The Mission Group plc (TMG) Earnings Call Transcript & Summary

Good afternoon, ladies and gentlemen. Welcome to the Mission Group plc Investor Presentation. [Operator Instructions] Before we begin, I'd like to submit the following poll. And if you could give that your kind attention, I'm sure the company would be most grateful. And I'd now like to hand over to CEO, John Carey. John, good afternoon, sir.

Thank you, Jake, and good afternoon to everybody, and welcome to our 6 monthly first half presentation. We have quite a bit to get through this afternoon, so I hope you bear with us and you will find it useful. I'm joined this afternoon by our CFO, Giles Lee, and you've met Giles many times now. But we've also got the CEO of both of our Mongoose and Bray Leino businesses, Chris O'Donoghue and Kate Cox, and they will also take you through a little bit about the changes that have occurred most recently in their businesses. I'm sure you will find it extremely useful to hear from them, and it will be good in terms of future reference as well that we will bring more and more voices into the room. So you will see a wider range of the leadership team and the strength that we have built across the group. The half year results are a good set of results today, I'm pleased to say. It shows that we're delivering against our strategy that we set out earlier in the year, and we have started to translate into significant improvement in profitability. I'll start by touching on the headlines of what we focused on as an executive team over the past year and particularly the past 12 -- 6 months and where the group is today. Giles will then take you through the financials, and we'll end up after Kate and Chris talk about their businesses, we'll end up talking a little bit through how we are delivering our strategy and what's more to come. So if we start by talking about the Mission Group, and I'll try to focus a little bit on what's different and what we've done and what's changed that I believe will start to improve significantly our performance, not just now but into the future. The first thing I would say is that we are building on a strong foundation of client relationships, customer relationships, our people and the strength of the offer that we deliver. We talk a lot about the resilience of our business and also the loyalty of our -- the relationships that we've created with our clients. And I'm really, really pleased that, that continues and continues to strengthen, particularly as I know in the first half of this year, we've seen a lot of change in our business, a lot of change in our organization as we try to simplify the business. What has been extremely pleasing is that has actually enabled a much stronger performance and a better relationship with our clients and also a stronger culture and morale within our business as we become more one team. When we talk about Mission, I want to be clear what Mission is to me. Mission is the enabler of strong performance. It's the enabler of investment. It's the enabler of transfer best practice. Our business strength comes from the different pillars of our business, and you'll hear from Kate and Chris today a little bit about their business, and I promise you will hear more from them in the future. But what I really want to try and really strengthen is that actually as an organization, we are an enabler. We want to launch forward our business, not to hold them back. And we want to become an organization that has a global presence and ability to reach but is agile. We are not bogged down or held back by overhead or organizational constructs that we need to support. We are held back only by our capacity in service of delivering to our customers. The 3 themes that we talked about in our comments at the last meeting, you will keep to the level of potentially bored of hearing about this is simplicity, prioritization and growth. Because my belief is when you build a relationship with your investors and a contract with your investors, you have to deliver against what you promise and you have to be consistent in what you say. And so therefore, those themes you will hear again and again through today and how we're doing against them. I hope you will find that we're open and honest about that. It's not all about just the good news stories, but it's about the potential for the business and how we have brought those areas to life. And I would also say before handing over to Giles, this is the start. We are not declaring victory as the gun goes for the race to start. We actually have a level of confidence but humility to know we have a long way to go. And I hope that gives great encouragement to you as our investors as well. But this today isn't the end game. This is building the foundation to give exceptional growth to our clients, to our employees and to our investors in the coming years and the coming months. So we're not saying it's a long term, you have to wait 5 years. We expect to see these results immediately, but actually to build on them and to continually to build on them. The last 12 months has been a material reset for the business. We've completed our strategic review. We are clear what the strategic objectives of our business [indiscernible]. We're also clear what we're good at and most importantly, what we're not good at. We're clear what businesses we want to develop and prioritize. We're clear that the simplicity and the cost base of the business is something that needs to be continuously addressed. We will never charge our clients for our inefficiencies. We will always be ruthless about how we spend our clients' money and how we invest it in our business. And yes, our cost base has materially reduced, but more importantly, our processes and our operating systems have become simplified in service of a better offer and delivery to our clients. We know what we're good at. We know how to grow our business much more now than we ever have. And as you will see from Kate and Chris being here today and how we've restructured the business, there is a leadership and accountability that is clear across the organization. We have CEOs in the business from Adam to Kate, to Chris, to Kelly, who own their business and who actually have the authority and the support for me and the Board to deliver against it and the expectation that goes with that. You'll hear from Giles about a balance sheet that has improved. And you'll hear from me later about the growth opportunities and aspirations we have for the business. Simplification is in service of growth. It's in service of delivering higher profitability, higher returns for everybody. And I hope you will agree by the end of this presentation that, that is where we are. So with that, let me hand over to Giles, who will take you through the financials.

