PayPoint plc (PAY) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen, and welcome to the PayPoint Plc Half Year Results Conference Call. [Operator Instructions] Let me now turn over the floor to your host, Nick Wiles.

Thank you, and good morning, everyone, and welcome to our interim results presentation. We've set out here our familiar agenda for this morning. Rob and I look forward to taking you through the key highlights of our first half ahead of answering any questions. Overall, I think we've delivered a really resilient first half performance with strong underlying performances from parcels, from our card processing business and from open banking and a return to growth for both Park Christmas Savings and also Love2shop. I think for us, the results and our cost set as we look forward, say a lot to the transformation of the business over the last 3 to 4 years particularly against an economy and its headwinds and our legacy energy sector, where we saw net revenues down 20% in the first half. As the business following the acquisition of Appreciate but clearly more seasonally weighted to the second half and Rob will talk about that more later. I'm really pleased to say we started the second half well. Energy volumes are better and the momentum across the business is really strong. This certainly gives us confidence in delivering further progress this year and trading in line with our expectations and those of the market. This is clearly a very busy slide, which sets out our first half financial performance. The key call-outs here are underlying net revenue growth is up 4.7%. Our underlying EBITDA growth is 9.9%. And then across the individual business divisions, shopping net revenue growth is up 4.2% with growth in all of our product services states are really another outstanding performance from our e-commerce business with further state growth supporting net revenue growth of 72%, parcel transaction growth of 82%. In Payments & Banking, we saw a 2.3% decline in net revenue which I think reflects a robust performance in the face of a decline in cash net revenue and in particular, energy, which in total were down 9.3%. We're very much mitigated by further good progress in digital payments business, which was up in net revenue terms 9.1% and the first time contribution from Love2shop. With that, I'd like to hand you over to Rob, who will take you through the financials in more detail.

