Matrix Composites & Engineering Ltd (MCE) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. My name is Peter Hood, and I'm the Chairperson of Matrix. It's my pleasure to welcome you to the 2024 Annual General Meeting of Shareholders, Matrix Composites & Engineering Limited. In addition to the shareholders who have attended this AGM in person, I would also like to extend a very warm welcome to those shareholders who are attending via the webcast. I am advised that a quorum is present in accordance with Rule 16.7 of the company's constitution. And as such, I declare the meeting open. Sitting with me today are my fellow directors, Steven Cole, Chris Sutherland, Alison Terry, Aaron Begley, Managing Director and CEO, and Brendan Cocks, Executive Director, CFO and Company Secretary. [ Mr. Matthew Hingley ], representing the company's auditors, KPMG, is also present today, together with [ Ms. Catherine Noon ] from the company's share registry, MUFG. I'm advised that proxies have been received from 56 shareholders representing approximately 33% of the company's issued share capital. All shareholders have been sent a notice of meeting in accordance with Rule 16.3 of the constitution. And if there is no objection, I propose that the notice of meeting be taken as read. No objection. The signed minutes of the 2023 Annual General Meeting held on the 23rd of November 2023 are hereby tabled and are available for inspection. I confirm that the register of shareholders is tabled and is available for inspection either during or after the meeting. And if shareholders attending via the webcast have questions, you can type them into the questions window on your screen now. If your question relates to a specific resolution, please ensure you stipulate which resolution it relates to. And I intend to briefly pause at each resolution to check for online questions. We will read out your full name when asking your question. If shareholders have questions of a general nature, these will be asked during the general question session at the end of the meeting. So ladies and gentlemen, welcome to the 2024 Annual General Meeting of Matrix. And before moving into the formal business of today's meeting, I'd like to make some brief key observation of the company's performance in the 2024 financial year. So our FY '24 performance was in line with our expectations. It showed strong growth and built on the positive momentum achieved we've been achieving since 2021. Revenue increased 80% to $85 million, including a very strong performance in the second half of the year. And the business delivered solid net profit after tax of $3.6 million. A very welcome year compared to the prior 5 years. Subsea work in the oil and gas sector remained the key pillar of activity during the year comprising -- comprised over 70% of total revenue with particularly strong growth in the SURF market. Corrosion Technologies and Advanced Materials also continue to be positive contributors for the company, including diversified and recurring revenue with future growth opportunities. So we've been trying to add in more recurring revenue as distinct from project type revenue for some years, and that strategy has begun to deliver for us. We entered FY 2025 with increased cash on hand at a healthy $23.3 million, and with a net cash position and strong base of secured revenue for FY '25 already in place, the company is well positioned financially to support continued growth. Our Chief Executive Officer, Aaron Begley, will provide more detail about the company's performance in the -- in FY '24, our operations and outlook at the conclusion of the formal business of today's meeting. Before turning to the first item of business, I would also like to acknowledge some important changes to the Matrix Board during FY '24. Firstly, Craig Duncan retired, having been an inaugural Board member when Matrix listed on the ASX in 2009, and he was fundamental to the company's development and transformation for over 14 years. On behalf of the Board, I would again like to extend my gratitude to Craig for his significant contribution to Matrix over his extensive time with the company. Secondly, we welcomed Alison Terry as a Non-Executive Director and Brendan Cocks as an Executive Director. Alison joined us as an experienced Executive and Nonexecutive Director with over 2 decades of experience across governance, corporate affairs and sustainability. And this will complement the current Board. Brendan needs no introduction to shareholders. He's been Matrix CFO since joining the company in 2016 and will continue in that role. So I'd like to conclude with expressing the Matrix Board's gratitude to everyone at Matrix for their individual and collective contribution in making FY 2024 another successful year for the company and in particular, a safe year of operation. To our customers and shareholders, thank you for your continued support and trust in our mission to deliver long-term value. Thank you also to you, Aaron, and the senior management team for their dedication and professionalism. And with a positive outlook, a strong financial position and a talented team of people, Matrix is well positioned for another year of growth in FY '25. And I look forward to our team continuing to deliver safely and successfully. I'll now continue with the formal items on the agenda for the