The Artisanal Spirits Company plc (ART) Earnings Call Transcript & Summary

Good afternoon, and welcome to The Artisanal Spirits Company plc Investor presentation. [Operator Instructions] The company may not be in a position to answer every question it receives during the meeting itself. However the company can review all the questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to [indiscernible] following poll. Now I'd now like to hand you over to Andrew Dane, CEO. Good afternoon to you sir.

Afternoon. Thank you much, and thank you, much all for joining and [indiscernible] '23 results presentation for The Artisanal Spirits Company plc both myself and Billy here to present and then take questions later on. So we'll start with a reminder of what ASC is. We create and sell outstanding limited edition whiskeys and experiences around the world. We primarily do that through the Scotch Malt Whisky Society. What we're going to do today is going to take you through an exact summary, some of the headlines of the recent results, then hand it over to Billy to take through more of the detail of those results for 2023. And then come back to me to start talking a little bit on forward-looking about current trading and also our current outlook. So we'll start with some headlines on recent trading for 2023. And I guess what was pleasing was despite challenging global conditions still delivered revenue growth. That's 8% revenue growth for the full year. But in particular, for me, pleasing to see an acceleration in that revenue growth during the year. So 12% revenue growth in the second half after 4% in each one. And that represents good progress, though obviously not at the level that we had targeted for the year. What we have seen the expansion of our footprint in Asia with the addition of a new franchise in Korea as well as the addition of Taiwan, helping to offset most, but not all of the downside from challenges in China during the year. Although saying that, we also saw a delivery of a huge range of strategic initiatives. We'll talk about those in detail later, but most notably, the sale of whole casks worth of bottles directly to SMWS members. We also saw strong membership growth across The Scotch Malt Whisky Society in its 40th Anniversary year to over 40,000 members as well as adding some real proof points to the significant and growing value of our Cask inventory. That's the whiskey stock that we own, which is indeed substantial. We'll spend quite a lot of time today talk to you about that, too. Terms of headlines as we look forward. Current trading has been good. In January, we acquired Single Cask Nation, the U.S.-based independent bottler, and that's a really positive start to life. [indiscernible] of this first Single Cask Nation bottling being done at Masterton Bond at our own facility and first sales in February and first e-commerce release in mid-March, which sold out almost half in the first day, which is great. That leads into a positive start to 2024, the 10% revenue growth and giving us confidence in our full year EBITDA guidance for 2024. I think it's on a path through low to mid- to high single-digit margins over the next 3 years. And overall, we continue to think we're well placed to deliver. And that despite the challenging '23, we've actually emerged in a much stronger position, increasingly well positioned for continued core growth in a sector that continues to be significant and growing in an attractive ultra-premium subsector of the market. And the ability to add new markets and expand our footprint as well as starting to get the benefit for the investment we have already made in the previous year's strategic initiatives as well as a few of other things that we talk are the Spirits, wood, venues in Masterton Bond. So overall, that gives us good confidence. So that's it that's the headlines. Now I'll take you through quickly cover the business, hand over to Billy for '23 results, then talk about a model why we have confidence in our ability to deliver long term. So first of, this is a refinement of what we've always talked about, which is a part of the businesses are purpose captivating a global community of whisky adventures. And we do that as I said the stock by creating and selling outstanding limited-edition whiskys and experiences around the world. Now ultimately, we have an ambition to create a really high quality, high profitable and cash-generative premium global business. And we're making progress against our 5 pillars. Whiskey, membership, experiences, new brands and audiences, and people. You will see our progress with us, many of those during the course of this session. What has changed is our portfolio of brands has expanded, but it's really important to note that at the heart of the business now and in the future is The Scotch Malt Whisky Society founded in 1983 and now with over 40,000 members, providing those amazing outstanding liquids and experiences. But we're really glad to be able to welcome Single Cask Nation into the fold as another incremental and complementary fit with the other brands that exist alongside J.G. Thomson. So since it's at the