Lords Group Trading plc (LORD) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen, and welcome to the Lords Group Trading plc Interim Results Investor Presentation. [Operator Instructions] Before we begin, I would like to submit the following poll, and I'm sure the company would be most grateful for your participation. I'd now like to hand over to CEO, Shanker Patel. Good morning.

Good morning, ladies and gentlemen, and thank you for joining us for our interim 2024 results presentation. On the agenda, I'll be going through the highlights. I'm Shanker Patel, the CEO. My colleague, Stuart Kilpatrick, the CFO, will go through the financial review. And then I'll take you through our strategic update and outlook followed by Q&A, which we will share between myself and Stuart. In terms of the highlights, we're very pleased with our resilient performance in challenging market conditions in the first half of '24. Group revenues have come in at GBP 214.2 million. H1 '23, it was GBP 222.6 million, a like-for-like revenue decrease of 6.1% and in line with the market. In particular, our Plumbing & Heating division recovered in Q2 after a significant disruption in Q1 due to the Clean Heat Market Mechanism being introduced and then removed in the first quarter of 2024. We're very pleased with maintaining our gross margin, which reflects our focus on customer service and the fact that our colleagues continue to ensure that they provide our customers with the best experience they can buying our products. In line with prudent management, we've taken decisions and actions, decisive decisions and actions that expect to deliver annualized savings of GBP 2.6 million in costs in full year 2024. I'm also pleased to announce that our 2023 acquisitions have been fully rebranded and fully integrated into our [ wide ] business. Another positive for our business has been the sales of air source heat pumps, which are up 492% on last year. All in all, we believe we are well positioned to deliver operational gearing from a recovery in our end markets. On the next slide, we'd like to reiterate our investment case. Lords is a high -- a leading high-growth distributor of building materials in the U.K. We characterize our investment case through 6 major areas, first being our unique customer-first proposition. You can see that through consistently high Feefo scores in all of our brands, and we achieved this through having engaged colleagues, who will, in turn, make sure that our customers are fully satisfied and get a great experience. We also have a great management track record. That's demonstrated through the fact that we're consistently a top 10 U.K. merchant. We also have a strong financial profile, and that's demonstrated through our free cash flow, which was 59% in full year '23. Our strategy is being value-added M&A. That means, again, another strong case for investing in Lords. And you could see that through what we've done and achieved through the acquisitions of Alloway, Chiltern, Advance Roofing and AW Lumb in the last few years. Our markets are large and substantial, especially as we are in the RMI segment of the construction industry, and that is reflected through our 10-year revenue CAGR of 36%. And finally, we also have organic margin accretive growth opportunities. Again, the demonstration of that is the air source heat pump category, which has increased by 492% year-on-year. Stuart will go through some of the financial highlights.