meeting. First item of formal business is the presentation of the annual report of the company, which includes the financial report, directors' report and the auditor's report. And pursuant to the Corporations Act, the company is obliged to present to this meeting the last audited financial statements and report for the year-ended 30th of June 2024. These were circulated to all shareholders with the notice of meeting. Whilst there is no requirement for shareholders to approve the annual report and no resolution is required, I now invite shareholders to comment or ask questions in relation to the financial statements. Mr. Hogg from KPMG is also available to answer any questions in relation to the audit of the financial statements. Are there any questions in the room relating to the financial statements? Any questions online? Thank you. Before I commence with the reading of the individual resolutions, I advise all resolutions will be voted on by a poll, and the results of the poll will be lodged on the ASX later today. All shareholders and their representatives were provided with voting cards as they entered. On this voting card, there are a series of boxes. Please indicate on your card how you wish to vote by ticking or marking either the for or against box for each resolution for your vote to count. If you are a proxy holder, a summary of the votes to which you are entitled has been provided with a yellow voting card. If you only have directed votes, you need to do nothing other than submit the voting card. Votes at your discretion or open votes are shown in the column titled Votes Open on your proxy summary and can be cast at your discretion by marking either the for or against box. Once you have finished marking your card, please place it in the ballot box circulating the room after all resolutions are read. I hope you all listen to that and everything will go smoothly. If there are any aspects regarding the voting on which you are uncertain, please do not hesitate to ask the share registry representatives who will be circulating the ballot box. We will now proceed through the resolutions and conduct the poll following the reading of all resolutions. So turning to the next item of business, Resolution 1 in the notice of meeting pursuant to the Corporations Act, the company is required to include as part of the directors' report, a remuneration report, which includes specified information. The directors have prepared a remuneration report to 30th of June 2024, which is included in the annual report on Pages 14 to 25 that have been made available to shareholders. Corporations Act requires companies to put to shareholders a nonbinding vote to enable shareholders to voice their opinion on matters included in the report. In accordance with the voting exclusion statement set out in the notice of meeting, I further advise that the company will disregard any votes cast on Resolution 1 by or on behalf of the following persons: a member of the key management personnel, details of whose remuneration are included in the remuneration report or a closely related party of such a member. Are there any questions in the room relating to this resolution? No. Any questions online? I now move that for the purpose of Section 250R(2) of the Corporations Act, shareholders adopt the remuneration report for the financial year-ended 30th of June 2024. With respect to the resolution, I advise that the proxies have been received by the company as follows. And I won't read those out there in front of you on the screen, and heavily in favor of the for vote. Resolution 2 relates to the reelection of Ms. Alison Terry as a Director. As set out in the notice of meeting, Ms. Terry was appointed as a Director following last year's AGM and is offering herself for reelection. Any questions in the room relating to this resolution? Any questions online? I now move that Ms. Alison Terry, who was appointed to the Board since the company's last AGM and who ceases to hold office in accordance with Rule 19.2 of the constitution and Listing Rule 14.4 and being eligible for reelection be reelected as a director. With respect to Resolution 2, I advise that proxies have been received by the company as follows. Once again, they are displayed in front of you, heavily for. And I can say, Alison, unless there's some late change on the poll, congratulations. Resolution 3 relates to the reelection of Mr. Brendan Cocks as a Director. As set out in the notice of meeting, Mr. Cocks was appointed as a Director following last year's AGM and is offering himself for reelections -- reelection. Any questions in the room relating to this resolution? Any online? I now move that Mr. Brendan Cocks, who was appointed to the Board since the company's last AGM who ceases to hold office in accordance with Rule 19.2 of the constitution and Listing Rule 14.4 and being eligible for election be reelected as a Director. With respect to Resolution 3, I advise that proxies have been received by the company as follows. And once again, these are displayed in front of you. Very much in favor. Unless there's a late change on the poll, Brendan, congratulations. Now turning to Resolution 4. As I have an interest in the outcome of this resolution, I will hand the chair to Steven Cole, please, who will take the meeting through this resolution. I won't go too far away.

