Trifast plc (TRI) Earnings Call Transcript & Summary

Good afternoon, ladies and gentlemen, and welcome to the Trifast plc Half Year Results 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 will review all of the questions submitted today and publish responses where it's appropriate to do so. Before we begin, I would like to submit the following poll. And if you could give that your kind attention, I'm sure the company would be most grateful. I'd now like to hand you over to CEO, Mark Belton. Good morning, sir.

Thanks, Jake, and good morning, everyone, and welcome to Trifast's half year presentation. And before I begin, I would like to introduce 2 of my colleagues, who will be joining us on the presentation today. The first is Andy Cooksey. Andy joined us in September this year as an interim CFO. Andy hit the ground running, and along with the finance team, has enabled us to present the information today. And the second person is Dan Jack. Dan has been in the fastening industry for well over 25 years and has a wealth of international experience. Dan joined us in June 2020 as Sales and Commercial Director. And pleased and delighted to say that Dan has been promoted this month to Chief Operating Officer. So without further ado, if I can move on to the next slide, which I'll give you an overview of the company. Okay. So just a very quick overview, if I may. We were formed in 1973 and listed in '94 on the London Stock Exchange. We are an international specialist in the design, engineering, manufacture and distribution of high-quality industrial fastenings and category C components, principally to the large global assembly industries. We have a fairly well-balanced sector spread, which you can see here. And then if we move on to the next slide, it will give you an indication of what the market looks like. It is a highly fragmented market valued at around GBP 60 billion and is not dictated by any one player. Our core strategy is working with our global OEMs and Tier 1s to get our parts designed in at the early stages, and then where we can, we try to manufacture those parts ourselves. And then from that, we get our parts designed in, we try and manufacture those parts, and then working with global customers, we are able to go across the globe to each of their sites in the 4 regions that we have. If I can go on to the next slide. We have 34 locations worldwide, split into 4 regions, and that is the U.K., Europe, Asia and the U.S. 75% of our revenue comes from customer-specific, branded or licensed parts, and I think that's a key thing to point out. We have 7 manufacturing plants and currently, these represent around 30% of our revenue. And finally, we have well over 5,000 customers, with no one customer being more than 7.5% of the group's revenue. Moving on to the next slide. I'll give you the highlights of the first half of the performance of Trifast. As you can see, revenues have increased by 13.5% to GBP 117.8 million, and this reflects the market share gains that we've seen. This has also been reflected in the GBP 12 million wins achieved in the period, which Dan can cover about later. Gross margins unfortunately have decreased in the period to 24.5%, and that's largely due to the lag between passing the high cost increases on to customers, which we will expand on later, and it will provide confidence looking forward of what we are seeing. An operational improvement program has already begun to drive recovery in the second half of this year and beyond, and this will include margins and delivering the necessary price increases and cost efficiencies, inventory and the reduction initiatives, and Project Atlas and that accelerated rollout. In addition, I will expand on a new exec committee that has been formed to increase agility and pace within the business. And what I would like to say is, currently, with the initiatives that we've already started, trading and margins are in line with our forecast expectations. If I can now hand over to Andy to run through the financial highlights, please.

