Light Science Technologies Holdings Plc (LST) Earnings Call Transcript & Summary

Good morning. Welcome to the Life Science Technologies Holdings plc Investor Presentation. [Operator Instructions] I'd now like to hand you over to Simon Deacon, CEO. Good morning, sir.

Good morning, everybody, and thank you very much for attending the financial results for 2025. I want to go through who's presenting, Andrew? Thank you. So presenting today is Andrew Hempsall, Chief Operating Officer. Andrew, do you want to give a little bit of background about yourself?

I've got over 30 years experience in sort of senior operations role, mostly within sort of private equity and plc environments and have experience in integrating new acquisitions.

Also with me today is James Snooks, CFO and Company Secretary. Over to you, Jim.

Thanks, Simon. So yes, over 30 years in senior finance roles, a great deal of experience in acquisitions and disposals and qualified management accountant.

And myself, Simon Deacon, Chief Executive Officer, over 30 years of experience to founder of the business and a track record of founding and acquiring growth businesses. So looking at 2025's highlights, it was very much a transitional period for us in 2025. So the highlights were in AgTech. We were awarded an NTU contract, that's Nottingham Trent University, contract worth GBP 460,000 in AgTech. This increased post period to GBP 600,000. And what this showed was our strength of bringing all of our divisions together in fire protection, in contract electronics, manufacturing the parts and obviously, in AgTech, bringing all of this to create this fantastic facility, which is being created as we speak today. We've also strengthened the sensorGROW IP position through our patent grants moving forward. We've worked very closely with Dyson Farming and other customers and partnerships to really strengthen sensorGROW and its positioning. And we'll come on to that in a bit more detail in the AgTech division slides. In the Contract Electronics Manufacturing, the CEM, we focused on derisking our high customer concentration level. As you all know, we have a very high concentrated level in pest control, and we really started to focus on gearing for an entry into higher margins, including defense, medical and health care. And to that, we've added 14 new clients in 2025 really through management development of those customers moving through. So that's really good progress approaching some new clients into some new markets. In Passive Fire Protection, PFP, we've increased the number of building safety regulator applications. We've seen that in the BSR, building safety regulator. So that's really good to see that we're starting to see Injecta Fire being specified into the BSR and starting to get approved also coming through that backlog, which has been happening over the last really 9 to 18 months, we've seen that backlog, and we'll come on to a few slides explaining that. Circa 150 buildings have had remedial work done to date using Injectaclad system. And recent regulation and progress underpins expectations as significantly improves for H2 of 2026. We've seen this backlog, and we expect for us really in our half year in H2 will really improve as these from the acquisition, but also from the BSR applications starting to come through. Post period end highlights, we raised GBP 6.6 million to fund 3 acquisitions, and that was very much in the acquisition of Injectaclad, the acquisition of the 10% minority at the CEM division and the property there to house the Injectaclad acquisition. We've also got GBP 4 million in current forward orders and GBP 55 million circa of in quoted pipeline. So really good highlights, as you can see. I'm going to hand you over to Jim to talk about the financial overview for the year.