Don't go too far away. Okay. Next item agenda is Resolution 4, which is the -- relating to the reelection of Peter Hood, our Chairman, as a Director. And as set out in the notice of meeting, Peter is retiring by rotation and offers himself for reelection. And as also mentioned in the notice of meeting, Peter has the recommendation of the Board for his reelection, himself abstaining on that particular resolution. Are there any questions arising in the room concerning the resolution or online? Is there anybody? Nobody online. So I'll then move that Peter Hood, who retires by rotation in accordance with Rule 19.3 of the company's constitution and Listing Rule 14.4 and being eligible for reelection be reelected as a Director. And the proxies have been received by the company are on the screen. I noticed that Peter just tops the poll marginally over the other 2 that you just considered by a few couple of thousand votes there, but 93.7% in favor and a very small percentage -- very small number against. So those are the results there. And that will be all featured in the poll at the end of the meeting. So at that moment, I'll pass back to Peter to run through the rest of the meeting, and I thank you for your attention. I'll fill the screen until you come back, Peter.

Thank you. And that takes us to Resolution 5, which relates to the reelection of Mr. Chris Sutherland as a Director. As set out in the notice of meeting, Mr. Sutherland is retiring by rotation and offers himself for reelection. Any questions in the room relating to this resolution? Any questions online? I now move that Mr. Chris Sutherland, who retires by rotation in accordance with Rule 19.3 of the company's constitution and Listing Rule 14.4 and being eligible for election be reelected as a Director. With respect to Resolution 5, I advise that proxies have been received by the company as follows. They are there in front of you, heavily in favor. And once again, unless the poll upsets things, congratulations, Chris.

Thank you.

Resolution 6 is an ordinary resolution that relates to the grant of options and performance rights to our Managing Director and CEO, Mr. Aaron Begley, under the company's Employee Awards Plan. The options and performance rights are structured with appropriate vesting conditions and performance hurdles as set out in the notice of meeting. Vesting conditions and performance hurdles are put in place by the Board to ensure that long-term performance is incentivized and aligned with the company's strategic objectives. ASX Listing Rule 10.14 requires a listed company to obtain shareholder approval by ordinary resolution prior to the issue of securities under an employment -- employee incentive scheme to a director or an associate of a director. Accordingly, the company is seeking approval for the issue of these options and performance rights to Mr. Begley under ASX Listing Rule 10.14. For the purposes of ASX Listing Rule 10.14, information about this proposed allocation is detailed in the explanatory statement accompanying the notice of meeting. A voting exclusion statement applies in relation to Resolution 6 and as outlined in the notice of meeting, and as outlined in the notice of meeting. However, the directors, with Aaron Begley abstaining, unanimously recommend that shareholders vote in favor of Resolution 6. Are there any questions in the room relating to this? No. Nothing online. I now move that the issue of 827,123 options and 554,039 performance rights to Mr. Aaron Begley, the Managing Director and CEO of the company is approved and for the purposes of Listing Rule 10.14. With respect to Resolution 6, I advise that proxies have been received by the company as follows. They are recorded in front of you and are heavily in favor. Resolution 7 is an ordinary resolution that relates to the grant of options and performance rights to Executive Director, Chief Financial Officer and Joint Company Secretary, Mr. Brendan Cocks, under the company's Employee Awards Plan. Options and performance rights are structured with appropriate vesting conditions and performance hurdles are set out in the notice of meeting. The vesting conditions and performance hurdles are put in place by the Board to ensure that long-term performance is incentivized and aligned with the company's strategic objectives. ASX Listing Rule 10.14 requires a listed company to obtain shareholders' approval by ordinary resolution prior to the issue of securities under an employee incentive scheme to a director or an associate of a director. Accordingly, the company is seeking approval for the issue of these options and performance rights to Mr. Cocks under ASX Listing Rule 10.14. For the purposes of ASX Listing Rule 10.14, information about this proposed allocation is detailed in the explanatory statement accompanying the notice of meeting. A voting exclusion statement applies in relation to Resolution 7 and is outlined in the notice of meeting. Now with the directors with Brendan abstaining, unanimously recommend that shareholders vote in favor of Resolution 7. Any questions on this resolution? Nothing online. I now move the issue of 563,948 options, 377,754 performance rights, Mr. Brendan Cocks, Executive Director, CFO and Company Secretary