SRT Marine Systems plc (SRT) Earnings Call Transcript & Summary

Good morning, everybody. My name is Simon Tucker, I'm CEO of SRT in this gray morning. Hopefully, the summer will be coming soon. So for those of you who've not perhaps seen one of these before, I'll give you some background to this. The idea really is to give you some insight into what's really happening within the business operationally, perhaps discuss a little bit more about our trading statement, put a bit more color around that. But certainly no pertinent news beyond what we've already announced, and that would make everybody inside. So if you've got questions, please ask them. I will address them at the end. I will try and address every single question. I've always got to balance, and I know for some of you can find this irritating our customer confidentiality. I'm constantly trying to do what's right for the business, what's right for our customers, what's right for our shareholders. And really the decision sits with me, so if I upset anybody about that, then I apologize for that, but we're doing the best that we possibly can. So I'm CEO of the company, and therefore, I'm responsible for running the company and the scorecard on that is a long-term share price. So I take full responsibility for the ups and downs and the share price. We've seen some short-term reactions recently to some short-term events for which I apologize for, and I wish it was different. But I believe it's one of those times where, as is often the case, the -- perhaps the share price is not reflective of actually where the business is. But nevertheless, I'm not sharing responsibility for that. I'm the CEO, and I need to take responsibility for that. So ours is a long-term strategy. We are seeking to be a dominant, if not the dominant player in a new market that is forming, which is the digital maritime domain awareness market. And to do that, we have had to develop some pretty complex technologies and from that, sophisticated products. In parallel with that, the market is developing different areas of the market, adopted a different pace. But we have the advantage now today of having that nearly a decade of accumulated experience, technologies and products, which gets us to the place where we are today, where we can talk about $180 million contracts, $200 million contracts, transceivers business doing millions of pounds a year of business. This is not something that happens overnight. It takes a lot of time. And now we are the dominant player in this market. And we believe very strongly, as do the 120-plus people that are working in SRT that have committed their careers and their lives to the company, also our shareholders who committed their cash and long-term patients to the company. And our customers who are committing their safety and their national security to the systems that we're supplying. And so we've taken that long-term decision to get us to where we are today, where we're just about really sort of starting to take off, although some of you may not feel that. Of course, what comes with that is the challenge of how to communicate that to everybody. And again, this is something that sits with me. And I get a lot of advice. I read the Boards, I get advice from our brokers, our lawyers, shareholders, media people, all sorts of stuff and it's on different spectrum. Some of it is, don't tell any -- say anything to anybody until it's absolutely certain, managing that information flow. And on the other extreme is tell everybody everything. And neither is right in my opinion, and I can't please all the people all the time. And my judgment is that as shareholders, you want to know what you've invested in, what we're doing. And that is why I step forward and give these webcasts, we give detailed trading updates. We talk about forward contracts that are coming. But what comes with that as well is the requirement and then try and predict what the government will do and how long that will take. And we get that wrong, either it's too late or too soon, but we get that wrong. But I would rather communicate with you about what is coming, about the fact that we perhaps have a substantial new Middle Eastern contract, for example, some point this year. But that government in question might decide to do that in 2 months or they might decide to do it in 12 months. And they will do that independently of us. They have their processes. But I do prefer to communicate openly about that rather than they're just to be a black hole of information and wait until it's absolutely done. And what comes with that sometimes is things are delayed from an expectation. And unfortunately, that comes with the fact that we've had in the last few weeks. But I will continue to do that because I think it is the right thing to do. And on balance, people seem to -- like to have the information. What I would also say is everything that I say here has to be checked with our lawyers and our NOMAD as being factual. And even then sometimes they're saying, "Well, do you really need to say that to people, Simon. “And my view is if you've invested in the company or thinking about investing in the company, you should know what you're getting into or what you're in. So enough of all of that. Let's talk about the business. So we have 2 divisions. We have a systems division and we have a transceivers division. There's a little bit of crossover. And sometimes our systems division will also buy transponders or use transponders from our transceivers division to include in the systems projects, but not every systems project has transceivers. The systems business is where the primary product is our maritime domain awareness system, which basically integrates lots of different sensors from all over the place, sticks it on to a screen, combines that with AI analytics and will spot different events that are going on and give the authority and question that's operating that system, the ability to do something about it. So if you will, it's air traffic control, but for the marine domain on a national scale. It's not a new thing to do these in ports or on a boat, but actually to do