Thank you, John. Hi, everybody. So the first half performance for the group, as John said, it has been a positive one and certainly in line with where we hoped it would be as we were going through. The sales [indiscernible] the profit and loss for the first half bottom line is a 43% increase in headline profit before tax. How do we get there? Well, we start with actually a 3% revenue decline in the first half year-on-year, and we'll look at where that comes through by segment in a second. But for those new to the group or just to remind those who are not, the group benefits massively from very strong client retention statistics. So well over half of our income is derived from clients with whom we've worked for more than 5 years. That gives visibility and it gives robustness to our revenue line in tough times. Now against that revenue decline, as John alluded to, we have good work into the simplification of the business. You'll hear more about that soon. That has led to a reduction in the first half year of operating expenditure of GBP 1.5 million through primarily headcount reduction, but also through rationalization of some of the property estate that we work with. Those 2 things combined actually drive up operating profit. Operating profit is up 15%. And clearly, that along with that comes an improvement in our margin in the first half year. Interest charge is slightly down, earnings per share up 1/3 versus the first half of last year. We did have some adjustments, as you can understand, primarily around restructure costs that went with the simplification program that we have been through. You'll know as well that the first half year versus second half year were quite weighted towards the second half year. But compared to other years, we go into that with some confidence because -- more confidence really because, a, the cost savings are delivered and we can see them play through for the rest of the year. And we've seen some strong new business momentum in the second half year. You'll see some new names on our roster already. And so we feel as a group we're on track to meet the headline operating profit margin expectations laid before us. How does that play out from a segmental point of view. Now we've -- just again, to guide, we've changed our segments a little bit now to align with how we have structured the business. So you can see there that we have Bray Leino, [indiscernible], we've Speed, we've Solaris, we've ThinkBDW, Mongoose that will replace the market segments that we operated before. Now within those, every business is in a better place at the end of the first half than they were at the start of the first half from a financial reporting point of view. Whether that's within Bray Leino, where we've seen the majority of the revenue decline that's symptomatic of the marketplace that, that business in particular is dealing with. But against that significant operating expenditure reduction came the simplification as we brought all the brands together and reduced headcount accordingly. Those 2 things combined have driven up the operating profit. So margins up, operating profit up in that segment. Moving across to ThinkBDW, similar to that, to Bray Leino, again, in a difficult marketplace, revenue a little bit down, have taken some operating expenditure and pretty resilient, slightly down profit-wise, but in a marketplace, as you can understand, is particularly difficult at the moment, well placed as the market picks up to accelerate. And again, that's a business that has made GBP 1 million in the first half of this year in a really difficult marketplace. The other side of that, Mongoose, it is a marketplace that is growing, and we are growing with it. And the investments that we have made in headcount in that area are paying off, and you can see that through an improvement in revenue alongside an improvement in profit and margin. And then some smaller operations, [indiscernible] Solaris benefiting again from the simplification and operating improvements that we've made to deliver improved profits. As John said, debt reduction remains a priority for us. Strengthening the balance sheet is important for whatever comes next. And I'm pleased to say that debt has reduced by GBP 4.4 million year-on-year. That is partly through lower bank debt, which was reduced from GBP 13.7 million at the end of H1 2025 to GBP 11 million at the end of H1 2026 and importantly also through reduction in earnouts, outstanding acquisition obligations, which reduced from GBP 2.5 million last year to GBP 0.8 million this year. And of that GBP 0.8 million, the vast majority of that, all of it is settled in the second half of this year. So from a cash generation point of view, we're getting to a point now where our operating cash flow will flow well into -- straight down into cash generation. And again, our cash flow management is strong and disciplined. And if you compare -- we always have a cash outflow in the first half of the year compared to the second half of the year. And that is obviously because our profit is lower in the first half and historically, our acquisition obligations in particular and also tax phasing tend to hit the first half of the year as well. But year-on-year, you can see here that cash outflow of GBP 2 million this year compared to GBP 4.2 million last year. And that is primarily through less acquisition obligations running through the business. Pretty much finally in terms of financial statements, just on the balance