RWS Holdings plc (RWS) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen, and welcome to the annual results presentation of RWS, the results for 2022. Some of you have been attending these for quite some time. I've been doing it since November '03, when we floated, and you'll be pleased to hear that this is my swan song. And so I won't be needing to do it again. We've come a long way since the float in November '03, and there's a long way to go ahead. And I hope you will come away with the impression at the end of the presentation today that the route that we laid out or the plan that we laid out in March of this year at our Capital Markets Day, that we are sticking to that plan and that the first few months of it, at least, have been delivered. So without any further ado, I'm going to introduce our speakers. So we have Ian El-Mokadem, as you know, our CEO; Rod Day, our Interim CFO during this year; and our new CFO, Candi Davis. And I hand over to Ian to take you through the presentation.

Thank you, Andrew. Right. Well, good morning, everybody. Thanks for braving the cold weather for those of you who've come here and I know we're competing with Harry and Meghan for the news today. So we'll see how we do at the end of the day. As Andrew has already said, we've got the sort of transition going on at this presentation. So Rod's going to do the presentation with me. He's been the CFO for most of this year. Candi's obviously now our official CFO, and we'll be taking questions together and doing the roadshow altogether as well. And as Andrew said, I mean, sort of starting off, we'll do a little bit of a backward look, just a bit of an overview. We'll then -- a few high-level comments from me on the headline results and where we are with the growth strategy. I'll then hand over to Rod to go through the numbers. And then I'll come back and we'll do a bit more of a deeper dive into our divisions, some of our growth initiatives and ESG before closing with the outlook and then going to questions. And look, I think Andrew alluded to the amazing story that we've had over the last 20-odd years. And it really is an incredible journey and a fitting swan song, I think, for Andrew, who's really been with us along that journey. And today, I think what we're demonstrating is a really robust set of results delivered against a pretty tricky macro context. And I hope, by the end of the presentation, you'll also see that we are now demonstrating the early signs of success of the strategy that we launched back in March. And let's launch straight into that. I think it's always right to start a presentation on RWS by talking about our clients. And this is one of the reasons I joined the company. It's one of the reasons many people choose to work at RWS. We work with an absolutely fantastic range of clients across a range of sectors on a global basis. They are long-term relationships, 13 years for our top 10, 15 years for our top 30. And that is delivered because we offer very high levels of customer satisfaction. We get very close to the brands and the companies that we work with. Our people understand their objectives, their target audiences, and that is key to being successful in the industry that we're in. And of course, that diversification across sectors also is one of the reasons why the business is very robust and resilient. Now if we turn immediately to the numbers, I think they're a very strong set of numbers, again, delivered against a backdrop of integrating SDL, a war in Europe, a worsening economic climate and the arrival of the unitary pattern that we heard about back in January that affects our IP Services division. So revenues at GBP 749.2 million, gross margin up 160 basis points at 46.7%, adjusted PBT up 17% at GBP 135.7 million, strong development of the margin, reflecting some of those synergies, 18.1% adjusted PBT margin and adjusted EPS at 26.6%. In terms of some of the other metrics, our CapEx is in line with the guidance we gave. It will build as we go into '23 with our investment program at peak at [ 7% ] and then come back down. Final dividend represents our commitment to an ongoing and progressive dividend policy, so a healthy increase of 12%, strong cash conversion and ROCE in line with the guidance that we've given previously. So a very solid set of results. And back in March, we launched our new growth model, the 5 things that we spend all of our time focusing on. And I'll talk a lot about this as we go through, but maybe some headlines to start off with. In terms of building long-term client relationships, we've been making the investments in sales and marketing and in delivery and in sales improvement initiatives that we talked about back in March. We've expanded our voice of the customer program. That's the program that gives us our NPS score, but also gives a lot of other insights from our clients in terms of how they see our services and how they like them to develop. And that is now across the group, and it's done in a very robust way. We've been investing in some of our growth initiatives. So we'll see some early progress from eLearning in our Language Services division and from Linguistic Validation in our Regulated Industries division, and I'll talk more about those shortly. We've been investing in our software products. And that, coupled with the restructuring we did post the SDL merger has given us some really good growth and encouraging progress in growing our software businesses. And again, we'll dive more deeply into those later on. And in terms of ongoing development of portfolio, FY '23, we'll see us continuing with some of those additional growth initiatives, in particular, building out our data services offering in language services. And I'm pleased to say that the small acquisition we made and we announced back in