Telelink Business Services Group AD ($TBS)

Hello, and welcome to today's TBS Group financial overview for the full year 2025 and the outlook for 2026 to 2030. Thank you for joining us today. During the next hour, we will review the group's consolidated results for the full year as well as the financial outlook for the next period. It's my pleasure to introduce our speaker, Mr. Ivan Zhitiyanov, CEO of TBS Group, who will guide us the highlights and performance updates. Ivan, the floor is yours.

Thanks, Marin, and hello, everybody, and thanks for being once more with us. So yes, there are a lot of things in the agenda today and a lot of things on the strategic part that I haven't put in, but maybe we're going to discuss if there are questions about them. So okay, let's start. We're first starting with like just to have for completeness to have a picture of 2025 and Q4. So first, we are showing on that slide how we ended 2025 on a preliminary basis, of course. So currently, what we are expecting is 100 -- a little bit shy than EUR 145 million, EUR 144.7 million of revenue with gross profit margin, 9.5% of EBITDA margin and 5.7% of net profit, which actually in EBIT in absolute numbers, this means EUR 13.8 million of EBITDA and EUR 8.3 million of net profit. In this -- on the far right side, you can see what was the initial budget. We updated the budget ones. So if I'm not mistaken, our updated budget, which we've done, you don't remember when somewhere in the Q2 maybe last year, 2025, we were targeting EUR 147 million, with around EUR 13 million EBITDA -- so yes. But anyhow, we are close to what we were -- we are closing the revenue side from what we were targeting in Q2, Q3 last year. So the updated budget. But from the budget that we've made in the beginning of the year or end of 2024, we are much better. So yes, anyhow, we have included just for a reference here, it's not that important, what was the budget. So we have 27% increase on the revenue base, which is a significant increase from every standpoint. We have 29% increase on the gross profit side. So we've managed to improve a little bit the gross profit margin with 0.3%. And we have pretty much -- that 0.3% margin is copied on the EBITDA margin level and more or less in the net profit margin level. So if we want to summarize 2025 for us, it was definitely a good year, and the results are definitely showing that good year. So again, for completeness, we're going to show you the quarters. So the quarters 2025, so you see we had a relatively slow Q1 and very strong Q2, Q3 and a strong Q4 from a revenue perspective. We discussed this last time on our conversation that a lot of the profit for various reasons, which I want to go spend details again, of course, if you don't have questions later on. So a lot of the gross profit was accounted in Q3. The gross profit in Q4 was relatively slow. And we have a lot of 1 per year expenses in Q4 that are driving more the EBITDA margin, the net profit margin. But again, we are looking -- as I have always told you, we are looking at the whole year and with our type of business still quarter-over-quarter and looking just 1 quarter or 2 quarters or even sometimes 3 quarters is not relevant for what the year could be. anyhow, again, we have left that for just the reference purposes. Then this is the Q4 all Q4s in the last 5 years, including 2025. So yes, it's again just for reference purposes here. If we look a little bit more on the P&L basis, I told you we have a 27% increase in revenue, 29% increase on the gross profit side. The combined SG&A grew around 16%. And which actually -- if you can see the growth is both on the sales and marketing part and both on the G&A part, but in the past 2 or 3 years, we were growing between 30% and 35% year-over-year, the SG&A part and this year 2025, we are slowing down that growth to 16%. And we are maintaining it at a level of around 15% of our revenue goes to SG&A and and marketing and sales and marketing and general and administrative expenses. This year, you're going to see it in a later slide in 2026. We believe that we will slow down much more the growth of that we're going to grow with a single-digit number, the SG&A part. Yes. And I told you about the EBITDA operating profit. We're growing it significantly 49% growth year-over-year on the operating profit. We have discussed the net financing expenses, our profit and loss on net financing. We have an extraordinary and this is because of hedging that we've done in the beginning of the year in order to protect when the Trump came into administration, we didn't know what exactly will happen and we decided to bet on security. And for that, we paid like around EUR 1 million in foreign exchange commissions and things like that. Anyhow, but we have discussed that at least a couple of quarters during 2025. So I'm not going to spend much more details on that matter as well. This is the investment slide that we usually show you. So yes, so basically, I'm going to spend some time on that, not a lot of the time, but the new business market investments that we are making and again, investments in brackets, we are categorizing them as investment. It's not exactly investment, but just you to understand where we spent at least from that SG&A part, SG&A expenses. So we have around EUR 400,000 that are coming from M&A activities. And most of that, and we were budgeting much less. Most of that actually came because the Slovenian company that we were looking at most of the M&A expenses for due diligence and P&A legal and things like that '20 to '25. So that is, generally speaking, we were planning them for 2024. But for many reasons, we were late and they invoiced in 2025, and this is this huge growth. Central for excellence or this is our investment in, let's call it, new technologies. It grew around EUR 150,000 nothing significantly. East, again, the thing significantly. The West is the thing that we are actually saving again, saving a lot of money, like more than EUR 1 million, we are saving there. This is due to our shift in strategy. So when we were making the budget for 2025, we were projecting that we will be Actually, our plan was to grow organically in West Europe. And if you remember, we had a sales guy in Germany, we had a sales guy in U.K., we had a sales guy in Sweden, in some location more than one. So basically, we were spending money for that organic growth in those countries. If I'm not mistaken, somewhere around March, we decided that we're going to drop that kind of a strategy, and we will continue completely to go around M&A. It took us another couple of months actually to lay off the persons that we were hired. And this is actually a significant portion of those EUR 0.5 million that we have invested is for that. But of course, we have skipped a lot of other spendings in that direction, and this is actually what created these savings here. The other part, I'm not going to spend much of a time here GRC digital transformation, TBS Academy. Again, you have it as a reference. We can speak in more details if you need, if you want and yes. So revenue by invoicing region. So in Bulgaria, we have a 37% increase in the revenue voice from Bulgaria. Bulgaria is currently accounting for 76% of our invoices in 2025. This is a little bit higher than our budget. Honestly speaking, when we decided to scrap the west parts because this EUR 1.6 million was an expense that we were projecting that were connected to it, if I'm not mistaken. Do I have it here, as I have it I cannot see it because of this year, we had EUR 5.8 million of projected revenue in West Europe, which obviously didn't happen when we lay off the sales guys. And most of the revenue we were able to recover in Bulgaria. Anyhow, Bulgaria grew 37%, and we have around EUR 12 million more than what we were budgeting. This is something that is around. I'm always -- this is internal thing CBP, but it's around Serbia, Bosnia and part of the business in Slovenia that we're making and Greece part. I have explained to you that it's connected to a specific telecom or telecoms to telecoms that we are serving in all of those countries, and we divide that and most of actually of that revenue is invoiced in serving Slovenia. Anyhow, we are making pretty much the same revenues we used to make in 2024. And again, this is a business that is a low profitable business, and we're expecting that business to decline further in the future. It's -- this is something that we are expecting. I think that we have discussed that as well -- but anyhow, if you have questions, we can go into a little bit more detail. The 7IT or the Croatian business that we bought in Croatia and already consolidated completely in this -- in 2025, is growing 26% in 26% in 2025. It is a little bit not very straightforward to compare 2024 or 2025. Because in 2024, we have 9 months of consolidation for this new company that we acquired plus we have -- but we had our own entity, which was generating around EUR 4 million, EUR 5 million but with a very low profitability margin. So anyhow, but if we look at it -- I'm currently calculating that on the top of my mind. But the 7 IT without not what we consolidated, but let's call it on a pro forma basis. Last year 2024, they made around EUR 14 million, 14-something this year, they made EUR 17.6 million. So the growth of the businesses -- as a separate business is around 20% which is good. I mean if you buy a company in the first year, it grows around 20%, 23%. That's a good sign. Hopefully, it will grow this year as we're going to see it in -- later on. North Macedonia business, 35% below last year and more percentage below the budget. So yes, it's -- North Macedonia is a very let's say, hard market for us and -- but not only for us, I believe, it's a small market as a whole. We can speak about that maybe later on. The West, we -- it's just a business that we are invoicing some of our customers for numerous reasons, not in Bulgaria. But for example, in the States, so this is we have most probably all of that revenue or most of that revenue is from the states and maybe we have around EUR 100,000 from Germany, something like that. Anyhow, this next slide gives a little bit more information. So we are not showing on this slide, we're not showing where we invoice. We are showing which is the receiving country because there are, like, if we compare that, there are EUR 7 million in Bulgaria that we invoiced from Bulgaria, but we're actually invoiced outside of Bulgaria and we are servicing clients outside of Bulgaria. So if we look at it from that perspective, like, for example, [indiscernible], we invoiced a huge amount of our business with them from Bulgaria, but we are not doing anything in Bulgaria. I mean, we have some for [indiscernible], but the predominant part is outside of Bulgaria. So if you -- if we're looking at it from that perspective, out of 76% coming from Bulgaria, 72% currently are the receiving countries, Bulgaria. This pie chart that you're seeing EUR 8.7 million or 6% of our business, and this is predominantly services business with higher profitability margin, we are not showing the profitability here, but it's a high profitability coming from outside of East Europe. 