sheet, and it is a stronger position than it was. The lease liabilities have reduced, the debt position has reduced as well. The leverage will reduce as we go through the year. And just to give some guidance, I guess, on our expectations around the level of debt that we are comfortable with, below 1x, but we don't need to be 0x debt business, but somewhere between 0 and 1x EBITDA is kind of where we want to settle out. And we're comfortable with the way things are looking that we will be there by the time we get to the end of this year. Capital allocation priorities. Again, this is obviously an important piece of everything. And this will link into -- you're going to see after this point. So job one, investing for growth. And here, that's twofold. That's one, investing organically where we can see clear demand, attractive returns straight away, strategically clear. That can be as simple as employing people that we know are in a rich [indiscernible] not at least within the Mongoose business. Where we want to turn our attention once we're comfortable with the strength of the balance sheet is into targeting value-added acquisitions in particularly in priority markets, particularly at the moment, we're thinking of the U.S. and sports and events. And our ambition and our aim with acquisitions, it's important to say it's not just to bolt acquisition on and drive scale for scale's sake. This is about bringing in businesses that we can make a difference to and we can actively add significant value to along the way. We're always looking at the portfolio as a whole. And within that, the potential to recycle capital through potential disposals is always there. That has to be done at the right price at the time that suits us, not anybody else. But clearly, as we look to simplify, we look to prioritize, that's always going to be something we want to consider. Finally and importantly, shareholder returns. Dividends are paused now whilst we keep the balance sheet strengthening position going. We understand how important shareholder returns are in the whole mix. And we are keen as a Board to review that all the time and ideally bring that back in place in 2027. Fundamentally, we are constantly monitoring capital deployment and trying to balance investment and balance sheet strength all at a time. One small thing just before I hand back over to John. You'll see we look to change the year-end date. Now we have -- quarter 4 has always historically been a big quarter for us and there's significant weighting exposure with that. We previously thought of moving to 30th of September as our year-end date. First, we want to revise this to the end of June 2027. Two key reasons for that. One, it enables us to have cleaner, more meaningful comparisons. So we're not trying to suddenly bring in a new quarter. We are swapping basically swapping the first half to the second half. I think for everybody involved, that will make things easier. It also enables us to quickly and easily demonstrate the group's turnaround. So where we had a difficult quarter post 2025, that will be left in the prior year and won't be part of the current year. And so we can leave that and quickly demonstrate to everybody the progress that we're making, in particular that obviously deals with historically [ outlook ] phasing. John, I'll turn it back to you.

Thank you very much, Giles. That's extremely helpful. And hopefully, I'm sure people will be really clear on where we stand. I think one of the things that I'm very cognizant in this role from a business perspective is you can talk a lot about inputs and you can kind of put great presentations to inputs. But unless you can answer the so what question, it can be irrelevant. It can just be a good investor presentation. And so what I want to be real about this in terms of what we have done, the impact that it has in terms of the performance of the business and what it will mean going forward and so talk a little bit about the outlook. The structural change to commercial value in terms of what does that mean? It means that our OpEx is down 5%. And as we alluded to earlier, we will continue to work on that. We need to reduce the breakeven of this business. And I think what that figure hides quite well is actually we have saved significantly more than that. We have saved about double that in terms of cash cost of the business, but we have reinvested up to half of it, over GBP 2 million back into the business around AI, around creative and new people coming into the business. So this isn't about how do we just keep taking people out. This is about how do we reallocate and how do we take the cost out so that we can put valuation in where it is best placed. And that's the same with what Giles talks about portfolio as well. We will always look around where is the best value in our portfolio and how do we align the portfolio around that. The simplification has given a stronger margin because we reduced our cost base. It has also though helped us prioritize our business. And it's not just as Kate will talk about that having one brand. That's the easy thing, what's the hard thing is about how and what Kate has done to actually prioritize the business segments, the segmentation of the business, the offer to those segments and to be really clear how we make money and where. Chris, on the events and sports side has made huge progress around the prioritization, looking at derisking some big public sector business at very low margins and going