March, Fonto, which is in our content management area, has settled in well and is trading in line with expectations. And then last, but by no means least, our language experience delivery platform, that unique platform that combines our in-house translators, our large network of freelancers and uses our own translation management and AI software is underpinning the margin improvements that you'll see today. And we'll also give you a little bit more color on where we are with our key transformation programs as we go through. We're also trying to give you a little bit more of an insight into some of the data that we use as a management team in assessing where we are with some of those initiatives. And some of this is data that you've had before, and we've just presented it, hopefully, in an easier fashion, but there are some new KPIs on here as well. So you can see organic growth. You can see our Net Promoter Score. You can see now our repeat revenue rate, which is basically the revenue we're seeing from clients that we had from the year before. So we see a very, very high rate. I've worked in a lot of business services businesses. This is as good as I've seen anywhere. You can also now see incremental revenue from defined growth initiatives. So in this case, that's the incremental revenue we've delivered compared to FY '21. In this case, the Linguistic Validation and eLearning, which are the 2 growth initiatives that got started soonest outside of our technology area. In terms of technology, you can see our SaaS license growth, the percentage of SaaS revenues as a percentage of our Language and Content Tech division. So again, ahead of where we hoped it would be. And as you all know, the SaaS is growing a bit faster than we thought, which does bring down the reported revenue growth, but it's actually a really positive thing because it's long-term repeat revenue if it's SaaS. And our development spend is trending towards the position we guided it would do now at about 12%. We think it'll stick in that 12%, 13% range now. We'll talk more about M&A. We've got a deep dive on SDL coming up. And then you can see some of our efficiency metrics there, gross margin, the percentage of gross margin that is going into overheads. And also, we've added some key ESG metrics here as well. So our attrition rate, which I'm pleased to say, has come down quite a bit. A very strong colleague engagement score from our recent survey that we completed back in September. We're tracking diversity within our senior leadership team. So steady year-on-year, but I would point you to the very significant progress we've made with our executive team, where we've gone from 11% to 33% in my direct reports in the last year. And our Board will actually be at 50% male, female when Rod leaves the Board in January. So we're currently at about 44%. So I think that's really strong. And I think on the Board, we will, by the end of next year, have a female Chair, a female Senior Independent Director and a female CFO. So I think that's a real commitment to getting the right balance. And we are a very diverse business more broadly, but we did have work to do to make sure that our senior leadership team reflected the diversity elsewhere. So I'm glad to say we're making good progress with that as we are with our sustainability ratings, which I'll talk more about later on. And with that, I will hand over to Rod, who will take you through the numbers.

Thanks. Yes, good point about me contributing to ESG finally. Moving on. Yes. So I'll take you through some of the more details of the financials. I think sort of big picture, obviously, we're pleased with the year as a whole. I'm going to start with the P&L, and I'll just work my way down it. So from the top, revenue was up 8% year-on-year. That does include an extra month of SDL in 2022. So if we strip that out, we're at 3%. During the year, there was also -- and particularly in the second half of the year, there was a weakening of the pound against the dollar, and that gave us a currency gain. So if we strip that out, our organic constant currency revenue actually declined 1% in the year. If I look at that by division, what we see is -- and we'll dig into this in a bit more detail. We had some accelerated growth in Language and Content Technology, pretty robust performance in language services. But then we have to offset that we had the anticipated decline in IP Services, and we did have a reduction in Regulated Industries. Looking now at gross margin, I think it's a particularly good performance. We're up 160 basis points year-on-year. There are a number of factors behind that, so we put more volume through our LXD that improves the efficiency of our operation. We've had this mix shift towards technology, which is high margin. So that's another contributor. And actually, within Regulated Industries, that margin has also improved. We exited a number of very low-margin or even loss-making clients earlier in the year, and that's actually helped to sort of drive up that margin. On admin expenses, as Ian said, actually, one of the metrics we look at is the flow-through of admin expenses to bottom line. So what's admin expenses as a percent of gross profit, that efficiency has improved in the year. So we're pleased to see that. So the net is, if we look at adjusted PBT, we're at GBP 135.7 million, slightly above our own expectations, actually, 18.1% revenue and 17% growth year-on-year. And obviously, in getting to adjusted PBT, there was a number of adjusting items. So you have exceptional costs of GBP 12.5 million, and that's predominantly related to the integration of RWS with SDL and the costs associated with that. Amortization of intangibles associated with acquisitions, GBP 34.4 million, again, predominantly related to SDL and the Moravia