REACT Group PLC (REAT) Earnings Call Transcript & Summary

Good afternoon, ladies and gentlemen, and welcome to the REACT Group PLC investor presentation. [Operator Instructions] The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and will publish those responses where it is appropriate to do so. And before we begin, as usual, we would just like to submit the following poll. And if you could give that your kind attention, I'm sure the company would be most grateful. And I would now like to hand you over to the Board from REACT Group PLC, Shaun, good afternoon, sir.

Thank you very much. Yes, thanks for joining us today. So my name is Shaun Doak. I head up the group as CEO. I originally joined the business back in March 2019, originally as Managing Director. And then 11 months later, I was appointed to the Board. So I've got a track record of growing businesses in the specialist cleaning facilities management and the HVAC service sectors and with a background that's heavily immersed in sales and operations, having a BA in business management. Spencer, over to you.

Thanks, Shaun. My name is Spencer Dredge. I joined the Board in January this year as a CFO, Chief Financial Officer. A little bit about my background. As you would expect, I'm a qualified accountant. The last 20 years plus, I've spent supporting or sitting on Boards, often listed businesses in the AIM market. And within that period, I've done 3.5 years in corporate finance. I'm very pleased to be at REACT.

Thank you, Spencer. I'm Mark Braund, I'm the Chair. I've been around for quite a while. I was here at the start of the turnaround of the business and brought Shaun and the team into the business 4 or 5 years ago. And here we are again with some great news. So back to you, Shaun or Spencer.

It's me.

Perfect.

So looking at Slide 4, summary of the transaction. So many of you would have followed the REACT story, which has been a strong organic growth complemented with successful acquisitions. And REACT operates in the U.K. market, which is very fragmented, and we look for acquisitions to further accelerate our growth. We've got a good track record previously with acquisitions. If you look back to Fidelis, which was bought in 2021, that business now, on a revenue basis, is over 120% higher than it was when we bought it. And not dissimilarly, LaddersFree, which was bought in '22, we are now over 50% higher in terms of revenue since the acquisition. So we've got a good track record in acquisitive strategy. We've got a very well-defined criteria for our acquisitions. And you would have seen the announcement this week for our latest acquisition, which is 24hr Aquaflow. And that's met all of our criteria that we've defined for our acquisition strategy. And the business is profitable. It's got high margins. It generates cash. And what is it? Well, it sits within the commercial drainage and plumbing space, and it operates in and around London and Southeast of England. And we expect the acquisition to be immediately earnings enhancing and will be accretive, on an adjusted earnings basis, 31% in its first full year. The acquisition is very complementary to our group. It brings with it a new service offering. And in addition to that, it brings with it an enlarged customer base for the group, which will give us further opportunities to demonstrate our cross-selling and upselling capabilities, which we have a good track record of today. Diving into the 24hr Aquaflow business just for a moment, looking at some of the key data points. Its year-end is April. So for the year to April '24, on a revenue basis, it did GBP 6.1 million, which was up from GBP 4.7 million for the same period prior year. And on an adjusted EBITDA basis, GBP 1.2 million, up from GBP 1 million from the prior year. Turning our attention to the transaction. In terms of consideration for the acquisition of 24hr Aquaflow, it is capped at GBP 7.36 million. And at a summary level, that breaks down into two key components. We have initial consideration, which is at GBP 4.98 million which, if you look at it on a trailing EBITDA basis, represents 4.1x in EBITDA multiple. And in addition to the GBP 4.98 million initial consideration, there's some deferred contingent consideration, which we'll touch on later in the presentation, but this is based on a 2-year earn-out. And I'll go through that in a further slide. And should the GBP 7.36 million be fully paid out, that would represent an EBITDA multiple of 4.3x on a forward-looking basis. You would have seen this week that we've gone to market to raise some money. We put GBP 1.1 million through an equity placing, and that is purely for working capital basis. If we turn the slide, thanks, Mark. Taking a step back from the acquisition just for a moment. Looking at the REACT Group, our year-end being September, we are about to go through our year-end audit in preparation for the annual report and accounts. We've taken, at a summary level, the trading performance for the REACT Group for the year. We've seen revenues of GBP 20.7 million, a gross profit of GBP 5.7 million and a gross margin of 27.5%, and we expect adjusted EBIT to be at least GBP 2.4 million. Taking a step back from the data points, I think it's safe to say that the group is very healthy at the moment. We've got a very strong pipeline, but we are experiencing some longer sales cycles certainly in the second half of the year. So there are some headwinds in the market. And in addition to that, we've seen some of our service frequencies reduce and so, again, further headwinds. So when we look at this year's trading performance for the REACT Group, we are very pleased with it. We're maintaining strong margins in light of the headwinds that we've been facing. In addition to that, we've got a strong cash conversion. And as we exited the year-end, we had GBP 1.8 million in the bank. And on a net cash basis, we had GBP 1 million, which is offset with the debt and the higher purchase arrangements that the group has. I hand back to you, Shaun.