Thank you, Simon. So this is for the financial year ended 30th of November 2025, our audited results. No doubt that FY '25 was a challenging year. It was a year of transition. We knew within the Contract Electronics Manufacturing division that our large customer in the pest control sector was bringing one of its products to end of life. So whilst we didn't know exact timing or quantification on that, we knew that through '25, that would take effect, which it absolutely did. And the drop-off in group revenue was really reflective of the drop-off in that pest control servicing within the Contract Electronics Manufacturing division. What we expected was the Passive Fire Division would sort of come through following the previous year's strong growth. Unfortunately, the building safety regulator came in and the backlog that Simon will cover in his presentation a little bit longer what's now happening to relieve that backlog, he will cover a little later. But '25 became a challenging year because of that. The good news is building safety regulator was moved from HSE to the Ministry of Housing at the end of January. And that really is the platform for a change of culture and a change of practical handling of the volumes of applications that are going through that regulator. So group revenue was GBP 8.6 million from a prior year of GBP 12 million for FY '24. That's a reduction of 28% just over. And on the flip side of it and the real positive from last year was that group margin improved to 33.8%, up from 30.3% in the prior year. And that really is a result of the rebalancing of the portfolio businesses towards the group. Those 3 divisions, in particular, Passive Fire and AgTech with much stronger margins, starting to change the group contribution and a very strong increase at the group level resulting. To give you an idea, Passive Fire typically around 50% gross margins, AgTech, 40% to 50%, and CEM division typically mid-20s. But even CEM has seen an improvement from 24.3% to over 28% during the course of the year. So we're focusing very, very hard on improving gross margins throughout the whole group going for sort of higher-value markets for the businesses and resulting in the group giving that much better group margin performance. Thank you, Andrew. So looking at group EBITDA, we continue to control our overhead costs in all divisions and in the holding company. Inflationary pressures continue, but our administrative expenses increased around the 8% mark from GBP 3.34 million to GBP 3.6 million in 2025. And we have a clear strategy to continue controlling those costs, but also, as I've just mentioned, strengthening our group portfolio margins. And when the revenues start to scale as BSR starts to unblock and indeed, we move into high-value markets in the Contract Electronics Manufacturing division being Defense, health care and Medical, then we expect to see that return to over and above the levels of '24 where we were solidly EBITDA positive at just over GBP 1 million. In terms of group net profit/loss, FY '25 net loss increased to GBP 0.89 million from a prior year of GBP 0.3 million, and that's representative really of that drop-off in revenue, as I covered a little earlier, offset to 1 point by the improved gross margins. We were net profitable in the second half of 2024 for the first time. And as we start to scale the Passive Fire division and bring back the revenues in the CEM division, we see that, that is very much doable, particularly as we move through the second half of FY '26. Thank you, Andrew. Looking at the balance sheet. We continue to invest in development assets, specifically sensorGROW. We invested around GBP 100,000 during the course of last year in that. But most importantly was the work that we did on the acquisitions, 3 acquisitions that Simon flagged earlier on, the most significant being that of RLUK, the owner of Injectaclad. And really, that is an absolute transformational acquisition for us because it allows us to secure the value chain in that division, take much better control over the market and in turn, further improve the strong -- already strong margins in that division. In terms of noncurrent assets, post period end acquisition of the remaining 2 units of the Manchester property, that's at the Contract Electronics side. And we've got plans for further investment to bring us up to the levels to hit the accreditations for those 3 high-value sectors that we're looking to enter into medical, health care and defense. It also allows us to integrate Injectaclad. We've got a distribution center at that site for Injectaclad and a training center that we're setting up there too. Looking at group cash and banking facilities. Our cash position at the end of last year was around GBP 700,000 mark compared to prior year of GBP 1.2 million. And our net debt increased by GBP 200,000 from GBP 0.7 million to GBP 0.9 million. This post period end acquisition is absolutely transformational for the group because it's going to -- not only does it provide us with a strengthened balance sheet, and that allows us to get bigger contracts in Passive Fire, in AgTech, but also it gives us that control over the market and over the CEM business, having acquired the minority holding there to really springboard our strong GBP 20 million group passive Fire pipeline as we move through the second half of 2026. So if I can hand back to Simon to cover the markets.

