Stealth Group Holdings Ltd (SGI) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. The time for the commencement of the meeting has arrived and a quorum's present. I therefore call the meeting to order and declare this Annual General Meeting of Stealth Global Holdings open for business. I'm Chris Wharton, the Chairman of the company and of this meeting. I welcome you all, and thank you for attending. I'm joined today by our Group Chief Executive Officer and Managing Director, Mike Arnold; our Nonexecutive Directors, John Groppoli and Simon Poidevin; and John Boland, our Company Secretary and Chief Financial Officer. I would also like to make welcome Glyn O'Brien and the external auditor -- who's the external audit partner from BDO who will be available to take any questions regarding the annual financial report. Also in attendance is Rachel Crane from the company's share registry, Computershare. I will now run through the order of events. Firstly, I will present my Chairman's address, and this will be followed by a presentation from Managing Director, Mike Arnold. Following the presentations, we will invite questions from shareholders. I would like to remind you that this is a shareholders' meeting. Only holders of the company's shares, their attorneys, proxies and authorized representatives are entitled to vote and speak at this meeting. I ask that each person who wishes to ask a question identify themselves and hold up his or her admission card. Following this question session, we will commence the formal proceedings of the meeting. The resolutions at today's meeting were outlined in the notice of meeting. The resolutions will be read and put to the meeting with an opportunity for shareholders to ask any questions on the resolutions. A poll of the resolutions will be taken at the end of the meeting. And once all voting has occurred, the poll will be declared closed. The poll will then be counted and the results of the poll will be announced to ASX following the conclusion of the meeting. People entitled to vote on the poll are all shareholders, representatives and attorneys rather of shareholders and proxy holders who hold admission cards. I'll conclude the meeting after the poll. If you have a mobile phone, could you please ensure it's put on silent or turned off for the duration of the meeting. I also ask that you don't use cameras, video or sound recorders during the meeting. So good morning, again, ladies and gentlemen, and welcome to the 2022 Annual General Meeting of Stealth Global Holdings Limited. Thank you for taking the time to attend both here at the offices of BDO, our auditors and also via the online webcast of the meeting. Before we start the formal business of today's meeting, I'll provide some brief comments on the performance of the company during 2022. I'm delighted to report Stealth continued to perform strongly in financial year 2022. In fact, the business delivered another year of record revenue and underlying earnings. Group revenue was up 46% to $101.8 million and underlying earnings before interest, taxation, depreciation and amortization, or EBITDA, increased by 131% to $6.7 million. This excludes $1.4 million expenditure on investment-related activities, which I will discuss in some more detail shortly. Statutory net profit before tax doubled to $2 million compared to the $1 million reported last year. Stealth's excellent performance has been achieved on the back of positive industry demand conditions across many of the key markets we service. And it's supported by strategic business acquisitions and divestments. Year-on-year, group revenue growth for our continuing businesses was 49%. In fact, we achieved a record annual growth in sales for the Australian business to $99.6 million purely organic revenue growth, that is excluding acquisitions, increased 9.3% to $62.9 million. Divestments included the sale of our 50% interest in BSA Brands (U.K.) to our joint venture partner, Bisley Workwear for 2 million cash. This followed Bisley's sale in December 2021 to a New York-based PPE supplier. Importantly, the sale provided stock with the opportunity to realize significant value from its investment in BSA and strengthen the company's capital position to fully focus on our strongly performing and growing Australian businesses. The transaction was structured to retain our valued partnership with Bisley as a supplier to our business, and it does remain strong. Targeted acquisitions and investment in our business is the key to our longer-term growth strategy, to expand Stealth's multichannel distribution platform and build the scale of Stealth's distribution business. Critical to Stealth's success to date has been the ongoing diligent and unwavering execution of this strategy, which is focused on expanding our customer and supplier bases and seeking new marketplaces, stores, products and geographies. In line with this strategy, we completed 3 significant business acquisitions during the year, which contributed a combined $19 million to financial year 2022 revenue. This included Skipper parts and transport -- Transport Parts rather, what we call STP in August 2021. The United Tools