Thank you, Nick, and good morning, everyone. If I can start with the financial highlight slide. Net revenue for half 1 is up 34.1% from GBP 59.5 million in the prior half to GBP 79.8 million. I'll give you more details on this growth shortly, but essentially GBP 17.5 million of this is the inclusion of our Love2shop segment, which wasn't included in the prior half and the remaining GBP 2.8 million growth was from the PayPoint segment. Underlying EBITDA increased 9.9% to GBP 31.1 million and this is driven through GBP 2.6 million higher interest, GBP 4.9 million higher D&A and that's part dampened by lower reported profits of GBP 3.8 million and lower exceptional charges of GBP 0.9 million. Underlying PBT is down 7.5% to GBP 21.8 million. I'll cover this on the next slide, but this is all driven by the inclusion of Love2shop with this segment loss-making for half 1 and all profits coming through in the second half. The PayPoint segment is flat half on half. Reported PBT of GBP 17.2 million is up to GBP 4.6 million [indiscernible] GBP 4 million of amortization of acquired intangibles and GBP 0.6 million of [indiscernible] . The underlying diluted EPS is 22.1p. This is down 20.2% on the prior half. With this drop in EPS, a combination of lower reported profits, which is driven by the seasonality in Love2shop, a higher tax rate of 25% versus 19%, plus an increase in the weighted average shares in issue and that's primarily the 3.6 million shares we issued for the Love2shop acquisition. Lastly, on the slide, we had GBP 15.6 million of cash generation from ordinary activities and net corporate debt of GBP 83.2 million. Again, I'll cover this in the slides to follow. Moving on to the waterfall slide and profitability. This shows profit progression half-on-half. The first 4 bars on the left, reconcile reported and underlying profits for the prior half to give a comparable of GBP 23.6 million. The next 4 bars show with a 4.7% to PayPoint segment revenue growth come from. That's mainly GBP 1.3 million from shopping, GBP 2.1 million from e-commerce plus GBP 1 million of interest. And this growth is part dampened by GBP 1.6 million revenue decline in Payments & Banking. Further to the right of this chart, costs are up GBP 2.4 million, along with finance costs of GBP 0.4 million. So aggregating this year's underlying profit of GBP 23.6 million for the PayPoint segment, same as the prior half. Finally, on the slide, the last few bars capture an underlying loss of GBP 1.8 million for Love2shop, which, as I said, is seasonal, and we'll see Love2shop profits coming through in the second half. Combining these 2 segments gives an overall group profit of GBP 21.8 million. This slide gives more detail on revenue. So starting at the top, shopping revenues are up GBP 1.3 million or 4.2% on prior half, come from, firstly, 9% growth in service fees to GBP 9.7 million, driven by 481 revenue-generating sites increased half-on-half plus a 7.3% increase in the average service fee per site. Secondly, we've had 3.1% revenue growth in card payments to GBP 16.4 million. Again, this comes through continued growth in sites plus an increase in card transactions, but that has been partly dampened by a lower average transactional value. ATMs and Counter Cash is down GBP 0.3 million, and that's really from a [indiscernible] in transactions. And lastly, on retail, the other category has grown by GBP 0.3 million, and that comes from positive growth in our FMCG campaigns. On e-commerce, we've had strong revenue growth of 71.8% and that's from a substantial increase in the transactions, we've got GBP 42.1 million for this half versus GBP 23 million in the prior half. Plus, we've also seen slight expansion, an increase of 1,372 sites half-on-half. For Payments & Banking, revenues are up GBP 0.5 million for digital, plus a further GBP 1 million growth in other, which is driven by higher interest on client funds and this growth has been more than offset by GBP 2.1 million decline in cash bill payments and top-ups with a GBP 14.4 million fall in transactions versus the prior half. Combined, this gives GBP 62.3 million revenue for the PayPoint segment and adding in Love2shop revenues of GBP 17.5 million, gives the overall group revenue of GBP 79.8 million. An important color to make is our continued shift away from reliance on cash and bill payments, which now only accounts for 19% of group revenues and that's substantially less than the prior half where this accounted for roughly 28% of revenues. The next waterfall is on costs, again, a half-on-half comparison. On a like-for-like basis, the PayPoint segment has seen a GBP 2.8 million increase in cost. With this coming from asset leasing up GBP 0.9 million; investment in sales growth, GBP 0.5 million; People costs up GBP 1 million, and that's really due to salary inflation [indiscernible] vacancies. Plus, we've had GBP 0.4 million more of interest essentially higher base rates. Love2shop segments are GBP 19.3 million, and that includes roughly GBP 2 million of interest allocation from group and combining this gives an overall group cost of GBP 58 million. The next slide is on cash generation, and we had GBP 15.6 million coming through operating activities in the half. I've covered PBT and exceptional items already, but D&A is up due to an increase in intangibles with roughly GBP 40 million more following the Love2shop acquisition. Working capital was a GBP 12.6 million outflow and really, the key items that are driving this, number 1 is we've had a GBP 2 million accrual reversal post year-end in respect of acquisition costs. We've had a GBP 2.7 million increase relating to extended payment terms for a key customer but largely the remainder is Love2shop related, specifically an inventory build, which we'll in mind in the second half. After tax, CapEx and dividends, the corporate debt increased from GBP 10.8 million to GBP 83.2 million. This increase was anticipated and will fall in half 2, with the full year expected to be in line with expectations. Turning briefly on balance sheet. Net assets for the group of GBP 110.8 million and marginally down on the March year-end position. The big swings that you'll see on this slide are GBP 62.5 million extra assets and liabilities from client funds and retailers' deposits, which is all really seasonal movements. Borrowings are up to support the cost of the acquisition and working capital. But as I've said, this will come back down in the second half. Lastly, before I pass back to Nick on financing, the existing term loan of GBP 5.4 million is due to be fully repaid by February 2024. The new term loan of GBP 36 million announced earlier this year plus the GBP 75 million RCF facility of a duration out to February 2026. In the second half, we anticipate a cash outflow of GBP 13.8 million for dividends, plus circa GBP 10 million of extra CapEx. On dividends, you can see from the right of this slide, we're proposing an interim dividend of 19p per share which is 2.2% up on the final dividend for FY '23, which was 18.6p. This is consistent with our progressive dividend policy and will be payable in equal installments on the 29th of December 2023 and on the fifth of March 2024. I'll now pass you back to Nick.