that on a national scale with a national vessel registration, perhaps 300,000 vessels from a small artisan or fishing boat to a big international cargo boat is new. This is what doesn't exist and this is what we took the decision to develop 10 years ago. So we have a number of systems that are under our belt where we've delivered and are continuing to grow. And the way we see our systems business is that when you get a customer, a country, they have decided to build a digital maritime domain awareness system for the country and they're going to build a platform. And the first project is just the first step on doing that. And typically, what happens is they establish their core monitoring system and then they start to bolt on additional capability. And then what we're now seeing is they're talking about connecting into different agencies. The message I'm saying here is that each time we get a customer, it's really an account and they want a bit like a business, if you take on SAP or something like that as a business operating system, you're going to build up over time that capability. Your organization is going from analog to digital. It is exactly the same with our customers. So we have an ongoing project today with BFAR in the Philippines. They have implemented a very sophisticated national fisheries monitoring system. It's a tool for them to use where they can input whatever regulations that they want on fisheries and enable them to manage that digitally very efficiently and very effectively. From the smallest boat to the largest boat, a single system. So true modern thinking in terms of leveraging analytics and data within a single system. And they have that tool now. We're nearly there, nearly completed that all but a few bits of insulation, which we should complete in the coming months. And then we expect that to continue to expand as I've explained. We have a new contract that we signed last year in Southeast Asia with a coast guard. We have the project agreement, and that is being financed by a loan agreement between the U.K. government and their government. Now at the time, as I said in the recent trading update, we've never done that before. But it's not an unusual occurrence. These what are called export credit arrangements are done billions and billions of pounds every year. We were told it would take 6 to 9 months to complete, hence our guidance. The reality is that's taken quite a bit longer, 3 or 4 months. When I say quite a bit longer, when I actually get an update from the people who are involved in that, I'm told that actually that's not that much longer, so calm down. But the reality is it took longer than we expected. But it does seem to be, and I'm advised in its final throes of being completed. It's a big document between 2 governments. There's lots of different departments involved and all the governments. The reality is governments don't move quickly and take every holiday that's available to them. But we are -- it's a sure thing, not an if. And so I think that based on the guidance we've had in the last few weeks that we're not far -- or they are not far from including that loan agreement. And that loan agreement is between the U.K. and that government specifically for this project. And then that allows our end customer to pay us for that, for the project. We draw down from the bank, not from the customer. And then if you can imagine the amounts, they've drawn down on, they repay over 10 years. A very common arrangement. And my observation with this is a learning process, it will take about a year or so for these things to go through. And it's a complex process with all the checks and balances and lawyers and whatnot that's involved in it. We are a passenger to that. What we have done is use that time very well to do all the planning, the procurement planning, site surveys, environment and social sustainability studies that we have to do for the U.K. side of things and what have you. So an awful lot of proprietary work has been done, so we're ready to go. So when that loan agreement does come out in the not too distant future -- I can hear some of you thinking what do you think? Well, the time scales that I'm told by the bankers that are involved in it is 1 to 2 months. So read that as 2 months. So sometime in July. So once that does start, we will immediately do the first 2 milestones, which are some site design sign-offs and the delivery of equipment that we have ready to go. And that then triggers an invoice which we then get paid by the loan agreement. So all very simple. And the customer question starts to build an international standard for the first time ever, a proper digital maritime surveillance and intelligence system that they can use to improve security and safety of their very large marine domain. We then have an existing customer in the Middle East, a very large Coast Guard, where we signed a contract with GBP 40 million. We've done Phase 1, successfully done. Everybody very happy. That's now in the support phase. And then we were going to be doing Phase 2 -- well, we are doing Phase 2 this year, and we were due to start that earlier this year. But what actually happened was the customer wanted to change the scope of the project. So what do we mean by that? They wanted to increase number of co-stations, reduce number of transceivers than the other way. And we went through a number of different permutations with the customer. And each time they do that, they need to go to their ministries for various approvals and things. So this sort of roundabout, going around with all their departments internally, again, with them -- the minor changes and stuff, it took longer than we expected. In the end, it's up to them within the terms of the contract to do that. But that is now finalized. That was finalized a few weeks ago. And we are now just waiting for -- they have a special code that they need to get internally to finalize all the contractual documents which are already done. And we expect that probably shortly after the E2, which is -- starts next week. Following on from that Phase 2 and that will happen quite quickly this year. And