2% of our revenue are coming from East Europe and 72% of our revenue are coming from Bulgaria itself. Yes, pretty much I think that everything else speaks for itself. And you're going to see how this progress in the next 5 years, which is how we see the organic growth because currently, today, we're going to show you only the organic growth. I'm going to share, of course, where we are on the M&A part. Revenue by sector, the telecom grew by 16%, again, low profitable business but still on the revenue side, it grew mainly in Bulgaria. You saw the CBP, it is pretty much the same as in 2024, but in Bulgaria, it grew a little bit more. And actually, this is why we have this 16% growth year-over-year. So in the government sector, the public sector, we are growing from 55% in 2024 to 68% in 2025. We are a little bit according to the budget, we are at budget in absolute numbers, but we are decreasing the percentage that is coming from government business. And the enterprise business is growing slightly in terms of absolute numbers in terms of percentage. It's what we have budgeted or 18% Again, last year was around 30%. 2024 was around 30%, but of our total revenue. But again, it's -- there are seasonalities in particular customers has invested significantly in 2024, and they haven't invested in 2025. product families. So we are growing 26% in the IT infrastructure part. We are declining the end-user hardware, software, public cloud and things like that, which is something that we were expecting because you can see we were expecting 8% or EUR 10.5 million. We achieved 8% and EUR 11.6 million, so pretty much the same. Cybersecurity outgrow our projection 2 times which I believe that is extraordinary growth for a particular 2 particular projects that we were able to contract in 2025 and partially deliver them in 2025. So yes, it grew to 13%. And in the software development data or something that we are nowadays calling AI and software engineering we achieved EUR 30.9 million, which is more or less twice of what we've done in 2024. I don't know what might show here, it's a mistake and it's more than what we have budgeted in the beginning of the year, we were budgeting unless that we're budgeting, we're budgeting 4.2%, but in the ballpark here, we are pretty much at par. This is the personal by invoicing region for the past 12 months. So pretty much, you know that we were more or less -- there here -- this is actually a cut-off date at the end of the year. which is not the best example because during the Academy, during the cohorts in Academy, it happens that during the year and partially, in the end of the year, we have a spike. And some of those guys are leaving the company. So anyhow, what I'm trying to say is that in the beginning of 2025, somewhere in March, we were talking -- when we were talking about Q1, it's almost probably it was somewhere in March or May anyhow. So I told you that we are -- this year 2025 will be about efficiency and efficacy. So we continue to hire people, but we started to lay off some people as well. So we were -- but at the end of the day, pretty much if you look at it from another perspective, we grew 27% in terms of revenue. Actually, in terms of services, we grew more. I don't have the number, but it's more than 50%. We're growing services last year more than 50% in the actual amount of work -- and we've sustained the same amount of people. So this is that push for efficiency and efficacy. -- those 18 people that left the Croatian business is part of our old employees, let's call them like that, like 2 or 3 guys some 4 guys maybe, I don't know the exact number. But when we incorporate them into the new company that we acquired, the new company was a surviving entity and some of our ex employees didn't like that. So anyhow, we decided to at our way to go in a different direction. Plus we have some -- I told you last time that we have 2 or 3 from our side on voluntary lease from 7IT everything else is again pushing efficiency and efficacy, especially in the software development part where we want to be much more profitable to call it like that. So that's why we decreased the number of people in Croatia. But anyhow, if you look it from a little bit more macro, we are with the same personnel, we're doing much more work and hopefully, this will be what we're going to do in 2026 and 2027 and so on and so forth. From a cash flow position, so we ended the year with quite a good cash flow position. So as you can see, the net cash position is around EUR 30 million. Part of the reason is as to part of the reason is strong growth in cash adjusted operating profit, decrease in our net working capital requirements, and we have a lot of advances received. So advanced payments. I don't know, maybe half of that is advance payments for something that we're going to deliver in 2026. And this is definitely putting us in a, let's call it, temporary good cash flow position. Overall, every year in the end of the year, we are more or less able to collect a lot of the cash. We're pushing to finish a lot of the services and a lot of the projects. And part of our government clients are pushing to give us advanced payments for something is, of course, according to contracts in order for them to spend their budget. So it's more or less normal, but this year 2025 was a little bit more than that. But the advance received is like around 35% to 40% of those EUR 18.5 million that are above the line. Anyhow, the net cash debt position, it's pretty much -- yes, you can see it. It's key for reference purposes. We have -- we finished the year with quite a lot of cash and cash equivalents as well. 3.5 long-term loans, EUR 6.5 million credit line utilization overall 15.6 net cash position, again, yes, it's the same reason as before. So yes, this is 2025. It was a very it was a good year, definitely a good year. The numbers are showing it. But when we look after the numbers, let's call it like that, we did a lot of things from a strategic perspective. That will most definitely continue in 2026. We have a clear strategy for M&A growth. We learned a lot of lessons in the West. We learned a lot of lessons in the East. We have -- we are much more efficient. I think that we have right people in most of the places. We are actually preparing one significant change, organizational change in mid of April, that will -- after it, I believe that we'll be very close to that saying that you have a bus and you have a lot of people in that bus, but you need to make sure that every person, every person is sitting in the right place, and this is what we are doing. Of course, hiring from external people, but mostly actually shuffling internally and trying to utilize the best potential, the potential of our people in the best possible way. So anyhow, we can go into a little bit more detail if you want, but let's leave enough for question here. So the next section of the presentation is how we see 2026 and the whole 5 years period until 2030. And this is only organic outlook. And maybe I will go with that organic part, and then I'm going to explain you a little bit about our M&A efforts and where we are with them. Okay. So what we see here, we see here that we believe that we can achieve EUR 200 million in 2030 with organic growth again. which is 8% CAGR growth for those 5 years. And I will give you an example of what we were -- what we have as a CAGR organically in the past 5 years, so 2025. So organically on the revenue side, we have 13% and so if you look at it from a revenue perspective, we are slowing the growth if we look from an organic perspective, but not that far. I mean, 13% the last 5 years, 8% next 5 years. This organically, if we include just for reference, if we include our acquisition in Croatia, the last 5 years CAGR is 16%. So from 13% organically to 16, including the M&A part, and we have 10% on the EBITDA, so from 7% to 10% in the EBITDA. But before that, let's look at what we're looking on the EBITDA here. So the revenue is 8% CAGR. The EBITDA is 10% CAGR growth. What we achieved in the past 5 years is 7% EBITDA growth. So the revenue growth is slowing the growth is -- yes, it's not growth, the revenue yes, it is growth. So the revenue is slowing. The EBITDA is growing. I mean the growth, so from 7 to 10. Again, just for reference and completeness, if we include the 7IT for the CAGR from the past 5 years is 10%. So basically, if you look at it from a little bit simpler perspective, we want to -- on EBITDA level, we want to make the same that we've done in the past 10 -- in the past 5 years, including the acquisition without acquisitions. And this is because we are changing the structure of our revenue and the structure of our clients, and you're going to see it in a while, more services, a little bit more West business and things like that, but again, organically. We are slowing down the SG&A expenses, even decreasing as a percentage. We are targeting from 15% to go to something like 12%, 11.5%, something like that on the top of my mind. I don't think that we have a slide or maybe we have the last slide, we're going to see what it's around those numbers that I'm saying. So basically, we want to be much more effective. We want to change the revenue structure, the client base and the expenses that we're making for acquiring clients and things like that and be much more effective. So yes. From the gross profit side, we believe that this figure on the gross profit level that we achieved around 22% this year in 2025 are a little bit over that we can do in the next years to come because the IT infrastructure is commoditizing and because we want to be a little bit more conservative, let's call it like that. We'll see how it will play. If you look at the past years, we are around 20%. '24 was 21%, '25 was close to 22%. So if you look at like that, we are growing the gross profit margin. But those 1% or 2% that we may as well grow in the next year, but I want to on a prognosis base to keep it on the safe side. It's something that I strongly believe that can achieve and let's overachieve a little bit on the gross profit side. Okay. Just as a summary, so we're targeting EUR 200 million of revenue with EUR 22 million EBITDA. This is what we are targeting and going from -- we used to have around 8% in the -- if you're looking 2, 3 years ago, our EBITDA margin was around 8%. 