Thank you, Mark, and good morning, everyone. So this slide shows the key financials. I'm not proposing to actually go through these in any great detail because I'll be covering them in the next few slides. However, the numbers and our performance in the first half of the year have been driven by 2 of the highlights mentioned by Mark in his last slide, firstly being the overall growth in many of our sectors, driving top line sales growth. And secondly, the substantial inflationary cost increases we are facing that's under lag in recovering some of these increases, which has resulted in reduced margins, profits, earnings per share and return on capital invested. It is important to note, however, that this lag in recovering cost is improving with time. Q2 was better than Q1. We're already seeing that Q3 is better than Q2, and Q4 will even be better. This will help drive improvements in all these profit numbers in the second half of the year, which probably brings me on to the one point, which I would like to talk about, is the is the last point about the interim dividend. And the Board, taking into account the ongoing activities and actions and the confidence they have in both the short term and the overall fundamentals of the business, have declared a 7% increase in our interim dividend to 0.75p. The next slide, next slide shows the bridge in our revenues. Our revenues increasing from GBP 103 million to GBP 120 million, showing a 13.5% increase at constant exchange rates and actually almost 16% when looking at actual exchange rates. The first item on there shows how successful we've been generating GBP 6.1 million in additional revenue by passing through the substantial cost increases we have faced by contract price increases and surcharges. We have been phased by some geopolitical challenges, as we previously reported. The direct and indirect impact of the Ukraine conflict has impacted our Italian business in particular and has reduced and reduced sales of circa GBP 1.3 million. And in the first 2 months of this year, we were also impacted by the COVID lockdowns in Shanghai, impacting our Chinese operations, which reduced revenues by again, approximately GBP 1.1 million. We've had good organic growth. This has generated just over GBP 6 million of revenues. Mark will go into this into a little bit more detail, but the [ many of ] the growth have been in light vehicles, general industrial and the energy tech and infrastructure sectors. We've also seen the good benefit of the acquisition of TR Falcon that was completed in August 2021, and North America now accounts for circa 12% of total group revenues. Next slide shows the impact on -- of our underlying profit before tax, the bridge between GBP 7 million in half year '22 to the GBP 5.5 million this year. The first 2 items on the bridge reflect the profit impact from the revenue movements that we talked about in the last slide. So the contract price increase is GBP 6.5 million flowing through to the profit and the combined impact of the organic sales growth, the Falcon acquisition and the geopolitical issues improved the profit by GBP 2.3 million. As mentioned, we have been significantly impacted by inflationary cost pressures, main items -- areas being commodity and raw material prices, people, freight and energy. And this has reduced margins by -- gross margins by GBP 7.5 million, a substantial amount having already been recovered by our price increases. Overheads. Overheads increased year-on-year by GBP 3.3 million. There are 3 major items of this. Firstly, the full impact of the Falcon acquisition does add GBP 0.8 million to our cost base. Secondly, we have invested approximately GBP 1 million in our central support functions to help drive growth in our business, especially in the areas of sales and quality. And thirdly, in line with a lot of U.K. companies, we have undertaken a major benchmarking exercise on our salaries that we pay to our employees, and this has increased costs, our overheads, by GBP 1.3 million. Next slide, please. Net debt bridge. So this slide shows the increase in our net debts. Our net debts has increased during the year from GBP 24 million to GBP 40 million, an increase of GBP 16 million. When we actually do strip out the impact of foreign exchange, then the net increase is GBP 13 million. Clearly, the standout item on this bridge is the continued increase in our stock levels, which has a cash impact of GBP 9 million in the period. And when you look at the balance sheet, taking into account foreign exchange movements, it has impacted GBP 14 million. The key fundamental driver of our higher stock levels has been our determination to ensure ongoing continuous supply to our customers amongst -- amidst the global supply chain challenges and almost chaos that's starting to exist with COVID. For the first half of this year, in particular, there have been 4 main drivers of the stock increase. Firstly, costs have increased, and that's impacted us by about GBP 2 million; new business wins, where we've had -- where we've had to actually build our stock to ensure that we can actually fulfill the new contract wins that we've won. There has been some volume increases of just over GBP 3 million, and we have seen some customers actually deferring some of their orders, arising from Microsoft -- microchip shortages, coupled with a decline in demand from our health and home customer base. We are working rigorously and actively to reduce our stock levels. And this, coupled with a softening in supply chain lead times and costs, should lead to a reduction in stock levels in H2 of this year and also into the financial year '24. Moving on to the last slide. The last slide talks about some key balance sheet figures. As mentioned on the previous slide, net debt has increased to GBP 40.4 million. We currently have facility headroom, including in accordion of GBP 50.5 million and an adjusted bank -- adjusted leverage ratio of 2.21x, comfortably well within the maximum covenant levels of 3x. Q3 and Q4 trading will help boost the profits, and along with a number of working capital initiatives, should see a sizable reduction in our net debt and adjusted leverage ratio prior to the year-end. We have working capital initiatives, which cover stock, debtors, creditors and also improvements in our internal cash allocation that comes within our global operations. I'll now pass on to Mark, who will take us through the regional operating reading.