Thanks, Spencer. So just looking at the acquisition target in a little bit more depth. So what are they? They're a commercial drainage and plumbing business, being founded over 20 years, and they operate within London and parts of the South East. They cover all aspects of drainage, commercial drainage, from blocked drains, leaking pipework, planned preventative maintenance and reactive callouts. 79% of the business is repeatable and 43% of that is planned preventative maintenance. As Spencer has just said, very strong financial performance within that business. FM companies account for 95% of the customer base, and many of them are actually new to the rest of the REACT Group. So some great synergies and some fantastic cross-selling opportunities that lie within the acquisition of 24hr Aquaflow. Importantly, they've got a very strong management team who are going to stay with the business, some excellent customer relationships, and that was evident from the commercial DD that I carried out myself, having spoken to those customers, could not have scored 24hr Aquaflow any higher if they tried. And they've got some very solid management systems within the business and a fantastic training academy that graduates and progresses new engineers who come through, get trained in the Aquaflow way, so very different to the rest of the industry, looking at that top end and looking out for opportunities when they're on site, and that will help support growth. So moving on to the next slide, we look at the acquisition rationale. As Spencer said, it's a materially accretive deal. It's immediately earnings enhancing, and it gives us an excellent platform to pursue further growth for not just this business but the rest of the group. It's forecast to be 31% accretive. It provides us with sought-after and complementary services that REACT's FM customers will buy. It's a service that the service providers are buying right now. So we're going to spend some time mapping out the white space, not just of the 24hr Aquaflow customers but also across the larger group. And it gives us a lead-in service to continue the REACT growth strategy in the FM sector which, you'll remember, we've always been strong within. But this gives us a particular focus on London and South East. As I said, they've got some quality people. Spencer and I went down there on Monday and spent the whole day with the entire team, an absolutely fantastic bunch of very positive people who are chomping at the bit to see what we can do and how we can help facilitate the growth and what else we can do cross-selling across the rest of the group. They've got some strong management systems in there, as I said earlier, and it will provide REACT with the ability to further scale and support our growth ambitions. Key management are locked in with the equity, as Spencer touched on earlier. And the final component for me, as an aside to the financials, is that we've got an excellent cultural fit, which is absolutely key for me. We've built a fantastic team here at REACT Group. Folding and merging with this business as part of the acquisition just gives us a greater depth of people and skill sets. We can learn from the Aquaflow process and procedures and look at evolving our systems and processes across the rest of the group. Moving on to value creation. So how do we add value? Well, quite simply, we add management support through the next phase of growth. We know that we're very good at sales and marketing. We've got a fantastic organic growth engine here at REACT. And we've got the capability to grow both the core Aquaflow business and cross-sell the complementary services across the rest of the group. So really exciting times. In terms of the integration, it's going to be very light touch. It's going to be more velvet glove as opposed to boxing glove. Myself and Spencer will be joining the SLT within the Aquaflow business, and we'll work with them to map out where we want to take the business and how we want to grow it. And as I said earlier, I've met with the top 3 customers during a very successful commercial DD process, and I'll continue alongside the Aquaflow SLT to pick those up and develop those relationships further and get us opportunities across the wider group. In terms of the first 90 days, we'll apply head counts to coordinate integration. As I said, we'll focus on providing sales and marketing focus and efforts, and we'll mitigate any risks. We're going to spend some time mapping the customers not just within the Aquaflow business but, again, across the group to identify white space and to define our plans to target our sales and marketing efforts and evolve that as Aquaflow are now part of the group. We're going to spend some time reviewing the training academy that I touched on earlier just to define opportunities, look at ways of potentially improving it or scaling it or can we learn things from Aquaflow's training academy and bring that across other elements of the business, perhaps in REACT specialist cleaning and so on. And then we are going to spend some time reviewing the operational 24-hour help desk that Aquaflow have within that business and establish ways of doing things better for the rest of the group and what we can learn for that 24-hour coverage. And I'll hand back to you, Spencer.