after the sports and the private sector where the margins are nearly tenfold, where there's a much bigger opportunity and where frankly we bring much more value and where it plays across the whole group. And so that's what prioritization means. It means saying yes to stuff and investing properly in it. It also means saying no to things as well and de-escalating, derisking those areas for the business, so we really are clear going forward. The margin we've talked about for a long time has been too low in this business. This is a good start. It is only a start. We have a long way to go to significantly improve that. But the work that Chris and Kate are doing, not just about cost reduction, but about new values, new offers, new capability in our business, new geographies in our business, will see over time a much better momentum around that. And the investment piece is important. It isn't about cutting, cutting, cutting. It's about growth. We have been very clear with an aspiration that at least 20% of our gross profit over the next 3 years needs to come from products, services and areas that we don't service today. That's about not just business momentum, that's about business innovation. And whilst we hold the businesses responsible for growing each of their areas, we also are developing and have developed a growth agenda outside of that to look at areas that we wouldn't look at to areas that actually we can invest in, and we've seen some of that investment in the first half of the year. But we have a strong pipeline, something we didn't have 6 months ago, something we didn't have 12 months ago, but a strong pipeline of areas we can invest and we can grow in, that we don't develop today and that give us significant opportunities. Now let me be clear, not all of them will work. And I will sit here many times and say, if we can make 60%, 70% of them work, I will be happy. But we will be a business that takes risks and we will be bold about what we're trying to do, and we will back and support people to do that. We are not going to be a risk-averse organization that is just looking to take cost out. The simplification is clear. We simplified our structure. We have fewer layers. There is lower cost. There is clearer accountability. But most importantly, there's quicker decisions. The layers in the business are -- whilst everybody is doing a great job and what everybody comes in to do and add value, the more layers you have, the more difficult it is for us to react quickly and properly to our clients. We are taking those layers out. We are trying to make sure that the clients are key focused and that we become what I would describe an outside-in business. We're not creating a solution and going out and looking for a problem. We're understanding what our clients need. And when people talk about our industry as an industry that's in decline, and that's an industry that is struggling, let me tell you the problems our clients have now are bigger, are more critical, are tougher than they've ever been. We are aiming to be a solution mentality business. Those problems are just going to get worse. And we have to be the enabler. We need to be the disruptor, not the disrupted in our industry. And to do that, we need to solve our clients' issues. Those are not going away. And when we talk about growth, that is where we see growth in the market. Don't let anyone come away and say, well, this is a dying market. Our clients need us more than they've ever needed us. What we have to do is be relevant, be effective, be cost effective and be agile. And that is what as a business we're trying to do as we simplify the organization. We have a long way to go. We have to look at flexible resourcing, common platforms, leaner shared services, but we have a great start. And through Mission Hubs on our common platforms, we don't just rely on what we have. We have now created much deeper and stronger strategic partners with key businesses around the world where we are sharing and developing solutions more than we have ever done. It's not just about sharing best practice. It's about really working together to win and be agile in this market. Our agencies are clear now. We have 3 big agencies: Bray Leino, Mongoose and Think. Speed and Solaris are great businesses in their own right. But what we have done across the 3 agencies is have new strengthened leadership teams across those businesses, clear accountability and driving better performance. In our Speed business, we've seen great progress and Kelly and the team have done a fantastic job in actually winning new accounts and working across the group. They have been a great conduit for us in terms of how we get the value across The Mission Group. And in Healthcare, Claire and the team have rationalized the business, as we've seen in the first quarter, we -- first half, I should say, really driven a profit and accountability mentality. But today, you're looking at our business and where our biggest wins are, Bray Leino, Mongoose and Think. And particularly, we've seen significant changes in Bray Leino and Mongoose. ThinkBDW with Adam and the team have been incredibly resilient. But don't take that as boring. That is resilience in the face of a tough market and most importantly, innovative in the face of a tough market. That is the only way they have continued to grow their business. Our biggest change, though, I want to introduce Kate and Chris to talk a bit about what they have done in Bray Leino and Mongoose.