heart of the business, just a quick recap what The Scotch Malt Whisky Society is. It is a truly global business, with 2/3 of its sales outside the U.K. So primarily direct to consumers, both online as well as in member rooms, the small balances into a network of expanding part of our around the world. It's premium limited edition, typically Single Cask is maybe only 200 or 250 bottles with extensive whiskey coverage and that growing global membership is highly engaged. So what do we do? We're not a distiller. We buy from a wide range of distilleries of Scotch Malt Whiskys, other international whiskeys as well as Rise, Bourbons and some other Spirits that we know members love. We mature those casks and then with over 17,000 casks [indiscernible]. We bottle them at our supply chain facility, and we bottle those under our own brand, The Scotch Malt Whisky Society and sell those bottles exclusively to members. But it's about more than just outstanding liquid in a bottle. It's the experiences that go with them, events, tastings as well as our 4 member rooms in the U.K. 2 here in Edinburgh, 1 in Glasgow and 1 down in London. And then finally, before I hand over to Billy, I thought it's worth just pausing and reflecting on the last 3 years, and the progress that's been made against what we said we would do at the time of the IPO back in late May 2021. We set up the target of doubling revenue to GBP 30 million by this year, while last year, we had already grown 56%. We wanted to grow our membership base in major markets, where we've grown by 57%, primarily driven by international expansion. We have enhanced our e-commerce with new U.S. website, a new U.K. app as well as our route-to-market capabilities with new joint venture in Taiwan in August, franchises, most recently in Korea in April, but over the last few years in South Africa and Mexico as well. We've driven up margins which are up by 5 percentage points since pre-IPO as well as growing that cask inventory of outstanding unique liquids to now over 17,000 casks with almost GBP 0.5 billion of future retail value. We've used the venues [indiscernible] not just growth [indiscernible] but more profitable venues, as well as adding to the premium spirits brands with the creation of J.G. Thomson in late 2021 and then acquisition of Single Cask Nation in early 2024. So now I hand over to Billy to take us through some of the details around the 2023 results.

Thank you, Andrew. So on this slide in a minute, you'll see really some key indicators that tell us how our business is performing. And we've got the financials on left hand side and we've got members behavior and membership in the middle and what we call the kind of inherent value within our business. So go through each one. But we start in the middle of the SMWS, Scotch Malt Whisky Society is the heart of Artisanal Spirits Company. And at the heart of The Scotch Malt Whisky are the loyal and engaged members that sit within our business. So we're particularly pleased that we've seen 10% increase in membership on year to just over 41,000 in our 40th year. And our retention level is still a really high benchmark level, 74% is above pre-IPO, it's slightly down in prior years, but that's still 74% of our members will remain with us, which is still a really good benchmark score. With regard to [indiscernible] value that has seen a slight debt year-on-year, predominantly driven by the market in China which I'll comment more in a minute, but still 25% of the IPO levels. And what that middle section is telling us that members are engaging. They're joining, they're staying with us and they're still -- they still appreciate the product and the experience that we provide. So that's fantastic. Then what comes with that is our financials on the left-hand side. So again, we've grown revenue by 8%. Certainly, not the 20% we've seen previously, but this is in a year where there has been some challenges say within China, but 8% growth goes to show, which I'll comment on is diversification of the revenue of this business, which is really positive, and we were looking at opportunities in the future. And with that revenue growth comes 9% gross profit growth and how long say that contribution growth. So that's really most [indiscernible]. And on the right-hand side, I won't go too much into it and the slides further on. But essentially, as a reminder, within our books, there is a net book value of cask that we hold around GBP 25 million. There are then 2 other points of 2 external points we can measure that against. We will always hold those casks in stock got through our -- sorry, [indiscernible] value and the cost paid for it. And against those, we have through our [indiscernible] facility, a bank valuation carried out annually, which gives us a better view of what that is because we are working with an appreciating spirit asset. And then in the last year, was going to a bit more detail. We've so cast the members and we could be a new facility with Ferovinum, which gives us what we believe is a more true market variation. So only, you can see 4.8x. I won't go in to that too much right now. We've got further