deal, and then share-based payments, GBP 3.2 million. So reported tax expense for the year is GBP 20.5 million. So our effective tax rate is 24.6%, slightly lower than last year. If we look at adjusted effective tax rates, so we're sort of adjusting for exceptionals and what have you at 23.7%. That's kind of consistent with our guidance and expectations. So you sort of flow that through then to adjusted EPS were 26.6p a share, up 12% year-on-year. And that increases, again, in line with the proposed dividend increase for the full year. So just looking at revenue in a bit more detail, the sort of bridges where we were from '21 through to the end of '22. So I'd say the first item that was called out earlier is this impact of the extra month of SDL. So that's the GBP 31.6 million. Then if we look by division, on a constant currency basis, you can see Language Services growth was 1%. So we had our Strategic Solutions division within that at a pretty robust performance and that offset a modest decline in Enterprise Internationalisation. Regulated Industries, that showed a decrease of 2%. So although we had continued great performance actually within Linguistic Validation, that was offset by this decline in revenue from a large CRO that we've referenced before and also, as I was saying, this exiting of low-margin declines earlier in the year. Technology grew by 5%, very pleased with that, actually, and that's despite the fact that SaaS performance accelerated again. So it now accounts for 29% of revenue in '22, up from 24% in the prior year. In the short term, the accelerated growth of SaaS actually suppresses revenue growth. But obviously, we like SaaS because it's more recurring in nature, it's more sticky, et cetera. So there's more opportunity of feature upsells. Keep moving along. IP Services. That's down 10% in constant currency terms. That's consistent with our guidance and expectations. As we've previously noted, the impending introduction of the unitary pattern in the European Union, that's impacted our revenue this year, some filings have been deferred as sort of company has gone to wait and sort of consider how to take advantage of this new regulation when it comes into being in the first half of next year. Acquisition, that's Fonto. It's a small acquisition we made earlier this year. And then the final point just to make on this is the impact of currency that, again, I referenced earlier. Obviously, everything is relative to the pound. The particular issue here has been the weakening of the pound against the dollar in the second half of the year, which is sort of actually starting to come back the other way. Now that actually was a material contributor to revenue of GBP 27 million. So we'll dig into some of the underlying activities within these divisions in the Internet section. Just looking at cash. So again, it's another good year of cash and cash conversion. So the conversion figure that we show here is 110%, and that's based on the calculation of underlying cash flow from operating activities divided by adjusting operating profit. And that's the measure that's the calculation we've used for a number of years. I know there's lots of other ways of doing this. And one of those we actually showed in our Capital Markets Day, which was free cash flow before exceptionals divided by adjusted net income. That gives a cash conversion of 83.3%, and that's in line with what we said at the time of being between 80% and 85%. So just to give you sort of a couple of perspectives on that, but certainly pleased with cash. In terms of the outflows, as you'd expect, dividends, tax, CapEx, the acquisition of Fonto. But the net is -- in terms of net cash after loans, were $71.9 million at the end of the year, and that's an increase of GBP 26.6 million over the 12 months. And apologies, the last point on cash is we refinanced the RCF during the second half of the year. So we've extended the value from $120 million to $220 million out to 2026. It's on very similar terms to what we had before. So we were pleased with that. And obviously, that sets us up for potential M&A as that occurs. And the drawdown on the RCF at the year-end, it was only GBP 36 million of that GBP 220 million. So there's plenty of headroom there. Looking at the balance sheet briefly. So net assets increased by GBP 131 million during the year. Just to call out a couple of points. Goodwill increased by GBP 77 million. That's partly the acquisition of Fonto but there was a particular FX issue in terms of point in time. So we're obviously valuing the balance sheet on the 30th of September when the pound was particularly weak against the dollar. So actually, you get an FX gain, if you like, which is very material in goodwill. Similar story actually in intangible assets. So although we had the typical amortization there, again, we had an FX gain that more than offset that. And then net working capital, that increased by GBP 15 million. Now that's partly because we had higher revenue. But again, there's this FX impact as of the 30th of September. If you look at our underlying DSO, for example, at that point in time, it's actually very similar year-on-year, if anything, slightly down. But it's just -- so just trying to explain why that's gone up. So Ian did reference earlier some of the big projects that we're engaged with. And we've talked about these large infrastructure projects before, because they do have an impact on our CapEx, particularly. We are -- we're at 4% in 2022 as we expected. We've guided to 7% next year and then it sort of ramps back down to 4%. Some of the big items behind that, just to give a bit more visibility. One from the top is Project Highlander, which was putting us on One Unified Microsoft's tenants, which will happen in the first half of 2023. We are looking to