2026 we're targeting 9.1%. 2025 it was a little bit more than 9.9% and we are targeting to go to something close to 11%. I have always told you that if you are very good in system integration, I believe that you can do you can do around 12%, 13%, something like that maximum, 14% of EBITDA margin. And obviously, this is something that we are targeting. But again, we're a little bit conservative if we grew 1% of the gross profit margin, which obviously will be our stretch goal. We're going to grow 1% or a little bit more on the EBITDA side. So yes, we will be targeting those 12%, 13%. But anyhow, currently, that's the prognosis that we have that will feel, let's say, comfortable with. So you're seeing this is on the -- this is -- so we are doubling down double clicking on 2026. So in 2026, we are actually the SG&A part. So we want to grow in 2026. We want to grow 6% on the revenue side. So -- and this is actually -- if you look at our past prognosis, the 2026 was a year that we were not very positive about, let's call it like that. Why? Because of the change of this euro programs and things like that, which you know that the government sector is more or less financed from European Union and there is a dip in 2026 and 2027 partially. So this is the end of a recovery and resiliency for us more or less it ended last year, that's why 2026 is a little bit slower. Then in 2027, we're going to have a new model for Cohesion Funds, which we will be able most probably to utilize 2026, 2027, 2028. So the payments will be until 2028, 9, I don't know, something like that. But the thing is that you need to understand that making organically, especially in Bulgaria. So we are making around EUR 110 million in Bulgaria. So we're conservative, I mean, can we grow in Bulgaria more than that maybe? But it is true that we are currently holding quite a significant market share I'm trying to calculate that there is not a specific number for that. So there is nobody that's doing a proper calculation if you ask me on the system integrator market. But I would say that maybe the market is in Bulgaria, maybe it's around EUR 400 million, something like that. And we are generating EUR 100 million out of that, which is around 25%, something like that. So it is a significant market share, 35, 30, a little bit more than that. Yes, let's say, 25% to 30%. Anyhow, so your conservative from the perspective of what can we grow in Bulgaria. You're going to see in a while that we are projecting a bigger growth in Croatia, which there is much room for increase. But let's go -- I will share that in the next slide. So I go ahead of myself. So we are projecting a little bit gross profit, and I already talked with you about why I'm seeing that IT infrastructure, commoditizing in IT infrastructure. And we are changing the revenue from a technology perspective as well, you're going to see it, but it's not enough to compensate that commoditization. Can we do better? Most probably, we can, but let's make a realistic prognosis. And of course, we're going to try to make them better. On the SG&A part, we are growing 1.4% only. I told you last year the '22, '23, '24, we were growing 35% plus. Last year, we grew 16%. This year, we are growing to 1.4% or at least this is the budget, so basically, we are slowing down the SG&A. So I believe from the G&A perspective, we are quite well. I believe it's on the sales and marketing were quite well as well. So I believe that we have the critical mass of people in order to progress further and actually to have that economy of scale that we were targeting. Yes. The other things are not interesting. So I'm not going to spend time on them. So revenue by invoicing region. And here, we come back to this 5-year prognosis. So tune on that right now, we're talking 5 years, so 5 years, we see in Bulgaria, and this is, again, invoicing. And we will continue to grow in the West, but we are predominantly invoicing from Bulgaria and partially from Croatia already. Anyhow, 8% CAGR growth in Bulgaria invoicing from Bulgaria. Next slide is actually the receiving country, but let's finish with that one. decreasing numbers in the CBP pool that was around this telecom. I told you, 16% CAGR for 5 years. 14% increase CAGR on CAGR base for -- on revenue-based CAGR for Croatia, which you see Bulgaria, 8%, we're a little bit more conservative because we're much bigger. We hold 25%, 30% of the maybe, I don't know, but I'm speculating here about the market size in Bulgaria, which is big. What our colleagues in Croatia, let's say that the market is somewhere around EUR 250 million, EUR 300 million, so not that smaller than Bulgaria, and they're generating EUR 20 million. So their market share is 6%, 7% in Croatia. So where is 30%, where it's 6%, 7%. So they have a much they have a way to improve. They have a little bit growing with the market but as well trying to still, let's call it, like at some clients. North Macedonia, 18%, 18% CAGR growth on the revenue base, but nothing staggering. North Macedonia, yes. There is no funding in North Macedonia. The country is very small. The margins are very small. So because we are making like, I don't know, EUR 4 million of revenue and you are seeing that we are around this EUR 4 million plus/minus 20%. But which is a small numbers absolute, in absolute terms, a small number. But the problem is that the profitability is low. So we -- 2026 will be a year that we will be evaluating how to progress in North Macedonia. And what exactly to do, can we make something better? Can we utilize that -- and the team that we have there is great. I mean, the guy who is leading the team and the team beneath that they're great people and I like them and they're doing a great job. But just the market is very small. For good or bad, we are not utilizing a lot of management resources for that. So they are kind of not borrowing a lot of management attention. But anyhow, you get the idea, it's something that we're going to analyze the North Macedonia market. This is, again, a receiving country, so Bulgaria, 5% only. So Croatia, 14%. So you can see this difference of the market and the potential, so 14% CAGR growth in Croatia, only 5% in Bulgaria. 16% decrease in this Bosnia, Slovenia and Serbia. North Macedonia, other East and West, what is growing is the West, but how we perceive the West, you know that we are currently making around 2025, we made around EUR 9 million out of West Europe invoicing predominantly from Bulgaria. And these are made to contract, these are another Blue house contract. We have another 4 or 3 relatively big service contracts throughout the year. And we actually -- that's a proven model for us. I mean we have -- in 2025, we have acquired 2 corporate customers generating more than EUR 300,000 in services per year, which is not a small amount of money. And this is growing year-over-year with a huge potential. So 2 corporate customers. And the corporate customers are in the hardest because how you reach corporate customers in, I don't know, for example, Germany, if you don't have a presence there, it's hard. That's why 2 is a big success. And we acquired 2 or 3 new big government customers in West Europe in 2025. So we tend to believe that we can have a modest growth that during the next 5 years. And if we're talking about organic growth, this will be the potential for us. And you see in 2023, we believe that we'll have 16% from, I believe it's 8 right now from 8% to 16% from EUR 8 million to EUR 30 million to EUR 33 million. So grew that business 4 times. And the East Europe, we grew from EUR 22 million to EUR 44 million, 21%. I cannot recall it was 22% in 2025. So basically, the proportion stay the same out of the business, but in absolute numbers, we doubled that. And in Bulgaria, Bulgaria is decreasing from 70-something percent, 71 trying to remember from the past slide anyhow 63%. So Bulgaria is still a significant portion, growing slowly and very modest but still a significant portion out of our revenue if we're looking from an organic perspective, which is pretty normal Business side, telecom decreasing public 9% CAGR growth enterprise business, 11% growth, why the public sector is still growing because the creations are going to leak sector? I don't have, but maybe 70%, 65% of their business, pretty much what we're doing in Bulgaria. They're doing the Croatian business in doing over there as well. This West European business that we're targeting the government portion again is 70% to 30%. So because as I told you, it's extremely hard to acquire a corporate customer in the other countries, if you don't have sales guys from Bulgaria. We are doing it, but it's slow and it's small. Government, we're participating