That's great. Thanks, Andy. At a high level, on those slides, you can see that all the regions grew in the period, with North America growing the fastest by nearly 81%. A large element of this is down to the acquisition of TR Falcon, but even so organically, it delivered a commendable growth rate of 24%. Again, all sectors showed growth, with the exception of health and home, which I flagged at the year-end, which was softening. Light vehicles grew the largest in absolute terms, and it's pleasing to see the inroads we're making in heavy vehicle, which delivered the fastest percentage growth in the period of 41%. This, along with growth in other sectors, is creating a more balanced sector portfolio. I would say, frustratingly, the revenue could have been much higher, but it's still being hampered by semiconductor shortages, which is affecting production at many of the OEM manufacturers. This wasn't just across light vehicle, other sectors have been hit hard, too. A high-level estimate puts this deferral of revenue at around circa GBP 800,000 per month, and we are beginning to see it ease slightly, which obviously is going to be beneficial going forward. Just going into a little bit more detail, Europe has probably had the biggest impact. And I'm going to talk about health and home first. This is about 13.5% and had the largest impact on our results. As I said, I mentioned the softening that we were seeing in this sector as well as the impact of the Ukraine conflict. The indirect consequences of the U.K. conflict had a big impact on some of our global domestic customers more so than we anticipated. This had a severe impact on TR VIC and our Italian operation. However, I am pleased to report that those customers have been able to reallocate their production facilities, and we have started to see supply resume again. If we look at, for example, the ET&I sector, this delivered strong absolute growth mainly from our Hungarian operations, which specializes in this sector. This operation moved earlier this year into larger and more eco-friendly premises, and now gives us the capacity to grow the Eastern European region further. Likewise, as part of our core strategy, we have been working closely with a global power company, and I'm pleased to see that invoicing has started in the first half of this year with more exciting opportunities for future collaboration globally as well as utilizing TR VIC's manufacturing capacity. With respect to our vehicle, growth has been seen across the majority of the European regions, and these are wins that were made 18 to 24 months ago basically. And then finally looking at distributors, this was strong growth, 2 main reasons. We transferred EU distributors from the U.K. to Germany, which I mentioned at the year-end because of Brexit, and this will be completed by the end of this financial year. And also, we've done a competitive push of our own branded products with these European distributors, and that has been successfully increasing demand there. If we move on to Asia, the Asian region grew over 14% with the largest growth coming from Light Vehicle at 44%, and this was despite the Chinese lockdown for 2 months. We're also -- this was also boosted by an automotive OEM project that we've been working on for over 2 years with Tier 1 suppliers based in Thailand. And really, in contrast to Europe and the U.K., the home sector also grew in Europe and Asia by 18%, delivering a strong order book to one of our large domestic appliance customers. I can then move on to the U.K., which the new -- this group 5.5%. And at the year-end, I mentioned 2 large multimillion-pound contracts that we were working on. I'm pleased to say they would have been secured, and we've started invoicing in the first half of this year. So again, a good move in that area. And with regards to the heavy vehicle, we've seen an increase in material handling, equipment. But likewise, a rising -- a significant rise in orders in aerospace and defense, which should increase invoicing in the second half of this year. And then finally, with North America. 57% of the growth came from TR Falcon, which is performing well and is in line with our expectations and grew 20% on a like-by-like basis. General Industrial saw the largest growth. Our core strategy is to develop OEM customers globally. And we -- we certainly have -- on the acquisition, we received a new customer, which is growing locally in America as well as developing inquiries for the rest of the group elsewhere. And the same goes with a customer in the energy, tech and infrastructure sector, where, again, that large customer, we are beginning to invoice -- sorry, get inquiries for locations elsewhere in the group. This particular customer is a multimillion-dollar revenue customer, with an order backlog in excess of that revenue due to chip shortages, which is incredible. Okay, if I can then move on to the operating profit. This is key actually, and I know Andy has touched on it earlier. Underlying operating profit has been impacted largely down to the inflationary challenges and also some targeted investments into overheads. Of the 200 basis points drop, 140 of those basis points is down to Italy. Our operating market profit reduced from GBP 6 million to 5.1% compared to that 7.2% previously. The reason for that drop in Italy is that sales in that site had been severely impacted by the reduction in demand by the large domestic appliance customers, I mentioned, and this reduction had a negative impact on the plant's utilization rate. And coupled with a significant rise in input costs, such as energy and freight, resulted in a significant negative swing in the period of GBP 1.8 million against the prior period. To try and put that into perspective, pre-COVID, TR VIC's annual energy costs were EUR 600,000 per annum. Following Ukraine conflict, overnight, this went up to an annualized figure of GBP 3.4 million and certainly impacted us in April and May. The good news is that we do expect to get TR VIC back into profit again in the second half of the year, and that's passing on further cost increases to the global domestic appliance customers, through a process and a mechanism, which Dan can talk about. Lots of activities have gone on in the cost and production efficiencies to mitigate the inflationary costs. And although early days, we are starting to see a softening in the energy and commodity prices. The U.K. This is a mixed bag. We have seen price increases and margin increases in our distribution side. However, this has been offset by cost price pressures and contractual site at TR Fastenings in the U.K. We do expect these margins to recover in the second half of the year. Asia has been not as hardly hit -- hasn't been as hit hard with inflationary costs as other regions. But you can see there that the margins increased by 350 basis points due to higher growth rates to other distributors in Europe and North America. And North America, although it is still a small loss, we have seen a margin improvement of 270 basis points. And again, we expect to see margins improve in the second half of the year, certainly, as customer negotiations concludes and costs begin to suffer. I can go to the next slide, just to give you an update on strategy. There are 3 core drivers to this. Firstly, organic growth. The core strategy remains working with our global customers as a full-service provider, engineer our part in, and use our manufacturing and then distribute worldwide to customers at their global sites. Margin expansion, commercially and operationally, look at market pricing, cost and operational efficiencies and acquisitions to expand our global customer growth, risk and enhanced margins. All of this is wrapped up under ESG, which for me is about investing in the long-term sustainability of Trifast. I can go on to the next slide, please. We do have ambitious growth plans, and we need to protect the business against potential global recession. As a result, I recognize the need that for a pace and agility, we changed the reporting structures, created a new executive committee. There is only 6 of us in that committee to do a pace and agility, looking at targets, performance metrics and concentrating on those key areas. A key part of that is getting a team together that covers all the functions. That will be the new CFO, which I'm delighted to announce, Darren Hayes, who will be joining us on the 1st of December, a Global HR Director, the Company Secretary, the Business Transformation Director and Dan, as I mentioned earlier, our Chief Operating Officer. And with that, I'll now hand over to Dan, please.