Thank you, Shanker. So if I can just talk about the financial summary for first half. As Shanker said, revenue, GBP 214.2 million and 3.8% lower than last year. And difference between the like-for-like numbers of 6.1% decline and the 3.8% is, really, the businesses we acquired in 2023, namely Chiltern Timber and Alloway Timber. Our gross margin held up particularly well at 20.2% compared to 20.4%, which is an improving trend on the full year '23 and '22, and that's a tribute to our customer service excellence than how we deliver our products. Adjusted EBITDA of GBP 12.6 million was 16.6% lower, and that's impacted by the market conditions we faced and also the operational leverage. We still have a target of 7.5% for our EBITDA margins, which go down to -- or decreased down to 5.9%, and then we still think that medium-term target is in range. If you're out, say, 5% to our revenue, that will deliver GBP 4 million to GBP 5 million additional EBITDA, and that takes us to the mid-6% range. Then with a little bit more leverage, a bit more volume, we could still achieve that medium-term target. Adjusted diluted earnings per share is 1.57p in the first half compared to 3.3p last year. And we're pleased to announce dividend at the interim stage 0.32p per share, which is in scale on a prudent basis, in line with earnings per share. And there's been no change to our progressive dividend policy through the cycle, so we expect dividends to move up as financial performance improves going forward. Net debt at the end of the year, which is our cash less our borrowings, that's at GBP 36.3 million. That's 4.5% lower this time last year, where it was GBP 38 million [indiscernible]. If I can now turn to our 2 divisions. Firstly, our Merchanting division. Revenue in Merchanting was 4.4% lower than previous year, down to GBP 104.6 million. Our like-for-like statistics have improved in the quarter, so the first quarter, slightly worse than second quarter, which has improved. But overall, our like-for-likes in Merchanting was 9.3% lower than in previous year. Gross profit, as you can see, has improved in terms of margin. So our gross margin has gone up by 100 basis points or 1%, 26.5% to 27.5%. And that reassures our customer service excellence that we provide, particularly in a challenging market where it's clearly haven't reduced margin to gain sales in this tough conditions. Overheads increased slightly. There's a couple of dynamics within that. So the full year impact of the businesses we acquired in 2023 have added GBP 2.4 million to the first half of overheads and received a credit in respect -- in relation to our Park Royal site, which is an important distribution site for us, of GBP 1.7 million following lease renegotiation. Adjusting for those 2 items, our underlying overheads were 2% lower despite inflation running free -- running through the business, in every business, I guess. So overall, our adjusted EBITDA margin's 7.3% compared to 7.7% last year. And the business -- before last year, the main business, Alloway Timber, reported some activity GBP 2.3 million in September '23. And despite the challenging trading conditions, the turnaround is on track, and we're expecting it to be profitable in full year 2025. Then we move to our Plumbing & Heating division. Our revenue at GBP 109.6 million in the first half was 3% lower than last year. The -- Shanker touched upon the impact of the Clean Heat Market Mechanism being introduced in January 2024 and then later being withdrawn in March 2024 and [indiscernible]. Well, that's how it impacted the company or the business [indiscernible]. We saw a boost in sales in the last month or so in 2023 as boiler manufacturers put up their prices to compensate the fact that they weren't going to achieve their targets and, therefore, pays levies or fines. So it's what [indiscernible] revenue in the last quarter 2023, and that led to a trough in revenue in the first quarter of 2024. So you can see in the first quarter, we're 15.1% down on a like-for-like basis, which recovered in the second quarter and were 16.7% ahead in second quarter. So overall, revenue, 3% down than the first half. But that disruption from the mechanism coming in and being withdrawn severely impacted our gross margin. And we saw several manufacturer promotions and more lower margin product sales as a result. And you could see, our margins decreased from 14.5% to 13.2%. So that impacted gross profit by