to government tenders between EUR 2 million and 45 million, EUR 50 million. Our success is for those between EUR 2 million and EUR 10 million, honestly speaking, but is government. So anyhow, this is why the government is growing, the enterprise is growing as well in the region, of course, and in the West as well. Yes. from a revenue perspective, from a product family perspective, a modest growth on the IT infrastructure, 5%; 16% growth on public cloud and things like that. And maybe we can speak about that if you have questions about the product mix. Cybersecurity, I told you that in 2025, we had an extraordinary year, doubling our prognosis, and we're actually -- I don't believe -- so this is why we are seeing a negative growth or pretty much the same that we've done 2025. So yes, depending on -- if we exclude the extraordinary thing from a cybersecurity perspective, although there is a huge role. But if you're comparing to 2025, it's not much, but this is the realistic. The security market is changing, by the way anyhow. AI engineering, AI and software engineering, we are seeing the biggest growth here. So 42% CAGR, so it is huge. And this is more or less our strategy. And if you're interested, I can spend much more time on that. Yes. We are doing -- we're currently doing so. December for us is very hard months. So we're doing a preliminary budget for '26, and we're closing the year. January, we are closing the year as well. And looking over all the numbers and things like that and yes, so January is a hard month as well. And then we start February and March to go into much more details on the strategy part. So this is unfortunately or fortunately, that's our cycle. This year, because of our M&A activities, we're running a little bit late, but I believe that -- I mean, we're delivering the strategy internally. Currently, we have 50% strategy already settled. We know a lot of details, goals and things like that. So let me -- because let me spare 2 minutes here maybe. So in 2025, for the first year, we have -- we've done documented -- not documented, but the other word, I'm searching for plans, strategic planning, let's call it like that. So we did a lot of internal meetings like an open meetings for everybody. Then we did non papers. We're calling them like that, then we did specific goals, KPIs and things like that. We were already somewhere in the end of March, and we continue to move according to that KPI in budget. The KPIs were let's say, roughly for all the management, let's say, around 35% to 40% out of gross profitability or different financial figures and measures. And then the other 60% was a specific strategic growth, let's call it like that. Out of that, 60% we did around 60% of that was completed. It was 01 kind of a thing. So it was not -- there was no gray. It's only black and white. This is why it's 60, but this is what I wanted. And currently, in 2026, we are -- we started doing the same process. So open meetings and discussing in a lot of details we're using a lot of AI actually to generate currently those things. But anynow it's a different topic. And we are producing those non papers with goals and that's why we have half of the -- my direct reports, they already half of them right -- have the strategy in place. The other half we're going to finish until the end of April. So anyhow, sorry for the opening remarks, just to understand how half of the strategy. And it's a kind of a very hard exercise, honestly speaking. It's a lot of research, a lot of thinking, a lot of talking, a lot of documenting, a lot of back and forth trying to actually fit that into the budget because we do budget earlier. So yes, it's kind of hard work, especially for me because I'm doing it for currently 20 people and I'm going in a lot of details over there. But I believe that's our differentiator, not our -- not a defect. How the business will progress in the next year organically, again, so we believe that the services part will grow significantly. You see that currently, we are generating on a revenue base around 30%. So around EUR 20 million we are generating of services. which is not a small amount of small number. This is a lot of services but anyhow, it's a small percentage of the business. We believe that we'll be able to grow that organically again to 21% from EUR 20 million to EUR 45 million, which is a significant growth. From a recurring versus onetime business, organically, we see that more or less will stay at the level that we are right now, around 35% to 35% 5-ish percent of recurring business, many reasons for that. This -- our part of the world is more or less working on -- with -- for our type of business, of course, it's more or less working as a project-based business. It's much easier for us to sell managed services abroad than to sell it in our home market. So yes, that is the reality. I mean our prognosis are -- we put a lot of thinking over there. Of course, when you're making a plan for 5 years, especially in those turbulent years, a lot of things may change, but with information that we've got and the situation that we see, this is very realistic. And because I could draw here that we're going to make 50% of the recurring revenue, but that's impossible organically, that's just impossible. Anyhow, this was the slide that I was looking for. We are going from 14 to 15, 2025, sorry about that. So from 14% of sales, marketing, general and administrative costs, to around 11.3%. This number I get right. And on a CAGR basis, we're growing 3%, but on a percentage rate from the revenue, we are significantly decreasing that portion. So again, summarizing the plan -- our organic plan for the next 5 years. Not bad, not great. That is the plan, very honestly speaking. So 8% growth CAGR growth on revenue comparing to 16% that we've done last year -- the last 5 years, not significant thing. 10% on EBITDA, we have made 10% last 5 years. So we went too much on the profitability side, what we've done the last 5 years and they were stellar for us, not that bad. Do we have a potential for much more? Yes. I believe that -- I believe this -- I mean, before 3 or 4 years, I think that it was much more [indiscernible] to be a product company. And I believe -- and of course, it's an extent kind of opinion, and there are a lot of great things about it, but just in order to understand the example. I believe that nowadays it's not so s*** to be a product company. I think that it's more s*** to be a service company. And I think that the AI, there will be a lot of companies that will require that require companies like us to make them to help them utilize the IT. Because I don't know where when or if we're going to have a an AGI but to that moment, there will be a lot of humans and AI in the loop, not the other way around, not human, not AI and human loop, the other way around. Humans and AI in their loop. And I think that in order for companies to stay competitive, they need to utilize AI in order to utilize AI, it's not that easy. I mean it's easy to ask for a receipt for salmon, but it's hard to implement that in your processes. It's not that easy. And we are preparing in the past 1.5 years of that. And I believe that it would be kind of a hockey stick. And I believe that there will be a lot of work for us in the next 5 years. We have projected part of it. looking for a little bit more conservative kind of a way. So it may be the case that even organically, we'll be able to grow much faster. But it depends on so many factors, economy and so on and so forth in the region. But again, if we go into on a macro level, there is a huge potential for companies like us. I mean, just my opinion, why the product companies are not that s***. It's not important for our conversation, but just to finish my thought. When you make a product, you need to understand it's an idea, it's a plan, it's a financing, but part of your business plan is what is the barriers for other companies to enter that market. And the is making those barriers diminishing. So I have a good idea, that's fine. I start to develop that idea and I do most probably don't have enough money for AI for tokens but companies like Google, companies like Microsoft, companies like all the big guys, all the big guys, Meta, X, they have enormous amount of tokens from their exposed, so they can use those tokens and copy my idea, make the product in, I don't know, a month that's for something that I will need a lot of time even if I managed to succeed and get enough funding to produce enough tokens and get the product ready fast. The others can copy that quite fast again using AI. I'm not saying that it's not good to invest in product companies, and they will die not at all. World is not black and white. But definitely, it's not that s*** that it used to be before 5 years or 10 years or 15 years. Anyhow, so let me tell you about the M&A part, and then we go to the questions part. I have enough time. So I can spend even if you want an hour in questions. if you have the time. And if you have that urgent questions. So let's start from West to East. So U.K., we are advancing with the company over there. We have more or less drafted an agreed SPA we have this week, we are finishing the due diligence, all of them. So depending on different aspects, some regulatory things in U.K., some of the financing side from our side. we can close the deal between, I don't know, 1 to 4 months, something like that. And this will be what we're going to be targeting. So if everything goes according to plan, we'll have a company in U.K. sooner than later. I like the company. It is generating around EUR 50 million. There are around 60 people. They are generating around EUR 1 million of EBITDA, a little bit on non-adjusted basis -- on a normalized adjusted basis, it's going to be EUR 1.2 million, EUR 1.3 million. but we're going to share all those details when we have them because still, the due diligence is not finished, and the SPA is not signed. It is a net predominantly networking company, which is something that we understand very well, but they have a quite developed