Velocity Composites plc (VEL.L) Earnings Call Transcript & Summary

Good morning, and welcome to the Velocity Composites 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 questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. And I'd now like to hand you over to the management team from Velocity Composites plc. Rob, good morning, sir.

Good morning. Good morning, everybody. So today, we have myself, Rob Smith, CFO; Jon Bridges, the CEO of the company; and Andy Beaden, Non-Executive Chairman. So I'd like to introduce -- start the presentation by just a quick summary of the numbers, and then we'll dig into a little bit more. Revenue, GBP 10.4 million, which is slightly down on the preceding half 1, but we achieved much better margins due to operational efficiencies and some price increasing flowing through from the tail end of last year, which helped us to achieve an EBIT -- positive EBITDA in the half, which is the first time we've achieved a positive EBITDA in the first half since the pandemic. And it's the second sequential EBITDA positive half. Cash, we remain positive. We've got GBP 1.2 million in the bank. And on top of that, we have an invoice discounting facility of up to GBP 3 million that we can utilize. So we've got a good headroom to see us through the next growth period. Jon, if I can hand over to you.

Thanks, Rob. I can't quite read that. But essentially, before going to the wider presentation, just a bit of an industry outlook. I know we get asked sort of questions about what we see from our customers and the sort of wider industry. So I think fundamentally, we're still -- and the industry still recognizes that aircraft production rates are below the sort of pre-pandemic levels. And really, there's been -- I think you've seen it sort of certainly in the public domain around sort of supply chain issues. It tends to get put into that sort of bucket. But essentially, we've got customers and ultimately OEMs trying to ramp up key programs like A350 against some of these sort of wider unplanned activities like the sort of separation of the sort of Airbus and the Boeing from the Spirit business and the reallocation of those facilities and production areas into the sort of requisite OEMs. That's been sort of fairly -- we feel it's been fairly disruptive from what we've seen and what our customers have sort of fed back. But again, we're expecting that to clear and a lot more clarity and then those key production areas under direct control of the OEM should help to the wider ramp-up activities. The wider non-composite supply chain, there's been some wider comment on that. But from what we see within composites, we see our customers are ready to ramp up. They've been at previously high rates. the suppliers that we work with are very ready and have been at high rates as well. From a composite perspective, we're ready to see those rates pull through. And again, from even recent orders, the order book of these key platforms remains very healthy and long term as well. So ultimately, we are expecting those rates to begin to ramp and flow through down to us. And obviously, as we said, we're ready and have the capacity to pick those up. Tariffs have been commented on with some investors and there is comment out there. But again, because of what we do and how we do it, we do need to be close to customers. So all our manufacturing is within country. And we deliver quite locally to customers and serve customers locally as well. So we've not seen any direct impact on tariffs. And as we've talked extensively before, all our material is flow through pricing. So any changes to that landed price of materials is part of the wider price negotiations that we can pass through as part of the overall contractual relationship within our part of the industry. And then in terms of wider new business, we are looking at progressing and picking up new contractual opportunities with both new and existing customers, and that has continued at pace. And as we've said previously, particularly in the U.S., a focus there on the defense sector as we look to rebalance across civil and defense through our portfolio. Looking forward a little bit, as I mentioned, we are hoping these ramp-ups. They were delayed from last year. Some of our customers did start to ramp. We've dealt with supporting customers through rebalancing their line of balance and their inventory following that and to get that in line with where they need to be. And we'll continue to work hard and support customers through that and deal with the demand fluctuations that, that creates. We want those ramp-ups to kick in. We're sort of looking to continue to forecast a flat on those key programs for this year, just really out of prudence having seen the ramp-ups delayed last year. But again, we would be welcome and our customers would welcome those ramp-ups to begin to buy and flow through into our part of the supply chain as soon as. Quite a lot of live bids, some -- well, different stages, some quite new, some progressing through to what we hope will be completion, both in the U.S. and Europe, and we'll talk about that later. And really capitalizing on our footprint now being in Europe and U.S. and picking up some of those defense opportunities that we see with some of the large suppliers in North America. And then we've had some smaller wins, and we'll continue to have smaller wins with existing civil customers, really offsetting some of those small declines in legacy programs as they come to a natural end of life. Next slide. So in terms of looking internally, in terms of U.S., we've got, again, continued good progress. We are very proud of the team out there and pleased with how they've adopted the Velocity way of working and continue to hit the KPIs where they need to be on delivery and quality. And that continues through as we onboard the remaining parts of those programs and they begin to work on other new stuff. Finished and completed the capital expenditure activities over there, particularly around the new large freezer farm that's been installed. So again, that U.S. site is fully enabled and operational to deliver on what is currently working on and plenty of capacity there for future opportunities. We talked about the quality performance and delivery performance being key, particularly as we manage these industry-wide sort of fluctuations in demand as people prepare, start to ramp, rebalance, move things around. So again, a lot of time managing that with customers as we should and working with customers to smooth that and feed that information through the raw material supply chain accordingly to ensure everyone is fully enabled. And then the new business continues. And again, pleased to see that supported as well from teams in the U.S. as well as they get involved in activities, particularly on some of the more controlled data activities, which U.S. nationals -- need to be supported by U.S. nationals. And again, it's all part of the overall evolution of that team and that site to be a fully integral part of Velocity and its wider operations. In Europe, as Rob mentioned the margin improvements, and that's been twofold really. One is not so much price increases per se, although we've had to increase prices really to catch up some of the inflationary costs that have occurred through previous contracts as we talked again in previous presentations. What we've done going forward is to make sort of those forward-looking contracts now annual price reviews to take into account any inflation, particularly around labor costs, sort of local labor costs, energy and finance costs, which makes sense to us and our customers. The other part of the pricing material flows through anyway. So again, purely passing on inflation, not overall price increases to the wider contracts, but again, pretty significant inflation that we saw that we've managed to move forward into the new contracts. And then also -- and just as, if not more, the activity and reward from continuing to drive our technology and implementation of Odoo to give us better visibility and real-time data analysis around our internal operational efficiency. That's both in labor and our total operational costs, but also material improvements, material efficiency improvements to help drive and sustain that margin as well. So again, pleased to see that flow through and the team to not only develop those tools, but also utilize them and to deliver a real improvement there in the gross margin. A350 ramp is importantly we've talked about, and we see -- we're saying there's no growth. Hopefully, there will be. But again, that depends on when those programs ramp. We want to make sure that we're supporting our customers on those and preparing. But again, we don't promise and our customers don't want to get another delayed ramp-up. But again, I think what we're starting to see is real serious opportunities now for that program to ramp later on this year as it needs to get to the levels that Airbus have already announced in order to meet the deliveries that are required. And then new business in Europe really focused around more business with existing customers, different sites, different programs at existing sites. And that's both in the U.K. and obviously, as we've evolved into Mainland Europe to support from existing facilities. I'll hand you over to Rob, who will take you through some of the financial detail.