of the company is approved under and for the purposes of Listing Rule 10.14. With respect to Resolution 7, I advise that proxies have been received by the company as followed as recorded on the slide in front of you, also heavily in favor. Leads me to Resolution 8. Resolution 8 is a special resolution that relates to the approval of an additional 10% of the company's placement capacity under the listing rules over and above the normal 15% that is available to listed entities in any 12-month period without the need to obtain shareholder approval. Any questions on this? Unless there are any objections, I now move that Resolution 8 as set out in the notice of meeting be taken as read. With respect to that resolution, I advise that proxies have been received by the company as follows and outlined slide in front of us, also heavily in favor. Resolution 9 is a special resolution that relates to the renewal of proportional takeover provisions. Corporations Act permits the company to include in its constitution provisions called takeover approval provisions requiring that a proportional or partial takeover offer be approved by a majority of shareholders before it may proceed. In effect, the approval of Resolution 9 will enable the company to refuse to [ register ] shares acquired under a proportional takeover bid unless that bid is approved by a majority of shareholders. Any questions on this resolution? No. I now move that pursuant to and in accordance with Section 648G of the Corporations Act, the existing proportional takeover provisions in the form set out in Rule 15 of the company's constitution are renewed for a period of 3 years commencing on the date of this meeting. With respect to Resolution 9, I advise that proxies have been received by the company as outlined in front of you. That indicates it's carried. That's the end of the resolutions. Are there any general questions in the room? That's disappointing. Any online? Very disappointing. All right. Well, with that, I've now read through all the resolutions and answered the questions by shareholders. So we will now conduct the poll. If you haven't already submitted your voting card, please do soon -- do so now to the share registry representative. It appears that all those that intend to vote have voted. That completes the voting process. I therefore declare the poll closed. The results of the poll will be lodged on the ASX later today. That concludes the formal business of the AGM, and I now close the meeting. I thank shareholders for their continued support. And I will now ask the CEO to provide an update on the performance, strategy and outlook for the company. Thanks, Aaron.

Thank you, Peter. And for those listening online, good morning, good afternoon and good evening, depending on where you're listening from. So I'll be going through the AGM presentation slide by slide. For those who would like to follow it online, I'm going to go directly to Slide 16, which describes what Matrix does. So Matrix has 3 business pillars. Our core traditional business pillar is subsea. We manufacture buoyancy solutions and other solutions for the subsea market globally with this business pillar. It's probably the oldest part of our business and most established, but also a business pillar that we have substantially diversified over the past few years. Those other emerging business pillars of Corrosion Technology and Advanced Materials are business pillars that have been either recently added to the business over the last 3 years to 4 years or emerging as quite strong growth opportunities that will provide sustained income and earnings for the business in the future. FY '24, we continued very strong momentum from the previous year. Our revenue, as you can see on Page 17, was $85 million. That was a considerable increase from the previous year of 80%. We had a strong EBITDA performance of $11 million, and that was also reflected in our cash production, which was closely -- which closely matched our EBITDA performance. Our underlying EBITDA margin was around about 13%. And our NPAT dropped slightly to $3.6 million, but that was largely reflecting the fact that in the prior year in 2023, we had a write-back of a previously impaired asset. But it was a very strong result and the best result we've had for some time. As you can see on the graph on the bottom left-hand side, there was a considerable amount of revenue derived from our traditional Subsea business and around about 13% from non-subsea, which included Corrosion and Advanced Materials. Something that's important to point out is that most of our business growth has come from the SURF market, so from the production market as opposed to the drilling market. Matrix is traditionally known as a manufacturer of drilling riser buoyancy and drilling riser buoyancy didn't feature very strongly at all in last year's results, nor were they featured strongly in this year's results either. Most of the revenue has been derived from our pivot into the SURF and production market. And what we've done here is we've utilized our substantial production capacity that we have here in Henderson, that was originally developed for the drilling market, we've pivoted that capability, that technology into the SURF