Thanks, Shaun. So Slide 9, we can talk a bit about the structure of the deal in a bit more detail. We touched on this, I touched on this earlier. So down the left-hand side of this slide are the separate components of the deal. Starting at the top, the initial consideration, which was GBP 4.98 million, as discussed earlier, is broken down into GBP 4 million in cash on completion; GBP 0.5 million in equity consideration, that's our shares; and the first of 6 deferred payments, and the first of which is in June '25. The second box is the contingent consideration, which is 5 of the 6 deferred payments, and this is linked to a 2-year earn-out. And you would see that those payments are every 6 months, finishing in December '27. Like I said at the start, this deal is capped at GBP 7.36 million. So looking at the right-hand side of the slide, you'll see that the performance conditions, or the earn-out as such, is structured over 2 years, structured against our year-end being September, first year at GBP 1.6 million, which increases in the second year to GBP 1.725 million. There is a concept of a miss that can be transferred from year 1 to year 2 up to GBP 100,000. And in the event that the earn-out isn't fully achieved, there is a mechanism where we pay less for the business. For every GBP 1 missed, it's GBP 4.60 off the deferred consideration. We talked about some of the valuation metrics earlier in the presentation, but on a historical backwards-looking basis, it's at 4.1x adjusted EBITDA. And in the event it's fully paid out, the GBP 7.36 million, it represents 4.3x in EBITDA multiple. Turning our attention to how we're funding this transaction. You'll note that the cash on completion is GBP 4 million. We are funding GBP 500,000 of that out of our own cash resources. And the remaining GBP 3.5 million will be funded by way of a new 4-year bank loan, which is 3% above base rate, and that's with HSBC. Equity consideration, Shaun touched on it. The vendors are tied in. They're taking GBP 500,000 worth of shares, and they're tied in for 3 years. So not only are they here to maximize their earn-out, they're also here to grow the equity value of this business, and they're locked in for 3 years to do that. So that's the deal in its detail.

Brilliant. Thanks, Spencer. Just moving on to the next slide, please, Mark. Thank you. So just to wrap things up really and give you a summary. As Spencer said earlier in the presentation, we're trading in line with market expectations. So we've had another strong year. 24hr Aquaflow, we believe, is a very compelling acquisition. It gives us diversified services and a customer base that not only meets REACT's acquisition criteria but gives us a massive upside potential, not just to grow that business but also to grow across the rest of the group. We're going to share notes. In fact, I have a session next week with the sales team down at the Aquaflow office on Tuesday, where we're going to start that process already. It's forecast to be 31% accretive, as we touched on earlier, and immediately earnings enhancing. And the experienced Aquaflow management team will stay involved in the business, which is key, and they're incentivized to continue that growth alongside our support and guidance. So in summary, we've maintained momentum, which has been focused on the organic growth, and that's enhanced by selective acquisitions like Aquaflow. Thank you.

[Operator Instructions] Just while the company take a few moment just to review those questions that were submitted already, 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 all be accessed via your investor dashboard. Guys, as you can see, we have received a number of questions. Mark, at this point, sir, if I may hand over to you just to chair the Q&A with the team. And if I pick up from you at the end, that would be great. Thank you.

Thank you. And hopefully, gentlemen, I do a better job of chairing the Q&A than I have done with moving the slides, sorry. Apologies for that slip-up earlier on. So let's get straight to it. The first question was pre-submitted. So I don't actually have the name of the person that submitted it. But it says, could we get some detail on the challenges that have led to a deceleration of organic growth for the second half of the financial year? It's also noted that it's the first 6 monthly period with revenue contraction since this management team took over, and we've been involved with 4 or 5 years. So we know the answer to that. I think we hinted to it in one of the slides earlier on. Shaun, do you want to give some color to that?