on that to come in a minute. But ultimately, cost in our books worth more as an appreciate [indiscernible] asset and I'll come back to that. Thank you Andrew. So I think the key point to note here is the continued diversification of our global revenue. And some of the key points here would be we've seen venues grew almost double digit at 9%. Again, it continued to recover post-COVID. And I think the key importance for us is last year, and I remind this year, we have been in a high inflation environment. Cost of living challenges. We've got people who want to attend our venues and want to experience what the SMWS can provide. So that's fantastic. So we continue to see the key importance of our venues, and we expect that to deliver this year as well. One of the key growth areas are seen in our trade cask sales. We have done this to much lower to be in prior years. However, it was always a strategic objective of the business to utilize trade cask sales. It's something that exists within the whiskey industry now. It's an opportunity for us, for example, to balance our whiskey portfolio, if we perhaps got stocks of whiskey, whether it be age, distillery, maturation type, we can sell those to then rebalance and purchase against that and make sure we have the right optimal and balance of stock going forward. In terms of other key points here and be remissive not to mention Asia, a decline of 14%. That is driven by the macro economic challenges within China. But again, the positive in there is where we've seen a 30% decline in China driven by those macro economic conditions. We've offset that. We've got the new franchise in Korea. We've got a new joint venture in Taiwan, and we've had significant growth in Japan. So there's still lots of positivity within that. And that diversified revenue portfolio will help us achieve our future ambitions. From a P&L perspective, we did deliver adjusted EBITDA of GBP 0.1 million, which perhaps is not as high as the expectation, again, still shows an ability to turn a profit in challenging times across that diversified revenue. And if you look at the blue highlight columns on right-hind side. The important bit to call out is really the momentum coming from Half 2. So in Half 2 we delivered GBP 1.9 million of adjusted EBITDA to deliver that overall GBP 0.1 million. Now within there are elements of timing, you can see that particular strong revenue delivery some of that is timing, but what -- the key importance of the second half, as you'll see in marketing and payroll and other overheads are key cost base within the business, all of those area have reduced against the Half 1, and they are exiting Half 2 at that level. This is a future run rate. So this gives us confidence that coming from Half 2 deliver a GBP 1.9 million EBITDA, diversified revenue, controlled cost base where significant investment has already been made. We can deliver what we want to deliver in terms of consensus delivery which suppresses to EBITDA going forward. From a balance sheet and cash flow perspective, we have still continued to have a very strong balance sheet. We've got GBP 18.3 million of net assets, supported by cask goods of GBP 25 million, as mentioned. If we go on and then talk about cash flow, again, the key things for us in Half 2, it was a challenging Half 1 and Half 2, we delivered significantly, not only help we delivered operating cash flow and positive operating cash flow in the second half, but what we will see is that net cash investment it's been -- has peaked. So as a business as we start to deliver profit and cash generation, that Cask Spirit [indiscernible] people start to deliver more and more operating cash flow that can allow us to drive cash to further invest in the business and drive further growth. Okay. So I mentioned a couple of minutes ago, the -- I mentioned 2 seconds ago, but the strong balance sheet that we have underpinned by our cash stock. What's key to pull it out is the inherent value within our balance sheet. So I mentioned we have cask worth of GBP 25 million within our balance sheet. What I'd like to call out as a specific example over the last 12 months. So we entered a new facility agreement with Ferovinum. The facility agreement with Ferovinum allows us to unlock some liquidity locked within our balance sheet. And the benefit of this facility with Ferovinum as they look at the cask and Spirit within our balance sheet and give us a truer market valuation for the [indiscernible]. So what's important to note in this example is for the tranche of cask that we delivered in H2 in 2023, we selected a portion of cask that had a net book value of GBP 800,000. So that was a value that sits within the GBP 25 million in our balance sheet. From our bank perspective, with our revolving credit facility [indiscernible] annual valuation, annual valuation is relatively simplistic. It's very agnostic [indiscernible] this is the year, this is a rough value for [indiscernible]. We value those cask at GBP 1.3 million, so a 50% premium to net book value. Through this new facility with Ferovinum, we are able to take those casks through many data points, most