Group in March 2022 and United Tools Albany in May 2022. Revenue contribution will be even stronger and higher this year following a full year of ownership by Stealth. These acquisitions will -- the acquisitions provided an entry into fast-growth customer markets in automotive, truck and trailer, mining, bus, agriculture and industrial as well as expanding our independent partner store footprint across the nation. They also significantly expanded the Stealth available product portfolio to more than 1 million product lines, our customers to more than 8,000 and our suppliers to more than 2,500. Our supply chain infrastructure grew by 6 new company branch stores and 17 on-site stores in Brisbane, Rocklea, Mackay, Emerald, Perth, Albany, Esperance, Karratha, Port Hedland, Newman, and Kalgoorlie, together with 33 independent partner stores. The positive results of our growth strategy to date seem to me to be very apparent. As a Board and management team, we continue to look ahead and strategically invest in future growth opportunities, but only where they make strategic sense and meet our strict and prudent financial criteria. While net debt levels in the business increased during financial year 2022 by $6 million to $10.2 million, this was primarily due to the acquisitions completed during the period and they are supported by earnings and cash flow. Furthermore, the business remains well funded to support ongoing organic growth and other strategic endeavors. We closed the financial year with a $1.6 million stronger cash position of $4.7 million plus working capital facilities of $2.8 million. While we are now largely free of government restriction and its impact has reduced, unfortunately, COVID-19 continues to impact our business and the broader industry. This is through increased costs related to heightened containment procedures, higher staff absenteeism and residual supply chain constraints. Careful and ongoing management of these challenges has been an important contributor to this year's results -- for last year's results as it was, and it will be for the coming year. The company continues to monitor, assess and respond to events relating to COVID-19, to manage and contain any potential impact it might have on the business and importantly, our people. Before closing, I'd like to make some brief comments on the business outlook for financial year 2023. This year -- this coming financial year, pardon me for a second. We face additional business challenges with a multi-decade high inflation and rapidly rising interest rates that have already begun to soften consumer demand. However, interest rates and unemployment remain at historically low levels in the Australian market and business conditions remain positive. We have increased our focus on the Australian market and remain confident that the group's multichannel sales model and diverse operations across Australia should allow us to continue growing the company. We remain committed to delivering satisfactory returns to our shareholders and expect further revenue and earnings growth in financial year 2023. In closing, I'd like to thank my fellow nonexecutive directors, John Groppoli and Simon Poidevin for their commitment and efforts during the year. Mr. Poidevin was appointed to the Board just over a year ago, after Alan Cransberg stepped down following his appointment to the Board of Wesfarmers. Simon joins us here today at BDO in Perth. Simon has been providing the company with important East Coast representation since joining the Board, so welcome Simon. As always, while discussing board and governance matters, I must also extend thanks to our company's Secretary and Chief Financial Officer, John Boland, who has provided valuable support to the Board during the year. Before I hand over to Mike Arnold for his Managing Director's presentation, I would like to make some important acknowledgments. Firstly, to Mike himself, who is just a wonderful CEO and a wonderful man. Secondly, to our customers and suppliers, with have many deep and long-standing relationships that we value. And we thank you for your support and business. I mentioned earlier, our growing distribution and store network across Australia. This requires many skilled and dedicated people to operate it. And I thank all of Stealth's employees across the network for their dedication and contribution in financial year 2022. This includes the many new employees who have joined us through our strategic acquisitions. The Board of acknowledgement and thanks, of course, extends to Mike, as I've mentioned, and his excellent and talented team of executives. Stealth may be a micro cap company at this early stage of its existence. But nonetheless, it takes considerable effort, dedication and talented leadership to deliver good performance and growth like the business achieved in 2022. I, like other shareholders want more and look forward to building upon this in years to come. And finally, I'd like to again thank our shareholders for their continued trust, patience and support of the company, which is never taken for granted. Now just before my voice gives out, I'd like to hand over to Mike. Thank you.