Thanks, Mark, and good morning, everyone. Yes, I do want to talk on a couple of points on organic growth before moving on to our margin expansion activities. Firstly, it's without doubt, noticeable that disruptive technology is providing us with opportunities to expand our part portfolio. Our customers and our core markets are finding new opportunities to utilize technology, and as that happens or as legislation or public demand or the replacement of older technologies continues, we, our sales force, our engineering team and our manufacturing teams are able to help design in new products and higher profit margins with smaller competitive footprint. This year, we've seen a substantial increase in those type of inquiries. We are seeing a substantial increase in our wins, and our order book is already reflecting that quality of higher engineered components. The second element of organic growth is about regional and sector rebalancing. We're being very deliberate in our organizational design and our marketing activities to maintain and improve the sector balance. And similarly, we want to continue to deliver more poised revenue profile between key geographies. Now a key to that is the continuation of our investment in a global sales force, focused by sector and key customer and supported by a wider organization of our supply chain and partners, and we've invested in this significantly in the last 12 months. The successful completion of our Atlas program will be the icing on this particular cake as we'll be able to utilize the Microsoft CRM system, and that will help us to move away from a very manual process that we have today. Moving across to margin expansion. Firstly, and most importantly, we talked about price. And the key to this is for us to build pricing into TR DNA. We talk about pricing every week. We talk about margins across geographies and customers. Pricing is now within our weekly KPIs, and it's a core component performance review. And this is evident, frankly, as we've successfully concluded first, second and, in some cases, third round price increases. We're significantly progressed in remaining negotiations, mainly in Italy, as Mark has alluded to, and we expect to conclude those before the end of this calendar year, and those pricing will be effective in our fourth quarter of this financial year. We've got a range of pricing tools available to us as we nuance from customer to customer. We go from open book to surcharges to straightforward price increases themselves. Coupled to price increasing, we have niche products with increased margin potential. These products can be produced by our own manufacturing locations or by working closely with supply chain partners. We introduced these to our customers, and we blend the competencies of manufacturing, marketing, engineering and sales communities. And of course, a niche product by default has a smaller competitive footprint and a higher price and margin profile. We've spent a lot of time working on supply chain synergies. In this last year, we've overhauled our supply chain structure. We've created one voice to face our suppliers and through a consistent message, we're able to standardize and improve credit terms, into terms, pricing, rebate speed schemes, and frankly, place more business with fewer suppliers. On top of that, we've also worked with a flexible supply chain network to help us deliver onshore and nearshoring needs, and of course, improve our working capital by improving inventory terms along the way. To come alongside this, we've also focused a lot of time on intercompany. Intercompany spend is not a new initiative, but it's a deliberate metric. Again, we've woven it into performance reviews. Our sales communities and engineering teams and our supply chain teams are all committed to spend more money with ourselves, and I think the testament to that is we expect to see our intercompany spend increased from last year to this year by 20%. Mark's referenced operational improvement program already. We are going through a process, it's global and functional, where we look for synergy and sustainable cost improvement opportunities on our core operating model. We're taking action now that will deliver annual cost improvements, and this is captured in our forecast expectations to a degree. And coupled to this, we have a wider reaching program running in parallel, which we will be enacting over the next couple of years. Finally, before I hand back to Mark, I just wanted to touch on our manufacturing investments. They do allow greater capacity for us to reach higher value components to our end customers, bringing in niche products, and of course, it supports our supply chain synergies. We've invested in world-class machinery, and we continue to deploy lean manufacturing principles wherever we go and that enables us to win blue-chip OEM awards and pass all the audits that go through almost every week. Thanks, and back to you, Mark.

