Temple & Webster Group Ltd (TPW) Earnings Call Transcript & Summary

Thank you for standing by, and welcome to the Temple & Webster's 2026 Full Year Results Call. [Operator Instructions] I would now like to hand the conference over to Mark Coulter, Executive Chair. Please go ahead.

Thank you, and good morning, everyone. Thank you for joining us. Before we begin, I would like to take the opportunity to acknowledge the traditional owners and custodians of country throughout Australia. On the call with me today is our new CEO, Susie Sugden; as well as our CFO, Cameron Barnsley. We will be taking you through Temple & Webster's financial results for FY '26, which were released to the ASX earlier today. Before we run through the investor presentation, I would like to warmly welcome Susie to Temple & Webster and to her first results call. While Susie started with us as CEO on the 1st of July, this actually marks a return to the company for her. Susie has previously been with us for about 5 years running various functions, including merchandising, marketing and commercial operations. It's been great having her back in the business, and I'm really excited to be working with her moving forward in the capacity as CEO. I'll now start with a summary of our FY '26 results on Slide 4. In FY '26, we delivered record revenue of $665 million, which represents 11% growth on FY '25. This result was delivered in the face of a challenging consumer environment, which continued to soften for the last few months of the financial year. In terms of profitability, we generated close to $22 million in EBITDA for the financial year, which is at the top end of our guidance range for May. This outcome represents a margin of 3.3% and when excluding significant items and unrealized FX losses was closer to $26 million or a margin of 3.9%. This significant growth in EBITDA was driven by improved unit economics through the fourth quarter as a result of the margin optimization initiatives that we implemented in March. We will talk to these more later in the presentation. Pleasingly, we have been able to make strong progress against our strategic priorities throughout the year. FY '26 marks the first time that more than 50% of our revenue was from exclusive and private label products and our growth adjacencies of home improvement, trade and commercial and New Zealand now account for well over $100 million of annual revenue. Despite variable market conditions, we are targeting EBITDA of between $33 million and $40 million in FY '27, which represents approximately 50% to 80% growth in FY '26. Now crucially, we are focused on returning the business to double-digit revenue growth, and Susie will be providing more specific details of these plans to achieve that at our upcoming AGM in October and our half 1 FY '27 results in February. I'll now hand over to Cam to take you through our financial and operating results in FY '26 in more detail.