Thanks, Jon, and thank you for bearing with us, everybody. So revenue, as I mentioned on the opening slide, we are down a tad, but that's as customers rebalance their lines, mainly on the A350 program where there was a surge to try to meet demand last year and then the OEM deliveries. That's now gone through, and we're in a better place on revenue. Gross profit, the margins improved, as we've already said, operational efficiencies and being able to pass some of the inflationary pressures, which we've seen over the last couple of years on to our customers. Administrative costs are up slightly, but we're seeing a much more benign environment in the last 12 months than the preceding 12, 24 months. And we've also been doing focused cost reduction activities to make us more efficient on administrative expenditure. All that has resulted in a reduced operating loss and the ability to post an adjusted EBITDA in the first half of the year. From a balance sheet perspective, bear with me. From a balance sheet perspective, the working capital is managed quite tightly. As you would imagine, we have -- we run quite a lean operation and part of our pitch to our customers is we manage the material much more closely than they are able to, which means we have relatively light inventory. Trade receivables is always managed carefully, and we have all our customers performing to terms, which is very good to hear in any business. Our noncurrent assets increased in the period. Now the main driver for that is we've swapped out some short-term temporary freezer storage in the U.S. for a fully installed freezer farm and that we've leased, but as it's a long-term lease under the recently introduced accounting standards, we have to capitalize that lease and recognize the cost on a monthly basis as depreciation rather than charging the lease cost to the profit and loss account in a normal way. So a bit of an accounting issue there. We haven't spent GBP 500,000 in leased equipment in fixed assets in the half. It's more like about GBP 50,000. So we haven't had a big surge all of a sudden, it's just moving to a permanent solution on the fleet of freezers. That's all resulted in modest cash reduction in the period down to GBP 1.2 million. And if I go to the next slide, you can see our progress on cash. So operating cash flows are positive. Movements in working capital are positive. We had a tax receipt for R&D tax credits, which gave us an overall inflow from operating activities. The cash used in investing is principally the freezer farm, as I've mentioned before, and the cash used in financing activities is the interest on the long-term loans, which are principally the CBILS loans and the repayment of the CBILS loan. So it's using the interest and repayment of those loans. You'll note that we're now down to GBP 734,000 of CBILS loan, and that will fully be paid off in 2026 -- in the second half of 2026. So we're making good progress on covering the COVID loans, and we have a good cash position. On top of our cash in the bank, we have a facility, which is up to GBP 3 million on invoice discounting that we can utilize if we are required to do so. I'll hand back now to Jon.