Thanks. Mr. Chairman. And I just want to echo also the contribution by my fellow directors, John and Simon and also John Boland, as Company Secretary for their support that they provide myself and also our management team is just exceptional, particularly from a Chairman's perspective. And with Chris, your support is outstanding, you're always available at any time to assist. Further, I'd just like to make a comment on my management team, obviously, with Luke Cruskall and John Boland, Brendan Rossiter, Phil Podgorski, Michelle Schoeman, who is here today, as well as a number of other people who are running your operations and unfortunately, couldn't make it here today. But their contribution over the last 12 months remains quite amazing, particularly as the company has achieved so much success in its period of the last 12 months or so. Okay. On that note, Chris is obviously spend a fair bit of time covering what happened during the year. There are a couple of slides that might take you through just to, I guess, put in picture sense, the actual efforts has gone into or the achievements and accomplishments. So if I can just take you through that now. So our blueprint, which we put forward about 12 months ago, and this has been pretty consistent now for a period of 4 years since we listed. Ultimately, that's the framework that we continue to look under, both from a organic perspective and an inorganic perspective. But our business has great balance, great diversity. It's very resilient. It works in a market that 95% of our products are nondiscretionary items. So through the period that Chris mentioned with inflation, it actually -- whilst does bring about certain a amount of challenges in terms of pricing and the supply of goods, equally there is future tailwinds in regards to that because of the nature of our product. None of our products have a date life that will cause us any issues either. And very rarely is that superseded. The business has really expanded itself upstream and downstream from a vertical integrated perspective and we continue to evolve that -- synergies and not only deploying those, but creating those is something that's been really in the mix since we listed 4 years ago and continues to do that. And clearly, the ability to be able to fulfill your orders at the right time, on time in full and obviously have stock available is something that we've been pretty good at executing, but also at the same time, I think it's a point of difference for us. The period of 2022 with the 3 acquisitions, as Chris mentioned, was quite significant in providing us with operating leverage. So we pretty much doubled the number of stores across Australia. And so that has given us relevance and put us in situations now that we've never been requested to attend or had the opportunity to be considered. That's both with global leading suppliers to merchandise stock for us and it's also with customers. We have a record amount of tenders at the moment that we're either waiting for answers on, we are in the process of putting forward or we have actually been successful and won those. And there was an announcement in the last couple of days that's to that effect. So we maintain those 7 areas within our framework, and we really don't see that sort of changing in the immediate future. Just covering from the sales point of view, so our product segment over 4 key categories of industrial and safety workplace, truck and auto. Truck and auto became a new category within our business over from August 2021. The end market has really evolved for us. So it is very diverse, very fragmented. We work within an addressable market of $40 billion, and that's conservative. We -- the largest player in that market is about 4.2%. And obviously, there's a fairly big opportunity for us as a business as our categories and product lines has expanded itself as well as the network. I've mentioned a few times, it's really embryonic bringing all those together. There's a significant amount of opportunity still that sits forward, which we -- I'll take you through shortly, but obviously, we're working pretty hard on now. We've worked or we've aligned the business now in customer segments for the most -- to align ourselves to the changing needs of business customers, also trade, retail and the independent operators that form part of our network in distribution channels. In doing that, it's created a specialty team in each area, and the demands on those different categories are different. So our infrastructure and our alignment of our salespeople becomes quite critical in how we can not only grow within those particular customer segments, but we can also maximize every opportunity to make those customers sticky. I don't really like using the one-stop shop word, but people can come to us and cover all their needs within the workplace at any point in time. So that is something that has evolved significantly in 4 years when we had 1 store. We have 70 today. We had 40 people. We have 250 today. And we had 200 clients, and now we have over 8,000 customers and 34,000 consumers. So that's a wonderful effort by everybody who works within the organization from top to bottom and through to our Board members. This is the trajectory that occurred just in a 12-month period. It's pretty busy. We didn't stop, that's for sure. But we still haven't stopped, it's still continuing on a lot of the work that's progressed. So I've already mentioned the acquisitions and the number of stores. But at the same time, we merged the Skipper Transport Parts business into our Perth distribution center and made space for that, but also that obviously is putting us into a lower cost distribution model by doing that. We also migrated skippers onto our ERP system, which is the first time we have