move our disparates, HR and finance systems onto one platform, Dynamics 365. That'll be much more coherent, much more efficient, much more scalable way of working, I can tell you, from personal experience on that. And that will be complete during 2024. From an operating point of view, IP Services, we'll be doing the whole revamping and modernizing of the workflow. There, it allows us to be much more efficient, a lot more agile. That will be, again, complete in 2024. And then the last one we'd just call out here is the LXD, Language eXperience Delivery platform. There are a lot of work going on there to sort of further improve the competitive efficiency of that. And the major benefits we'll see from that are in 2025. Just to wrap up. So here's just a very simple financial model that we use in terms of the way we manage cash and recycle and grow cash. So we obviously have our business as usual spend to keep the business on a solid footing and drive sustained organic growth. Then we look to accelerate that growth and some of the growth initiatives that Ian has referenced earlier and we'll talk about later in the presentation. It's that investment. We continue our progressive dividend policy. We're doing that again this year. We look to acquire for growth, so we're going to get accretive value through M&A. And we use that as a sort of virtuous circle for managing the business. So that's it for me. I hand back to Ian.

Thank you, Rod. Right. So we'll now dive a bit more deeply into the business. A bit of a reminder of our strategy on a page. Nothing has changed here from the Capital Markets Day, that continued focus in terms of our proposition around content transformation and helping our clients deal with lots of data and content that they increasingly have to both transmit and receive and make sense of and all of it with a focus on helping our clients to grow by launching new products, by acquiring new customers, by making sure those customers have a great experience when they bought, once they bought those products and services and also by helping them to maintain sort of regulatory compliance. I think the other thing I'd pull out on here is the values. I think that's been a particularly important piece of work for us as we brought SDL and RWS together. These aren't just words on a page. We actually track in our customer satisfaction surveys with our clients, whether they think we are partnering, delivering, progressing and we get very positive feedback on that. We also use these values in terms of how we think about promoting colleagues, recruiting people. So they're very much now built into the DNA of the business. And I think that's very, very important in the services business. A quick reminder of our structure, 4 operating divisions. You can see the revenue splits there. We can see the early sign of progress with those revenue splits. So as we talked about back in March, we were hoping to see a little bit more of technology over time, a little bit more Regulated Industries. So you can see that early sign of shifting a little bit more tech going from 15% to 17%, a little bit less IP Services. And as we've talked about already, Language eXperience Delivery increasingly supporting the language delivery components of those services across the group and the transformation projects aiming to deliver those improved support functions over time. Now if we start with Language Services, the largest of the 4 divisions, 46% of group revenues. Here, as we said, we saw a 1% organic growth at constant currency. And this business is roughly divided into 2 pretty much 50-50 between EIG, which looks after our large technology clients; and then SSG, which looks after a range of large branded businesses across a range of sectors. And here, we saw very good growth in SSG, especially in the Americas. So geographically, Americas is probably the strongest; Asia Pac, second; Europe, as you might expect, a little bit weaker. And we saw some good wins across a range of sectors in education, in manufacturing, in software and in telecoms, and earlier in the year, also in electric vehicles. In EIG, a robust performance despite some of the well-publicized sort of cutbacks in -- at some of our technology clients. We saw very good revenue growth with a large global digital retailer. We did see some reductions in 1 or 2 other places. And actually, more recently, we just saw a very large data services win with one of those clients, which is part of our data services initiative, and that came in at the beginning of FY '23. This is an encouraging start. Margin, very nicely improved year-on-year, up 25% in terms of operating profit. And that is very much the top line in SSG and improved gross margin through use of the LXD and generally good cost control. One of the initiatives we talked about back in March was eLearning that sits in this division. So just a quick reminder of where we are with that. This is a growing area, especially post the pandemic as lots of employees and companies seek to deploy eLearning to deliver the increasingly large amounts of training that we're required to deliver and many of us have to deliver and want to deliver. And we have a right to win here because we are localization experts and clients increasingly want to deliver that content in a way that is accessible to all of their colleagues around the world. And I think the thesis here was that we could cross-sell this service to our existing clients. And I'm pleased to say, since we announced this, we've sold into 22 existing clients, this eLearning service. And we've also won, fairly significant for us, end-to-end global eLearning partnership as well. So this year, we'll see us continuing to develop that service. Some of the organic investments we've been making, some of the OpEx investment is going