we also then expect Phase 3, which is now set as well. The scope is set. There isn't a variation of the scope because obviously, there's 3 phases, Phases 1, Phases 2 and by default, Phase 3 is the delta between Phase 1, Phase 2 and the total thing. Will start end of this year. So again, a little bit of a delay down to these governments taking this very seriously. And there isn't just one guy that decides these things. There's -- I was in the meeting the other day in that particular country, 25 people in the meeting from different departments. We -- these are serious systems that -- on which they're running their maritime safety and security. And then on to new stuff that is coming, so staying in the Middle Eastern region, there are 2 new contracts that we see coming up. One is with an old existing customer that's very dear to us and we believe that, that now has all its internal approvals and the documentation is now being prepared. And so that shouldn't -- this is the smaller of the 2 with about $9 million. There is a second one, which is a couple of hundred million dollars in another country and there have been some recent changes there, and they really want to crack on, it appears with their surveillance system. We actually have people there at the moment doing some site surveys in order to finalize the proposal. And that suddenly seems to have let forward. Now I'm not going to repeat the time scales that I was told the other week when we were there, but that seems to be -- they really want to get on with it. But I think in reality, this probably will start to crystallize towards -- we'll not start to, will crystallize towards the end of this year. Big project, couple of years to implement once that's signed. But the fundamentally, it's not an if, it's a when. As a fundamental driver, they really don't have any modern maritime surveillance at the moment with integrated command and control, all that sort of stuff. And we're really the only game in town that can provide that. And also, we're trusted in the region having been there for 10 years with all the references and things that we have. So we're pretty excited about that coming up. Going back to Southeast Asia. We have 2 other coast guard customers that we see projects coming from. One, we think there will be -- instead of 1, there will be now 2 projects at some point between now and the end of the year for them to then start their first buildup of a maritime domain awareness system. And then another one in another Southeast Asia country nearby where they don't really have anything -- that's not correct. They have a very fragmented system. And now what they want to do is to bring that together as an integrated system as we offer and for us to integrate all of that, upgrade all their sensor systems to bring all that together, so they have a proper integrated system. They've indicated they want to be tendering for this within a year. So that means they're going through the usual process of looking into the market, getting presentations from lots of people. We think we're the only people that turn up with a real system where you can actually do real demos and we can really point to them to customers that are happy with it as opposed to just a fancy presentation. And we feel, again, we're in good stead there because of our references. My feeling is that we'll start that -- we will see that next year, not this year. There's quite a way to go with that with consulting with them to really figure out how much they want to spend, what they want, what budget visibility they want to get applying for that budget, they need to get the money from their national budgets. The normal thing. And the other one that is really -- that we're working on and focusing time on is in Africa. They've made their strategic decision that they want to need and want to have an integrated maritime surveillance system and they're looking at implementing that. They're indicating a time scale to start this year. I personally think it's more likely next year, again, it's a big complex project. It involves some lakes as well as the sea, but fundamentally, they want to integrate, again, digitize their marine domain rather like with air traffic control, but also in the marine domain. So a lot going on. And then there's other inquiries that have come in that we know of where we provide them with information, but then we're not spending too much time on, that experience has taught us that, actually they're a little bit further down the line or away from actually making that clear decision of when they want to do it and how they're going to do it. It's more an exploratory phase. Most countries really want to ultimately have these things and then build that up but the they need to make that strategic decision. They need to consider how they're going to do it, which agency is going to own it, these sorts of things. Staying with the systems business. On the development side, of course, we continue to develop the product which is our integrated surveillance system. And the secret sauce in that is our software, which is GeoVS. And we now have 4 pillars to that. So you have GeoVS HUB, which is the, if you will, the underpinning network, which gets all the data to where it needs to be, really complicated to actually move loads of optical cameras and radar and AIS and RF information all across an extended network with variable connectivity, very hard to do. So GeoVS Hub, you then have GeoVS console, which is the software that sits on the console that plugs into the hub and actually gives you the tools and the display. We have GeoVS CONNECT, which is a series of applications that sits on mobile devices, tablets and phones. What that does is enable people in the field that are out on boats, or where have you to receive action command messages and things from the operators sitting in maybe 20 different command posts, maybe 200 different operators with different actions and things. So the whole thing is coordinated. And we have GeoVS portal because increasingly, what happens is you'll have a people -- the core agency wants to share information amongst all their