done that in any acquisition. So with Phil and Luke, who basically led that program, just outstanding not only -- not only their ability to be able to adapt to that business, but it continues to evolve today. And our visibility of everything that goes on within those businesses is absolutely state of the art. The truck and automotive category bought about 150,000 new product lines within our distribution center. So our model, whilst we talk about 1 million products, we stock around about 400,000 products in the distribution segment, which generates pretty much 80% of our sales. The balance of the product, 600,000 on lines, we've been pull on demand based on customer orders for an as-needs basis. And depending where that needs to be pulled from, there's obviously some time lines that stick to that. So we have a really strong and rigorous inventory program that has to meet certain benchmarks before we can actually hold that stock within our premise. And then stock turns is obviously so that we monitor quite closely. So our business, as its evolved its capability, it's evolved in terms of the scale and leverage. And also the people that have joined us, obviously, creates a new level of competency within our organization that you don't get every day. But one of the things that I think we should also be proud of, when I founded the business and then we started making some acquisitions, the male, female ratio was only about 8%. And at the end of FY '22 it was 39%. So that is a credit again to people who work in the business to ensure that we're providing an equal opportunity across the board. So this is our acquisition, June over since 2018. And we've made 6 acquisitions in there. We bring in the joint venture in the U.K. with Bisley Workwear, which is an amazing company and because of circumstances outside our control and probably fortunate because of the way that the U.K. market is, that came to winning. However, we're still very close to them and, as Chris mentioned, within the Australian market and one of their bigger customers now. You can see that we've been busy every single year. The last 12 months has obviously created a bit of a unique circumstance. There is nothing sort of sitting there in the immediate future that we're planning to progress. However, if that changes and I see the way that the market is currently operating, that consolidation is definitely going to occur over the course of the next 12 months or so. So it's been well managed. It's board about trials and tribulations. And I think in the main, we've done a very good job. And we acquired those businesses on debt and working capital. We have paid a significant amount of that value. In fact, we paid half of what we borrowed back already. When we talk about $10 million of debt, $6.5 million of that relates to working capital and the balance, we are paying off on a quarterly basis. And by June of next year, our acquisition debt level will be sitting around about $2 million. So a very good, rigorous process that's been led by our business to pay that down as quickly as possible. So I just want to reiterate, the debt is actually used for working capital purposes. So if you do a quick ratio of stock and cashless trade payables, we're sitting at about 1.23x ratio, which is obviously very comfortable, very good. So a new tag on which we've just introduced and some people here will see it for the first time, we make the workplace work better for everyone. And we've spoken a fair bit about we're the company of choice, we've spoken about having products for all workplaces, which we do, whether that be home, whether that be in a business, we have the capacity to be able to cover our products across that range of diversification. So importantly, we'll talk more about that, about the workplace and to everyone. And as our business continues to grow, it will be something that we continue to push a bit more. Now let me cover the trading highlights for the last 4 months. On the right-hand side is a picture of C&L Tool Centre when it was in its infancy days, and it was beneath a house in Albion, and there's an interesting story that sits behind that. Probably not appropriate to be talking now, but that business has been going for about 54 years. And there's a lot of people -- the vendors have just recently retired out of that business, 3 of them. 1 still keeps pretty close and is doing some mentoring for us and -- which is Vince, and Jeff continues to come in and [ podder ] around in the service workshop because he hasn't quite that used to retirement. But what I feel about that business is it's a great business. It has exceptional people. It has grown by 26% in terms of the sales in the last 12 months. It has lots of opportunity, but the fact that the vendors can still come in and be a part of our organization rather than just walk away. They also are shareholders and our group is a credit to everyone involved. So revenue up 22% in the last 4 months to $36 million. We had double-digit growth in all customer segments, which is in the box below. The 3 acquisitions that we completed in FY '22, the progress of those in terms of amalgamation is progressing. And I'll talk a little bit further about that shortly. There is a number of opportunities with that to, what I would call, rightsize and optimize by bringing those businesses together harder, of which we've just commenced. We seem to be in a position fortunately right now and also everything that you can see in the future, to be very positive about what the next 12 months and beyond holds despite what market conditions are obviously saying to others. We had just been awarded several new customer contracts, it's in the value of 6.6 million per annum. So it's 13.2 million over the 2 years. The ability to be able to win