into this area. And we'll be starting to try and cross-sell outside of language services into our Regulated Industries, customer base and elsewhere as well, expanding geographically into Japan and India. So early days but encouraging progress, and it says that, that hypothesis that we could do this feels like it was pretty solid. Moving to Regulated Industries. As you heard, organic growth here drew back 2% on a constant currency basis, and that's despite good progress on Linguistic Validation, which I'll deep dive on in just a second and also despite some very nice wins in financial services, from banking and asset management clients and from medical device and pharma clients as well. We saw good period-on-period growth with 13 out of 20 clients. However, as Rod mentioned, we did also exit some lower-margin contracts that we talked about at the midyear. Those broadly came from the SDL side of the business, and that's pretty much now complete. And I guess then, the other sort of meaningful headwind here was the reduction of work with a CRO client that we talked about back at the trading statement. And that was a result of them starting to offer competing services and us feeling like it wasn't the right thing to continue to work together in quite the same way. Having said that, I think we will now continue to do some work for this client. So that position has moved on a little bit from 2 months ago, but it will be a significant reduction year-on-year. Despite that, operating profit, we're seeing some nice progress here as well, and that's partly those loss-making contracts being removed or low-margin contracts being removed and an increasing amount of volume from this division, in particular, going into the LXD. Talked about Linguistic Validation, another one of our new growth initiatives, and this is where we are providing very specialized linguistic services across the spectrum of the clinical trial process. It's highly regulated. It's very specialized. It's an area of the business where small nuances in the translation work are very, very meaningful. So often, things get translated backwards and forwards often by 2 different people. It's that kind of work. We've been doing this for some time. I think we identified in our strategy work that we felt this was an area of growth, so we committed some further investment, really, to increase our capacity to do this work because it is quite specialized. And again, if you look at the top right there, we've sold it into 42 existing clients through the course of this year and 40 new wins as well. So this is, again, early days, small numbers in terms of revenue at this point. It will grow, we think, meaningfully through the course of FY '23. And I think again, it is a tick against that thesis that we had at the Capital Markets Day. Moving to Language and Content Technology. We're really pleased with the progress here. This business was flat year-on-year this time last year. It was one of the areas we saw in SDL that we thought we could do something with. We've put a lot of effort into looking at this business through our strategy review. We decided on the 4 product areas that we felt we could win in and make progress in. So to be sat here with 5% organic growth is really encouraging with that extra SaaS mix in the mix as well. And it is, I think, a really good example of applying the RWS philosophy of running a business to this area. We've now got 4 general managers with clear P&L accountability with all of the resources to deliver sitting within them. And you can feel the energy in those teams compared to a year ago, and they're winning, winning in a diverse range of verticals from aerospace to automotive, banking, IT consulting, robotics software. And increasingly, we're seeing nice levels of cross-sell and combined sales with our services clients as well, another thesis in that SDL merger. Fontos is going well and the profits have increased substantially. IP Services, very much in line with the guidance we [ gave ] back in March, dealing, as we expected it would, with the unitary patent, which we now think will go live sometime in H1 calendar next year. It is a bit of a moving target. And despite that, we've seen modest growth in other segments. So translation and filing beyond Europe, IP research, China, in particular, good growth there. We've been working on the sales team here, but we've been running a sales improvement initiative with an outside company here. And I think we're starting to see some early benefits from that work. And that's evidenced by some of the new logos we've been winning here across a range of sectors from agriculture to battery and chemical manufacturing, energy storage, natural gas, medical devices. You can see them listed there. So overall, I think holding our own, no change to our long-term view here of what we think happens, we think we will sort of hit the bottom of the Unitary Patent sort of impact in FY '23 and then grow from there. We've got Daniel, our new President, who joined a few weeks ago, who brings a new sort of focus on growth into that team. And of course, we're continuing with the transformation program, which will also improve our customer proposition in this business. If I turn now to ESG. This is absolutely essential to our business. And I think to position that, it's probably worth thinking about it through a few lenses. First of all, if you think about the brands and the companies we work for, they expect their suppliers to take this seriously. And increasingly, they are making purchase decisions based on the ESG performance of their suppliers. If I think about the things that come through in our colleague engagement survey, our people care about this. They care about the purpose of the organization. They want to see an organization that's taking it