important external data points. They value those casks that we have in the books of GBP 800,000 at GBP 3.8 million. So that was almost 5x the level of metric value. Now what that allows us to do is draw down and invest in our business appropriately and gives us the optionality and flexibility, and it allows us to drawdown much better than we previously have been. And it's important to note that facility is at the same benchmark levels of cost as the RBS facility as well. So to kind of summarize where we are. We have a -- we have a net book value of GBP 25 million makes it a couple of times now. Ultimately, to the right-hand side of this slide, we want to sell that whiskey within bottles as part of our business model. And within that, there's around circa based on the stocks we have currently and GBP 500 million in revenue, which we delivered somewhere in the region of GBP 300 million of gross profit. But what's also important to understand that you can't see from looking at our balance sheet necessarily, but you can't be pulling out that information through cask sales we've made to members of around GBP 0.3 million, GBP 0.4 million last year. Perhaps 4.5x in equity value that we hold at cost. And through the arrangement of Ferovinum the one I just mentioned, that's 4.8x. So the key summary here is we want -- we believe in our business model, we believe in our ability to engage our members. Underneath all that, it's underpinned by an inherent value that really just grew the valuation of this business [indiscernible]. And as a closing remark for me, again, loyal valuable and growing global membership. We've got over 41,000 members. Annual contribution of over GBP 300 per member and lifetime value of almost GBP 700. This is not a directional metric for us. What we want is a loyal, growing global membership. So we'd love that membership number to be 50,000, 60,000 and what they're expected based on that. But what ensures it does allows us to make sure that we're giving the members what they want. We've got the retention at the right level, and this is something we'll keep an eye going forward.

Since Billy has alluded to [indiscernible] loyal valuable, growing membership, combining with the unique outstanding award winning products in a high-margin direct consumer that delivers long-term value for the business. So that's a bit around the kind of financial delivery, but I thought it's also worth just pulling out some examples of the strategic delivery during the year. And there's been a lot. I won't talk through all of these, but here, you can get a sort of insight into the kinds of things that were delivered during the year between Masterton Bond being fully operational, Cask Sales, trial with our Prestige Products, subscription services, new app in the U.K., those subsidiaries, the acquisition and all of that and the work people development in the business too. So lots has been delivered and paid for last year. And then this year, we had an opportunity to take advantage of those to make the most of the new membership in a bottle product, the subscription service, the app that was launched at the end of last year, et cetera. But if we pick a couple of them really bring them to life. First of all, is really pleased to have completed the refurbishment of The Spiritual Home of the society at the Vaults actually done a lot more [indiscernible] here just now, then [indiscernible] had a presence here for just over 40 years, and it's great to now see it back as the kind of international standard in whiskey bar that is it's a fantastic venue for those of you who haven't had a chance to visit it since the refurb [indiscernible]. It's really been fantastic and very well received by members and the way that -- the way Republican industry since it reopened around September time last year. The other one is Masterton Bond, which is now fully operational, having produced over 200,000 bottles today. Casks, it's about 85% too, which is pretty much as operational capacity. All of our U.K. e-commerce fulfillment as well as our international shipment fulfillment are being completed there. And as I mentioned earlier in our first Single Cask Nation bottlings also now being done on site. So that site is now our fully operational and has not been since late May, early June last year. So the benefits of that starting to come through last year, which is great to see. And frankly, on that Single Cask Nation acquisition, buying and trading assets of the business, which is already cash generative, expected to be bottom line profitable, not just EBITDA profitable from year 1. Our business, which is really a great fit. it's also looking to captivate the global community of Whiskey ventures. It's a business that purchases primarily single casks whiskeys, and so does spirits, delivers in the U.S. in particular as well as other international markets and that American whiskey market is one which we think can continue to grow and expand. And it really is complementary and incremental to our existing business. The Scotch Malt Whisky Society in America finished very strongly last year with circa [indiscernible] growth in