Thanks, John. So hi, everyone. I'm Kate, and I run Bray Leino. And I've actually been at Bray Leino for 27 years, which is pretty unusual in our industry. So in my role, I oversee the agency across all of our services, from media and data to creative activation and across our core verticals, which include health care, FMCG, automotive, industrial, retail and professional services. And we're really proud to have some amazing and long-standing clients such as Aviva, Post Office, Novo Nordisk, and Castrol, and a few of them. So Krow and Bray Leino are 2 strong integrated agencies in their own right, and we recently brought them together under the Bray Leino brand. The reason we brought them together is simple. We have a relentless determination to find the best possible solutions for our clients. Our clients are increasingly facing really complex challenges and they need partners who can connect thinking across the whole customer journey. Bringing the businesses together, then we can put the right specialists around the right client problems. So we've now got broader capability, deeper expertise, and more scale. So we're a team now of over 300 people with the skills and depth to tackle really big, meaty, complex challenges. But importantly, we're still small enough to be really agile. Bringing the businesses together has also been really, really great for our people. They get more opportunities to learn and grow, and I've been actually thrilled by the response we've seen to the merger internally. You can really feel a change in energy around the business. So we've got a new mantra. So our new mantra is Create Better. We want even better results for our clients and even better opportunities for our people. And with AI helping us do it more efficiently and more effectively, we will create a better business. So we've now got a great new team, one brand, one ambition, and clients are already using us for a broader range of services. For example, our media and data teams are now working across more clients than ever before. It's a really, really exciting time. Thanks, and I'll hand over to Chris.

Thank you, Kate. Hello, everyone. I'm Chris, CEO of Mongoose. So I was brought in about 10 years ago by Mission to build a start-up sports marketing business. And I'm delighted to say today, we've really created something that can genuinely capitalize on the growth of live sports, live cultural events, live music, the in-person fan experience. And last week, we announced the bringing together of Mongoose and Bray Leino Events. And we did that for 2 reasons really. One, because clients are genuinely looking for end-to-end delivery, from sponsorship strategy through to compelling communications and world-class live experiences. And the second reason is because both businesses were doing events in some shape or form, albeit perhaps different sectors, different scale, but event management in some shape or form. So it made so much sense, and there were synergies along the way. So we combined Mongoose sports experience in comms, sponsorship and experiential with Bray Leino Events, global live events, trade show and exhibitions experience. Making now what is 175 specialists delivering across 3 core disciplines, which are sponsorships, communications and experiences. And those teams are delivering over 250 activations across 35 countries around the world. In a minute, John will talk a little bit more about launching in the U.S. to deliver for our clients alongside London, Riyadh, and our Singapore teams. And so far, it's been a pretty good reaction from clients, albeit it is very, very early days. One strong example is Amazfit, the smartwatch and fitness tech brand. But 6 months ago, we were briefed on a PR scope for Amazfit. But now, because of this merger, we are able to deliver the full gamut for them, sponsorship strategy, communications and social, and events all across Europe and now, the U.S. So it's a great example, and I'm sure there are many more to follow. Thanks very much. Back to you, John.

Okay. Thank you, Chris and Kate. I'm not sure how I follow that, but let me kind of try and put extra stuff together, and I think we've covered a lot of it. So I will try not to repeat myself. But in terms of prioritization, we have the clear rewards, as you've heard from Kate and Chris, and stronger leadership and better performance visibility and accountability. But what's next? We need to continue to drive the Bray Leino recovery. We need to sustain the BDW performance and continue to innovate in that area. We know it will remain challenging, but actually, the transition there to an AI-enabled business and a digital business has been a huge shift in the last 12 months. And Alan and the team have delivered exceptional opportunities and performance on the back of that, and there's a lot more to come. And maintaining our portfolio discipline is really critical in our priorities. We need to look after our clients. We need to ensure we give them what they value, and we need to make sure we understand what that value is, rather than just giving them a lot of stuff. And I think that's really important as we grow and prioritize our offer and our investment. In terms of the next slide, which is investing and growth, I mean, you've heard at the beginning of conversations with Kate and Chris, and you'll hear a lot more from them at these meetings in the future, about the opportunities in Mongoose, and I will talk about the U.S. in a moment, but Kate in terms of what they're doing to grow the Bray Leino, the agency piece and the new clients, which continually come into us and show a really positive reflection on what Kate and the team are doing. We also have a growth area under John Quarrey, who's our Chief Growth Strategist, who is looking at that 25% or 