other agencies. That might be a national oversight, national security agency, it might be a coast guard with the fisheries or fisheries with a coast guard or with a port authority or with an NGO somewhere. And so you need to have that ability to safely share that information and aggregate that information and what have you. So these 4 pillars now are being developed as a product, we're on release 13. For those of you that have been around for a while in 2015, we were on release 2. So we're now talking about a very sophisticated system, which encompasses data management, networking, security, AI analytics, augmented reality visualization, action management processes, a whole range of different functionality that sits within this very complex sophisticated product that we can deliver to these countries that want to have that capability. And it's just coming back to my starting point is to -- we took a decision 10 years ago, strategic decision to enter this market on the basis that we saw that countries would want to have digital maritime domain awareness systems. And therefore, we have needed actually that time for the market to develop and for us to develop this technology and products. It's not just an app for that, which takes 6 months. It's not just a website. These are professionals like NATS for National Air Traffic Control is the equivalent but for the maritime domain awareness. And these countries, our customers want to have secure, reliable systems that they can really rely upon for their maritime domain awareness, and it does take that time to have the product to be able to go to a country to win these projects, which we are now doing. And I'm immensely proud of that as are the 120-odd people that devote their lives and careers to SRT doing that for us, and I thank them for that. So onto our transceivers business. So our transceivers business, we develop as it suggests black boxes that communicate voice and data in the marine sphere. We started off with AIS. We were the first people to develop an AIS transponder long before anybody sort of thought it would be mandated more widely. And today, AIS is really the sort of the underpinning of the digital communications in the marine world. We target -- we have 2 different markets. We have boats and we have infrastructure. So on our boat market, we reached that market through our em-trak division and through our OEM and module division. So in our OEM and module we will supply a lot of the existing brands who want to have an AIS transponder, but it's too complex to actually have the technology themselves or they're busy doing other bits of technology. People can't do everything. And so they come to us and they have a pot noodle solution. If you as the consumer were buying one in the local chandler, you wouldn't know it came from SRT, you would just see the brand. And that business is growing nicely, and we have over 4,500 dealers and distributors worldwide. We provide the full range of AIS devices. We are renowned for our quality both as the product, the technology and the service that we provide, being reliable. And that grows as the market adopts. Obviously, we hope for better weather, so the summer arrives soonest so people can go boating. Our em-trak division is where we sell directly to dealers and distributors as opposed to an OEM who then go to dealers and distributors and that is really the retrofit market. So people buying a new boat and buy everything from a particular brand, let's say, Raymarine or Garmin or somebody. But they will then start to buy in the retro market. And that's where they're buying an em-trak, an em-trak product. We've been growing ourselves, our em-trak business very well and very happy with that. What's coming up to drive that is a product called NEXUS and what NEXUS does is take us, if you're not a boat person, in the boat world, you don't use your mobile phone to call the other boat, you use what's called VHF radio, VHF DSC radio. It's a little bit like an old style, Smokey and The Bandit CB type thing. Well, that all sort of stroke us as a bit agriculture. And so we came with an idea with NEXUS to integrate AIS and VHF communications into a single box, but have a communications link so that your mobile phone can be your walkie talkie, your command mic because your mobile phone is now increasing being used for navigation. You put navigation apps onto it, and you can stream the data wirelessly to that. What that means is you don't have to sit next to the wheel driving your boat, the whole time listening to the radio, and the radio is a critical safety thing in the marine world. Now you can go and sit on the front and have your glass of Rose or you can rush to the front to try to tie the thing up with your phone in the back pocket, but you're still able to communicate with VHF radio. This is a real innovation. On top of that, you can also then connect all the kids smart watches and phones and things. And if somebody falls overboard, you'll get an man overboard alert along with the direction as to where they are. So immediately, wherever you are on the boat, you will get an alert to be able to see that. There's lots of other functionality like you can do a private intercom. So if you're in a big yacht, you don't want to disturb the guests, you can create a group from your crew, and you can all talk amongst that through NEXUS privately without disturbing everybody. We think this is a super, super innovative product that brings a new level of convenience to boating. So it's been a long, hard road to develop this complicated product. It's now in preproduction. It is now -- we have preproduction units out in the field being used by the trickiest of our dealers who have boats, who don't care what they say. And if they don't like the feel of the button or the rubber or a bit of functionality, you get the feedback straight back. That's what we want. And we are planning to start -- slowly start commercial shipping in the autumn. We've already built up for the first time ever a pre-order book that we'll deliver against. But we'll do that steadily getting some market feedback, refining the product