Yes, absolutely, Mark. Yes, great question. So in essence, we have continued to grow organically. However, we've had 2 major headwinds. The first one, about 4 years ago, we had a customer, as we still do, in the rail sector. It's a very large customer who values our service proposition. And we were asked to look at a larger piece of work around about COVID time to help with some periodic heavy cleans. It was a very critical time for this customer through COVID, for obvious reasons. And that piece of work just ended up evolving into a 3-month commitment, which went on for about 4 years. Having come out of COVID, the rail sector has obviously had some challenges, financial challenges, as we're all aware of, it's well documented. And basically, what happened is that piece of work became a larger piece of work and was consolidated really and folded into a much larger multimillion-pound contract at much larger margins than we would normally go for. So as disappointing as it was, we, in essence, had to walk away from that piece of work. What we did do with that customer, because they love what we do, we negotiated a reactive contract. So fatalities, graffitis, oil and so on across the whole of the U.K., and the margins on that are more akin to what we used to here at REACT. So there was an upside to that.

Sorry, Shaun, just to correct one thing you said there. I think you said the margins were larger on the contract that's now been assimilated into the very large, the margins are actually single digit. They're much, much lower. So this specialist piece of work, no longer critical, been assimilated into a much more general contract worth multimillions, GBP 10 million, GBP 12 million, and we didn't want to participate in that business. But the nationwide contract on fatalities is more in our wheelhouse, and that's good high-margin business, and it's incremental business for us.

Correct, yes. Apologies if I said larger, yes, it was definitely lower. Okay. And the second component to that question, and we've discussed this before on this platform, we've had some headwinds on the LaddersFree side of the business in certain aspects of retail. Now we haven't lost any contracts, but what has happened in some of the customer set within that retail space, and it is isolated pockets, we've had some reduction in services in terms of the frequencies. So in essence, some of it might have gone from every 2 weeks to once monthly or once monthly to every 6 weeks. So we haven't had any losses. It's just been some reductions. But they seem to have stopped over the last few months. So we believe there's light at the end of the tunnel in terms of that. That log jam is now freed up. If we remove those two points that I've just mentioned, we have grown the business in the same rate that we've grown it before.

Yes. I think that's the important point is, if you take those 2 phenomena, and obviously, the rail contract was substantial. It was over GBP 1 million, about GBP 1.2 million a year. If you just put that to one side, our underlying business, the business that we know and love, we've actually grown net growth at pretty much the same rate as we have done before. Things have gotten a little bit stickier recently over the last 3 or 4 months. And I don't think we're alone in terms of the market, not just our sector but other sectors, that I see and hear decisions on opportunities are actually taking longer. Our win rate is the same, but the sales cycle got longer. I think we are all hoping that once the fear, uncertainty and doubt comes out today, things will hopefully begin to return to normal and people start making decisions again. Is that a fair comment, Shaun?

Yes, absolutely. I think it's important to add though, Mark, that our pipeline continues to get healthy with each quarter. And our conversion rates have actually improved. It's just, as you said, a little bit like treading through treacle at the moment on some of these opportunities.

Yes. And people mustn't miss the fact that whilst we've seen year-on-year of organic growth of only just over 5% which, when I compare that with others in the market, is actually still strong, we, as a company, had been able to do double-digit growth in the past. Our gross margin has grown in double digits, which is really where we focus our attention. And our margins have improved 100 basis points from 26.5% last year to 27.5% this year. And that's again an achievement in a fairly uncertain economic period. So we focused on where the value is, and I think we've done a great job. So hopefully, that answers the question for the pre-submitted questions that was asked. Let's carry down the list. This is, again, very much in your area, Shaun. How does REACT plan? This is from Peter M. How does REACT plan to leverage Aquaflow's strong relationships with FM customers to expand its business further? Are there any specific customers, target customers, or services? And what we ought to make people clear about is that we are a facility management support business. And pretty much everything we do is for facility management organizations. Those that are actually FM companies, the sort of intermediaries, they represent about 65% of our own customer base, whereas here with Aquaflow, it's about 95%. So this is our sweet spot in terms of customer set, yes. But the question is, how do we plan to leverage Aquaflow's strong relationships?