20% I talked about earlier of new products and services. And that pipeline is starting to come to fruition, and we will see as early as the first half of next year, the first quarter of next year, the value and the benefit of some of those new offers in our marketplace. And I know you will be as excited as I am around that, as we develop that strategy of 25%. But that pipeline, working with other agencies, the new products, the new services, the IP that we have that we have never utilized is really important. Chris talked about the U.S. And having lived and spent a lot -- most of my career in the U.S., what I want to be clear is this is not us just going out to try to conquer the U.S. This is transitioning from a U.K. business doing business in the U.S. to a global business and doing business in the U.S., and a U.S. business doing business in the U.S. And they are fundamentally different, and we already see that in it. We have the connection. We have the opportunities there. But by being based there and having a U.S. team and bringing the best of what we have here and the best of who we are here into the U.S., under Chris and under Kate here earlier, but particularly around the Mongoose in New York in the short term, there is huge opportunity. And it is a huge transformation to our clients in the U.S. and a transformation to our business. Opportunities there are huge. They're a multiple of 10x the opportunities we see in the U.K. They are not easy to get. I know I hold Chris accountable to getting lots of them, but let's be realistic here. We will fail in some of those opportunities, but actually, we need to be in, we need to be playing it. And we need to believe and have the confidence and have the prioritization and the investment to give ourselves the real opportunity to deliver there in the U.S. just as we have to do that across the business and the B2B business under Kate as well. But the U.S. is something you hear more about. It is one that we are doing with confidence, with humility, and with a real clear view of what can go well and what can go badly there. When we do it, we will do it, and we will grow that business, I have no doubt. There's a lot of questions around AI, and I'm not going to spend a lot of my time talking about it because I think we could go down lots of rabbit holes on this. But here's our position on AI. AI for parts of our business, particularly our agency, et cetera, is an enabler around simplification and it's an enabler to actually grow. In some of our businesses, like Speed and like our property business, ThinkBDW, it's actually a product offering. It's an IP that we have that we actually can go out and we are market leaders in. And in our Sports and Events business, it's somewhat of an enabler, but also, we recognize and one of the great things about that business is there's not anytime soon that we'll all be wanting to watch AI versions of our favorite football teams or whatever. It is something that we're seeing investment in. We're seeing a lot of opportunity in. And I won't say it's AI proof, but it's actually, certainly, a smaller level of AI enabling than we've seen elsewhere. Finally, for me, I believe, 2 more. We have 4 growth engines. Every part of our business is expected to grow. Bray Leino around retaining -- restoring sustainability and profitable growth, Mongoose, the U.S., but all other areas of the business as well as with BDW and Speed and [indiscernible]. We expect each area to grow in different ways and at different paces. But all of those businesses remain in our portfolio because we believe in them, we can believe we can double their profitability over the next 3 years, each individual business. And finally, I hope you will agree what you've heard over the last 35 minutes, is a business that has a new sense of confidence around what it's doing, but a sense of humility about the lessons we need to learn as we go and the lessons we've learned from the past, the importance of embracing what we do well and the importance of learning from what we've gone wrong, the criticality of being close to our clients, being close to our investors and, most importantly, being there for the people. We talk about cultural change in our clients and how we enable that. We also are very aware that is something we're doing within our business, bringing energy and becoming a world-class organization, not just delivering world-class solutions, but being a great place and world-class place to work and delivering world-class returns to our investors. That is our stated objective. We are clear what we are here to try and do. And what you will hear in the coming sessions as we do this is how we are progressing against that, and I believe and hope you will be on that journey with us. I would finally just like to recognize my team, and everybody across the Mission Group, of the amount of change, the amount of stress we have put people through over the last 6 months along this journey. It hasn't been easy. It has been tough on everybody. And I am grateful that people have done it with a positive mindset, with a supportive mindset. But I also know for them and the family, it has been extra work. It's been hard work. And I hope for them, and I'm convinced for them and for you, the benefits are there to come for many years. Thank you very much for your time. And I'll now hand back to Jake, and we'll take any questions.

[Operator Instructions] I would just like to remind you that a recording of this presentation along with the company slides and the published Q&A can all be accessed via your dashboards. Guys, you can see that we have received a number of questions. So if I may now hand back to you to address those where appropriate to do so. And if I pick up from you at the end, that would be great. Thank you.