just under GBP 2 million, which we clawed back a little bit in overhead savings. Overheads were GBP 300,000 less than the previous year. Our adjusted EBITDA did drop by GBP 1.6 million to GBP 5 million in the period. But we have tightly controlled overheads, so that's good progress from that perspective of [indiscernible] control. But we still have continued momentum in the business. So continued momentum in renewables. I should mention the highlight, air source heat pumps were up 492%, and that's a key target market for us as we go forward and a key opportunity. Turn to summary of the group results. Adjusted EBITDA, as I mentioned, GBP 12.6 million. We've seen an increase to our depreciation and amortization in the half of GBP 600,000, which is the effect of the acquisition, as I touched on, from 2023. We acquired 5 new properties, which leads to an IFRS 16 adjustment, the right of use amortization, so increased by GBP 600,000 due to those new businesses. Our finance costs increased by GBP 0.9 million to GBP 3.4 million. That's partly the average rate being 1% higher, which are the GBP 400,000 [indiscernible] slightly higher plus the right of use interest costs from the -- on accounting basis. And then turning to adjusting items. It's very similar to previous year, about GBP 2 million for acquisition-related, mainly amortization, a little bit of restructuring costs and some share-based payments of GBP 0.3 million. Our first half cash flow is in this table presented here. As you can see, we seasonally have a working capital out on the first half, and that chart shows our working capital-to-sales ratio going up every -- point to June, going back down again in December. I don't really expect that to happen this year. So our working capital outflow was GBP 6.7 million in the first half compared to GBP 15.6 million last year, significantly lower, being GBP 9 million lower, but we did have order supply issues in the 2023, which increased inventory, but we expect our working capital to reverse in the second half. We do have a strong track record on free cash flow conversion. In 2023, it was 59%, and we'd expect [indiscernible] numbers as we go through the second half of 2024. We tightly controlled capital expenditures, so GBP 2.6 million of outflow in the first half of 2024 compared to GBP 4.3 million last year, and a little bit of acquisition related is deferred consideration of GBP 1.8 million. That, again, has significantly reduced from the previous year at GBP 5.2 million, and that's reduces demand going forward. All in all, our cash flow was GBP 7.8 million. Headwinds increased our debt to GBP 36.3 million, as I mentioned, but still 5% lower than [indiscernible] of June 2023. Turning now to balance sheet. So our focus really in these challenging conditions has been on cost efficiencies, as I mentioned, where we peaked at about GBP 2.6 million on an annualized basis, but also in terms of working capital management. It's very critical for us to maintain a high level of customer service with a high level of stocking availability to our customers. So you can see, we reduced inventory quite significantly and -- compared to this time last year. Most of that is due to boiler supply issues that -- inventory days was 7 days lower. Because of that, we actually improved it by 1 day since the end of last year in December, and we've improved payables by 1 day as well. So we got small improvements in our working capital management, but the operating capital is GBP 10.6 million less than previous year. And we do have within that operating capital, GBP 20 million of tangible fixed assets and about GBP 13 million of freehold property as part of our asset base on our branch [indiscernible], which is about 6% in properties. But then turning to our financing and credit bank facilities. We have GBP 95 million of facilities in place. Our revolving credit facility is GBP 70 million and invoice finance is GBP 25 million with a group of 3 banks, HSBC, NatWest and BNP Paribas. We extended the revolving credit facility in May 2024. We extended maturity date to April 2027. So you can see we've got 3 years to go on that credit. Our headroom remained fairly constant, still GBP 47 million at the end of June 2024, pretty similar numbers at the end of December. So we got plenty of headroom on [indiscernible] plenty of liquidity. So good [indiscernible] going forward. I'm handing back to you, Shanker, for the strategic update.