Yes, great question again. I mean, look, I'll take the latter part of the question first, are there any specific target customers or services. Yes. Obviously, I'm not going to name them on this platform, unfortunately, I can't. But we've already had discussions with the SLT in the Aquaflow business. We know where to focus on. We know that there's upside potential in some of the biggest customers already, having had the commercial DD discussions. But in terms of how we'll leverage the strong relationships, well, quite simply, we'll help support grow those relationships. I'd like to get involved with the larger customers. Sam Haywood, our Group Sales Director, does a fantastic job, as we've said before. He will be part of that process with me. And what we'll do as a starting point, and we're starting it on Tuesday session when we're down in the office, it's just mapping out the white space. So we look at, okay, which customers do we currently work with, are there other opportunities in terms of growing the Aquaflow business as well as cross-selling. We've already had discussions, believe it or not, on Monday about just changing the narrative on the help desk questions, just to capture some RSC opportunities, or some REACT Specialist Cleaning opportunities, because, if you can imagine, a lot of these are going in to clear up emergency drainage issues within 2 to 4 hours. Quite clearly, there's opportunities for REACT Specialist Cleaning to perhaps go in and clean up the mess that's left behind. And that's something that they've never done before. It's been passed back to the customer. So some low-hanging fruit there, absolutely from day 1, and we're already having discussions. I had a discussion last night and this morning with Paul Mundy, the MD, over at Aquaflow. So very exciting, the whole team is excited not just on the Aquaflow business but the rest of the group. So yes, we've got something to focus on next week, and we'll start that process and deep dive on Tuesday.

Brilliant. Thank you. Next question, and actually, it's a related question to the previous one. It's from Paul L. Customer concentration in Aquaflow is high. It is higher than ours. But once you bring it into the overall organization, it actually doesn't have that level of concentration anymore. But if you look at the top 5 customers, that's sort of 60% of the revenue but quite well spread across them. It says, what are the risks? And obviously, we've been looking at that through the commercial DD of meeting all these companies. And the relationship has been there for anywhere between 6 years and 16 years. So we're satisfied that the risks are actually being mitigated. And by offering this business help to grow further, I think that will reinforce that mitigation. But the key question here is how do the 5, which we've listed A to E, overlap with REACT?

Yes. I think I've just answered that really, Mark, on the previous answer to that. They go in and look after drainage issues, but they haven't got a provider at the moment or they have various providers that can provide the kind of clear-up afterwards. And we know that in this space, there's a lot of consolidation going on. If we give Aquaflow the tools to push that down the REACT Specialist Cleaning business, then it absolutely makes sense.

But there are 5 customers there. And from memory, I certainly think, out of the top 4, only one of them we do a little bit of business with, nowhere near as close to the customers as 24hr Aquaflow are. They have a stronger relationship with that one customer where we overlap than we do.

Yes. No, absolutely. My point was that you're right, out of the 5, there's 4 that we don't do work with at all but Aquaflow have a fantastic relationship, so I want to leverage that relationship that Aquaflow has with those customers. So it's about educating the Aquaflow team in terms of what questions to ask on the help desk to capture those opportunities, but it will be another service provision that we put down in the business. But ultimately, it's a win-win for the group.

We mustn't also forget that we already have customers in London and the South East that don't use 24hr Aquaflow as well.

Yes, we've got some huge companies that we will introduce. And again, that's part of the planned session on Tuesday.

Yes. Brilliant. Perfect. Thank you. So next one is again from Paul L. I actually got 2 or 3 here from you, Paul. How do you integrate or do you, from a management systems perspective, a major REACT project at the moment? I think what Paul is referring to here is that we have said quite rightly that we've been consolidating back-office and finance systems and infrastructure across the group. I don't want to get that confused with what we call Project Sparkle, which is the digitization of the processes within LaddersFree. But Spencer, do you want to just reflect on this in terms of how will we integrate with 24hr Aquaflow?

Yes, absolutely. I think the integration is going to be a management layer. Obviously, Shaun mentioned this earlier that we're going to be spending -- myself and Shaun will spend a lot of time working with the guys down in 24hr Aquaflow. Really, from a back-office and system setup point of view, there's going to be little by way of integration. They are quite a mature business in many ways in the way that they operate. They've got embedded systems that automate certain processes. I'm quite impressed with what they do there. There's always a chance we might learn from some of their achievements. And so there'll be no immediate plans to consolidate any back-office systems or processes. We'll leave the business alone and we'll just support it, hopefully, with the management expertise and some resources.

Brilliant. Thank you. Next one from Paul, not sure how we can answer or whether we can answer this for you, Paul, for obvious reasons, Dowgate 2026 revenue estimate implies a reduction in expectation for current REACT business, assuming growth from Aquaflow. I'm not sure that that's the right way to look at it anyway. Their estimate, but do you have some perspective on why? I don't think we should get involved in understanding how an analyst decides to put their numbers together. But you might want to just give some headline thematics on it, Spencer?