networking and networking security, but they have a quite developed sales practice which I believe will be quite easy for them to utilize all the things that we can put on the table as services and vendors, if you want and things like that. So I am positive about that thing. We are progressing with a company in Sweden. I've shared last time, it's a very small company. It's more or less more like a sales company rather than anything else as a company. They're like 12, 13 people. So they're a very small company generating around EUR 4 million, EUR 5 million as a small company, mainly sales than doing a resale of whatever they can. They have 3 or 4 very big clients. And in U.K., we're targeting 100% in Sweden, we are targeting like 51%. In order to have those guys, those sales guys partnering with us to grow the market. I was starting to say, even if we sell only in those 4 clients that they have, the potential for upsell and gross sale there is so high that it makes sense for a Swedish Sweden market is open market or the openest market from the Nordics. There on -- they're growing from a GDP perspective or they were growing before Iran, but the projection was to grow. They have a big economy right now. They have a very big companies over there. Yes, there are not so much of a system integration players. Of course, there are 2 or 3 very big players. But most probably, this is good for us. We will the midsized, let's say, mid-sized system integration market, at least from where we're standing right now, sees a little bit more a kind of a blue ocean rather than red ocean. So yes, we'll see what will happen there. The investment there. Our investment there will not be that high. It's going to be an interesting structure of a deal that we are looking after. I wish more share more details, I frame, I hope that, again, the same time frame between 1 and 4 months from now to have everything settled. Then we go in Slovenia, so in Slovenia, we are continuing to negotiate. But I believe that will need to wait a couple of months in order to understand what will happen with in order to have a new government to put it like that because one of the problems there was that we didn't receive specific approval of foreign direct investment in that country because we have more than 10% U.K.-based investment. We need to have -- we need to get the FDI approval. It's a long story, and it's kind of a complicated story, but I still like the company and if we can strike some kind of a deal, restructuring may be not buying some parts that are not -- that are very -- FDI has a specific interest of them. Why not? I would love actually. So we'll continue to talk. We have never stopped. We will continue. I don't know what will happen. Then we go to -- I skip Germany. So we are working on a couple of big partnerships in Germany actually, one of them with a very big system integrators there. Germany is looking more and more over near-shoring in European Union kind of a country. So yes, we've managed to actually beat with one of their biggest players over there for specific tender, very big. We will see how this will play with this progressing good. nothing of that in the numbers actually for the next 4, 5 years? But we're going to be exploring that partnership for the future. It seems that the German market is looking to that. So yes, we're going to sign a contract with the German company, but we want the German company to have a nearshore delivery partner, let's call it like that. So our investment in Germany in the past 2, 3 years, hopefully, we'll pay off in this partnership because believe it or not, we are -- yes, they know about us there. Anyhow, we're looking 1 company to be to acquire as well in Germany. The process is delayed on their side and they're looking for a partner to do the -- to advisers to do the sale part from their perspective. So we'll see what will happen. We'll be one of the short leases for sure, honestly speaking, when you have an adviser, it gets very complicated for us because they will push them for some Germans or something like that. But anyhow, we'll see what to play. We have something their partnership on company will see. We will know in a couple of months how this -- can we -- do we have a target or not? In Romania, we have started due diligence with a company that is doing Europe and CRM. They generate -- they are like around 100 people, 40% of their business is outside of Romania in West Europe. So yes, I like the company a lot, generating single-digit number of revenue, but the EBITDA margin is extremely high. They're not doing any kind of resale and their business is predominantly recurring. So yes, definitely an interesting thing. Why we do that? Because I believe that there are 2 things that I believe. First thing that I believe is that I will come for sure that I'm not discussing that at all, but AI will continue to use tools and CRM and ERP will be part of those tools at least for the next 5 years. If we accomplish the deal in Slovenia, they have the biggest -- they're one of the players, they are the biggest, but one of the players in the SAP market. And this year, it's more on the Microsoft side, the CRM on the Microsoft side. This is Romania companies that we are looking after. So -- and if that happens, then -- then -- so this is the first reason. The first reason is, first, I believe that CRM and ERP will be here to stay. And second, I believe that we need to develop the Eastern Europe, the corporate sector to help them digitalize. AI will be definitely a catalyst for that. But the other maturity sign for them is when they start using some kind of a professional ERP and CRM. And definitely, this SAP is not for that. SAP is too big. You need to have something professional, something in the meat, something that's not so expensive and this is dynamic European CRM. So we will try to enter that market. And we'll try to utilize Slovenia, plus Romania to grow that into the other countries. And actually, this will allow us to enter the corporate customers that they are starting the digitalization part. And then we can help them with -- we can help them with BI. We can help them with infrastructure. We can help them with security and so on and so forth. So it's -- for me, it's -- in my head, it's very, very logical. Anyhow, we're looking into one more company in Romania. We are in negotiating a term on a term sheet basis. It depends currently on, honestly speaking, I would love to have -- I mean, for 5 years, we are searching the Romanian market for targets. Why? Because the Romanian market is the biggest market in Eastern Europe. And the new geopolitical situation. If I'm right, that a lot of production manufacturing business will come in Eastern Europe because of the relatively cheaper labor. Romania will be one of the biggest markets over there. So basically, this is why we want to be on that market. And we understand that politically, that's very hard. I've shared with you in the prior sessions that -- the system integration market was kind of demolished before 5, 6 years, 10 years, 8 years, Anyhow, so we are looking for 5 years. We are looking for partners and companies targets in Romania, and we cannot find. I mean, we don't like them -- we cannot click with the people. We cannot play with the culture. We don't like the portfolio. We don't like the clients. I mean various reasons. And now we have 2 companies. One is PCRM and the other is a system integrator like us, but a little bit smaller. I would be. And we like the guys. I mean has consolidated part of the business, and we have spent already at least 4, 5 meetings with them on a lot of online meetings. And we like the guys. I mean there is a quick client base, fine potential fine management find ownership, the guys who we are buying from find earn-out commitment, fine. I mean, yes, I don't know, it's -- for us, currently, it's a strategic decision that are more or less I want to have those 2 companies in Romania. And I believe the strategy is okay, fine. We will see how we will play that with from a financing part. On excel spreadsheet is doable. In reality, we will see, so anyhow. So this is the M&A part. So everything that I shared with you on the M&A part is it's not promise, not committed, and it's subject to a lot of speculation, as you can understand. So subject to the question from your side, of course, but -- or not speculation, maybe it's not the right word in English with -- but you understand, I mean, we currently have 1, 2, 3, 4, 5 deals on the table, plus maybe 1. So let's say, 4 to 6 deals on the table, which are with I think that the possibility to make that deals is 75-plus percent, but a lot of things can change. So this is why I'm not giving you the names of the companies. This is not -- I'm not giving more details this and so on and so forth, but I want you to understand what we're doing and what we are working on. And yes, I believe that if we close those things, we can double the results easily in 2027 even. So we'll see. I mean, we really will see what will happen but I'm positive. And honestly speaking, in the end of 2025, I was not that positive. We changed our perspective. We changed the way how we were approaching targets, honestly speaking. So basically, when we see a good target, I'm getting on the plane and flying out myself immediately talking directly with the owners trying to agree on the terms of the deal on that first meeting. And then its details. And on that meeting, you know is there a chance or no -- so anyhow, I mean, it's December, it was not looking very good. We have been rejected because we are Eastern Europeans from a lot of those companies. Right now, the things are looking much more how it's called in English much better? But you know, I don't want to overpromise you anything or even over thinking about that. because a lot of things can go wrong. And of course, I hope that they won't, but anyhow you get the idea. So I think that this is pretty much in a nutshell. So I'm sure that we have over past the time. I'm sorry about that. And are we more willing to answer questions.