Thank you, Jim. So let's have a look at the market opportunity and the drivers in our 3 divisions. In AgTech, we have a market opportunity of GBP 12.7 billion. And that's really the global opportunity and is split really between lighting and sensor and control systems. So we got really good market opportunity here as we all know that food security is one of the key drivers. As part of that, we've got a circa GBP 34 million current quoted pipeline. And I'm really pleased to see that, that's starting to be converted. And more recently, we've seen an order come through for a Welsh University and the MTU project, so circa GBP 450,000 to GBP 600,000 starting to get -- come through on that pipeline. The gross margin, as Jim touched on, is a circa 43% in 2025. So really what are the drivers? Delay in transport since all the different regulations, getting fresh produce through and across our borders is being delayed. It's taking longer. And so you see a lot of wastage going through. Food security, as I've mentioned, is going to become even more important as we move through the year. With the conflict out in the Middle East, we're going to see a lot of problems with food security, empty shelves. It's a major base for fertilizers to come through the straits. And we're going to see that having a big impact later on in the year. The cost of materials are rising, if that be energy costs, fertilizer costs, nutrients costs, they're all going up. So that's going to create inflation. So the big drivers here really for AgTech and what we can do in that division, and I'll come on to that in the AgTech slide a bit further on. So our route to market really for our lighting and especially our sensor grow product are through agronomists, growers and resellers. Here in the U.K., we very much go directly to growers. But internationally, where we're seeing traction is through resellers. In Contract Electronics Manufacturing, the market opportunity, as you'd expect in electronics is quite big. It's GBP 21 billion. We really focus here in the U.K. as much of our product goes out indirectly through our customers and our partners that we have. And our quoted pipeline there is GBP 1 million. Now you might say that's quite low with quite a high turnover in revenue in that division. And in the past, we've seen revenues there at GBP 9 million. And the reason it's low is because the actual quotes are turned around quite efficiently and quickly in that market. So if we get a quote through today, it will be quoted within 24 hours. And generally, the orders are accepted within sort of 4 to 6 weeks, and we start going into manufacturing. Gross margins here in this division are lower, and this is what we've really been focusing on. In 2025, the margin was 28.4%, and that's a really good result. We've seen margins in the CEM division up 18% overall compared to last year in 2024. So it's really pleasing to see that margin increasing to 28.4%, and we continue to focus on it. What are the drivers? Onshoring, the risks and the conflicts and uncertainty we have in the world. Onshoring, we see a lot more returning manufactured to the U.K. because of it. Import tariffs, certain tariffs have been put on countries to manufacture certain goods and ship them into certain countries. And the U.K., at the moment, their tariffs are quite low into the American market, which is really pleasing to see. And the cost of logistics, increasing of moving around, if it be moving product through the air and air freight or if it be through shipping containers, all of these costs have gone up. Route to market is primary contractors and supply chain, building long-term relationships. All our customers in the contract electronics side have been with us for 10 or 12 years, and we're bringing new clients on as well. So we expect that to continue to build those long-term relationships as we move forward. And offering that turnkey solution is really important. So we're not just providing an electrical board, we're also providing the finished article, the finished product for customers, which can be shipped directly to the warehouses. In Passive Fire Protection, the market opportunity is GBP 50 billion here in the U.K. It's a big market and lots of opportunity for us, especially with acquiring Injectaclad. So what we're looking at here, the GBP 20 million current quoted pipeline is just the installation part of our Passive Fire Protection and not now the new acquisition, which we will add in at a later date once we've embedded the Injectaclad company into the group. But we've got GBP 20 million current quoted pipeline with a gross margin in 2025 of 51.7%. So margins are really strong there. And you can see from the margins going across 43% in AgTech, 28.4% in Contract Electronics and 51.7% that once we start leveling up the revenue as we did in 2024 financial year, you can see the cash generation and the EBITDA turning into profitability. And that's what we want to do, obviously, in 2026. What's driving Passive Fire? legislation. The government has brought in certain legislation into the market, and those are the real key drivers to get these buildings and make them safe. Government time scale, government has put a time scale to get these high-risk buildings done. And as you can see, there's 40,000 buildings in the U.K. alone, which we call remedial work doing to them over 11 meters in height. Route to market for us is really educating fire engineers, architects, contractors and building owners. So real key stakeholders within these buildings to get these buildings complete and done, and those are our routes to market. Thank you, Andrew. So looking at the AgTech division, an overview of what's happened in 2025. On the right-hand side there, you get to see a picture generated, which is now being built of the Smart Agricultural Research Center, Nottingham Trent University. And this really, as I mentioned earlier, is bringing together all of our product suites within AgTech, but also bringing together the divisions and the synergy that we have, if that's through manufacturing in Contract Electronics or our Passive Fire protection site to make sure that this building, which is going up, creating this research center is going to be to the right standard. So it brings all of our talent together as a group, which is really good to see. AgTech division is really our core products that we're focusing on is lighting, environment computers and the sensorGROW product. And those 3 are really our core moving forward. We're really seeing that circa GBP 450,000 of new orders won more recently, one of which was the Welsh University contract here in the U.K. So you can start to see that we're starting to convert the AgTech division and those strong margins and that strong