Great. Thank you, Mark, and good morning to those joining us on the line. I would also like to take the opportunity to welcome Susie to the team. I'm really excited to be working together with you as we take Temple & Webster to the next stages of its growth. So welcome. I will start today by taking you through some of our operational metrics and milestones, and then I'll pivot to our financial results. Firstly, on Slide 6, our key performance metrics continue to trend well, demonstrating consistency in our execution. Active customers reached over 1.3 million for FY '26, up 5% year-on-year. As discussed in H1, we continue to be pleased to see improvement in customer cohort behavior, resulting in a greater proportion of repeat orders. Repeats comprised 62% of orders in FY '26, up from 59% in FY '25. I'm also pleased to note that our 12-month marketing ROI has remained stable at 1.4, whilst growth in our first-time customer acquisition cost or CAC has slowed year-on-year. Our new customer CAC for the last 12 months of 105 was lower than that same metric at 31 December. Revenue per active customer was up substantially to over $490, driven by higher average order values, particularly in H2. Finally, we continue to maintain a world-class NPS level of 60, demonstrating the strength of our customer proposition and experience. Moving on to Slide 7. Our ambition is to become Australia's leading furniture and homewares retailer. And to achieve this, we have continued to execute against 5 strategic priorities. I'm pleased to report that we continue to make strong progress across each of these during the year. I'll call out a few highlights from this slide. Firstly, in terms of our exclusive product range, continues to grow as a percentage of total revenue. For FY '26, private label and exclusive drop-ship was over half of our revenue, in fact, 51%, up from 45% last year. This is a great milestone. 83% of our top 500 selling products are now exclusive, up from 70% 2 years ago. Our dedicated sourcing office in Shanghai continues to deepen our relationships, and we continue to add many new and high-quality private label options to our customers. We also continue to trial and deploy proprietary AI-powered tools company-wide. We're focused on several key initiatives, including customer-focused personalization and agentic developed upgrades to our storefront architecture. We've also invested in new insights agents across our business, which are already driving commercial outcomes and helping to improve margin. Finally, our commitment to cost discipline is driving ongoing operating leverage. Fixed costs improved to 10.1% of revenue, a 50 basis point reduction from the prior year, which allows us to reinvest in growth drivers of price and marketing whilst maintaining a strong customer value proposition. I'll now turn to Slide 8 to talk through the performance of our adjacent growth plays. During the year, we've hit a milestone for our adjacencies, now contributing over $100 million in annual revenue. In fact, it was actually $117 million for FY '26, representing an increase of 30% in FY '25. From a Home Improvement perspective, this business continues to disrupt the category with a good quality, stylish and cost-effective range delivered with the convenience and customer experience that Temple & Webster is famous for. In FY '26, Home Improvement generated almost $60 million in revenue, an increase of 39% on FY '25, representing a 43% CAGR since the launch of this business in FY '23. Trade and Commercial continues to perform well despite the softer conditions, and the business recorded a pleasing $56 million of revenue, an increase of 16% in FY '25. Finally, New Zealand. This continues to be a really compelling opportunity for us. This $3 billion market expands our TAM by nearly 10% and serves as a proof of concept for future international growth. I'm really pleased to report that we've now generated $3 million in revenue from New Zealand, ahead of expectations, and the business is now run rating at contribution breakeven. We believe we can accelerate our revenue in New Zealand through some basic enhancements to the customer journey, including a dedicated domain and checkout, accelerated shipping time lines as well as focused local marketing. I remain excited about what we can achieve here and to develop ways to better serve our customers across the Tasman. Now turning to Slide 9 to talk through our financial results. As Mark mentioned at the start of the call, revenue grew 11% for the year to $665 million. This outcome was driven by higher AOVs, particularly through the second half as well as growth in active customers. And this result was in line with our trading -- our guidance range in our May trading update. At the delivered margin line, we ended FY '26 at just over $200 million, a margin of 30.2%. This outcome reflects higher promotional intensity through the third quarter, offset by an improvement in the fourth quarter. And this margin outcome remained consistent with our target operating range of 30% to 32% for the year. Pleasingly, a more disciplined approach to marketing and some efficiency gains realized in our digital channels have driven our marketing cost of sale down from 16.3% in FY '25 to 15.2% in FY '26. During the year, we also achieved material fixed cost leverage with fixed costs growing at just 5.5% versus revenue at 11%, which resulted in our fixed cost ratio declining from 10.6% to 10.1%. At the EBITDA line, I'm pleased to report that our underlying EBITDA, excluding unrealized FX losses, was $25.9 million, a margin of 3.9% and an increase of 28% over FY '25. This measure excludes our start-up investment into New Zealand as well as one-off costs incurred as part of our warehouse transfer in Melbourne. Reported EBITDA of $21.9 million was at the top of the guidance range provided in May, driven by stronger profitability through the fourth quarter as a result of our short-term rebalance between growth and margin. Finally, at the net profit after tax line, we did see an abnormally high effective tax rate in FY '26, which is the result of a reversal of our deferred tax asset relating to outstanding share options. This had no impact on cash flow. Our cash tax expense for FY '26 was $3.6 million, approximately 30% of PBT. Turning to Slide 10. I think it's worth taking everyone through the initiatives that we put in place during H2 and the impact that this had on our margin profile. As a reminder, we had 4 key initiatives in March in order to appropriately balance profit and revenue growth in the short term whilst we move through a difficult consumer environment. These changes have driven a permanent change in our unit economics and are expected to continue into this financial year. Firstly, we've made specific changes to our pricing structure and promotional cadence to improve delivered margin. Secondly, we've worked with suppliers to access greater promotional support as well as reducing the incidence of damaged and defective products, which result in poor customer outcomes. Thirdly, we restructured our digital marketing channels in order to implement category-specific bidding, which has resulted in a circa 10% reduction in CPCs, demonstrating true improvement in efficiency rather than just a reduction in spend. Finally, we made changes in the fixed cost base in order to drive $3 million in cost savings in H2 versus H1, primarily linked to automation and AI adoption. You can see the impact of these changes in the table on the right. In the fourth quarter, our run rate margin profile was materially higher than our overall FY '26 profile. In particular, our delivered margin after marketing costs ran at approximately 19% in the fourth quarter compared to an overall level of 15% for the full year. This run rate gives us confidence in our FY '27 target ranges of 31% to 33% at the DM line, 15% to 16% at the contribution margin line and then 5% to 6% at the EBITDA line. In fact, our fourth quarter run rate was ahead of these ranges, meaning that we do have some additional flexibility already. As Mark mentioned, we are targeting an EBITDA range of $33 million to $40 million for FY '27. And as always, we retain flexibility to use our price and marketing levers to best respond to conditions and drive revenue. Our long-term targets on margin remain unchanged. We continue to focus on scaling towards an EBITDA margin of 15% plus and what we have achieved over the last few months gives me even more conviction on this target. On Slide 11, we have shown our cash flow bridge for FY '26. We ended the full year with a cash balance of $123 million, which is a reduction of approximately $21 million on the prior year, driven by our on-market share buyback program through which we acquired $30 million in shares through the year. Having this strong cash balance and a capital management flexibility continues to be a competitive strength in the current environment. Our operating cash flow of $24 million represents over 100% of EBITDA. Note that our CapEx spend for this year was impacted by approximately $5 million of one-off setup costs for our new Melbourne facility and warehouse, where we have a 10-year lease. This will not reoccur in FY '27. Finally, turning to the balance sheet on Slide 12. Key takeaway from this page is that we continue to be in a really strong capital position with over $120 million in cash and no debt, plus a business that is generating good cash flow. On the right-hand side of this slide, we have once again outlined our capital management priorities, which remain unchanged. Maximizing shareholder returns is at the core of our long-term strategy and the lens through which we assess capital allocation. Our strong capital position means we remain fully funded to pursue organic and inorganic growth opportunities as well as other capital management strategies, including our buyback. Now a few housekeeping points for FY '27. Our expectation on depreciation and amortization for FY '27 is between $13 million and $14 million, up slightly from $12.9 million in FY '26. Intangible CapEx is expected to increase on FY '26 levels as we invest more in AI tools and customer-facing technologies to a range of between $5 million to $7 million. PP&E CapEx is expected to be approximately $1 million. Thanks again for your time, and I'll now hand the call over to Susie.