Yes. Thank you very much, Stuart. In terms of our strategic update, a few things to mention. First is to confirm our track record of organic and acquisitive growth. We have delivered a revenue and EBITDA 10-year CAGR of 35% plus broad-based and have shown and demonstrated a really good track record in growing our business. We have considerable organic opportunities, and one of them being expanding our geographic footprint. We opened a Mr Central Heating branch last year in Edinburgh. And we've now identified a potential site for George Lines, which is our civils brand, and we will be aiming to bring that onstream in the next 3 to 4 months. We've also got a great opportunity in the decarbonization of the U.K. housing stock, and I'll talk a little bit about that in the following few slides. Fundamentally, the RMI market remained strong, which is where we're well positioned. The market is 60% of housing stock is built more than 50 years ago, and that's a great opportunity for us. In addition to the RMI market being strong, we have taken decisive action in digital and direct sourcing, investing in these channels to gain market share. Overall, our market is fragmented at GBP 55 billion, and Lords Group Trading is less than 1%, which is providing an opportunity for selected acquisitions and consolidation. An update on our acquisitions from 2023. Alloway Timber is a highly strategic geographic expansion, which grew our presence in 5 locations in the southeast of London. These are highly affluent locations: Mitcham, Byfleet, Putney, Cheam and Kingston. Pre-acquisition, the business was loss-making circa GBP 1 million and rising. But since the acquisition, we have now invested in our strategy of investing in our 3 Ps, investing in our people, investing in property and investing in the plant of the business. All 4 branches have been refurbished, investing GBP 500,000. And in addition to investing in the property and the plant, we've also invested in the business development of this business and improved the branch management. We can see some of the effects of this in the fact that the business is delivering gross margins of over 30% and is expected to be profitable in 2025. Another acquisition we made, which was Chiltern Timber in the first quarter of 2023, a single-site specialist timber merchant that is now fully integrated into Lords Merchanting. The business provides a product range extension to existing Merchanting customer base and is highly complementary to Lords Builders Merchants brand because of its newbuild capacity. We're also pleased with the performance of this business, that its revenue up 3.2% in pro forma H1 2023. So how are we driving profitable growth? There are a few product areas in particular that I'd like to call out, one is in the boiler space. 80% -- or 85%, sorry, of our business is in Plumbing & Heating boilers. And we're really excited to announce an exclusive U.K. distributorship with a boiler manufacturer called Navien, and that's providing 24-hour availability to over 2,500 independent plumbers merchants and Lords merchants. Navien is one of the world's largest boiler manufacturers based out of South Korea, and they provide high-efficiency heating solutions, which are competitively priced, a necessity well placed for our customers. There's also great opportunity with this brand to support on spares distribution and product storage in the U.K. Following on from Navien, we've also commenced a distribution agreement with Viessman Climate Solutions portfolio. Their portfolio of gas boilers, heat pumps and commercial heating solutions, whilst this is not exclusive, we are very fortunate to be able to be a distributor of a very large European manufacturer, which is leading in this space. And like the boilers, we've also commenced a distribution agreement in radiators with Termotechnik radiators. Termotechnik has 30% of the U.K. radiator market, a product area that we don't currently distribute. Although we do so already, we don't distribute it in quantity to our 2,500 merchant customers. And all of the above signifies an [indiscernible] our continued strategy of product group diversification. We're also supporting the energy transition. In particular, in air source heat pump, we're pleased to announce an exclusive distribution agreement with an Italian manufacturer, Clivet, to distribute their air source heat pumps. Clivet is a global market leader, and it currently manufactures for other European brands in heat pumps. Our relationship with Viessman will also lead to another strong brand in air source heat pumps, becoming half of the portfolio of products offered by the Plumbing & Heating division. And to help the U.K. transition to Clean Heat, we're aiming to establish a design and installation service for air source heat pumps. We're also aiming to provide end-to-end design, which is critical for system efficiency for our customers and their stores. And finally, we're looking to get a MCS accreditation, which facilitates our customers in getting grant recovery of GBP 7,500 as part of the government's plan for energy transition in the heating market. Growth in renewables will come from not only air source heat pumps and the fact that we are well placed in renewables because of the existing channels that we have to customers that can be leveraged with no major further investments. We believe that getting accreditation, installation will also assist towards driving these government targets of 600,000 heat pumps by 2028. The growth will also come from the fact that we have market-leading brands and customer service excellence. We'll continue to win market share, and our continuous investment in new branch rollout, Mr Central Heating and George Lines, will add to our organic growth. As Stuart mentioned earlier, efficiencies implemented in the last 12 months provide operational gearing when our markets recover. I reiterate, a 5% increase in the last 12 months sales adds between GBP 4 million to GBP 5 million to earnings . An update on our actions in the environmental, social and governance. We have implemented our strategy and framework in place. We have worked tirelessly in ensuring that we have a robust strategy. This strategy has led to an implementation of new environmental quality that outlines our ambition to reduce our Scope 1 and 2 emissions by 90% by 2035 and, in addition to that, reduce our Scope 3 emissions by 90% by 2050. So it's really much harder, but we're pleased that we're working in collaboration with our buying group, H&B, and also with most of our major suppliers to combat climate change and reduce our emissions. In our business, our environmental progress in H1 2024 is identified by forklift fleet being progressively replaced with electric forklifts. 50% of our fleet is now electric. HVO, which is a substitute for diesel, have been trialed in some of our branches with our HGVs, and we have selective solar panel installations planned of between 2 to 4 branches per annum. Finally, we are really pleased with the fact that our foundation, Lords Group Foundation, has distributed GBP 120,000 towards good causes within the local communities where we trade from over the last 12 months. I finish off with an outlook for the future. We remain well positioned in highly fragmented and essential RMI sector to grow market share organically and through selective, accretive acquisitions. We do not expect H2 trading conditions to change, but the medium-term outlook is positive, supported by industry data and demand fundamentals. One of the key fundamentals is interest rate reduction, which we're encouraged by the recent reduction and the expectation of future rate cuts. A new government sentiment on newbuild should also improve the construction sector in the medium term, and we are well placed to benefit from that. And finally, recognizing the important autumn season ahead, particularly in Plumbing & Heating, we anticipate adjusted EBITDA to be in line with our expectations. Thank you.