Thanks, Rob. Turning now to our strategy update. This first slide in the strategy section really is a reminder of how the business has evolved over the past few years and the structural focus we have today on essentially number one, our payment platform and our broadening range of payment capabilities; and secondly, our SME and retailer network and supporting propositions we're now able to offer today. In blue on this slide, we've highlighted the areas of our business and capabilities that we're going to give particular attention to today. And as they are the key areas that we see as drive us to the business achieving our target of GBP 100 million EBITDA by the end of financial year '25, '26. The common theme to these focus areas are firstly the opportunity to consolidate our market position in each of these key sectors to enhance our business platform and be more joined as a business as a whole, leverage our capabilities better to drive new opportunity in new and existing markets. And then well executed, the opportunity this gives us to really deliver accelerated growth in each of our business segments. Turning really firstly to parcels. Today, I think we've got a great put on that market. It's based on excellent coverage across the U.K. and supported by invested technology, excellent compliance and customer service and a really strong set of carrier relationships across each of the major carriers. We continue to see outstanding growth opportunities for this business, and I'll talk in a moment about our recent announced partnership with Yodel and Vinted. To support this growth, we need to expand the network further to enhance coverage and to this end, we've identified 3 key growth areas. We're going to add to our transport locations to support commuter consumers, our universities network to support students and develop a home hub network, utilizing our very best Park Christmas Saving community as agents. Our volume growth in parcels as we look forward over the next 2 to 3 years is likely to be really significant and it's key that we have the network in place and the supporting investment to deliver on this. Consistent with our growth plans is the recently announced strategic partnership with Yodel and Vinted. This is a multiyear agreement for the Collect+ network to support the significant volume of growth from Vinted by both our store-to-store and store-to-home parcel services. Our expectation is that the store-to-store will be the primary driver, given its reduced carbon footprint and preferred method with into customers. Underway currently our detailed operational planning alongside both Yodel and Vinted as we deliver our network capabilities of what's necessary to manage a really significant step-up in volume, which we're already beginning to see. Secondly, we've described a number of times before the importance of the work we've done over the past 3 to 4 years to develop a multichannel payment platform really with digital capabilities at its heart. Having built this platform, as we've said before, the key to our success is now building and onboarding a pipeline of new business. And as this then captures new opportunities in new sectors it takes us beyond our energy legacy relationships into housing, into charities, local and central government. This slide highlights 3 examples of new wins and progress we've made in the first half to achieve the early stages in this objective. Lastly, looking at the success in POBL Housing, our multi-pay solution now supports POBL across direct debit, cards and cash which helps them rationalize 4 payment providers into one. It's offering a better payment service to their customers and it's very much simplified the back office processes that POBL has today delivering efficiencies for them as well. The Sheffield City Council, we provided the open-based solution which supported them in the distribution of the Household Support Fund and Local Assistance Scheme Funds. It's leveraging our cash out and Love2shop essential vouchers capability, removing for the council, the use of cheques and BACS and it's clearly a more convenient and cost-effective way for residents to receive their funds quickly. And then finally, with the Department of Energy Security & Net Zero. Again, we've used our OpenPay solutions to distribute over GBP 600 of cost of living support to what they call continuous cruises that in reality meant the issuance of over 40,000 vouchers which had a 97% opt-in through open banking for bank account deposits, all of which was delivered in 2 weeks from start to finish. We expect to have a significant number of additional new wins during the second half to announce the full year again across these key target markets. Our partnership in investment with OBConnect as we look at open banking has been the key to our growing presence in the provision of open banking services to a growing number of new existing clients. To this end, we're focused on 3 key open banking services, namely combination of payee