market, which has really paid off quite considerably. As you can see, we came from almost nothing a few years ago in this market sector to representing the majority of our revenue last year and it will do the same this year. We've moved to a strong market position globally, and most of the product that we manufacture here in Henderson is exported. But we've been able to use the existing capabilities, production capacity in Henderson to leverage our position into this market, where we remain the biggest single syntactic foam manufacturer in terms of capacity in the world. And we've already secured $38 million in this market for FY '25, but we expect further growth this year that we'll deliver into this financial year in the sector. Turning to the next slide, Slide 19, this is -- really explains where the demand is being derived from. So the deepwater market is centered around what is called the Golden Triangle deepwater, and that includes South America, North America and West Africa. There's also a smattering of opportunities through Southeast and North Asia and Europe and the Middle East. But by far, the majority of the demand is coming from major oil company developments in deepwater in Brazil, places like French Guiana, Suriname and the Gulf of Mexico. Down the West Coast of Africa, traditional markets like Angola and Nigeria continue to provide opportunities for us. And there's a very big growth potential coming out of Namibia, where the geology of Namibian offshore mirrors very much the geology that's found in the pre-salt fields in Brazil and other parts of South America. So this is driving a very strong global demand for subsea completions and infrastructure. And that -- as a result of that, that drives demand for subsea buoyancy in which we're a market leader. Our key clients, which include companies like Subsea 7, Saipem, Technip and others are all telling us that their demand forecast for the rest of the decade remain very strong. So it's really underpinned by the changing economics of deepwater developments when compared to other offshore operations like shale developments. The deepwater economics of large developments in Brazil, Gulf of Mexico, West Africa, even Australia, really stack up when compared to traditional shallow water developments because of the size of the fields and the technology that's able to be applied and the capabilities of the global EPCI market. So this is really driving our revenue, but it also gives us a really great visibility that we haven't had before because we're able to see projects that have been committed to today that will deliver over the next 2 years, 3 years, 4 years, 5 years. And that's why companies like the major EPCI companies that we engage with that are our major clients are able to tell us that they have a high degree of confidence as their backlog builds to deliver into these projects internationally all around the world. I couldn't do this presentation without touching on our traditional market of drilling. There are over 200 mobile floating offshore deepwater rigs around the world, which consist of both drilling rigs and semisubmersibles. Matrix has supplied the majority of the buoyancy on these rigs, and they have a finite life. So they are a discrete part of the rig tool set, if you like, for drilling deepwater wells. And as deepwater demand picks up and continues to grow and be sustained, also will rig demand pick up as well. And we've seen that with an increase in day rates with companies like Transocean, Noble, Valaris, Diamond Offshore, which has now been merged, Seadrill, et cetera. And we've seen those day rates pick up, rig utilization pick up. And as a result, we would expect some attrition of this equipment we supplied and an aftermarket to follow. Now that's been a bit slower than we have expected. But nevertheless, there's over $2 billion worth of buoyancy in the market that either needs to be replaced or repaired or modified or upgraded. And we do expect some latent -- there is some latent demand there. It's very difficult for us to predict the timing of this demand, and it really comes down to the operating budgets of drilling contractors, where they're drilling, how complex the well is. We have technologies as well, which we sell into drilling contractors that are drilling in high currents like LGS, which is a game-changing technology for some of these companies. And we've been approved by companies like Petrobras, the largest single operator of this type of drilling equipment in the world to utilize LGS technology to drill in high current areas offshore Brazil. So what we can do is and what we've demonstrated here is that we have had a lot of activity, quoting activity in this sector. We've got about $130 million of outstanding quotes. And I might just digress for a second in -- that's when compared to the SURF market, where we have $300 million of outstanding quotes -- where we have $300 million of outstanding quotes that are yet to be awarded. But the timing of those quotes for SURF is much more certain because of the project execution timing of subsea projects. The $130 million of quotes we have outstanding in the drilling market, that timing is far more uncertain. So it could happen in the very short term