Thanks, Rob. So looking forward into H2, we should expect to see something happen in key programs like A350 production rates. You've got the sort of recovery of 737 production rates as well as those issues cleared through Boeing and an overall conclusion of this separation from Spirit, previous Spirit business as well. So again, the conditions should be there for these rate improvements. And again, they're also good for not only existing business, but new business as well as customers look to meet those rates by outsourcing and doing things differently. We're still working through the sort of final contractual program from our large customer in the U.S. That's had some prioritization challenges with the customer and the OEM. We accept that, but we are working through that a little slower than we all expected, including the customer, but we're supporting them through the wider program prioritization challenges. The 2 key elements to that. The first subprogram is nearing completion, and then we start on the second subprogram and still look to get that concluded as soon as we can. But that obviously brings through the sort of final revenue setting into that launch customer in the U.S., which we can move forward from as well. And in terms of the new business opportunities, we mentioned previously we want to rebalance between civil and defense, not that we're stopping any civil opportunities. We're just focusing some of those larger bid opportunities around defense to get that long-term balance. And those continues, again, at different stages. But again, as we mentioned earlier, supported very pleasingly by the U.S. team as they continue to grow and develop and really not only provide the day-to-day manufacturing asset that they are, but also the new business asset and the fact that the U.S. nationals allow them to work on some of the more controlled defense programs as we build that into our wider portfolio of opportunities. We also still see good civil opportunities, particularly where those rates start to buy, as you mentioned, as it does put constraints on customers. And also taking what we've learned from some of these prioritization delays and what that means to us and our customers and our focus on being that long-term supplier of choice for our customers, frustrating as those -- some of these program movements and ramp-ups are for us and our customers, we want to take that forward and continue to develop the offering as well. So we're currently completing some work on an enhancement to the onboarding process that not only brings clearer and quicker benefits to Velocity and our customers, but also mitigates the impact of some of those delays as well to really take those -- that evolution from what we've done so far and build that into the programs of the future. Still, there's a clear board targets around gross margin, EBITDA and return on capital. And again, I think you've seen good progress there with the underlying business. And we expect revenues in '25 to be comparable for the reasons we've mentioned. But again, that's all those is forecasting on contracted business. We do expect to make progress on new business as well, not just the smaller programs, but some of the larger opportunities that we've been working on. So in terms of summary, great progress on our internal efficiencies, great progress on working with customers to get some of those inflationary costs updated and again, building that know-how then into future contracts to allow it to sort of self-regulate a lot more similar to what we do with the raw material costs. As we previously mentioned, some further prioritization delays with the sort of onboarding of those final programs in the U.S. Nothing too concerning, nothing around what we do on our programs, really around the prioritization of some of the wider activities within those programs. Again, we're a long-term supplier. We'll work with the customer to get those through when resources allow. As I say, we're pretty much there with the first of those 2 programs and the second one will follow. And obviously, that will then form very strong revenues going forward on those programs and also brings us into a different area that we've not really served before, which is direct aeroengine components. A350 should increase. We've seen the targets from Airbus that they're looking to get to. And as I say, we're ready. We see our suppliers being ready and our customers ready and would like to think that those come through later this year, certainly into 2026 as expected. And we also -- we talked pretty much at the year-end, but also in our comments as well around strengthening our leadership team. We've seen the sort of performance improvements from the local teams at each site. And again, to complete that recruitment of our long-term COO with a real focus on operational improvement and growth within sites, utilization and driving through a real continuous improvement ethos through all our manufacturing areas. New business hopper still being worked at various levels. Again, nothing there concerns me in terms of the size and progress in that hopper other than, as always, this is -- these are big long-term programs and take a while to work through. We see good progress. We see some new opportunities come through as well that we didn't have at the start of the half, and we'll continue to work those both in Europe and U.S. and continuing that sustainment in profitability and cash generation as we complete the programs that we're working on and get back to full profitability, deliver on our contracted business and obligations and drive that through -- those relationships through with customers into new programs. Back to -- Andy, do you want to pick up on the next part?