depletions in market in Q4, and that's continued with around 10% growth into the start of 2024. So that's really good. And it helps prove the opportunity in that market. Really pleased with Jason & Joshua and the team there and to be awarded the prestigious Independent Bottler of the Year Award in the U.S. at the Icons Of Whisky Awards in Kentucky earlier this year, too. So it's a really pretty good fit. And as I say, already off to a great start so far this year. One of the other things that [indiscernible] to bring to life a little bit more is the marketing strategy around The Scotch Malt Whisky Society. So I thought I'd set out two things here. One, which is the basic principle of how we go out as well as a couple of key studies to sort and bring it to life. So at heart is the brand positioning and the then how we talk to members is about the recruiting members, retaining them and engaging them. And it's a possible to retain and engage. That's how we approach our marketing spend and delivery. And what that looks like vary by different markets. So if we take an example of the U.S., a member who joins through, let's say, as a gift for Father's Day, marketed either through traditional digital channels or in gift guides. Here, we've got someone for the first stage of recruitment that's happened as a gift, but to try to engage and retain them, it's an education piece. So the U.S. team actually phones each individual new members through that process, and has an initial call with them to explain what the society is, maybe giving them an opportunity to ask questions, maybe try to see what kind of whiskeys they're interested in, trying to see if there's an opportunity to buy the first bottle for us because we know that sooner people get more [indiscernible] and try some our society whiskey the more [indiscernible] to get the proposition to stay for a long time. Another part to contrast that in the U.S. might be someone who has joined from our corporate testing event. So some there we offer with the ticket price of those events, may be $150, and that will include year 1 membership. So in that scenario, the recruitment that happened through a channel where that new member has actually had an opportunity over the space of 1 hour, 1.5 hours to maybe a couple of hours to taste some whiskey to hear about the society. So they are targeting an onboarding journey around the engage and retention is getting them to buy the first bottle to spend their own money for the first time to come to an event in a local partner bar or to buy their first bottle online and helping them through that process. So the paths differ across the markets and a recruitment channel but that trends follow brand underpinning, recruitment, retention, engagement driving our marketing, decisions and spending. Then look ahead and think about the long-term global growth opportunity. It really is a significant and growing addressable market. And while the full 2023 data is not out yet. I have seen the headlines and the headline is that the premiumization trend has continued, and there is continued growth in the ultra-premium scotch whisky market into '23 again. But even before that continued growth, it was already over an $8 billion global market, really focused on a small number of key markets that were already present in. So you can see from the chart, it makes sense that the new markets we added in Taiwan and Korea if you were to extend as well as changing our partner in Malaysia, if you were to extend that graph by take it down and look at the markets that were not present in the significant and growing markets, you get places like Vietnam, Brazil, Nigeria, India. Those then become the next areas to look at but it needs to have the size, it needs to have the maturity of the whiskey market, needs to have a regulatory financial framework that makes sense, but that becomes the next pool in which to look at as we look to expand further. And expansion being supported by, as I say, continued premiumization. Just as I remember, everything that we do across ASC is in that ultra-premium robust price points with most of that being driven in direct-to-consumer to e-commerce. So to wrap up, sorry, currently has started well. The acquisition of Single Cask Nation helping build the group and contribute profitably to the growth this year. 10% revenue growth even before that new contribution from Single Cask Nation, giving us confidence in delivering full year profitability as well as that path from low- to mid- to high single-digit EBITDA margin over the '24', 25 '26 range plan. We were pleased to continue to deliver through that. And it's our actions in this space around making sure that the SMWS range still fit for purpose and [indiscernible] that the quality of those releases are still outstanding and amazing around world driving value from the private casks sales that's Billy talked about. And that's everything from our 50th anniversary program, where casks initially cost between GBP 4,000 and GBP 5,500. And someone gets to be part of the maturation and journey of our cask through its 10 years and that we bottled in 10 years' time. And all