Thanks, Cam, and good morning, everyone. Thanks for joining us. I'm so excited to be back at Temple & Webster. I rejoined after my time in private equity for a couple of really good reasons. The first is the experienced and innovative team. I know them really well, and it's a pleasure to be working with them again. And the second is this is a business with a huge growth opportunity ahead of it and a really consistent track record of execution against that opportunity. During the current uncertain operating conditions, I take a lot of confidence from having worked with the business both through good times and through more challenging times. I know that our consistent ability to move fast and to manage risk sets us up to turn these moments to our advantage. Let me start with the opportunity, which is bigger than ever. The total addressable market is $40 billion, furniture and homewares, home improvement and New Zealand. Even as the leading online retailer in our category, we represent just 2.9% of the furniture and homewares market in Australia and only a fraction of a percent of home improvement in New Zealand. There is a lot of room to grow. As the only at scale digital native retailer in our category, we are uniquely positioned to benefit both from increasing online penetration and as our millennial customers reach their prime purchasing years. We've built a significant asset in our customer and product data, which is now powering our AI, a brand and product range that our customers love and a bulky delivery experience they tell us is the best in the category and that we've built over 15 years. As the business has demonstrated over the last 6 months, our asset-light operating model enables us not just to pass on value to customers, but to move fast when others can't. On the next slide, I want to focus on what I've seen in my first 7 weeks and my initial views of some of the opportunities that are immediately ahead of us. First, reach. We are the #2 specialty furniture retailer in the country by spend. And within the last 12 months, 17% of Australian households in our core segment purchased from us. Our priority for FY '27 will be building on this reach to improve our brand recognition and overall share of wallet. Second, trust. We have always had market-leading NPS. Our customers are our biggest fans. We will build on that trust to further expand and differentiate our range so that we provide the quality, value and style that our customers expect with more of our own private label and exclusive products. I led marketing and merchandising while at Temple & Webster previously, so this will be a particular focus for me. Third, data and AI. Our retail reporting and data is the best I've ever seen, and we've already developed AI agents to access data and analyze it in natural language. This is just the beginning of AI opportunity. The next stage for us is to prioritize more customer-facing innovation, building on our industry-leading data to personalize their experience and improve conversion rates. Fourth, growth beyond our core. In the prior role, our biggest growth came from international expansion, so I know what this can add. Initially, we will be expanding our low-cost New Zealand pilot and qualifying additional markets where there's both the scale opportunity and market dynamics so we can build on our strength. And fifth, growth overall. It really is in our DNA as a company. While we're focused on improving unit economics in the short term, given the environment, these and many other growth initiatives are already underway. We're also shaping the longer-term strategy to develop both -- to deliver both top line and bottom line growth, and I look forward to updating you on it over the coming months. Finally, I'd like to give a trading update. Revenue year-to-date is down 13%. This is a result we expected, and we don't think it's indicative of the full year given that we're comping 28% growth and have a number of growth initiatives already underway. Importantly, over that same period, our contribution margin dollars have actually grown by 10%, which is a really strong outcome. This is deliberate. We've chosen to focus on improving our unit economics while the market is soft. These are my numbers and my team's numbers, and this is the right balance for this moment. But we are a growth business, and we want to finish FY '27 with strong forward momentum. As a result of the improvements in our unit economics, we are targeting a 50% to 80% increase in EBITDA to $33 million to $40 million in FY '27. This once again demonstrates the flexibility of our business model, and we'll be using this period to further invest in the foundation that will drive consistent top line and bottom line growth. As mentioned, we will brief the market on our strategy to return to double-digit revenue growth in the coming months. Our ultimate goal of becoming the largest Australian retailer in our category is unchanged. It's been a pleasure returning to Temple & Webster, and I want to thank Mark, Cam and the team for their warm welcome of me and their commitment to our collective success. With that, I'll open the line for questions.