and account information service using open banking tools, the payment initiation service. And I think as you can see from this slide, our progress in growing client list is strong. We're already 1 of the leading open banking payment processes in the U.K. Our early success in this area and growing set of opportunities is a great example of our business identifying, investing in the right partnerships to deliver market leadership and new growth opportunities. And you'll hear much more about this as we progress through the year to the year-end. Our acquisition of Appreciate was essentially predicated on Q3 arguments. Firstly, our ability to deliver significant revenue synergies from leveraging the PayPoint network and our client base to deliver new sales channels for both Park Christmas Savings and Love2shop. And secondly, with the right support and investment, the recognition of considerable growth opportunities within both Park Christmas Savings and Love2shop in their existing markets and existing sales channels. On this slide, we've highlighted the first 2 new sales channel initiatives. We've informated across Park Christmas Savings and Love2shop. As you can see, we've now introduced Love2shop into over 2,600 of our multiple retailer sites. Growth in that sales channel is growing quickly. And the good news is actually this has been rolled out in time for Christmas. And we expect a better report on our progress again at the full year. In Park Christmas Savings, we've now gone through 1,500 retail recruited as Park super agents and our focus is on supporting those retailers as they grow their own community savers for the 2024 Christmas Savings season. We expect more initiatives to be underway and rolled out during the second half to further leverage our PayPoint network and client relationships to grow billings and channels of billings for both Love2shop and Park Christmas Savings. And I would say the progress in both of these areas is well ahead of plan. Good examples of how we grow incremental billings within Love2shop, make the most of the current capabilities or 1 example here on this slide. In short order, we've developed the necessary APIs to integrate into our corporate client base to improve their user experience and also added Love2shop to the framework of a number of government procurements. Both initiatives are already leading to incremental billing opportunities and better service delivery to our clients. Further ahead, working with card factory to roll out a joint greeting card and gift card proposition across the PayPoint independent network. In addition, as Phase 2 rolling out physical gift cards into the independent retailer network to replicate what we've now done with our malts clients. The last 2 focus areas are centered on how we continue to engage and support our retailer partners and their vital role in communities across the U.K. Firstly, on this slide, a key reminder of the enduring importance of cash and its access to cash in communities. The statistics on the left of the slide are strong, 5.4 million adults are still cash dependent and 1.1 million consumers mainly use cash every day. On the right, the vital role our banking services provide to our retailers is very clear. With NeoBanks, we in 2022, '23 had over GBP 380 million deposited through our network. And in the first half of this year, that number has risen to GBP 210 million. We're currently working with Monzo and we have Chase and Revolut coming on during the second half, which will further strengthen our presence actually in the NeoBank market an important part of our retailer network for the branchless bank networks in the U.K. Counter Cash, which is our cash without purchase and balanced service, which is offered at the till, continues to grow. We had GBP 42.5 million withdrawn last year in the first half of this year, grown to GBP 32.1 million in the half year. And our digital disbursements of cash by our the PayPoint network was over GBP 318 million last year, the DWP. I hope it's clear that our banking and cash services are key area of focus for our business as we look forward over the next 3 to 5 years with a number of new banking services coming on as we actually grow this presence on high street. Looking further as to really what being a PayPoint retailer means today. If we turn to the divisional review, firstly, turning to shopping. Our headline performance in shopping was up 4.2% in net revenue. Both retail services and car processing delivered net revenue growth with growth in all of our PayPoint state both our live card payment books of Lloyd's Cardnet and Evo in growth, actually, which again was very encouraging. Our focus on the first half has remained on enhancing our SME and our retailer proposition, in particular, we've made some great progress in FMCG with a number of great branding partnership campaigns in the first half making further progress in the development of our card processing business in a challenging market, we've grown our