Thank you very much, Ivan, for the presentation. We do have a number of questions. So I'm starting right away with them. The first one would be what share of the business is expected to be on a project basis during the previous webinar, a figure of about 65% was mentioned. It would be useful if you could provide a forecast for this value through 2030.

We've discussed that is on that slide? -- the number is 62% project based. And we believe that more or less, we're going to stay if we go organically, we're going to stay with those numbers until the 2030.

All right. Moving on to the next question, which is at the last general meeting of the holders, I was informed that you are not abandoning the deal to acquire 70% of the share capital of actual IT -- could you provide additional information on the strategic motivation behind this acquisition as well as the expected synergies with the rest of the company's operations. It's also of interest whether any already realized aspects of the deal have led to losses for Telelink business services. In this regard, is the increase in provisions reported in Q4 related to this acquisition?

No provisions related to this acquisition. -- no losses except for the fees that we have paid for due diligence flowers and things like that, which is not a small amount of money, but still not losses per sale losses. Still a strategic fit, I already told you. Why strategic fit? They're in -- they're the second biggest player in the Slovenian market. Slovenian market is the most close market to West Europe. It is perceived from Western Europe from -- with a completely different perspective. They are currently -- it is a core country. So it is hard to enter, but I believe that if you enter if they accept you, if they allow us to buy that company, then we won't have any problems there, and we will be allowed to work. The current business is more if we do 100 things, they do 10 of those things. So we have a lot of huge potential for cross-sell and upsell. They have a huge client base. We're very well positioned in the market. So we have a huge opportunity for growth over the -- on the SAP part, we obviously want to multiply that or export that knowledge in the other countries. Bulgaria, for sure. We want to -- if we manage to do M&As in West Europe, we're going to do SAP consultancy over there as well because those markets are much more interesting. Managed services in West Europe without SAP practice, you're missing a lack over there. I mean you had 3 leg chair so this is important for our West expansion as well. So yes, I mean, this is the reasoning still positive I don't know if we're going to be able to agree first with the seller and then to have a kind of at least positive feeling about the state to allow us to proceed further. So yes, we'll see.

There is also another question in that regard. Are there regulatory changes in Slovenia likely to apply in the other EU targets? Or is it a Slovenia specific issue?