project pipeline. We've engaged with a new sales executive to support scaling up the sensorGROW. We've talked about the development of sensorGROW. We've talked about the trials for sensorGROW internationally. And we've worked alongside people like Dyson Farming. But now we're actually going international with sensorGROW. It's our easiest product to go international with and get global resellers. So we've recently sent out in that 2025 U.K., Mexico, Chile, Poland, Australia, just to name a few, where these sensorGROW are going out into the market, if it be in broad acres or an enclosed environment. And you can see some of the pictures there of the environments there on the right-hand side, they go into, if it be glass houses and also they go into broad acres as well. Future developments here really are Eco lighting. Lighting continues at a fast pace to be developed in LEDs and energy efficiencies. It's really important that those efficiencies are brought through. Developing new environment computer, making sure that we're up to date with the digital platform and apps. And this really goes alongside our sensors and our lighting to control anything within an enclosed environment. We've been doing it for 30 years -- over 30 years in control systems. And so upgrading it to the most recent technology out there and making it more digital, more easier to use, really controls what's going on in the environment. And what that does, it makes sure that you can lower those inputs, and that's where you become profitable. As we all know, inputs costs are going up with fertilizers, nutrients, lighting, energy are all going up. So if you can reduce those inputs and control those and give the plants and the crops what they need, you increase the yields, but also lower the cost for growing those crops. At the same time, we're identifying key stakeholders, including agronomists and resellers. Agronomists are out there already providing farmers with data, and it's important that we can support them providing that data. And that's what our sensor does, collecting that data and providing it into really important information. In agriculture now technology is out there. It's not about necessarily educating farmers in data. They really want the data and to be user-friendly. So we're doing that. And we continue with the sensorGROW development of nitrous oxide N2O sensor. And we really do see a big market, not just in agriculture, but as an environment sensor overall, if it's in watercourses or measuring how much CO2 has been going into the ground or being released. and that's a really important stage. So just the highlights of AgTech. Revenue up circa 24%. We refurbished over 30 glasshouses here in the U.K. in 2025 and lighting orders were shipped to Poland and Germany within that time. Thank you, Andrew. Moving on to Contract Electronics division. We've really seen a very impressive margin increase there. And it's one area we're really focusing on transitioning into more profitable end markets, which is defense, medical and health care. And so we're progressing with that, if that be with accreditations, procedures that we have to put in. In some of these markets, we've been in before at lower level tiers for our customer bases, and we want to move up that food chain to improve the margins as we have been doing. I mentioned that they've increased in the CM over 18%, and we want to continue to do that. So investment in new equipment and technology further improves our efficiencies. It's important we've got the right test equipment and making sure that our customers are really satisfied with the process. As components get smaller and smaller to handle, some of the components that we handle now are actually virtually invisible to the naked eye. So, as electronics get smaller and more compact, it's quite incredible that the equipment that we need to trace them and where they're placed. We created the new factory tour. It's really important to make sure we're engaging customers in what we're doing. So we've got a 3D tour as well as a fly through with a drone in our factory. And this really showcases our facility. And you can see on the right-hand side the pictures of our facility, if it be our SMT lines or if it be pushing through on through hole with certain electronic boards going through. So really important to see that we continue those efficiencies going through. The remaining of the 10% minority interest has also been purchased in U.K. circuits as well as the property, enabling us to reshape for accreditations that were required to go into the defense, medical and health care market, and so we can target those. And also what it's created is a facility for Injectaclad within the building, which is really important for Injectaclad to have its own home to have a distribution center. So we move forward with business development. We've gained 14 new clients ranging from different markets. And as Jim mentioned, the concentration level within the division is making sure that we lower that concentration and de-risk. And of that, de-risking the pest control customer concentration from 49.2% to 30.4% in 2025. So you can see the actions that we carry out, the strategy we have, and we've actually implemented it. And we continue to focus on growth in this division. It's taken a setback from the end of life of product, but we really do see some really good opportunities, especially in defense and medical and health care sectors as the government is going to be spending a lot more money on these arenas in this area in these markets in defense due to the conflicts around the world. Thank you, Andrew. Moving on to Passive Fire Protection division and the overview there. Really, the highlight, as everybody knows that we've done an acquisition and actually now own the patent protected material, which provides Injectaclad to 11 installers and us being one of those, our Passive Fire Protection business has been about installing Injectaclad over the years. And you can see pictures on the right-hand side there, the size of the buildings that we're doing. And if that be residential or social housing, student accommodation, schools and universities, hotels, public buildings and commercial. They're of all sizes. Some require scaffolding, some require just using MEWPs and lifts from the outside of the building. So all our work is done from the outside of the building so we don't have to -- the owners or the occupants of the building don't need to leave the building. So we can get the fire safety put into the building from the outside. We don't need to remove the facade of the building. So it's a lot lower cost entry compared to removing the side. And obviously, it's much quicker. And the Injectaclad material, if you didn't know, goes 