[Operator Instructions] I'd just like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed by your InvestorMeetCompany dashboard. Shanker, Stuart, as you can see, we've had a number of questions from investors this afternoon or this morning. So thank you to everybody for your engagement. If I may just hand back to you, ask you to read out the questions, where it's appropriate to do so, and I'll pick up from you at the end.

Okay. We've got all those questions. So I think we'll take it in turns. I'll call out one and you can call out another.

I'll do the easy ones.

You'll do the easy ones, okay. So we've got the question from [ Jani ], how has trading been since the reporting period? So we're expecting that H2 would be stronger than H1. And July and August, unfortunately, have not shown to these lines of encouraging trading. But as far as September, it has been encouraging. And -- but as we've been saying, we remain to see how the important autumn season trading turns out. Early indications from macro indicators are that there is a slow growing set of leading indicators that should feed through into our end markets. So another question from [ Davis ], which maybe -- I'm not sure. So gross margins have remained steady, what strategies have you implemented to protect and even slightly improve margins during challenging market conditions?

I think it's a great -- the gross margins have remained fairly steady. Obviously, our branches have a bit of control over what they set out, and some of our competitors have been more aggressive in terms of winning volume rather than keeping margin. So our strategy really is to try and maintain our margins, but also provide excellent customer service. Recognize that it depends on what our customers are doing as well. So it's getting that balance right. Shanker has talked quite extensively, and that's on the new arrangements we've got, new distributor arrangements. We are -- I'm always looking for improved margins as we develop our spread of products and the thing that we do sell to our customers. So I think it's more about product diversification and just trying to hold on in these challenging conditions.

[ John S. ] has a question. Given the fragmented U.K. building supply sector, what is your strategy for future acquisitions? And how do you balance growth through M&A with organic market share gains? How do you prioritize between these 2 approaches? We've always maintained that we've got 2 elements to our business, organic opportunities and selective, accretive acquisitions. And at the moment, with the market being in a difficult trading position, we believe that acquisitions have to be highly selective. We see in Merchanting like-for-likes are still challenged. And therefore, to make acquisitions in this particular period, we have to be highly selective because, of course, what we're all looking for is what is the right valuation in a down market. But you see that in this kind of difficult trading position, what we've talked you to is organic opportunities, particularly, I've called out some of the actions we've taken in our Plumbing & Heating business and division and tied up in manufacturers where the products are margin-accretive. We've got a good opportunity to take market share and to offer our customers a wider portfolio of products. So all in all, as we see the market improve, we'll again balance that between the organic opportunities and the M&A opportunities. However, just reiterating, there are always acquisition opportunities that avail theirselves to us. But right from day 1, we said that we're very disciplined in our acquisitions. An [indiscernible] always used in our business, and that is that you can change everything about an acquisition the day after you bought the business, but the one thing you can't change is the price you paid for it. And in this challenging -- in terms of that, we're very, very focused in making sure that we don't overbid. That could sometimes lead to a mismatch between our expectations on valuation and [ vendor's ].

So I take the next one, which is from [ Michael J. ]. How's trading in the third quarter to date compared to 2023? Likely, we can expect the second half to improve. I think we shared the outlook that we're not forecasting that the second half of trade conditions to improve. That's a good positive news flow and positive dynamics for the sector, but those will take a little bit of time to come through. Now the first interest rate cut, I guess, it came into this year. We're hoping to be further a long lot on that journey by now. There are various things that are underway, like collections, et cetera. So we're not calling any rate increases. We've seen -- we had a very difficult first half in terms of showing trends, given the Clean Heat Market Mechanism. So July was probably best than we expected, and August was not quite as good as we expected. So it's a very mixed picture, but we're not seeing enough green shoots or increase on last year's to start particularly an upturn in the second half as yet.

Let me add to, Stuart, the point around interest rates. At this point, we were expecting to see 2 interest rate reductions and possibly 3 for the year. Right now, we've only seen one, potentially a second one in November, which is what the market is expecting. And that delay does feed into our markets. There's a land between interest rate reduction and those then feeding into the RMI market, in particular. So the delay in interest rate reductions, we also believe, has delayed the potential recovery in our markets. However, there are still 2 very strong -- 3 very strong months left in the year, which is September, October and November. And we are seeing some positive leading indicators. It's whether those then feed into our markets. We've got one from [ Gavin ] around acquisitions. Are potential sellers now more receptive to selling and CGT business sales being a tailwind? I think with the potential budget tax squeeze that might be coming, unfortunately, the timing between the announcement of that and the potential tax increases is a bit short. So I don't think that we're seeing any direct correlation between the 2. But there are always plenty of sellers willing to sell. What we do have potentially at the moment, as I mentioned earlier, is sort of valuations mismatch. It's very difficult in a falling market to value companies correctly, especially small- to medium-sized businesses, and that's which we buy, to generally turn around or business improvement to base. And we're very disciplined in the sense that we won't buy a business at valuations that we feel cannot be sustained and are not beneficial for our shareholders.