Thanks, Dan. If I can just give a very brief summary of Atlas. It's moving on swiftly. The final phase of TR Fastenings in the U.K., the largest and most complex sites, will be implemented in Q4. This means the whole system would have been fully tested, and going forward, we should be able to lift and drop this into other locations with only local, regulatory and accounting changes required. And this gives us the confidence that we can accelerate the rollout in FY '24. After this date, we envisioned that the Atlas' name will be dropped and then the new sites to be included would be just a business as usual implementation. It does mean some of the benefits we were expecting in FY '24 will be pushed out slightly to FY '25. And on the working capital, obviously, Andy has gone through that in detail. If I can move on to the next slide please, [ Adrian ]. Regarding acquisitions, I've mentioned TR Falcon, it's integrating well, and it's performing on a like-like basis very well as well. With respect to further acquisitions, ongoing discussions are being held with potential targets, but obviously, caution is being exercised at this moment given the current macro environment. And then with sustainability, there is a lot of work going into this, which you can find out more on our sustainability report on our website. But in general, you can see that we're moving in the right direction. We have been awarded Silver status from Ecovadis, which only 25% of the companies received, and an A rating from MSCI. The main areas to bring your retention that we're working on is very much around aligning our Scope 1, Scope 2 emissions reduction to science-based targets and then implementing a network of sustainability champions around the group, which will support those energy-saving initiatives. This leads me on to the next slide, which we all know how challenging it is at the moment, but it doesn't prevent us moving forward with our medium-term aspirations. You can see that the core strategy is working by taking market share, which gives us the confidence that we'll exceed those domestic products each year. With the commercial and operational margin initiatives that we've shared, we should expect to achieve 10% to 13% operating margin as we've done in the past. Capital investment and allocation of capital, coupled with increased operating margin should get us back to the 10% to 15% [ ROCE ]. And North America, as you know, is a strategic region for us, and both by organic and [ inquisitive ] means, we'll enable a better rebalance in the regions. And implementing Atlas by the FY '24 will certainly facilitate the group's future growth and margin expansion plans. If I can go into to the final slide, please. As you all know, macro and geopolitical challenges will continue. However, currently, as I mentioned, trading and margins remain in line with our expectations. Momentum is growing on passing pricing through to mitigate further cost inflation, which you've heard. Operational margin improvements have been identified and are being implemented for now and the future. We have put mitigating actions in at TR VIC to reverse the losses of the first half of the year. And hopefully, you've heard that the new Executive Committee has been informed to ensure all of the above happens at pace. All of this gives us the confidence for the future and our medium-term goal. With that, I think we can go to questions and answers. We have got a few in at this moment.