20x its size within the cavity as the material burns away and gives it the protection to get out of the building in a safe and evacuate the building. I've mentioned there's 40,000 buildings for remedial work. So we see 15 years plus of work here in the U.K. And also, there's an opportunity to do this internationally. But at the moment, we're very much focusing on the U.K. because there's so much work to done. There's a new northern base. I was up there only last week to see the new racking going up to create that distribution center and create that training facility that we need to educate those key stakeholders, but also for those installation teams. We've got an increasing number of projects going through the building safety regulator, the BSR. So a lot more applications with Injectaclad on them, which is now being specified. So that's really good to see. We believe Injectaclad acquisition opens up a potential opportunity of circa GBP 130 million of quoted pipeline. As you can appreciate, in our installation type business, we've got GBP 20 million of quoted pipeline. So if we've got another 10 who are doing GBP 10 million each of quoted pipeline, you can see quite easily how that can be GBP 130 million already to be released into -- turning into actual projects once they've got through the BSR. So it's really exciting to see one division which could be easily GBP 30 million, GBP 50 million in its own right once the market starts getting that traction. And I think acquiring the business at the time we've done, we've got really good value to get this acquisition now rather than later as we will get the benefit as the floodgates open. Thank you, Andrew. So looking forward, what are the drivers to the market, really driven by the Government Fire Safety Act of 2021, the Building Safety Act of 2022, government-led pledge of GBP 6 billion. It's really good that the government is pledging, but not also pledging actually see the money coming through to owner occupiers. And of that, it's GBP 1.1 billion has already been pledged and spent to make these buildings safe. Conversion has been slow. We predicted in 2025, it will be a lot higher. But we've seen that the BSR has really shifted. There's been an awful backlog of jobs and projects waiting for approval. And the regulator actually moved in 2026 from the safety executive where really jobs were very -- being very slow, And I don't think they have the right teams of people. Now it's become a standalone body within the Ministry of Housing and Community and the local government. And we've really seen a shift of educating those key stakeholders within the BSR. And that shift happened at the end of January 2026. So, now we see that the jobs and the progress of the project, which we've been anticipating in '25, coming through in H2 of this year for us and moving into 2027. So we really do see the Passive Fire Protection being the largest division moving forward as these projects actually start taking hold. We've mentioned the market value of GBP 50 billion, and we've got an addressable market right now of over GBP 4 billion from our quoted pipeline and what we can see. So huge opportunity here. We're very much focusing on becoming the market leader in cavity fire barrier removal work. And we believe we're the only one who's got an injected solution here. So it's a really good division with really strong growth potential with strong margins with over 50%. 150 buildings have already across the country had Injectaclad put into them, IFC accredited and compliant with statutory regulations. And an increased number of BSR applications being approved by BSR and being specified, which is really important. Thank you very much, Andrew. So moving on to group communications. It's really important to keep investors updated with what's going on. We take our pride in making sure that we get as much video content, audio content as well as the usual RNSs and information and reaches. So we did over 19 RNS stroke reaches. We did over 12 short published videos, over 24 interviews with proactive. We also brought in a marketing manager in-house to help with individual marketing within the divisions, but also to investors. And that's really making a big impact to increasing our sales, but also for our investors to get more information. We attended 7 trade shows, and these continue throughout our divisions as part of our drivers to increase our workload. So it's really important. The picture on the right-hand side there shows a small media room that we've created to do those short videos to create those podcasts to keep you informed as we move forward. Thank you, Andrew. So just to summarize, we did a fundraise post year of GBP 6.6 million. We're really pleased to get this across the line. We went out to market to raise the money, GBP 6 million to do the acquisitions. And we had a really tremendous first week of raising the money and getting where we were and where we needed to. But unfortunately, in the second week, when we came back to do our second week in the roadshow, the war happened with Iran and the Middle East and the market changed significantly. So we were really pleased to get this across and make sure that we're in really good shape moving forward with the right amount of funds to do the strategy that we've got in place and actually to grow the markets that we're in. This is transformational acquisition for the group that significantly enhances our ability to generate revenue at scale with AgTech and in Passive Fire Protection, as I mentioned before. And we saw in 2024, when we move those revenues up, the margins speak for themselves, the higher margins generate the profit and the cash generation. So once that bottlenecks released in that H2, we really do see that we're going to start making some really good progress. GBP 55 million current group quoted pipeline. So it's strong. It's being converted, as I mentioned, in AgTech, as I mentioned, in Contract Electronics, and we will see in H2 coming up for the second part of the year. Forward orders, strong good visibility of GBP 4 million. And we've got a clear strategy for route to market, expanding those growth sectors and those market opportunities. We've got a vision here that's targeting GBP 50 million in revenue in the medium term. And as I mentioned, one division can do that. So having 3 divisions de-risks where we are in the markets and where we need to be as we've seen in Passive Fire the bottleneck, which is just about to be released. And it gives us a really good forward step for the future, making sure this year and going on into the years to come that we've got a really strong growth company with high margins. Thank you, Andrew. Disclaimer as usual, but I open the floor to any questions.