Yes. Obviously, they look at what we -- we just saw our outturn for this year, and they'll look at some market conditions. Obviously, they talk to other people in our sector. But like you say, Mark, it's their coverage of our business. And I guess it's their numbers and their narrative.

Yes, indeed. Sorry about that, Paul. We can't answer that as quite precisely as perhaps like us to, but I'm sure Mark Howson, if you reach out to him, might give you a bit more detail on his perspective. That's the analyst at Dowgate. Next question, question 6, [ Neil B. ], what have the respective performances of the 3 REACT divisions in year-end September '24 been? Again, I don't think this is a question we're going to be able to give you a great answer to, [ Neil ]. We have literally just closed out the year. Our trading update was probably given earlier than we really wanted to. But because of the deal, we had to try and bring it forward. And we haven't even started the audit yet, I don't think, have we? So we really can't give statements that are too detailed. All I can say to you is that the performance has been solid across all 3. We've got no issues or challenges. It's been a solid year. Is that fair?

I think so. And you're right. We can't be drawn. We haven't announced it. We haven't completed the annual report and accounts yet.

Yes. Brilliant. Next one from [ Neil B. ], will there be any exceptional costs on the acquisition. Spencer?

Unfortunately, there is a cost of doing transactions. It does involve lawyers and brokers. And in the case of the work we've done with 24hr Aquaflow, we've done a full scope piece of work through an independent financial firm for financial tax diligence. So it was quite a robust purchase process. So there will be costs associated with those external advisers. Obviously, people on this forum will be aware, they're one-off in nature, hence, the reason they are booked as exceptional. But there will be some deal-related costs. Yes, there will be. And in addition, there will be the same for the placing as well. When you raise money off the market, there's brokerage fees and legal fees associated with that process as well.

Yes. But I think the underlying message here is that we've always negotiated the right fees, but we've actually made sure that we've run a very full and detailed process. Brilliant. Last one from [ Neil ], I'm going to throw it to you, Spencer. I doubt that you can answer it. What is the tax charge for year ending '24?

Well, I think under the same reasons, we can't be drawn to a whole lot of detail. We haven't announced anything in relation to this, so it would be kind of wrong of us to comment. But look, I think people can see that we are tax paying from last year, but I can't say to what extent the balance is for this year, unfortunately.

Yes. Well, that is the end of the questions. I think we're going to pass you back, and Shaun will make some closing remarks. All I wanted to say really was that what we're demonstrating here is that we've found another exceptional business to service the needs of what is a very fragmented market, servicing the facility management companies and facility management departments of the U.K. We are fast emerging as one of the largest, and I think actually the best, with one of the broadest ranges and certainly one of the best coverages. And we'll continue that consolidation journey and organic growth. But I'm going to pass you back to our colleagues at IMC, and we'll take it from there.

Perfect. Mark, Shaun, Spencer, that's great. And thank you very much indeed for being so generous of your time there and addressing all of those questions that came in from investors this afternoon. And of course, if there are any further questions that do come through, we'll make these available to you immediately after the presentation has ended, just for you to review to then add any additional responses, of course, where it's appropriate to do so. And we'll publish all those responses out on the platform. But Shaun, perhaps before really just looking to redirect those on the call to provide you with their feedback, which I know is particularly important to yourself and the company, if I could please just ask you for a few closing comments just to wrap up with, that would be great.

Yes. Thanks, Jay. I think Mark's stolen my thunder there. But in essence, we think this is a fantastic acquisition. Spencer touched on it, it's a very mature business. It's very exciting times for investors, whether you're existing or new. And we think we've got a massive potential not just to grow this business but also grow the rest of the group. So thank you for your time. Much appreciated.

Perfect. Shaun, that's great. And thank you once again for updating investors this afternoon. Could I please ask investors not to close this session as you'll now be automatically redirected for the opportunity to provide your feedback in order that the management team can really better understand your views and expectations. This will only take a few moments to complete, but I'm sure it will be greatly valued by the company. On behalf of the management team of REACT Group PLC, we would like to thank you for attending today's presentation. That now concludes today's session, so good afternoon to you all.