as it goes. But we're very pleased where we are. And we're being very cautious about entering this much bigger market segment because it's combining AIS and voice into a single box. You will -- we've already -- actually, there was one question earlier about when we start to see some marketing. Well, we soft launched it in November last year at METS. You got to remember, we don't really need to do much marketing because we've got 4,500 dealers so we just send an e-mail. This is quite the power of that 10 years of accumulated work in this market. So we don't intend to spend really money on display adverts and all this sort of stuff, in magazines and things. The best people to talk to are the dealers. The dealers want to sell to their customers. The customers come in to talk about all sorts of stuff, and they will then are the best people to train up and then talk about NEXUS. We've proven this time and time and time again. And we had a very good reaction in November last year at METS in Amsterdam. And so this is the way that we're doing it. And that obviously means you have to spend a huge amount on marketing. The other part of our transceivers business is DAS. So this is around infrastructure and buoys, it really is linked to autonomous shipping. So we saw the ship go into the bridge, the other day in the states, although I have to say that, that really wouldn't have helped having an AIS AtoN because they lost propulsion, and there's not much you can do when you lose your engine. So that's a very unfortunate thing. But they do have thousands of other bridges. And for example, they don't know if you're coming up to that bridge, whether you can fit under it or not. But if you fit a DAS, it will tell you the actual gap between the water and the bottom of the bridge. And obviously, that varies because of tide. Equally, perhaps in the EU inland waterways, you have locks and things and is the lock open, is it closed. So that business started nearly about 8 years ago when we produced the world's first AIS AtoN, and we just sold the transponder. Our innovation in DAS, which started 3 years ago was to create kits to make it easy for a port authority or a waterway authority to buy, let's say, a lantern monitoring kit because that's actually what they want to do. They don't want to necessarily buy an AIS AtoN. They want to monitor the lantern on the buoy or the position of the buoy or the states of lock and create a kit and sell that to them. The result of that has been, the revenues doubled. In DAS, it's extremely high margin. We now have a sales pipeline, not order book pipeline. The largest one that we're working on at the moment, alone is GBP 2.5 million in the Middle East. And really, again, we are building on our success, which we established over a number of years on our core product and the core technology inside that what makes it different. It's very small. It has a huge amount of functionality and performance, but the power consumption, which, of course, is important if you think about it, it's on a buoy in the middle of the water, having to use a small cellular panel, is about 80% less than anything that was in the market at the time. So that is an example of where unseen technology and clever people down in Somerset in the development of the hardware and the software produce a product that actually creates a massive difference to the end users in the market. So the business really -- hopefully, you get the feeling is not reflective of the share price. We have our short-term ups and downs, the scorecard is a long-term share price. We have a lot of business coming. Yes, we get it wrong. Well, I get it wrong on guiding you on the time scales, but I do my best. And we'll continue to do that. And I will continue to get that wrong at times, and hopefully, I'll get it right at times as well. And so hopefully, you see that you're in a business where we have a lot of opportunity. Our customers really value our products and increasingly do so. The market is also developing for that, which is what we set out to target nearly 10 years ago. So I'm going to have a look at some of these questions that have been sent to me, and I'm just going to go through those one by one. I got it on the screen here. I will try and answer as many of those as I can.

So yes, of course, we will -- when the contracts start, we will harness them, they are a material event, so yes, we will do that as well as when we start shipping. I think I've discussed the approximate time scales for the 2 coast guard Asian contracts, also with NEXUS. As an interesting question here, I think, to the delayed contracts, is there any estimate of the holding costs? Well, our business model -- that's a good question. Our business model is we have a fixed overhead. It's not that we -- customer overhead for those particular projects. So we have a delivery team. Our model is we have a delivery team, which comprises of project manager and a success manager per project. So I suppose you could argue that they are specific to a particular project. And if something is delayed 6 months, then you have the cost of those 2 people. But the rest of those people are supporting all the other projects. So it's not that we have a cadre of people just sitting there waiting for one particular customer. So it's not a sort of as cut and dried as that. Let me just see what else we have here. Just going through these, if you don't mind. Why the radio silence between trading update and the seventh of June when the markets will wash the stories? Well, the market is always a wash for stories and is often baseless. And I don't think it's beholden upon us to correct everything all the time. I think coming back to -- and people won't necessarily agree with that. We wanted to wait until we were sure about what may or may not happen. And therefore, we needed to wait until we actually had that feedback from the particular discussions that were ongoing in Southeast Asia and in the Middle East and then make a judgment on that rather than get that running commentary the whole time because where does that ever stop? So I understand the angst of some, but