Foreign direct investment is not in a specific issue and the foreign direct investment is a low that has been accepted, I don't know when and transposed into the local legislation because of our investment that we have -- one of our investments that's U.K.-based. In all the countries that we operate, we need to get an approval -- FDI approval. I believe that in Slovenia, it's a little bit more complicated because of a national kind of understanding of who is buying what is buying because I don't know I'm speculating here, but Slovenia a small country, and they're looking what they're selling and so on and so forth. But I believe that although it's a formal thing in all countries, I believe that the Slovenian market will be the hardest because of the size of the market and the size of acquisition that we are making. And I believe in other places, it's going to be very much faster, and we won't have a problem. But again, it's my wishful thinking.

Moving on to the next question, which is, is a dividend payout planned in the short or medium term?

I told you last time if we have user funds, which from where we're standing today, we have most probably we won't be able -- we won't have money because we're going to invest all of those money for these M&As to redistribute dividends. I promised you last time that if there is no user funds, so if these user funds demolish, then I will start -- that I will go to the shareholders and propose that we register dividends because I don't have use of those funds. So it is in my head, it's simple like that. But obviously, you see that organically in the region, it's -- we're wasting a potential. I mean we're able to attract very good people. We are able to I'm going to give you a simple example. The rate of selling in Germany, a senior engineer is around -- and I'm modest here for long term, it's around EUR 1,000 per day. The rate per day that we're able to sell in Bulgaria is at most EUR 300. The projects that we're able to find in Eastern Europe, like -- I mean, think of it like that. I mean we can -- a regular enterprise corporate sector is around 1,000 employees in the region and then maybe not regular, maybe a little bit more than that. In West Europe, currently, the customers that were able to 1 of them, for example, that we started working in 2025, 16,000 employees. So the scale is different. The money are different. The problems are different. The vendors are different. The technology usage is different, everything is different. So basically staying just in Eastern Europe, and waiting for the Eastern Europe to develop is wasting time and the huge risk because in this world, I don't know to what extent they can attract the people and make the people stay with us, if I'm not providing them a lot of things. If you want better salaries, better projects, more interesting challenges and things like that. So yes, this is why we want to grow. And from a financial perspective, this is generating much bigger potential for us. So a lot of reasons to go in the West, a lot of reasons to invest those money. But if we can't, do it in the next, I don't know, 6 months, then I'm going to propose the General Meeting of Shareholders to vote for dividend distribution. Yes.

Moving to the next question, which is, can you comment further on the big search of cybersecurity revenues in Q4 and if that was a one-off contract.

I think that I commented it already. It was a one-off contract. It is with the Bulgarian government. I mean, -- it's a one-off, it's a very -- from a financial perspective, that's very different from a system integration perspective. If I need a car, I buy a car. In the next 3 or 5 years, I don't need a car. Is me buying a car one-off or it's every 5 years, I'm buying a new car. It's -- so it's not one off. It's a very good year that the government was investing heavily. They have invested in something that will stay there for the next 3 to 5 years. And I cannot realize I cannot sell them again the same car every year and this is the project-based business. And it is what it is. But yes, yes, we can discuss that prior, but just wanted to make that comment that if, for example, an investor comes to me and said this one off, I will discard it from your EBITDA, I will be furious , that's not one-off. Can we replicate it next year with the same customer? No. Do we have a big customer like the Bulgarian government for cybersecurity? No. So in that respect, from a different point of view, it's a one-off, but yes, you get the idea.

Thank you, Ivan, for this answer. I'm moving on to the next one, the next question. How would you estimate the potential of AI implementation projects across public and private sector clients in Bulgaria and Croatia.

Huge.

All right. How we how will you approach this market? And do you see your local competitors already moving into it.

Maybe it's me, and maybe I'm misinformed, but I don't see any of the local competitors to be active in that. They're talking a lot, but doing -- let's not call it nothing but small. How we're going to approach. So basically, we're creating a -- so -- we are making the internal restructuring. So we will move more people from the software development departments to AI. Why? Because the software development nowadays is Vibe coding or AI engineering because they call it right now. So basically, -- so basically, in my head, it's everything that you do right now. You do some kinds, some portion of AI while doing it or in the product itself as a feature. So anyhow, but we're going to merge and we're going to push more people. We currently have around 15 people, maybe 15 to 20 people that are in data and AI. We're going to push another 12 people over there. We are hiring another -- this month, we hired 3 guys. We're hiring data scientists, data engineers, ML engineers, general AI practitioners if we can call them like that. So this month, we hired 3 or 4 guys, last month as well, maybe 2, and we'll continue to do that. We are generating a team, which is separate from the numbers that I'm telling you about, which will be around AI consulting. It's going to be around change management, business process analysis and utilizing public AI infrastructure, let's call it like that. We're doubling down our operational technologies for again, including AI. We're doubling down on AI infrastructure, both in the cloud. First in the cloud, we're talking about confidence computing, confidential computing and things like that. We are doubling down on the on-prem infrastructure on when it comes to we are pushing a lot different line of distribution, open-source distribution, we have currently working on partnership with 3 or 4 very big vendors that we're going to do with them, but I'm not going to say which vendors right now on purpose, you're going to see. We're doubling down or tripling down on our NVIDIA partnership on the software part. I've been last week in U.S. on their Global Technology Conference. I honestly had to go to such kind of I'm calling them trade shows. And for the past 3 or 4 years, I completely stopped wasting my time with these things. But our strut what I saw in -- it was in San Jose, this NVIDIA thing. It was amazing and momentum and everything. And so yes, we are tripling down on that partnership that we already have for 15 years with NVIDIA. We'll be pushing training, we'll be pushing the Academy. So we're going to start training more and more with the partners, we have different people, including our people that are graduating in the economy. We are changing the Academy structure completely from next month. Again, looking over the AI part. We are integrating a lot of tools internally. We personally are utilizing currently 5 different tools on an enterprise level on a day-to-day work, we have Currently, we have 3 tools that are more or less company-wide implemented in terms of AI for different purposes. So yes, a lot of things are happening. I'm going in 2 weeks, again, in U.S. for Google, we're going to be much more focused on our Google partnership for many reasons. I don't have enough time to explain right now, but for many reasons as well. So yes, we are -- I see the AI potential I see that the potential is huge. Again, I believe that it's not magic. There is no AGI. There is a lot of human and some AI in the loop. And in order to make the proper loop to make it really efficient and to drive efficiency out of AI, not just to play with it. You need to partners like us, and we are transforming heavily to be the right partner for that.

Thank you, Ivan, for the answer of this question. I have a couple more for you. First, thanks for the slides and congrats on the better-than-expected Q4 results. Could you please share with us what gives you such long-term revenue visibility considering that the main part of the revenue comes from the public sector.