seriously. And I know our investors take it really seriously as well. And we're making really great progress. So we've committed to setting science-based targets for carbon reduction this year. Just got a B score in our CDP survey. Very good participation in our internal colleague engagement survey with 85% participation rate. We're continuing with our extensive program of campus activities around the world where we're trying to attract people into our industry and also where we use things like Trados, our translation management platform. We encourage translators to use that tool from early stage through partnerships with universities around the world. In terms of governance, substantial progress this year. Jane, on new Company Secretary is here in the room. Julie Southern has joined our Board and will take over as Chair in October of '23. And of course, Candi's joined us as CFO as well. So significant strengthening of the Board and also real progress on some of the underlying policies and procedures. Our code of conduct was refreshed and relaunched earlier in the year. And we had a remarkable 98% completion rate. I don't think I've ever seen such a high completion rate. So showing real engagement we're taking that seriously across the business. And lastly, but by no means least, we were quite pleased to be awarded a silver medal by EcoVadis, which is strong progress year-on-year. Last year, we hadn't even qualified for a bronze. So we've jumped quite significantly. And I think that really does reflect the focus that we're putting into this, placed in the top 10 of companies in our industry sector from a relatively standing start 3 years ago. Just want to touch on M&A before I go to guidance, and I think it's really important just to spend a moment on SDL. This has been an outstanding success, in my opinion. It's one of the reasons I joined the business. We had a number of things we were seeking to achieve in terms of strengthening our market positions, getting hold of the technology, which was key to future-proofing the business, delivering us the opportunity to improve our margins further through a bigger scale platform. And I think a lot of what I've just been through demonstrates that, that is working. Leadership in key segments, growth in technology, margin improvement through use of what used to be called the Language Office, which came from SDL, it's what we now call the LXD and leveraging the SDL technology, both internally to drive that efficiency, but also in support of our external sales where we're now often combining tech with services. In terms of numbers, acquisition EV was about GBP 570 million. That was net of about GBP 50 million of cash, GBP 55 million of cash that came with the business. EBITDA was about GBP 51.6 million. We've delivered run rate synergies of around GBP 33 million. So that gives you an 11.1x pre-synergies and a very strong 6.7x post synergies. Another way to think about this, I think, is EPS, right? So we've gone from an EPS of 19.9p in FY '20 to an EPS of 26.6p this year. And you think about it as an all-share deal, that's a remarkable, I think, a really good use of our equity. And if you could find another deal like this, I think you'd do it again in a second. And so we do continue to look for other deals like that, whether we'll find another one quite like SDL, I don't know. But our intentions here haven't changed from the Capital Markets Day. We're interested in acquisitions that accelerate the shift of the group into those more attractive higher-growth segments. We will remain the same disciplined company we've always been in terms of does it align with our strategic priorities, will it enhance our organic growth and will -- can we do it at a sensible price, and are we acquiring a business where there's a good cultural fit where we can retain the people and the client relationships and integrate effectively. That hasn't changed at all. And I would hope we can make some further progress with that in the year that we're now in. And that takes me to the final slide in terms of current trading and outlook. I think we've demonstrated some early signs of progress through our organic growth initiatives, great progress with technology. We are seeing reduced activity from some of our tech clients, but we're also still winning business with them, and they're very strong relationships embedded by really high levels of MPS and satisfaction. We're seeing early signs of some of our sales improvement initiatives working as well. Pricing, we haven't talked much about, but we have pretty much created a pricing program from scratch over the last 12 months. We're seeing that now impacting our P&L. Our objective in this year is to offset our salary and cost inflation with what we get from pricing. Our infrastructure programs are up and running and mobilized, and we brought in talent both permanent new heads like Terry, our CIO, and also we're using external providers to help us deliver those programs. Cash generations continue to be very strong. We've got a great executive team now in place. So today, we're restating our guidance in line with market expectations. We are very mindful of the current economic climate. It is difficult. It is harder to forecast than the normal for, I think, most businesses, but we have got a lot, I think, going for us in this world that we're now in. And now is the moment, I think, where market leaders often step up a gear. We can continue to invest when some of our competitors may struggle and that is an opportunity for us to continue with what we committed to back in March and enhance that customer proposition to continue to support growth and maintain those investments that are enabling that. That's it for me. I'll pause there and just say thanks to you all, and wish you a happy Christmas.