Yes. Thanks, Jon and Rob. Well, everyone, just wait for anyone else who wants to put a question. And I will start. What I will do is go through the questions that we've had so far and share them and put them to Rob or Jon or if they want, I can answer any particular questions. So the first question, which is broken down to a number of elements, but really is asking about the safety of using carbon fiber within a factory environment, from fire and other, how it's kept and everything else. So maybe -- and it's also -- it's security and supply. So can you expect that there can be a greater demand in the aircraft parts, but can that be satisfied by the demand of -- supply of the fiber. So Jon, do you want to just cover off that area?

Yes. Thanks, Andy. So in terms of fire, it's not something -- we obviously have the usual fire safety activities. We take it very seriously. A lot of our buildings are very modern. Certainly, the infrastructure within them is very modern, lots of the usual around detection and prevention. We don't see any particular flammability concerns with the raw materials. Clearly, they're handled in a very sensitive way. We store them in freezers, airtight cold boxes with limited opportunities for fire to become a serious issue. But again, we never say never and our usual disaster planning activities will pick up those risks and mitigate them through predominantly prevention and detection. The raw material suppliers, I think because we inherit the raw material suppliers, we don't get a lot of say or sway in who those raw material suppliers are. We have very good relationships with them, particularly around managing demand. But in terms of their own fire safety, I think that will be ultimately between the OEMs who specify the raw material suppliers and the plants that each supplier is made in. And I'm sure they've got their own plans around being able to switch production between plants should there be any challenges there. We've seen it historically around if there's any particular quality concerns with materials, they're able to move the production around different plants to satisfy that within the specifications. So I'm sure they're all large, well-established organizations. They've got their own plans in place, but we don't get any choice around that and there aren't any second sources. What percentage? So yes, as we said as well, we've previously been at much higher rates pre-COVID. So again, I'm sure these plants have the capacity to hit those rate increases. And because of the lead times of raw materials, plenty of time for them to plan, obviously, for us to plan and the end users to plan to utilize those. So again, the time is baked into that, which is why we manage -- use our technology to manage such a lengthy supply chain. And in terms of location, sorry, Andy?

Yes, I was going to ask you just how we -- obviously, there's a lot of opportunity within Mainland Europe. We're based in the U.K. And maybe you could just explain how we would satisfy, say, larger contracts that might come through in Mainland Europe, particularly for customers.

Yes. I think what we've been working on over the last few years is more sort of hub-and-spoke type model where we have forward stock locations close to customers wherever they may be, even within country because they need stock to hand. So we may look to have 1 or 2 weeks of finished goods stock very, very close to customers, maybe even on site, but that allows us to do our bulk manufacturing wherever we can find the most optimal way to do that and utilize our existing capacity. So yes, that's the way we're looking at some of the current and new opportunities as we expand.

Okay. So what you're saying is it's quite easy for us to satisfy Mainland European demand through our current main investments in the U.K. Next question is just how are we using AI in our business. I guess the subtext to that is can AI benefit our business?

Again, we're starting to look at it with some industry partners around the demand management side of things. One of the things because of the -- it's probably on one of the appendix slides, actually, the ERP system, you can see we're having to manage customer demand, any demand changes through 6 months of material lead times and keep those aligned along with day-to-day short-term manufacturing changes from customers as well. So I think that's where we could benefit from and have started to look at taking the modules of our ERP system and utilize some machine learning there to preempt, predict and build more self-regulating real-time dashboards to keep control of all those variables.

Great. Thanks, Jon. Rob, do you want to remind investors of how much the management Board have invested in Velocity?

Yes. Thank you, Andy. It's about 12% of the current issued share capital is in the hands of the directors. The largest holder, obviously, is Jon as founder, but the other directors are building stakes in the business as we continue to develop. There is a program which we've got in place, which the nonexecutive directors, part of their remuneration is share-based and that enables them to buy into the shares in the company.