[Operator Instructions] Guys, as you can see, we received a number of questions during today's presentation. Andrew, if I could just hand back to you to read out the questions and give responses where appropriate to do so, and I'll pick up from you at the end.

Thanks very much. So yes, we've got one here. In your results, you mentioned the speed of the building safety of the building safety regulator, how much of your stated pipeline is PSR. That's around 40%, but what it does is it also has an effect on the rest of the pipeline because what it's doing is it's reducing the capacity of all the decision-makers, so engineers, architects illegal people as well at the end of the chain, they're all full with these -- going backwards and forwards in these inquiries. So really what we see it has an effect on the whole pipeline. You've got kind of contractors that are having to pay for these works may then decide to use this as an excuse not to move forward because obviously, they're spending their own money. So we do really get a feel that it's kind of starting to release now. There's been a couple approved in the wider inject chain in a couple of weeks to VSR, we've got a number at the moment have gone through just going into the legal side as well. So the feeling is starting to -- it's not quite there, but it's starting to release, which is good. And I think this one for Simon. You described this as a transitional year. What are the key foundations that have been put in place for future growth?

Future growth really in each division is slightly different. So in CEM, we saw a decrease in revenue. So to make sure that we can get growth in the future is making sure that we've got the right equipment, the right assets, which we continue to update, as I mentioned, but also making sure we've got the right accreditations and procedures in place for the markets that we've identified, which are growth, defense, health care and medical in CEM. In AgTech, we see growth internationally. U.K., we're very strong in AgTech and have been for over 30 years with environment computers and installations. But we really do see our sensorGROW product, and once we've developed further the new version of our environment computer system, that we can sell the sensorGROW now internationally and start seeing that recurring revenue through resellers. And that will really give us traction in AgTech and that recurring revenue model. In Passive Fire, I think we all know that there's lots of opportunity there. And once this backlog starts coming through, it's about educating the key stakeholders, and that's where we will see the growth because the demand is certainly there. It's just got to get through the regulation requirements.