estate. We've grown our sales team. We strengthened our areas of governance, we're increasing the use of our AI tools, particularly around predictive behavior, and we're really growing a really strong and really well-disciplined ISO business. We're growing in the other areas of retail and SME business, not just counter cash and business finance. And we are finally moving into pilots, our foreign exchange ordering and collection service in partnership with Eurochange. So it's a great progress in shopping in the first half. In e-commerce, we've really delivered a stellar first half performance solely on the progress we achieved last year. Net revenues, as we said already up 72%, parcel transaction volumes up 82%. Our focus remains on delivering technology in store, delivering a great service to our partner carriers and their consumers and being at the center of further growth channel shift from delivery to home. As I was saying, in terms of parcels, we have already described earlier in the strategy section, our plans here, with around clearly building on the strong foundation we've established, growing the Collect+ network, strengthen further our carrier partnership relationships and ensuring in the short term the [indiscernible] for both customers and carriers. In Payments & Banking, overall net revenue marginally down 2.3% in the first half. Within this performance, digital remains strong with a continued growth in the number of new client wins in open banking, in housing and our first major win in the charity sector. The cash through to digital is broadly flat. And within this, as I said, already, good growth from our NeoBanking services with over GBP 210 million deposited in the first half with the prospect of further growth from both Revolut and Chase into the second half and more importantly into next year. Our cash activities in the first half were weak with energy bill payments particularly so minus 20% of net revenue, although clearly, we've seen a better performance in the early weeks of the second half. And it's important to note that net revenue growth per transaction, we've seen that growth in every product in our service category across Payments & Services. As I've already highlighted earlier in the presentation, growth in digital payments business is our key strategic objective. As you can see on this slide, in the first half, we've delivered some really notable new client wins and sector wins and importantly, our pace of onboarding new business across all sectors into the second half is really quickly. As a result, our new business run rate into the second half and into this next year will be strong, while our new business pipeline is also continuing to grow rapidly. In the meantime, our legacy energy sector top-up activities are stronger in the second half after a weak first half, although clearly, as our new business grows, this is becoming less important to the business as a whole. While the first half is less seasonally important as a period for both Park Christmas Savings and Love2shop, it's really pleasing to report our confidence in billings for both of these businesses and we expect to see growth in both segments in the current year. Clearly, we're in the peak for both currently in terms of Park Business Savings taking delivery and our preparations are already underway to launch the 2024 savings campaign and with the peak ordering process now appearing for the Love2shop into the corporate sector. Already in Park Christmas Savings our attention is turning to building on this return to growth in the current year as we start our focus on 2024. We've got a great savers campaign planned for the additional energy of our recently recruited PayPoint Park retailer super agents. Love2shop, we've strengthened our sales team and our proposition. And again, as we're focused on building momentum into the new year, the early signals are that we will achieve growth in both of these businesses in a meaningful way in 2024. As an organization, we continue to focus on being a great place to work, making progress on our ESG program, supporting our people and investing to improve the resilience of our service and IT delivery. And finally, turning to the outlook for the second half and beyond. Our first half across the business is a strong platform from which delivering our expectations for the year as a whole. As we look into the second half, whilst we're not underestimating the weakness in certain areas of the economy, the challenges faced by consumers. We have great momentum across the business and the second half has started well. Our product [indiscernible] in cards are growing the pace at which we're onboarding new client business is quickening. Our performance in energy is much better in the second half and parcel volumes remain very strong and growing rapidly. Overall, we're confident in delivering market expectations for the year as a whole and our growth targets beyond. And with that, we're very happy to open up for questions.