the way through to the other end, where people are buying costs that might cost tens of thousands or hundreds of thousands of mature spirit that's ready to go. But what's important in both of those is it's the sale of a whole cask worth of society bottles to a society member. We're not going anywhere near the whiskey cask investment schemes. This is about people who really want the whiskey and that's some good progress there. Replacing the [ TIL ] system, the EPOS system across the venues, we've already added Single Cask Nation, and moving office in the U.K. to reflect something that matches the ambition for our people in that haven't done that happens such a way that it requires no cash outlay upfront. So founded an office that was already fitted our and all the rest were there was an upfront requirement to spend money on that, but also the 1 that has the smallest possible EBITDA impact on less than GBP 100,000 EBITDA [indiscernible] but giving people the space that really reflects the importance of people to our success. So overall, we're in a good position, building on the strategic initiatives that were already delivered last year as well as this year gives us good confidence to deliver. So that brings an end to the part of the presentation. And I'll now go over to questions, and I can see that you have already come through. So I'll may be start to go through them. But if you do have any more questions, please feel free to keep sending questions, I'll be happy. Billy and I'll be happy to talk through those.

The first one was question about why the share price has dropped over 50% in the last year and why? And I think there's 2 things maybe 3 things to comment here. The first 2 relations to the share price itself, we are -- and some of these subject to the main [indiscernible] of the market itself, the market is for -- small and the liquid source has suffered at all since the time of our IPO, I think the market is down by over 40% as a whole the entire [indiscernible] whole share index. The second is that during the course of the year, as I alluded to the staff, while we did grow last year, it wasn't quite at the level of growth that we had targeted for the year. So what we got the momentum back in the second half of the year, we went quite able to recover and deliver the full amount that we wanted to the year. And that's the first time since IPO that we haven't been able to sit and say we've delivered everything that we said [indiscernible]. The really important thing is what do we do about that, and [indiscernible] very clear to deliver the results, to deliver on its strategy and make sure the business is well placed to take advantage of long-term growth and trust them that the share price will follow through the [indiscernible]. And second question is around trade casks sales. Who are the 2? And what does the customer typically do with the balance of the spirit? So these are to a small number of trusted industry partners. So some of the same people that we're buying casks from, so sometimes they are surplus to their requirements, so that can include [indiscernible] to distilleries that sold them before. It can be into or in the industry who are usually the -- typically to put into bottle and be sold elsewhere. But we're only working with small number of people who we have trusted again, those are not going out into whiskey cask investments schemes. These are back into people who we are happy trading with. Next question says, the acquisition of Single Cask Nation seems much aligned to premium focus. How do you see this enhancing our market position and help push the revenue target to double the [indiscernible] particularly in the U.S.? So Single Cask Nation is very much aligned. And what's really important is complementary and incremental. So it's -- I mean, as the bottom says on 5 whiskey gigs, 4 whiskey gigs, it's a wonderful brand that's been built over the last 10 years through a combination of Scotch Whisky, American whiskeys and other spirits. I think the opportunity for us is twofold. One is to help bring more support to Jason & Joshua and the team there to what they're doing. But also, we've also talked about an opportunity to do more in the American whiskey market. And I think that in that space, Single Cask Nation gives us the opportunity to create the sales from our outstanding American whiskeys into that [indiscernible] continue to do so what we're already doing. The other thing to know is that when we started some of the initial work around overlaps and customer basis, Single Cask Nation's roughly 10,000 members and the Scottish Whisky [indiscernible] America is roughly 7,000-7,500 members in the U.S. The overlap is less than 5%. So that says a few things. One, it evidences the fact that the propositions are adjacent to [indiscernible] distinct propositions playing into slightly different annuals in the same space. But the second is given that both, present in the U.S. selling outstanding, primarily Single Cask limited whiskeys in the U.S. market, where the overlap is less than 5%, it shows just how enormous that market opportunity is. The next question is with