We've got how does tech impact on growers need to use fertilizers. The actual project -- we've been doing a 3-year project with Dyson, and we're coming to the end of that now. That is exactly actually what that's about. It's we're measuring N2O nitrous oxide and that leaches from fertilizers. And so what Dyson have been doing is using our sensors to map out coverage and they're going to use Foliar nutrients, which effectively electrostatically applied to the crop. So rather than dusting entire areas that are not covered by plants, they kind of the fertilizer to even the other side of the leaves and things like that. So it can dramatically reduce the amount of fertilizer that's used. So that's actually a really good example of that. Are there any issues manufacturing and sourcing in material? No, there's kind of -- there's a supplier that's based actually about 15 miles from our offices. So I'm meeting them this week, but there's no real issues in sourcing those materials. This is probably one for Jim. Why did you have a place in such a massive discount?

Well, I think Simon has alluded to that, Andrew. We went in Week 1 of the road show and we had a very good feeling that we get a good price. We've got very good demand there. The demand we got over the line in the end, GBP 6.6 million raise. Sadly the second week that we were going through that process, Mr. Trump created the situation in the Middle East that ever since. So it's a very sort of volatile market. And we made the decision. We've got the acquisitions all lined up to go with all the opportunities that result from that. And of course, it was a surprise. So we feel that over the course of time, the opportunities and the benefit back to shareholders from these acquisitions will come through strongly. But it was -- yes, it was unfortunate timing.

Thank you, Jim. Regarding the CEM, for the purpose of moving into new verticals, what core capabilities promoted to open doors to potential customers? I think we feel that in the global component shortages, we did a really good job of being agile. So we actually won a lot of work from other competitors. So what we were doing is we will be able to negotiate sort of procurement, give customers opportunity alternative sources. So instead of just saying, your lead time is 1.5 years now from 6 weeks, we're able to say however you could do it like this, you could do it like that, and this will be an effect on the price and the lead time. And that really worked well with customers very integrated with the customers. And what we've done is to move into these other markets is we've had a gap analysis carried out and we've literally come up with a 5-stage plan of implementation, and we're on towards the last stages of Phase 2. But what we're doing is we are targeting revenue during that phase. We're not just getting to the end of 5 phases and then entering the market. We're kind of entering the market more likely at a lower tier. And then as we get through the stages, we'll go in higher tiers. But what we've got to be careful is that we don't lose that agility and become like a civil service, if you like, keep that agility. Let's go to another one. This one for Jim. Results regarding risk to going concern scare investors, how far off from management forecast will trigger that given you missed the numbers in 2025 versus earlier expectations?

Obviously gone through all the reasons for FY '25. The BSR situation, I think it's commonly known, it's affected all of construction. And as we say, it really blocks has blocked conversion for what essentially is the last 12 months. And when we look at sort of moving forward, we've got a GBP 20 million passive Fire pipeline there that's grown from sort of GBP 6 million, GBP 7 million, GBP 8 million at the start of the year. And from a risk point of view, it's very hard not to sort of put a material uncertainty stamp on it when the previous 12 months has been caused such an issue. However, is the point of the acquisition of injectaclad to control the market much more to control the margins and the supply chain. We've grown significantly the pipeline, so it's good to go. BSR has moved department in January and then launched its strategic plan literally a couple of weeks ago to say that it's key center plan is to bring application process times down to 12 weeks. So we're building our confidence around all those things that are moving in our favor. The potential is all there, strong margin, 50% margin, big contracts. Alongside of that, CEM and AgTech so far, for the first half of this year, are working to expectation. So that is the reason for why the material uncertainty came into our accounts. We feel confident that those things will alleviate in the second half and conversion will take place. As to how much would trigger that issue? Well, it really is circled around the Passive Fire, and it would take sort of sub 50% of our expectations to trigger that sort of issue to become something that happens a material uncertainty that actually comes into life. So yes, it was a disappointment last year with that blockage, but we've got a lot of confidence with all those things moving in the right direction that the second half will bring really, really strong improvement to that situation.