[Operator Instructions] First question comes from Tony Brent from Liberum.

Yes, Joe Brent. But 3 questions, if I may. Can you hear me?

Yes, yes, we can hear you. sorry.

Three questions, if I may. Firstly, just on parcels. It sounds like a lot of growth coming there. What volumes do you think you can get that to? And do you think at some point, you can revise that 100 million target and then secondly, on Love2shop, could you just remind us of the working capital profile over the year and how the year-end might compare to the interims. And then finally, can we just talk about the investment in the P&L. Clearly, there's a lot of investment in growth, and we can see that in the first half. Can you give an indication of what further investments required and when you think the business investment stabilizes and the operational leverage really starts to come through?

Yes. Thanks, Joe. If I may, I'll take questions 1 and 3 and if you're happy, Rob, to take the working capital profile. So certainly starting with Parcels. I mean we want to be just cautious in the sense that clearly, there is the prospect here of really substantial growth. And I think 1 of the things that's really evident is that there is a channel shift taking place from delivery to home, delivery through [indiscernible] and out of home. I think that Collect+ is probably uniquely placed to be at the center of that channel shift. I think you're right that whilst it's very early days, I think that target of 100 million parcels now looks very modest. I think what we would like to see is just how the momentum builds, particularly in the recently announced Vinted and Yodel partnership. And certainly, the volumes that we've been talking about and the prospect for growth alongside our 2 partners there is really significant. And I think it's probably wise of us to probably wait and see how that unfolds over the remaining weeks of this calendar year and into next year, our final quarter financial before we comment further, but I think it's fair to say that the 100 million target parcel transactions now looks very modest in the context of what's in front of us. In terms of investment in the P&L, I mean, inevitably, we have made a number of key investments during the first half. You will see that we now have the sales team across both PayPoint and Handepay at strength. That required some investment, which inevitably will lead to stronger performance across that, and we're beginning to see the growth in our estate to reflect actually the strength of that team and the investments we've made there. A number of the initiatives around Love2shop, whether it's Love2shop into malts, whether it's actually the creation of the Park Super Asian network has required investment ahead of return. And clearly, we've taken that investment straight to the P&L. I think going forward, I think the primary area of immediate OpEx will be around ensuring that we've got the investment in the parcels network that we need. That's probably more call center support, more operational support in the field and potentially some more technology into the stores, and all of that will clearly take over the remainder of this financial year to begin to get benefits into next year. So that's where the thinking is around investment. Much of this is important to actually sort of support the growth profile we see in the business. And I think it's centered around the really key growth areas that actually going to drive us to the GBP 100 million EBITDA number. Do you want to pick up the Love2shop?

Yes. Thanks, Joe. I mean, yes, I think just as a recap, we said there was a working capital outflow for the group of GBP 12.6 million in half 1 and that outflow really is driven by a stock build that we see in Love2shop in half 1. I mean it's over 5 million inventories built for the first half of the year that we do see unwinding in half 2. We have had, as I said, other movements from a group perspective around receivables and kind of a reversal of accruals from the group perspective. But in terms of the kind of working capital, we do see a full unwind in half 2 from a working capital level perspective. So when you look at kind of full year perspective, we'll be below the -- we believe we'll be a little of the GBP 72.4 million where we start the year in terms of net debt but we hope to kind of have a net debt number at the end of the year that starts with the 6% or around the 7%. So we're very much controlling our working capital, looking at stock unwind receivables and payable managing that in the second half.

I suppose just to follow up on that, the Park Christmas Savings is not part of your cash anyway, so it doesn't affect working capital. Is that right?

That's right, yes. I mean that's obviously money Joe's held in trust and sort of entirely separate from actually sort of the cash held by the business corporately.

The next question comes from Orson Rout from Barclays.

The first is just on Love2shop where I thought that you had GBP 8.1 million of non redemption revenue. I was wondering if you could give there an expectation, how much from a proportion perspective, you expect this non-redemption to be for the full year. Is it right to think that in H1, that's a bit more weighted than in H2 that's the first question. The second 1 is just around GBP 100 million EBITDA targets that you put out last full year. I was wondering if you can give some sort of an expectation range for EBITDA for full year '24 because if we expect a mid-70s EBITDA, that then implies to a sort of mid-teens EBITDA CAGR to get to those targets? And obviously, if we look at PBT, this half year, we had no growth. So I was wondering if you could give some color regarding how you expect profitability growth to bridge from where we are currently to sort of that mid-teens that is probably required to get to the GBP 100 million target in terms of growth? And then maybe 1 final one, just on regulation, of course, in the past the PSR review has been sort of a key topic on Handepay specifically. So I was wondering if the vast majority of the drag there is now behind us, if now it's sort of on a clean basis with Handepay, obviously, having accelerated revenue quite nicely in H1. And if you could finally also touch on the consumer duty regulation and in what parts of the business that may affect you, that would be super helpful.