or it could be longer term. But we're confident that eventually, we'll start seeing improved revenue from the aftermarket in this sector. The final area to look at for subsea buoyancy is non-oil and gas applications. Last year, we supplied a $13 million contract to a Japanese company that is drilling for rare earths in the North Pacific. And that was a non-oil and gas application, arguably a renewable application for our product, but we supplied a $13 million deepwater string of buoyancy for their operations. So that was the biggest single contract that we've ever had outside of the oil and gas industry. Another area of growth opportunity for us is offshore floating wind. This is a very large emerging market. It provides a substantial opportunity for Matrix given our size and scale and our ability to sell large quantities of buoyancy and turn those projects around very quickly. Offshore floating wind is emerging. It is quite embryonic. There are a few pilot projects that have been installed around the world, but there's some very large opportunities in North Asia, which is likely to see the home of the first commercial scale offshore floating wind installations anywhere. So we've actively been quoting into this market, again, to the same sorts of EPCI contractors that we see in the oil and gas space because those skills are ideal to be applied into offshore floating wind. So the -- for example, one project that we've quoted on is over $50 million to $60 million, and that's just for one installation, one scope of one part of the work for that project. And that gives you an indication of how large these projects can be. And we're focusing on 3 key areas: buoyancy for the mooring systems for offshore floating wind turbines, buoyancy for the power cables and also buoyancy for the very large floating structures themselves, which we have a lot of track record in, and we have a key and really unprecedented experience record in making very, very large structures for shallow water applications. So we see that as a big potential growth market. Timing, it's a little bit away. The first projects will probably be committed to in 2026 or '25 for delivery into '26, '27. So we hope to be right in the middle of our -- the operators' consideration set for supply. Very quickly on Corrosion Technologies. Look, this has been a great addition to our business because it gives us month-to-month, year-to-year reliable sustainable income as we supply corrosion-resistant materials for repair and sustainment operations across the resources sector. Our biggest customers include clients like Woodside Petroleum -- or sorry, Woodside Energy Limited, I got to get that right, Inpex and also mining companies such as Rio Tinto and others that are looking for corrosion protection systems that will last between 10 years and 30 years the life of the asset that are very easy and quick to supply. So the total installed cost is reduced. And we've had some very, very good traction in this market. So this has been part of our strategy to build a baseload of sustainable and annuity type consumable service and other subscription-based incomes across the resources and defense sectors. Advanced Materials is really a collection of other non-oil and gas and non-corrosion-related technologies that the business has developed. And there are probably 2 key areas here I'd like to focus on. The first area is well construction products. This product is a consumable product, they call centralizers or composite centralizers. It's patented. It's patented by Matrix in a number of different countries. We spent a lot of time developing this. We have sold hundreds of thousands of these products as a consumable for unconventional well developments. So that's typically wells that are used either in fracking or horizontal or directional completions. And recently, we've been approved by Saudi Aramco, which is a big milestone. It took us a long, long time, but we are now on the Saudi Aramco approved part list, which means that our customers can order directly from us or via our agent. And it's a very, very large opportunity that we hope to capitalize on over the coming year. There's a significant amount of volume. To put it in perspective, we have one customer in one field that will drill 1,100 wells next year. He will use hundreds of thousands of centralizers, and our product is approved for use in that application. There's also big opportunities in the United States, where we've repositioned our products and very, very large volumes there as well as other opportunities through the Middle East. So this is an area to keep an eye on. It's a great product. We like it because it's a high-end consumable. Every time that they drill a well, they use hundreds of these products. And ultimately, they're consumed in the process of completing the well. Another area which is of interest, and I did notice one of the questions that came in is what's the play with UUV. We're involved in the defense sector. We currently are performing sustainment work for the Australian Navy. We're also actively supplying to the U.S. Navy as well. But the UUV market is a very interesting market for us. UUVs are Unmanned Underwater Vehicles. And this is where Navies, especially