[Operator Instructions] Your first question comes from James Leigh with Goldman Sachs.

Welcome back, Susie. My question is around some of the assumptions going into FY '27 target of 33% to 40%. Can you help us understand kind of what economic conditions you're factoring there? I appreciate it's a wide range, but at the midpoint, it looks like 0 growth. Like what sort of kind of macro conditions we're thinking about in that guidance range or in that target range?

I mean lovely to meet you. There are really uncertain conditions at the moment, and we're not guiding revenue. But I am really, as I've said, really consistently focused with the team on building strong momentum through FY '27. I think we mentioned in the call earlier, we're comping a really tricky period. It's 28% up year-on-year in the prior year. But I'm not -- I don't think the comps are the only thing we're focusing on. We're also focusing on what we can do internally. So big focus is some of the initiatives I've already talked about, which are underway, and we expect to have an impact through the year. The macro, it is very hard to forecast at the moment.

Yes. I think, James, probably thinking back to our May update as well. I mean, the market hasn't gotten any better since May. We haven't seen an improvement in the macro conditions since then. We're giving ourselves flexibility in that 33% to 40%. It's still an uncertain operating environment. And as Susie mentioned, we are expecting to see momentum build through the year, particularly as the comps get easier and some of these initiatives start to take place. So I wouldn't be focused too much on the trading update. I'd be focused more on what we're expecting to see throughout the entire year. I'd also maybe just call out Q4 as well, which I think is an interesting data point. I mean I did put that Q4 outcome in the deck, so people could see what the margin profile was after we made those initiative changes in March. And the Q4 period was pretty much flat year-on-year, comping at 20% in the prior year. So I think that gives you a real sense on what an outcome for FY '27 could look like that we're able to deliver those unit economics and margins on a flat revenue base against a very strong comp.

Your next question comes from the line of James Wilson with Macquarie.

Just a few from me this morning, if I may. Just firstly, can you give us sort of a sense of the kind of EBITDA margin that you might be tracking at in this first quarter of the year? I appreciate your fourth quarter run rate was around the 6% mark.

Yes. Thanks for the question, James. Obviously, I am not going to give a running update on quarterly EBITDA performance. But I think you can see the Q4 update, you can see where we were at. Contribution margin dollars are up 10% for the first 7 weeks. I haven't seen anything that's too different to what we're run rating in Q4. So I'm not going to give quarterly guidance on EBITDA, but I think you can take that Q4 run rate and look forward into FY '27.

Great. And just another one for me on your $1 billion revenue target for FY '28. Are we able to get an update on this aspiration?

I'll answer that. And the goal for me isn't $1 billion. As we've talked about in the presentation, we want to be and have consistently said we want to be the largest retailer in this category. And that's not about $1 billion, it's about more than $2 billion. And I'll come back with more details on our plans to achieve that and to get us back to double-digit revenue growth over the next few months.