Mark -- Absolutely, if I may just jump back in there. And Andy and Dan as well, thank you very much for your presentation this morning. I will just bring back up your cameras there. [Operator Instructions]. I would like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via your investor dashboard. Mark, Dan, Andy, as you can see in the Q&A tab, we did receive a number of pre-submitted questions ahead of today's event, as well as a number of questions that have come in during your presentation today itself. So firstly, thank you to everyone on the call for taking the time to submit their questions. And guys, if I could just hand back to you to run through the Q&A tab to respond to those questions where it's appropriate to do so, and then I'll pick up from you at the end.

No, that's great. Thanks, Jake. I think the first one is, could you elaborate as to what the new Chief Operation Officer will do, which will speed up decision-making? And do you have the current example of [ that ] in practice? That's a very good question. I think the first thing is it's about having a smaller team in the exec committee. That exec committee covers all the functions that we need in the regions to be able to act quickly. That will meet on a frequent basis, currently on a week basis, and that will cover some of the key performance metrics that Dan alluded to, such as the pricing, such as stock reduction. And part of Dan's new [ image ] having reporting lines [indiscernible] report into him so that we can monitor exactly how each of those regions is doing and by location. That's one. The second question says, absolutely, we acknowledge that stock inventory is high and are working to normalize the inventory. Do you have an estimate of the running value of write-downs due to the obsolescence and a current budget figure for the full year? Andy, can I hand over to yourself to answer that?

Sure, okay. Thanks for the question. I think, first of all, I'd say that stock provisioning policy is aggressive or prudent from an accounting point of view. We're more aggressive for customer-specific stock than we are for the general stock. It's an area which the auditors at the half year-end spends a lot of attention looking at, and I feel very comfortable in our provisioning. We -- to give some figures for you, then the stock provision at the end of September is approximately GBP 10 million, which represents about 9% of gross inventory. And I think an important point is just because it's shown as we got GBP 9 million obsolescence provision -- sorry, GBP 10 million obsolescence provision, it doesn't mean that stock is obsolete. The vast majority of that will be sold and will be sold at normal prices. It is just a provisioning that we do to produce prudent and reliable sets of financial accounts.