A question from [ Ben G. ], in terms of how confident are you in the turnaround of recently acquired companies like Alloway Timber, Chiltern Timber? And what metrics will indicate their successful integration into the group? Firstly, [ Ben ], Chiltern wasn't a turnaround. It's a profitable company bought on a profit target as well, and it's delivering sales at 3.2% better than last year. So it's going as expected. Alloway was bought on a turnaround basis. As was mentioned, it was losing about GBP 1 million of -- a year when we bought it. The indications that we need to see it turning to the right direction, sales growth and that some of our branches are growing month-on-month in terms of sales. Now we typically see this can turn around several times. The sales drop off in the first few months of new ownership, and they start to come back. And that's the trend that we've started to see. It's obviously been more challenging in terms of the markets being, as I mentioned, 6% down on a like-for-like basis, has not been assisting us in that turnaround. So it may be our internal hopes would have been that we can turn around very quicker. But it's going the right direction. So it's all about revenue growth. We've addressed and rightsized the cost base. So it's a little about growing on that cost base, which we think is suitable for business.

Question from [ Michael ]. Are there going to be further cost impacts like redundancies or major refurbishment costs? Well, we're not planning on redundancies. Of course, that's historically correlated to activity. And in terms of major refurbishment costs, we have a program of investing in our property and our plants, and that program usually -- sorry, usually relatively always leads to a good return. So our strategy, investing in our property, in our plant is not going to change. Of course, we're prudent, and we will do so in terms of timing to match the cash flows of the business and the requirements, the investments that need to be made. Question from [ Jani ] again. What are your expectations to the EBITDA? They have not -- haven't been disclosed?

Yes, [ Jani ]. I think we have disclosed our expectations for EBITDA on that last little point of the outlook slide, so I -- where we said we anticipate adjusted EBITDA to be in line with expectations. So we're holding our expectations for the full year on [indiscernible] as we stand at the moment.

Okay. We've got some questions from...

From [ Aldi ]. There was about pickup sales, about GBP 1.6 million in the first half. How much of our turnover is from newbuild? Would you take that on?

Yes. So less than 10% of our turnover is from newbuild. Now whilst we don't directly supply the national housebuilders, we do supply into their supply chain through several of our divisions, and in particular, we supply the ground workers that work on behalf of the major housebuilders. Maybe one more?

Can you talk about how we incentivize branch managers? In the traditional way, I guess, is the answer on that one, which is earners scheme and also a longer-term scheme as well. But essentially, each branch manager will have a trigger, a target, a stretch target to achieve their bonus, so remuneration [indiscernible] in terms of incentivization financially.

Yes. And that's part of that. So directly, they get ownership of their branch, and it's their branch profitability that is then shared with them through a remuneration incentive. One more question, [ Dennis ], are you looking to expand geography -- geographically to other areas of the U.K.? Yes. We're consistently looking at expanding into other areas of the U.K. In particular, Mr Central Heating and George Lines are 2 place where we believe there is opportunity for us outside of our current London Southeast-centric market. That Mr Central Heating is well placed geographically across the nation, with locations as far as Edinburgh down to Portsmouth and Bristol. George Lines, which has generally been in more Southeast base business, has got opportunity expanding north as well as the east and southeast of the U.K.

That's great. Shanker, Stuart, it's -- thank you for addressing those questions. And I know it's the first day of your roadshow. You have several back-to-back meetings. If any further questions do make themselves available, we'll let you have those post today's call. Shanker, Stuart, I know investor feedback is important to you. I'll shortly redirect those on the call to give you their thoughts and expectations. But Shanker, before doing so, if I may just ask you for a couple of closing comments.

Okay. Well, thank you very much, everyone, for taking the time to join us in today and listening to us present our H1 2024 results. I'll summarize by saying, we still maintain that we're a leading high-growth distributor of building materials in the U.K. with a bright future. Thank you.

That's great. Shanker, Stuart, thank you once again for updating investors. If I could please ask investors not to close this session as we'll now automatically redirect you for the opportunity to provide your feedback in order that the company can really better understand your views and expectations. This will only take a couple of moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of Lords Trading plc, I'd like to thank you for attending today's presentation, and good morning to you all.