Okay, great. And then just one final one for me. Just on the sort of trading update that you've just reported. I mean, how much do you think that maybe some of your margin initiatives in the fourth quarter might have flowed through to the top line in this kind of first 7 weeks or first 8 weeks period of FY '27? Do you think there's been any drag at all on your top line from what you've done on margins in the fourth quarter?

We're really deliberately balancing margins and growth at the moment. And we think that's the right balance to take during what are quite uncertain macroeconomic conditions. We obviously have some flexibility in that margin. And I'm really encouraged by what we're seeing as our progress in building strong unit economics. This is what we expected for this period. And my focus with the team is on kicking off or we have kicked off initial initiatives, which will mean that we can drive both top line and bottom line growth, and we expect to be like finishing the year with strong momentum on that.

Your next question comes from the line of Forres Salekian with Barrenjoey.

Congratulations, Susie, on the role. I guess just first question from me. The feedback we've been hearing from most retailers we speak to is that they're pretty reluctant to take price in the current environment, and they're leaning harder into discounting to drive sales just given the softening in the consumer. So how are you thinking about balancing the near-term margin optimization story against protecting your value proposition? And I guess, how do you think this impacts your ability to return to double-digit growth over time?

So I think it's a really -- it's a great question, Forres, and lovely to be talking to you. I think my big focus with the team, as you've heard about, is about value, quality and style. Value has always been a really important part of Temple & Webster's DNA. And there are really -- while we have adjusted the price up in some portions of our range where we were probably a little bit too cheap, there are still really significant opportunities for value. There are portions of our range where we are 20% to 40% below what you see in offline retail. So I think that's a really important point to make. But also value is also about quality and style, the overall proposition we are offering customers. And I remain really confident that as the leading online category specialist that we are able to deliver customers a better offer all around than any of our competitors.

I might just add, Forres, it's Cam here. Within the range that we've put out, the guidance range, we do have some flex to go harder if we need to as well. You can have a look at that Q4 run rate. The implied target ranges for FY '27 do have some room versus the run rate. So there is a little bit of ammunition there as well if we need it.

Got it. That's clear. And I guess to get top line growing again back to double-digit growth, like do you need to wait to see an improvement in the consumer to start reinvesting into marketing? Or are there other factors which could catalyze reinvestment to drive growth?

No, I don't -- we are not building our strategy around the macro, and I want to make that really clear. Like we are laser-focused on driving growth out of our core. And the 2 big initiatives we're focused on there are really around marketing diversification and making sure that we are getting the most effective reach into our customers and also around this range exclusivity and private label. So making sure that we have a really distinctive range and it's delivering across style, value and quality for our customers.

That's clear. And if I could just squeeze in one more. It looks like a few of your peers like Wayfair, Castlery and now Kmart with K home have been pushing more into physical stores. How willing are you guys at this stage to pursue both via physical locations maybe as an opportunity to generate higher AOVs and more sustainable economics over time?

I'm really excited about our brand overall. I have only been back a brief period, but I think there's some interesting ideas for us to look at there, but it's still very early days.

Your next question comes from the line of Aryan Norozi with Jarden.

Just a few from me, please. First one, just one thing I'm trying to reconcile. So your marketing has obviously gotten more efficient. So you're spending less for the same amount of revenue growth and your pricing hasn't gone up to levels that makes you uncompetitive. Still don't get why the revenue growth has gone backwards. Like I mean in 2023, you've had 13 rate hikes and into fiscal '24, you've printed sort of 25% revenue growth. Like why is this time different for that sort of 3 to 4 years period, please?

I mean I do think, obviously, there are some challenging macro conditions out there, and I don't think our category in general is finding that super easy. But I would sort of point to, we have increased marketing efficiency, but we've also scaled it back a little bit, and that's probably a big part of that revenue growth. And when we get to the right point where we feel like we've got the right unit economics on the customers that we're acquiring and that we are focused on the most valuable customer segments, we'll be able to increase that again.

It is aalso a bit of a different -- it's a different situation now versus 4 years ago, Aryan, but the environment is quite different.

Right. Got you. And then just on capitalized intangibles, there's about, I think, $3 million or $4 million of annualized intangible capitalization versus what you were doing before this result. Is that a permanent feature of the business? And is that just shifting stuff out of cost into CapEx now?

No, it reflects a move towards developing internal AI solutions and technologies within the business. So we have ramped up that area in the last 12 months, and that obviously is reflected in the capitalization.