those, which is a first for the organization is an outstanding effort. Our tender pipeline, as I mentioned, is very strong. Our organic growth-related opportunities that are in play are something that we want to absolutely take opportunity in closing and some of those are very sizable. And I've mentioned the tailwinds, but I believe once I sort of take you through the slide deck a little bit more, I believe that there's a great opportunity for our organization to continue on its pathway upward slope. Clearly, from a revenue point of view, we've always said that we wanted to get to a particular size and scale. And at some point, we would then flip and focus more on profitability, and we're literally coming to that point now where maximizing the ability of increased cash as well as profitability is absolutely sitting in our strategy on the door knob. So as we use the take line down there, our journey has more to come. There's a program that I'll walk you through in a moment about simplifying the business, is really looking at profit levers, sales, costs as well as margin. We've recently undertaken a program, an extensive financial review of all those key areas. And we've identified that in calendar year of 2023, there's at least $2.2 million or profit contribution that can be had. And we've commenced a fair bit of that program, but there's a lot more to come over the next few months. And one of those key initiatives is merger of businesses as well as the creation of the Specialist Wholesale division, which will focus on our major suppliers. And pull those relationships directly out of our subsidiary businesses and lead it through 1 main group. And what we found is it's a number of different terms and conditions and price points across the 6 entities that we operate. And by bringing it together, obviously, we remove duplication. We get scale benefits. We get volume rebates that sit in there. Early settlement discount opportunities. So our ability to be able to progress higher margin is something that's absolutely attainable in that process. So looking forward, in pursuit of getting bigger and better. We are really focused on those profit levers, as I mentioned. There's immediate benefit. There's near-term benefit and there is obviously medium-term benefit as well. We remain with a long-term outlook and that outlook has been consistent for 4 years and will remain that way in our strategy at 2025. The 6 key areas that form part of our growth strategy is pricing reset. And that's something that obviously, with the way that the costs have gone on freight and wages and fuel and just about everything else has sort of skyrocketed. We held our own as much as we could in terms of not moving our price points, but we made the decision to go through our business for a number of reasons, but we are using pricing as a strategy. And by doing that, we have a number of opportunities to receive uplift, and we have a number of targets within the mid-tier range of customers that obviously presents itself as well. 7% of our total customers spend more than $50,000 a year, so 7%. However, they are 80% of our total spend. So in terms of quantity, 7%, in terms of their contribution of spend is 80%. And in their contribution to gross profit is 81%. So the opportunity for us to actually get more out of medium-sized customers sits there and our price points and service offering now that, that obviously has considerably expanded itself sits here today. The partnership aspects, we have 33 new independent stores, which has been absolutely critical, and that's embryonic but a huge upside. Our goal over the next 3 years or 2 years is to double that again, so that we have a comprehensive network of the right partners with us, so that we're getting the benefits of product leverage as they are. But also our network can remain capital-light by using the infrastructure of our own company operations as well as independent operators. So in doing that, obviously, we will continue to expand in existing locations, and we will also look at new markets to enter at the same time. So from the future upside, the synergies in terms of rightsizing I've already outlined, but we will also be optimizing store formats in terms of expanding category ranges. We've seen quite a bit of opportunity through bringing truck and automotive together with our industrial and our supply business and tooling equally to come in with the truck and automotive aspect for a number of reasons. And that is about using our infrastructure as -- and resources as best we can, so that we continue with driving a lower cost model. But at the same time, building relationships with new customers is always difficult if you don't have that. We have opportunity through the number of customers that we have to get more share of wallet. So our focus will be expanding our range within existing customers where relationships are already set, and that is a far easier road to the best outcome. So co-located stores is an absolute key driver. So in Port Hedland, in Karratha, in Albany and in Esperance it's [ home to ] Skipper Transport Parts. In Kalgoorlie and Bunbury and Adelaide in Queensland. They all operate under Heatleys or C&L Tools. So the ability in Western Australia, to start with, they will be co-branded operations, co-branded stores. Clearly, that makes sense because we're not duplicating. It creates more of a unique destination for customers to attend. There is no business like this in Australia and that is why we are progressing down this path, where a customer can walk into 1 location and get any consumable product that you could think of. So that is a significant opportunity for us and something that we have commenced in 1 location. We'll continue to roll that out in further locations. Supply arrangements, which