Look -- it's -- we do that projections already 20 years because before we became a public company, we were a company and before that the business unit with the owners and managers that was -- they were all MBAs and financial managers. So I'm doing that projection for quite some time. And Yes, there is a risk. There is a risk with the corporate sector pretty much the same risk that you have in the corporate sector, you have in the government sector or maybe the government is one idea more. And when you have a -- I mean, we know what the government want. We know how the money flows. I mean, because they are priorities on European Union level and things like that, there are -- if every country have directive transposed like Nest, for example, like GDPR, [indiscernible] and things like that. you have priorities in European Union. You have strategies that are public, every government has those strategies. So I understand where is the need, you understand what you can deliver. You understand where the money will come from. -- The only thing with the government and very important, if you have the capacity. So if you're not connected because there are very -- a lot of small players that are connected with 1 political party, for example, we're in the market for already 25 years, and we are growing. And I mean, we are growing because of our expertise, because of our capacity, because of our capability, because of our vision, if you want, from time to time because of our partnerships that we have with the vendors and so on and so forth. So and then it comes what is the risk with the government. The risk of the government is you have a -- you have a hiccup in terms of government operations like it's right now. So you have a temporary intermediate government. You don't know when you're going to have a normal government. The normal government will come and you may have a couple of months that everything is stopped. So the risk with the government and the small risk is to shift the revenue to shift the project. But if you know what you're doing and you can do it and so on and so forth, you -- it's more or less you can make a prediction. When you make a prediction for a year, 1 year ahead, you can be, more or less, we have a CRM, we have pipeline. We have a conversion of that pipeline. We have history, what we convert and we don't convert and so on and so forth. So 1 year, you can see it much more clear. Of course, there are risks, but you can see it much more clear. For 5 years, you try to navigate based on history, based on market trends, based on your ideas, based on your inspirations try to be a little bit more conservative and you can make some kind of a projection. And it is not so -- of course, the -- the more -- the more you move towards more years from now, the biggest is the chance to get away from the budget. But I don't know if I answered to that question. One very important part about the system integration. So we have -- I'm seeing that right now with the targets that we are looking after. So you see you have a recurring revenue. from a contractual perspective, recurring revenue. But the system integration business, you have a lot of revenue that you are -- you can categorize as reoccurring, so I don't know, because I have been always -- my managers was the managers before that was always -- and the owners and even right now, most of the owners in the company are financially oriented. And there was always asking me, why don't you do only one thing? Can you make profit -- more profit out of that one thing? And the answer is no. The answer is if you want to have a reoccurring business you need to have as much as possible in the system integrated. There are many other reasons why -- because if you're a system integrator, you need to integrate a lot of things at where you can make profit. But imagine it like that, I have a client and the client has a budget. I'm a trusted partner with that client. This year, the client investing, I don't know, software-defined to wider network, 1 million project. And this is the budget of the client. He's not going to invest the same amount of money next year. May you have consultants, you have support. So you have something recurring and maybe reoccurring because you delivered some services. But the same client will have another EUR 1 million for IT budget. But for servers, for example, when you go there, you deliver service because you're a trusted partner, and you can really deliver [indiscernible], talking about the commercial sector, of course. So in system integration with a lot of -- it's not a clear paper. It's not a white and grade, so white and black. But in system integration, you have recurring and you have a lot of reoccurring. Our reoccurring business out of the 65% that we have project-based business, the recurring part if we count the same clients that we do pretty much the same amount of money, we will add another 40% to 45% on top of that. And it's not committed, but it's happening for the past 10 years, and it's normal because you're a trusted partner over there and you can do it. So anyhow, you get the idea. I mean, I'm not saying that our projections are bulletproof. No, they are not. I'm not saying that I can see in the future. No, I can't. What I'm saying is that we have a lot of lessons learned and a lot of expertise in budgeting. And when we budget, it's a hard work. We don't just apply percentages here and there. Behind that those presentations that I'm showing you, there are at least 300 megabytes of XL files, History files, future files, projections deeper and kind of scenarios and things like that. So personally myself and the team that's behind me on the financial part, we are doing a lot of work trying to make those projections based on some information. It's not -- let's make 10% growth here because it looks nice. No. I don't know if our competitors are doing in like that. I'm not like doing it like that because all the investments that I'm making, I want to understand, do I have the financing, if you want and the stability, if you want for those investments? So yes. I don't know if I answered the question. It's a hard question.

Thank you once again. I'm moving on to the next one, which is regarding those M&A plans, are they included in your outlook? Or will the outlook be revised if they're executed?

No, that's an organic plan. Again, there are a lot of things that could go wrong. There are a lot of things that still -- some things, not a lot of things, but some things that we don't know about that company. and we cannot make a projection. At the moment, we have SPA signed, we will update the projections, including the M&A.

And the last question that we have today is what changed in 3 months to change your M&A expectation from negative in December to positive in March 2026, are the iron geopolitics affecting TBS?

There are 2 questions, so put another third question actually in the picture because it's an important one. So what changed? I think that I answered that question. We changed the way we do those things. We hired an advisers we allow the advisers to talk with them with the potential targets. Then we have a couple of other people from our team know that they're doing a bad job, but they were going, they were discussing dual analyzing numbers -- and we -- so we are doing like detailed work and then the negotiations and face-to-face meeting. What we change is that the moment we see a target that makes sense from the information that we can find. I go there. I get on the plane that go there and I directly talk with the guys. And on that meeting, I understand, can we have a deal or not? And do we lose more time or no? And it's different if you believe it's -- maybe it's not very modest, but when I go there, I present a different perspective for those guys and for the and they see the value system that we have a barrier representation for myself and my commitment to the whole thing. And in that changed a lot there prospects because it's not the case that we didn't have targets. We had a lot. The problem is that they were rejecting our offers. And this is why we changed the model. Iran, I don't think that anything is changing because of Iran. Not in a negative, and I believe it will not change in a positive. We are not doing business in Middle East, any business. I don't believe that Iran will change in a positive way somehow. Yes, there is going to be some inflation, but I don't believe for the things that we are selling that this will be big. And my third question is what is affecting us heavily is cheap price. And this is a huge problem for us. The comparing end of 2024 to beginning of 2026 we have between -- it depends on vendor discounts and things like that, but we have around 200% growth in the memory prices memory cost. And we have some contracts that are signed and we will lose money. We are counting that actually in the plan or at least trying to account it for that year, but we'll lose money because we already have a signed contract with the customer and the vendor is change in policy. And they don't ask you. They said, we are changing price. But guys, I have already a contract. I already have an approved deal with you. We don't care. If you want, don't do business more with us. And that's it. This is part of being between the client and the vendor. This is part of the risk being there. They -- some of the vendors, they have a policy of 14 days validity of an offer. And when you go and apply, I'm not talking about Bulgaria government. When I go and apply for in Brussels, 12 months, they want me 12 months and the vendor is giving me 14 days. So it's hard. That one is hard. We nobody, but the experts are analyzing that this will be at least till the end of this year. And this is a new reality that we need to we need to account for. It's much worse than it was in COVID crisis, where we have more like shortages and long delivery times, but we managed to handle that. This one is directly affecting the cost and there is a time shortage. So not shortage of material. That's why the price is growing, and you have a longer delivery times yes.

Thank you, Ivan, for all the answers of the questions today. Thanks for everyone who joined us, and see you next time.

Thanks. Bye. Thanks.