I think we got the balance right. In the minute I was -- we were certain about the situation we came out and explained. Our new investor from December is extremely supportive and we're working with them on some of the projects actually where some of their robotic and autonomous vessels who come into play as well as some of their survey stuff. So all very good. They're great, calm people, proper business people with a long shared, long-term view of the scale of the market that we're all in. Thank you for that one. I'm going to probably skip that one. Please explain the financing for these contracts, is it for SRT or the customer? So these contracts -- the customer doesn't finance anything. So governments don't do that these days. You get paid when you deliver. The good thing about our projects is that they are very software heavy. And the first thing that the customer wants is the monitoring center. They want their monitoring center and they want their data center. And that is very software heavy, which is obviously, has a lower cost for us to deliver. So actually, the upfront financing is pretty minimal. And for the 2 that we've talked about that are pending, 1 in the Middle East and 1 in Southeast Asia, we have bought and paid for -- we bought the equipment. We have a deal with Dell where we get our equipment, which enables us to finance that as well. So actually, from a cash standpoint, we now have that very well under control. So about the Southeast Asia into government loan, the bank is a very strong track record of arranging this. This is actually for that particular country, 1 of 7 that are in progress at the moment, and we are the lead, we are the sort of the keystone to the others. We have -- day-to-day contact is our CFO with both UKEF and the bank. I'm really not saying the name of the bank because I'm just not sure whether I'm allowed to say that or not, but it's a big -- one of the big -- world's biggest international banks. These guys know what they're doing. This is done all the time. It's just slow and that's the reality of governments. Whatever the election people are telling you at the moment, they're not efficient, and that's the way it is. But these facilities exist and they're great for business. And our CFO, it's new to us doing this. 10 years ago, the systems business was new to us, doing these sorts of things is new to us, but we take advice. We've hired people to help us with this. And so we're on top of it. And actually, we have no part to play in this. It is a process that the U.K. and these countries follow. I think the U.K. does something like GBP 10 billion of overseas development aid every single year. So this is not a new thing. What else we got here. Yes, the validated sales pipeline is still there. I haven't spoken to you about some of the bigger fishery things in Southeast Asia because I preferred to -- there's one there where they have a nominal budget of $500 million to spend over the next 10 years and their fisheries going from 0 to having a national fisheries monitoring system. So that scale of that market is still there. I've just chosen not to talk about all of that because I think the mood is really about talking about the near-term projects, the near-term contracts over the next 1 to 2 months and over the next 6 to 12 months. So that's why I've really not discussed that too much, but that hasn't gone anywhere, and it continues to move. Well, that's a great question. Can the system be used to identify legal immigration and digging in some stuff? Sure. I mean, the system will -- if you installed it along the channel, it would identify, it would track all the boats, all the people going out for a picnic [indiscernible] as well as things coming over from the channel. I think that in Europe, really, we've not had the jeopardy. This is just my personal view, have the Maritime Security jeopardy until now. Perhaps if somebody had announced that they were going to do that 10 years ago, they've been told they were an idiot. But it would take 5 years to implement it. So now that the problem is here, we're now talking about that. But I'm not convinced that on such a narrow stretch of water, the English channel that identifying them. These things are moving at 20 knots. From the spot point that you spot it to the point that being in the U.K. territories, waters is about 15 minutes. So you're still just going to pick them up. So I do think it would be useful for us to have that system, but I think it's -- perhaps, it's not going to stop that, if you will. So security of our system is a key thing. That's why we don't talk about web platforms and cloud hosting and all this sort of stuff and delivering of services. Our systems are delivered to the country as a sovereign system. We look at these as sovereign partnerships. It's their data stored in their countries, under their control to do what they want to do with it. And that's an important part of our proposition. And what comes with that is system security as well. So I think I've answered everybody's questions. Hopefully, it will be a little bit better having heard a little bit more and you can see that we're busy as held down in Somerset and Cardiff and around the world today. We've got people in the Philippines and all across Southeast Asia and Indonesia, all across the Middle East, in different countries. So we're working hard. I'd like to thank our very supportive shareholders and particularly our staff, who some arrived at work at 5 o'clock in the morning, are working long hours, progressing our now pretty sophisticated technology and vast systems that we're delivering and monitoring these in different countries and things and delivering them in different countries to challenging customers who have real maritime security and environmental issues that they're using these tools to manage and improve the marine domain. So all exciting stuff. If you've got any follow-up questions, e-mail me or any of the other directors of the company. It's very easy. It's our first name dot surname srt.marine.com, and you will get a reply. So thank you very much, and we'll be in touch soon. Bye-bye.