I've mentioned. There is -- we've identified there is about in a handful of suppliers, it's about $0.75 million worth of price point differentiation across our 6 entities. By doing that, we see also additional volume-based discounts, which will add more margin to not only the products we sell, but contribution towards merchandising and marketing and supporting our own operations and in independents in terms of growing their businesses within their own local markets. I've said this before that there is obviously the larger multinationals that play in our space, and there is everyone else. And I feel that we're starting the move above everybody else, and we've always had ambition to sit in the middle, and I feel that we're starting to do that, particularly in this type of model. Organic growth, I've mentioned, so the merger of Heatleys and Skipper Parts has commenced and the merger means people, premises, back-office operations, distribution centers will become one. Inventory will be combined or has been combined, purchasing has been combined, finances being combined. So we -- what I would like to call, say, a hard merger of all that, those 2 businesses together. They will still maintain their brands because clearly, that's what drives people to either our store or through our website or to a sales rep. But the sales rep after selling previously, Heatleys Safety & Industrial will also now have the range -- the extended range of truck and automotive with Skippers and vice versa. So more available to sell and probably more opportunity in some cases to sell to different customer types. Equally, United Tools buying group in Industrial Supply buying group. We had just completed the exact same thing. All the back offices, the vendor services team, the managers, the suppliers, the marketing team have just all been bought together and finance is in the process of getting consolidated. We expect those programs to be completed in Q3 and we expect that their contribution towards cross savings as well as margin uplift is quite significant. Trade Member Direct is the name of the company that we have put forward for specialist wholesale. So United Tools and Industrial Supply Group, or ISG, they will worry about the front end with the customer. They'll spend more time focused on the members, more time working with the members to ensure that they get more uptake within your own business. Equally, the [ main ] relationships with major -- major suppliers, sorry, that sit within our own company operations will move out of those company operations into Trade Member Direct. So that will be our group purchasing division, for a better word. We're expecting big things out of them. Our business has now got to a size that warrants it. It's never warranted it before and also the hard mergers of those businesses, taking from 4 to 2, all 6 companies to 4, clearly there's lots of duplication that goes through that. So it makes sense today for us to start that process. So we will obviously bear the cost of merging all that in together over the next few months, but we expect a really good calendar year 2023. This is what it looks like. In simple terms, from a net point of view. So historically, for the last 2 years on the left-hand column, all businesses have operated in silos. Customers in silos, delivery in silos, picking sales reps, everything, purchasing. That's obviously now coming all together. So that's the explanation that I've just given. And here's a diagram of how that looks. From a flow perspective, the vendors and the suppliers, so the major vendors and suppliers will be managed and led by the commercial arrangements led by Trade Member Direct. However, there are other vendors that's out there that will maintain their direct relationships with the operating brands. So those vendors will deliver direct into the operating brands or it will be led by Trade Member Direct, if it's sitting within our major customer list. And clearly, from there, Trade Member Direct will push that through to the partners within ISG and also within United or [ online ] businesses will sell that through to the end consumer or end customer. So it's a great evolution for our business much, much earlier than we expected. But it's something that we absolutely knew that in the way that the markets today, we should be really prudent and be strong in making sure that we hold this together and get the best bang for our buck in terms of cost management, and also pricing uplift. Pricing reset we've looked at through some other businesses outside of Australia and how they've gone about it. So we've considered the learnings of what those businesses went through. And hopefully, we'll have a pretty short road to getting uplift. We commenced the soft launch mid-October and we're already receiving the benefits of that. We've seen that in our margin uplift, particularly over the last few weeks. So the benefit is there. There are obviously costs that we've incurred with inflation, and now we are slowly passing those on. So from an outlook point of view, Chris has already mentioned from his perspective, we're pretty confident about next year in terms of CY '23. It's organic revenue initiatives that are considerable, considerable from the profit levers that I've mentioned. But also the tailwinds that we believe we're in a really good position to yield top line and bottom line results that will bring our benefit and heading to our 8% EBITDA target by 2025, and a 5% net profit before tax by that period of time. So all the indicators and our strategy is on track. We're really comfortable in terms of where we sit today. The opportunities are endless, and we're really looking forward to sort of getting into this next phase of our period of growth. Now I think that's it. So thank you.