That's great. Thank you, Andy. Next question is, you mentioned throughout the report medium term. Do you have a time scale in mind, or is this a broad, general view which inflects as figures become known? I think realistically, providing the world doesn't fall off a cliff, we are -- with initiatives that we are putting in place, we would hope to start seeing those margins get to where we wanted them to get to in -- during FY '25, to be honest. Obviously, if the world goes to hell in a handcart, then there's something that we'll obviously have to address, but no. That is our aspirations. This is from Tom. Thank you, Tom. You referenced significant benefits of Atlas that can -- were both expected and unexpected. Can you expand on the unexpected benefits? I think one of the -- and it's a really good example that came out recently when we're looking at the data, actually, of our sites. Here, we -- and this is just one example of picking up a part, and 1 part had 17 different suppliers with 9 different prices from those suppliers. Part of what we are looking at is, well, that's just -- that's crazy. You don't need 7 -- 9 suppliers. We can consolidate that down into 1 or 2 basically. And instead of with a fixed price and be able to negotiate with those 1 or 2 suppliers as customers are consolidating their supply chain, and thankfully, we are part of that supply chain and that consolidation process, likewise, we would want to be doing the same with our suppliers. And instead of doing small margins from each of our sites going to the different suppliers, we can have a bigger volume going to 1 or 2 suppliers and therefore, have better supply synergies in terms. So I think that's a key benefit going forward. So I think -- have your significant investors explained why they have punished the share price so much? That's a really good question. I think going around today or getting around this week, I think it's been quite therapeutic because we're able to explain where we are. I think -- I mentioned about trading is in line with expectations. I think at the half year, a lot of pricing negotiations kind of happened throughout the second quarter of the first half, and so we don't get to see those benefits that have been concluded in that first half. But we do get to see them in the results, certainly from October and looking at November as well. So I think for us, that's the positive. I understand the concern, obviously, with the margins dropping and the stock increasing. I think what we've got to do is to show how -- show the data on that in Q4 and show the success that we're making in that area.

There's another question.

So I guess, it's good to see the depth on the Board. What key strengths do to the new Board members have that will help strengthen the position of the company? I think if you look at the PLC board, we have Scott Mac Meekin, has come to the 10-year tenure. Scott has been really, really good to us, good for us. He has worked in our industry and has been very good from an industrial point of view and support on our strategic initiatives. We're really pleased to find Louis, who again has worked in Engineering Component business, gets pricing challenges and gets what we need to do. And having somebody as a CEO that has worked in that will be superb basically to -- as a sounding board to bounce ideas off. So no, I'm really pleased with that. Andy has done a great job coming in, but we have a new CFO also joining us, Darren. And again, Darren has worked in Rolls Royce as CFO and Goodyear Tire with huge amounts of international experience and really good practical hands-on working capital and margin enhancement initiatives. So again, we'll hit the ground running basically. I'm conscious now. It's 10 past, and if there's any other questions, happy to answer.

Mark, Dan, Andy, if I may just jump back in there. Thank you very much indeed for addressing all of those questions that came in from investors this morning. And of course, if there are any further questions that do come through, we'll make these available to you immediately after the presentation's ended for you to review to then add any additional responses, of course, where it's appropriate to do so. Mark, perhaps before redirecting those on the call to provide you their feedback, which I know is particularly important to yourself and the company, if I could please just ask you for a few closing comments to wrap up with? That would be great.

No. Well, firstly, thank you all for joining the call today. It is very much appreciated. There is quite a few of you on the call. And yes, I think from all 3 of us here, we really do appreciate it. And I think I don't think we're alone. It is a very challenging environment at this moment in time. But what I'm hoping is the presentation that we provided will give you some reassurance and the confidence that we are heading in the right direction. And with that, thank you all very much, and thank you, Jake.

Mark, that's great. And Andy and Dan as well, thank you very much indeed for updating investors today. [Operator Instructions] On behalf of the management team of Trifast plc, we would like to thank you for attending today's presentation. That now concludes today's session. So good afternoon to you all.