more than 50, 55 partnerships, 90-plus partners in these types of arrangements. I think we're as experienced as anyone in the world in our particular timing will serve competence and that there is the opportunity of the market even at $600 million of revenues you need to find 60 firms with $10 million, $125 million, and we've already found same $50 million. So an investor would have to say that we couldn't in the next years in 2x the number of firms we found in the last 20 years. And I don't want to see anything will be overconfident, but I do think it's possible we're more advantaged today in terms of brand track record, expertise, access to capital and talented people, call systems and even results to sort of in that retina might be positive possible. men's asked a question beyond the U.K., are there in a new geographic region of the horizon at quite a, we're quite able to stay very focused in English-speaking territories. We did spend some time in Canada. And frankly, it was so close to being at home in Australia that it would be very likely that we're the right plan, we would be into Canada if it makes sense. But we're not in the business of collecting geographies we're in the business of delivering returns per share and so happy to do that wherever it makes sense. We've got to find the right people likely short primes limited that I want to spend my time with people that want to spend the time with us to really share our mission and care about what we're doing. And I'm personally happy to do that anywhere when that turns up. Matt asked a question. So will we likely see you raise a mixed equity in tranches over these 12 months. It's possible, Matt. It's really the offers on the debt side are very, very strong. and the alternative capital markets and much more flexible in the have. Frankly, we make -- we're really impressed with the surprised by what we've been shown and so we continue to work very hard to work through the best capital structure. There's no rush. There's no -- it's a bigger risk to the business to do the wrong BLA to long and you just sort of do any old deal. So we will just sit at it. We're frankly client gratified and always have been from continue to turn out is power, if you asked me 6 weeks ago with David Joint [indiscernible]. As always, I don't know. So I'm pleased after more than 5 years of effort. And they joined similarly the McDonald's focused firm that has joined us here in Mission in California actually call the principle of that 1 week out landing in the U.S. in January 2023. And I didn't get a tax message back until the 22nd of December that year. And I just relentlessly continue to contact that firm until we got a little bit of engagement, and we had discussions when we made the [indiscernible] in 2024 in April, April and once that firm joined us California firm got back in to sheet clean on the idea that we would have East Coast, West Coast and genuine national coverage. So this is a relationship business. I'd emphasize that we have been sending e-mails to a cancer in Australia for more than 17 years, good people in that market, now we exist that I'm confident that the people are really clear about their firms that people and their clients will join in on pro. However, if they're just looking for sort of a short-term check and way to say goodbye quickly and they won't be our people and that's okay as well as plenty an opportunity. The last comment would be that by being here in L.A., we've really opened up geographic arbitrage for the group of where we can part with a firm and so that is meaning that we don't need to rush into any particular deal or pay out or don't make sense because there is more than we would keep up with today and really no matter how we make an M1, I suspect that it'd be more than that we could catch on. Robert, the question about -- comment about increase in related party loans, some payback and further loans made very expensive to be here in the U.S. borrowing money to be funded, and we'll sort it out over time, you'll note that [indiscernible] remains deeply compare with the market. conducting on the East Coast, West Coast, an interest in other Australian states in East kind of, yes, if it's a sizable like-quality business that shares our mission values and vision, but a diversion, if that's not the case. But were to be firm on Adelaide, in Western Australia over the last 5 years. And for whatever reason, we haven't had them joined the group. So Again, we're not close minded about where that opportunity is. Frankly, we love a good group of groups join us in any of those places. Cash value trade of growing slower organically with in cash flows versus trying to grow fast been possibly comes with Morris. Absolutely. So hence, you'll notice that our cash for 20 years, we've carefully managed that balance and we'll continue to be very, very careful about how we do that. I am 50 years old, quite experienced having done this for nearly 20 years and feel that there's opportunity today to use my energy and skills on behalf of the group to get us to a size that I think makes us super competitive on a global basis. But again, if it's not done in a way that's capital efficient that delivers returns to shareholders frankly, the weather is very nice in California, and I can always take the do for walk on the book. We're just not in any all of my business earns have been being very careful about capital efficiency. I love the book, the outside, as I can say to all of those so this year as a mine and learn from them that you should be in very circumspect, but back up the truck when the opportunity presents itself. Daniel asked, we're obtaining a new customer to the group, we do same marketing spend cars or more work to as customers to go or they are occurring. To the second part, Daniel, if a cloud joins our group, they are recurring for a long time and amount is a typical driver. So if we clean up the business well, then they really deliver free out and the team to be able to deliver a higher level of service to the client. That builds word amount, which is free marketing. And so running an excellent firm to work tends to get in. Yes, we do a lot of marketing in terms of brand positioning to build credibility, which really helps our firms. But really nothing can be a hand-to-hand callout service delivery that there is a reputation just final questions. We've taken up a full hour by note. I'm happy to leave it there going once, going twice. [indiscernible] as far as mentioned in the shareholders late could you still see yourself doing this in some capacity for as long as it rears or could you see yourself retiring. It's a great question, Robert. I stuck in narrow purpose because I've got a sense of humor. If you're not going to do things on a world-class in a world-class way then you should retire. So from my perspective, seeing my grade here we pit reflect on his 6 years of service, and when you chose to retire, I think you've got to always make sure you're doing things for the right reasons. From a personal perspective, I have to get the group to a point and our family to a point that I can lead the business in a way that Buffett leads virtue and so really, that's my focus. And always a clear vision of what's involved in doing that. I'm very excited about getting that. I think that the lowest most effective CEOs have found have been very careful about how they manage themselves such that they can manage the business. So people like Larry Ellison and Warren Buffet, I think have been pretty intelligent because they know the duration of what they do is when the value is Waltons the same, are all the same. So I'm trying to make sure that I look after my physical and mental health that we run the business in a way that is sustainable for a long time because it's really the duration that the value is ultimately created. Kieran's question, there was a consideration of time to take KPG private. Is there any more weight to this it's a great question. In order for us to do our fiduciary junior directors, we always have to consider what makes the most sense for our shareholders. So while we technically can ever say that we would never take the group private. It has been my long-standing position and stated preference and believe that being public has helped our group enormously. I would love nothing better than to see this business as a public company for 100 years. because on structure for a group with our current business and aspirations. And I think, frankly, it makes us an insurgent against these other larger businesses that really I think are going to struggle to get a structure that's fit for the next century. So I hope that makes sense, but that's our preference. All right. I can see no open questions at 6:00. It's been 1 hour, a 6 comp are in Los Angeles [indiscernible], I should have also mentioned, I want to thank everybody for their time certainly, at any time you've got further questions, please reach out. We remain actual service and keen to continue to deliver some great outcomes on a long-term basis for the business. When we started the business, I have this ambitious goal to get to $50 million of revenue. We built all the systems to handle $50 million of revenue. And then when we could see that, that target was within range, I turn around for the team and said, "Hey, we need to run this business as if it's already a $100 million business. And then very quickly after that said, let's make that $150 million business. It's clear to us today and what our goals are. I think if you read clearly our owner's manual and what we've published over time that will be pretty clear where we're trying to get to and I hope that you can see that we're building a foundation and just getting started on that part of Australia's global accounting firm for private business owners that want to go somewhere and there is a clear and differentiated market opportunity, and we think we've got the model on that taking to deliver that for our quality shareholders. I want to thank everyone for the privilege of serving in our business. We are having a lot of fun and making a real difference, which is the fund. And as I love to say, have a great day.