Thanks for that, Mike. Very well done. Look, now I'd like to invite any questions from shareholders that they may wish to raise. Firstly, we'll start with shareholders in the room. That -- any online questions? There were no questions, so we'll move forward to the formal proceedings of the meeting. The register of shareholders is tabled and it's available for inspection. Could you please make sure that you've registered your attendance here today with the share registry rep as you went for today's meeting? If you haven't done that, could you please get that fixed. I now advise that the meeting, that the notice of Annual General Meeting and explanatory memorandum or a letter directing shareholders to the website location of the notice of Extraordinary General Meeting and explanatory memorandum was sent to all registered members. And unless there are any questions, I'll take them as read. Thank you. Before moving to the resolutions, I advise the meeting that 37 valid proxy forms have been received, representing a total of approximately 15 million shares or 15% of the company's issued share capital. The proxy results will be shown on the screen behind me when I table the resolution. I advise that I intend to vote in favor of the resolution with proxies received, giving the Chairman the discretion to devote as he sees fit. So as I said, I advise that I'll vote in favor of resolutions. Pursuant to Claus 13.17 of the company's constitution, we will conduct a poll on each resolution as is now required under ASX listing rules. There are 2 resolutions in today's meeting. As noted earlier, a poll will be taken at the end of the meeting, and I will explain the poll procedure at that time. I'll now commence with the business of the meeting as set out in the notice to this Annual General Meeting. Resolution 1, is a nonbinding resolution to adopt the remuneration report. To consider if thought fit to pass with or without amendment the following resolution as a nonbinding resolution. After the purposes of Section 250R [ 2 ] of the Corporations Act and for all other purposes, approval is given to adopt the remuneration report as set out in the annual report for the year ended 30 June 2022. As Chair, I move the motion. The summary of proxies for this motion are shown on the screen, all right. Is there any discussion in respect of this resolution? No, thank you. There being no further questions, we'll move to the next resolution. Resolution 2, is the reelection of Director, Mr. Giovanni John Groppoli to consider and if thought fit, it's pass with or without amendment the following resolution as an ordinary resolution. But Mr. Groppoli, being a Director of the company who retires by rotation in accordance with Clause 14.2 of the company's constitution, ASX Listing Rule 14.4 and for all other purposes and being eligible and offering himself for reelection, be reelected as a Director of the company. As Chair, I move the motion. The summary of proxies for the motion are shown on the screen. Is there any discussion in respect of the resolution? There being no further -- no further questions and no further resolutions, we'll move to the poll and congratulations, John. We will conduct the poll accordance with clause 13.17 of the company's constitution. The Computershare registry representative, Rachel Crane, will run the poll and will also act as returning officer. People entitled to vote on the poll are all shareholders, representatives and attorneys of shareholders and proxy holders who hold admission cards. Your admission card contains the voting paper and instructions. Shareholders need to mark a box beside the motion to indicate how you wish to cast your votes. Please ensure you print your name where indicated and sign the voting paper. When you finish filling in your voting paper, please hand it into the registry rep, Nicole, to ensure your votes are counted. If you require any assistance, please just raise your hand. Okay. We'll just have a short pause while those voting papers are completed. [Voting]

Thank you, Nicole. Does anyone that need any extra time to complete and lodge their voting papers? All collected, Nicole? Okay. Thank you for that. And I now declare the poll process closed. The poll results on all resolutions will be collated and made available later today on both the companies and the ASX's websites. Now being no further business lawfully brought forward to the meeting, I thank all shareholders and visitors for their attendance and contribution, and I formally declare the meeting closed at 12 p.m. precisely. Thank you.