Great. Last one, please. Just on the exclusive, it's grown from sort of 49% to 54% of sales first half on second half '26, which is great. Just like is all of that step up the private label? And can you just give us an idea, please, around how big the private label part of the business is?

Yes, I can take that one, Arie. So we've talked a bit before about the private label exclusive drop-ship split. So private label and drop-ship exclusive has increased in the past 6 months. Private label is still roughly about 30%, but it has moved up slightly. And then the balance 51% is exclusive. So that exclusive drop-ship is still doing the heavy lifting, but both growing.

It's good to see that number.

Yes.

Your next question comes from the line of Chami Ratnapala with Bell Potter Securities.

Big welcome to Susie. I think the first one would be on the delivered margin, given that it's run rating above -- slightly above the sort of range you've talked about, can you talk to how you're able to maintain this as conditions probably doesn't improve, get worse into FY '27?

So we are feeling really confident after Q4 on our forecast for FY '27. As Cam has mentioned, we have a little bit of flexibility in there. We're running a little bit ahead of our targets. And so we can use that as we're thinking about our promotional strategy going forward. The big things that will drive our margins overall is really around that price -- sorry, value, style and quality, so making sure that we are continuing to deliver the best range in our category as the leading online furniture specialist. Yes, that's the big focus for us.

I think the other thing to think about, Chami, there is obviously the mix of exclusive and private label as that continues to trend upwards should support that. There will be a little bit of FX this year. It's obviously only 30% of our business private label, which is U.S. dollar denominated, but there should be a little bit of FX tailwind on that 30% as well this year.

Great. And then how are suppliers or the drop-shippers taking the new changes for the fourth quarter profit optimization initiatives?

Good question. And one of the things that I did when I first started in the business was sitting on a couple of our supplier meetings. It's a really important part of our business, and their growth has been a big part of our growth for the last 15 years. What I heard in those meetings was actually quite a lot of support from suppliers who thought that the measures we're putting in place prioritized customer experience and meant that the suppliers that were performing really well got prioritized on our site and in our business. So it's been -- while there are some -- it's been a big plus for us, I think, and for our customers.

Great. Okay. Maybe if I could ask one more just on the fixed cost leverage. In a low revenue environment, what's the level of -- or what are the layers of efficiencies, further efficiencies to maintain the fixed cost leverage there in the guidance range that you're expecting for the year?

Yes. Thanks, Chami. I'll take that one. It's Cameron here. So look, we haven't assumed any real change in the fixed cost base as a percentage. You can see that guidance or that target range of 10% to 11%. So that's pretty consistent with where we were for FY '26. So we haven't assumed any reduction in that cost base into our FY '27 numbers. But obviously, that's a reasonable portion of our cost base. And if we need to take action on that, we will. But at this point in time, I think we're consistent with what we did in FY '26.

Your next question comes from the line of James Bales with Morgan Stanley.

Firstly, customer acquisition has slowed. I'd like to understand exactly how the economics of customer acquisition have changed. How much of it has been you guys proactively lifting the hurdles of what you think your return profiles should look like versus just the opportunity set that's out there with your partners? And then tying that into your earlier comments, Susie, around marketing diversification, how should that sort of change or move the needle on the returns that you see for that spend?

Yes. It's a great question, James. Thank you. It's been very deliberate. We've made the choice to focus on customers where we think we're going to get the unit economics that we need. And more broadly, you can hear in a lot of the initiatives we're focused on, it's about making sure we're focused on the most valuable customer segments in our sector. What we want to do in terms of diversification is really build on our brand, build on our strength in content and inspirational content and diversify our channel mix that way. And my expectation is that should continue to improve the effectiveness of our marketing and reduce the overall cost of sales.

Got it. And then in terms of the outlook for FY '27, you're sort of starting with negative sales momentum early on in the first half. What -- when you sort of think about the pathway to get back to growth, how should we think about the time frame to get back to sort of being level with the PCP?

We're not giving guidance on revenue. But I can say that we don't think that the sort of initial trading period of this year is indicative of how the year is going to play out overall. There's a couple of reasons behind that. The first is we're comping 28% growth in the prior period. And the second is we're not just relying on comps. As you've heard, we have a number of initiatives already underway and strong margins to support us driving growth. So our expectation is we're going to finish FY '27 with really strong momentum leading into FY '28.

Great. Sorry, Cam.

I wasn't going to say anything, James.