the membership base growing, are there opportunities to cross-sell or upsell? And -- of course, that's an area that as a business, we're always looking to make sure that we are -- we're looking opportunities. But particularly when you're operating to a membership basis, it's really important that we're bringing things to people that we really believe in that we really think are things that they would be interested in, that we can bring in extra value to when we can do that ourselves. For example, the 50th anniversary program, we will do that. We did something that we think people would really love to do, where we won't have the expertise ourselves, let's say whiskey tourism, partnering with the right people to bring SMWS members opportunities they can't get elsewhere without distracting us from the core business. Next question is how much stock does Single Cask Nation have? And do you envisage increasing it like you've done for SMWS and how would this be financed? So first thing to note is Single Cask Nation is a much smaller overall lease than The Scotch Malt Whisky Society as well as we'll see within its portfolio of American whiskeys, which are lower maturation time. So overall, is there a need to increase it dramatically versus not. And we did -- it comes part of the acquisition, most of the other payments underpinned by assets, including cask inventory. So second plan is to get it going as well as acquisitions that ASC has already done, envisaging this deal going through. So there's no huge requirement to invest a lot of money into the spirit for this year, for example, the next we [indiscernible]. So not a lot required there. The next one is, you mentioned expanding into new markets in Asia. What does it take to penetrate the market, sustainably the growth on a resources that cost you? It's quite [indiscernible] by market. So maybe I'll give a couple of examples. In Korea [indiscernible] when we launched in South Africa and Mexico, the way we actually launch franchises in those markets, we work with a partner of our. So the partner of our in Capetown, a partner of our in Mexico City said we'd like to operate the franchise in your country. Very low risk at some of you already know SMWS but typically a lower take offering. In Korea, we actually did a [indiscernible] potential franchise partners. And in [indiscernible] a fantastic partner who just go the society, got what we're trying to achieve a very fantastic job. Their opening years target in the first hour and really go what it takes there. [indiscernible] market. We're looking in new markets. So if you think Asian think about India, it's not really one market. It's a whole plethora of individual state of individual regulations. So while the overall market is big enough, what we're looking there is a mature enough to the regulations. So if we were to [indiscernible] operate to the support single casks spirits or small releases or high EBV products. And they do the commercial work. So there the import tariffs are pretty punitive, but potentially there is still an opportunity. So it does vary by market. But we are only for 2024, [indiscernible] is focused on delivering this year's results. So we will only be adding new markets at a time that they can contribute profitably to us. So we will start discussions, India is good example, we're talking to partners now about opportunities, but we will only launch them when we're confident that it can deliver value right from the start and sustainable growth from there. Okay. And then last one, will a visit to Masterton Bond be possible for shareholders? Unfortunately, because conceptually, it's not something that we are actively looking at. As you know lots of the rumors the scotch and whiskey industry is [indiscernible] lots of Woods and lots of a Masterton Bond is a really effective operating facility. So steel and steel racking and bottling and so on. And it's also through operational facility. So from a health and safety perspective, high storage of pallets cask racking, forklifts moving around so it's not set up for visits like [indiscernible]. We have occasionally done events where people can come there once or twice and we would keep considering those as options, but it's not really a destination like a visitor sent to that facility. Anything if you would like to add at the stage, Billy?

No, nothing more. Good questions. I think, as Andrew mentioned, short-term issues is ruthless [indiscernible] results, and we've had a positive start to the year, and we'll continue that momentum in the second half of last year also.

Perfect. Andrew, Billy, thank you very much for updating investors today. Could I please ask investors not to close the session as you now be automatically redirected to provide your feedback in order of the management team can better understand your views and expectations. It's going to take a few moments to complete. You time shall be greatly valued by the company. On behalf of the management team of The Artisanal Spirits Company plc, we'd like to thank you for attending today's presentation, and good afternoon to you all.

Thank you very much to you all. Thanks.