I'll do my best. There are an awful lot of questions there. Certainly on non redemption income, I don't think there's any reason to think that the pattern that you've seen historically in Love2shop as owned by Appreciate and now in our ownership is reflected in our first half results. There's no reason to believe that, that pattern is going to change. So I think that what we've given you there is a fair indication of what should expect looking forward. And as you know, that's 1 of the 3 key elements of actually the Love2shop business model. So that shouldn't in itself be a surprise to you. In terms of I think if I can get the order right, your question around how do we get to the GBP 100 million EBITDA. I mean, look, I think it would be wrong for us to do our models for you. But what I would say is that if your starting point, the EBITDA in the current year is mid-70s, then probably your starting place is wrong and it's probably too low. I think that you see in the first half of this year, our EBITDA growth was 10%. So I'm not sure, but that's not flat. And then thirdly, if you begin to look at the bills, what I've tried to do at the start of our presentation is identify the areas which we think will generate the momentum that gets us to GBP 100 million of EBITDA in 3 years. I mean clearly, a primary driver is parcels. I think our growth in open banking and the speed with which we're onboarding new business is reflected in the underlying growth rate in digital payments at 10% in the first half. We expect that to quicken from here. I think you will see the continued growth in our estates, whether it be PayPoint One, whether it be our cards estates. And I think they, too, will actually contribute to actually the growth we see in our business as a whole. And I think, as I said already, the banking proposition that we're developing and already sort of landing well in our estate is probably another leg to actually where the growth comes from. So I would argue this is not a business that's not growing. I think it's evidenced in the first half. We are investing where we believe we can grow further. As I said, the both Love2shop and Park Christmas Savings both being growth for this current year, which again is actually a step away from history. And certainly, we expect that growth to quicken through us opening up new channels as we actually go into years 2 and 3 in the ownership of that business. So it's entirely consistent with what I said at the start of the presentation in terms of what are the 5 growth levers which will actually deliver the outcome of GBP 100 million within 3 years. And hopefully, you can draw your own conclusions as to the rate at which they will grow and importantly, more confidence in our abilities to deliver. In terms of regulation, I think you're right. I think the impact of the PSR directives are now behind us and certainly the sort of the way in which we engage with prospective merchants, the way in which we have open disclosure is actually very clear. It's changed clearly, the contract nature between ourselves on merchants in terms of duration. And I think we've managed that really well. And I think importantly, that's put the focus on the quality of our proposition, the quality of our engagement with our merchants. And I think we're beginning to see that come through in the way that we're growing our estate. So I would agree with you that actually, I think we've got some good tailwinds in the first half and that's reflected in the financial performance of the Handepay estate and also in the growth of that estate as well. I think there was 1 other question at the end, I think, around consumer duty and how that impacted various areas of our business. I mean, clearly, we take consumer duty very seriously. We're very focused on transparency around all of our contracts, whether they be with the merchants, which I've already described, whether they be with our retailers. And in our Love2shop business and importantly, actually in Park Christmas Savings we've given a full review as to the whole engagement we have with our retailer and then with our consumer saver community, thinking firstly about consumer duty and all around and also around the regulatory aspects and our obligations there in terms of trust, investing funds, ensuring that actually our savers get value. So I think, look, we've given it absolute prominence in the way we think about our engagement, and we're confident that people are getting to the right access.

It seems like there are no further questions. So I would hand over back to you.

Okay. Look, thank you very much, everybody, for joining us this morning. My apologies for 1 of 2 technical hitches there, but hopefully, the key messages as to our progress over the first half have come through clearly. We look forward to talking to you during the course of the second half and at the full year beginning of next year. Thank you.