Yes. I mean, we offer the management the ability to swap some of their base salary with up to 20% equity if they wanted to do that. So the next thing is really -- we obviously, in the presentation and in previous presentations, have highlighted how Boeing and Airbus have these large backlogs and significant need to ramp up production. We give an example like A350, but there's multiple programs that need to have significantly higher production rates. And the industry has even struggled to get back to the previous rates that we were achieving. The underlying question really, which investors have been asking here is, okay, that's great for the end market demand. How will that turn into growth for Velocity? Is it on those current programs? Are we on them already? Or is it new business? Or is it both? So Jon, do you want to articulate that area of strategy and sales development?

Yes. So yes, where we're obviously contracted with customers on programs like A350, then the rate increases would flow through. I think as I mentioned earlier as well, we also see as those rate increases by and as we get past and back up to pre-pandemic production levels, we also saw that very helpful as well in terms of new business opportunities. just as customers' plans get fuller, get more constrained, multiple programs, as Andy talked about, ramping back up at the same time. It obviously makes customers and potential customers look for ways of meeting that demand by outsourcing noncore business. And as we've talked many times previously around our benefit is not just cost reduction. It's about getting rid of that inventory, getting rid of the floor space that doing this work internally and our customers takes up and allowing them to really focus on building the parts and getting them built and moved on and not to worry about the supply chain, which we manage with our technology and ERP system to drive efficiencies that way. So it's two-pronged really. We get a benefit from obviously our existing contracts, but also it helps the overall environment for outsourcing as well.

That's excellent, Jon. And we've had a question, which is saying that given our operational performance has continued to improve, and I'll answer this question, it's saying would we reinstate the formal targets and would we look at dividend policies in the future? And the answer is we would consider those things. Obviously, we've got the analysts who put out a forecast. And as most people know, that is done very closely with the company as well and becomes what we call the market forecast. So there is a forecast out there from the analysts, which tie into what work they've done with us, and that gives -- and the reason we got several analysts, it gives several points of view and opportunities for different people there to ask questions. When we had one analyst, we did put out some forecast ourselves. And when we've done some refinancing, we've done that to help the market. But at the moment, everything is aligned around that. There's nothing really hidden or anything. In terms of dividend policy, at the moment, it doesn't make sense because we need to reinvest any cash we have. Longer term, if we can get to the position we want to get to where you saw the financial metrics that Jon had explained around 10% return on capital, 25% gross margin, 10% operating profit margin, then we should hopefully get into a position where a dividend policy can be established. But I think that's a fair few years away when you consider that we want to have some big contract wins, which we want to be able to finance ourselves. The next question is around customer concentration. Jon, do you want to explain that? Obviously, we're trying to build out our customer base. So it's a fair point to say there is some significant customer concentration. But maybe explain how even though that does exist, the actual behind that is then the programs themselves are far more spread.

Yes. Thanks, Andy. Well, as you know, we do discuss it regularly internally, and it's part of what we manage. But whilst I think it's just a fact of life that all our customers are large multinational organizations who have -- whilst they might have one name and logo, they're very diverse sites in different countries. And then each of those sites have different end customer programs as well. A lot of them split civil and defense, multiple platforms as well. So if we look at that overall spread, it's much more palatable in terms of approaching it from a purely concentration risk perspective. But I think we also do have made a lot of progress in building those long-term strategic relationships with key customers as well. So we do have that senior level engagement, which means that as we win business, we then also look at other sites within that customer group and also more work at the sites as well. So I think the opportunity and the challenge for us is to just manage that risk across the program level rather than be too concerned about the customer concentration level. At the ultimate customer group level concentration level because I think it's the programs that give us that diversity and security of any impacts to any one program, not having too much of a detrimental effect to the sort of wider business.

Thanks, Jon. And the next question, as we all know, sadly, we've seen reported the crash of Air India, the 787, which is Boeing's largest plane. And Jon, the question here is if that investigation leads to some form of problem with the production, I guess, as we've seen with other aircraft where there may be some delay or anything else on that plane production in the future, which we have no -- we don't know if that would happen or anything. But clearly, we have seen it with other aircraft. They just said, if that came to light then would that potentially have an impact on our forecast going forward, say, for the next 18 months?

Yes. Like I say, Andy, we have no news beyond what's out in the public domain. Obviously, a very sad situation in terms of the human impact and it's something that certainly anyone in the industry works very hard every day on to maintain quality and safety. But the direct question there around ourselves, I think we have one program that supports a variant -- an engine variant on 787. Material impact-wise, just doing -- it's probably 1 million or 2 million, something like that. I mean it depends on the sort of the outcome of the investigation. But I think from my own personal reflection to see 2 engines fail at the same time is a very statistically improbable occurrence, and we hope that they find the cause quickly and the industry can move forward. But yes, it's I think one program we're on in the U.S., which supplies parts into 787.