c are using autonomy to replace some of the roles that conventional and nonconventional manned submarines perform. And being completely unmanned, they are attritable, that is -- some of these UUVs can be used once or can be disposed of. Lots of them can be used. They're relatively cheap to manufacture and relatively quick to manufacture. So we've been actively supplying companies like Anduril, an Australian U.S. UUV manufacturer with equipment and buoyancy for their sub -- for their UUV build program and others, both here in Australia and in other parts of the world. Our production capability is unique globally in terms of our ability to make the fuselages for these vehicles and mass produce -- mass produce them at a scale that will enable AUKUS Navies to scale up this capability very quickly. So our play in this area is to position ourselves as the UUV fuselage supplier for AUKUS, and it's a very large opportunity. Timing is something that we get asked about all the time. We are actively already supplying to this market, but we expect it to grow. Okay. So for FY '25 outlook. Currently, we have $48 million of secured revenue for FY '25 already in place. And as I noted in my earlier slide, we expect our SURF revenue to grow year-on-year from last year. So we have a number of awards currently under negotiation that will significantly add to our FY '25 order book. And we expect a large number of contracts to be decided within FY '25. So the $300 million pipeline of quoted work that we've submitted, between $100 million and $160 million of that work in the SURF market will be decided on between now and June 30. Some of that will be delivered into FY '25. Some of it will be delivered into FY '26. We also expect Corrosion Technologies and Advanced Materials to grow significantly to around $10 million this year. We would expect that to grow very strongly next year, especially on the back of Advanced Materials and what we expect out of markets like the well construction market and some of the other diversification opportunities that we've identified. The -- our proximity to the Henderson precinct, I mean, we're right in the middle of it, is fantastic in terms of continuing to service Navy and the other AUKUS aspirations that both the U.S., Australian and British Navies have for the utilization of both Stirling and Henderson. Floating wind opportunities continue to build. We'll certainly keep active in that market because the size of the prize is very large. So I will conclude my presentation there by just addressing directly some of the online questions that we had. One of them was what's the current cash position? Well, we don't disclose that until our -- until there's an update. But look, it's similar to our closing cash, given or considering the working capital flows of projects. And I think I've updated the current status of contracts when we expected to hear how much are they and how confident are we? So as I mentioned, we have $130 million of contracts that will be decided on between now and the end of June -- sorry, $100 million -- between $100 million and $160 million. So -- and we -- at the moment, we have a considerable market share. So we would expect that market share to either be maintained or increased across that space in SURF. I think I've addressed the UUV question, which is what does it play with UUV. And what forecast revenue guidance can you provide for FY '25? Well, we don't provide guidance. However, we -- as I've mentioned, we expect SURF revenue growth year-on-year. And to date, as we've disclosed, we have $48 million of contracts already in hand or revenue already in hand that will be delivered in FY '25. So thank you for listening from wherever you're listening from and good morning, good afternoon and good night. Hold on, we have one more question in the back.

A question online, yes, from Andre. And Andre's question is, is Balmoral offshore in Scotland your main competitor in subsea products? Can you talk to the competitive bidding process for the main work you do? And can you see lift in margins going forward?

Okay. So yes, Balmoral is -- has currently the largest share in the SURF market, SURF buoyancy market. So they are our major competitor. In SURF, unlike other markets we participate in, it is a conventional tendering process. So the EPCI contractors will actually invite us to tender formally on projects. And margin uplift, well, from our perspective, margin uplift is a function of a few things. It's a function of capacity and demand. Look, demand, we expect to increase over the next few years. Capacity, we haven't seen anyone put on additional capacity, and we have significant capacity. And then finally, margins are also driven by the level of differentiation that our product offers. So -- and the value that we ultimately offer to our clients. Technologies like LGS are really interesting because they are, especially in the SURF market, an opportunity to reduce the installation cost of that product quite considerably. So we'd hope that would be reflective in margin. But those are the 3 key factors that we've got to keep in mind. So it's a good question. Any others? Great. Thanks for listening, everyone. I'll conclude it there, and goodbye from Henderson.