Right. Thanks, Jon. So what you're saying there really maximum 10% impact of the worst-case scenario.

Yes, around those lines, yes.

The next question is really -- I think we've already answered, I've answered it and Rob, you've answered this. But it's just saying that clearly, we've done well now to get that gross margin up is actually above the 25%. But we are -- we do plan long term to run the business at, at least a 25% margin, don't get me wrong. But it's great to achieve above that at the moment. But clearly, at times, we've been below that when we've been on a catch-up in terms of price changes.

Yes. And the mix of sales as they come through affects the overall gross margin. But we're certainly bidding on new business at greater than 25%. And my expectation is we will be between the 25% and 30% going forward.

Yes. And I think we've mentioned Oli, our new COO. And there's no doubt that labor efficiency has significantly improved over the last 12 months. And that's what has been one of the great drivers to get us to the levels of margin, which we thought that we should be able to achieve with these contracts. Would you agree, Jon?

Absolutely, yes. Obviously, all our contracts are based on a customer saving, and we drive them and stick to them. And the focus now is on our own internal operations using the knowledge that Oli and the team have developed and continue to build on. And as the sites get busier, as rates recover and new programs start up, then we'd hope to see further operational efficiencies with scale.

Yes. The next question is really another question just on the Air India. So just I won't go into the details because I think Jon has answered that comprehensively. And it is not for us to speculate in a formal presentation about what the issues are. And we hope that these can be identified as quickly as possible, but our thoughts are always with the families and everyone involved. It just shows why we -- if you think about how we have had a few growing pains in the last 12 months bringing on board some of those last programs. And those last programs are on key elements in the aeroengine structures in terms of where the carbon fiber is used. And I think it just demonstrates that we go through a lot of regulatory checks and balances and having to work with our customers to get what is really just the first stage materials to be transferred to us. So hopefully, that does demonstrate to investors that the safety controls in the supply chain are very significant, and you can see how we have had to work through those and they get even more significant as they come into the final assembly and production and maintenance as well. So that's -- I feel all we can say on the tragic accident that we have just seen. I'm looking and I can't see any other questions that have now come through. So maybe just pass back to Jon to go on and give a final sort of thoughts.

Jon, Rob, Andy, thank you for answering all those questions you have from investors. And of course, the company can review all questions submitted today and we'll publish those responses on the Investor Meet Company platform. Just before redirecting investors to provide you with their feedback, which is particularly important to the company, Andy, can I please just ask you for a few closing comments?

All right. Sorry. Well, I think that from a Board perspective, we're very pleased about the operational improvements that we've seen in the last 12 months. Frustrated with some of the -- just getting the final programs in place that I've just explained now, when something happens in the industry and you realize why there is that a very, very tight regulation. And the way to turn this around in the thought process is it means it does actually create a very big moat when you are then providing those services. And in the background, I know it can be frustrating, but we have a lot of opportunities going on. It's just that there's a huge amount of engineering work that gets done upfront to satisfy a point where you can sign a contract. And it's only on the signing of the contracts, we feel that we should make a serious announcement rather than in the stages before that as it is -- there is always a timing issue. I feel that we will go back into serious levels of growth over the next 2 years on the back of both new contracts and the relationships that we've already developed now. And what I do see, and I'm really pleased about is customers and their customers actually referring new business opportunities to us. And that was always part of our strategy and hitting the U.S. in particular, to see -- to get known, and that's taken time to market ourselves to get around the new opportunities and to say we are here, we have a factory and we're ready to go. And there's no doubt in my view, in the last 6 months, in particular, we've seen very significant traction in that side of the opportunity. So I feel that it's a solid set of results in what was a very difficult market period with a clear improvement operationally, and it builds the foundation for further growth going forward. So thank you, everyone. Appreciate those that have invested [indiscernible] to communication with anyone and site visits if required.

Jon, Rob, Andy, thank you for updating investors today. Can I please ask investors not to close the session as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations. This will only take a few moments to complete, and I'm sure will be greatly valued by the company. On behalf of the management team of Velocity Composites plc, we'd like to thank you for attending today's presentation, and good morning to you all.