Wilmington plc (WIL) Earnings Call Transcript & Summary

Good morning, everybody. Welcome to Wilmington's prelim results presentation for the FY '26 trading year. I think I know most people in the room. My name is Mark Milner. I'm the CEO. Alongside me here, we have Guy Millward, who's our CFO. Thank you to Berenberg for hosting us today, and thank you to Berenberg and Cignus for helping us organize this session. Our presentations are being live streamed and recorded, and we'll be publishing these on our website and elsewhere. And for today, given it's an extended session, we're going to change the format slightly, and we're going to start with a short film. [Presentation]

Okay. For those of you who are new to the story, that gives you the whole group. We're going to move through the presentation this morning. And if I can just draw your attention to the safe harbor statement. And then on to the agenda. We have -- as I said already, we have a slightly different format today as we have an enhanced session. In a few moments, I'll talk you through the headlines, and then I'll hand over to Guy, who will give you the details on the financials. Then it's back to me again for the operational review and outlook. We'll then start the first part of the capital markets session. I'll talk about -- to you about RegTech and about AI and our activities and our plans. That's then followed by a Q&A on everything you've heard up until that point. And then we'll take a 15-minute break, and then we'll have the presentation from the Conversia team, and I'd like to welcome Alfonso, who's the CEO; and Jordi, who is the Chief Revenue Officer. You'll hear from them in about an hour or so from now. So if you're watching online, I will call out the page numbers. You have packs in front of you as well. So we'll move to Slide 4 for the headlines. In FY '26, we saw growth in 8 of our 9 ongoing businesses. Ongoing revenue is up 37%. Ongoing revenue growth held its level from the -- sorry, organic revenue growth held its level for the first half at 4%. Our new addition, Conversia, grew at 20% pro forma for the full year. That's 26% over the period of our ownership, which is ahead of our expectations. We continue to have very strong revenue profile with repeat revenue holding at 80% of ongoing revenue and annual recurring revenue up 6%, and it now makes up 38% of organic revenue. This increases to 41%, including Conversia. Ongoing adjusted EBITDA is up 33% to GBP 29.8 million. Ongoing adjusted PBT is up 15% to GBP 30.1 million. Over the last 6 years, which is our time as the executive team, our adjusted PBT has delivered a CAGR of 13%, with the increase in adjusted EPS, the full year total dividend is proposed to increase by 9% to 12.5p. Moving to the right of the slide. We continue to reshape and strengthen the portfolio with the acquisition of Conversia. Our U.S. events business, FRA was rationalized in FY '26 and now offers a smaller schedule of core events and the business continues to be held for sale. Throughout the year, we completed strategic reviews of Axco, Bond Solon and Mercia, revisiting 3-year plans and investing in growth strategies. We continue to develop our M&A pipeline, building relationships with opportunities. And lastly, the RegTech platform is making progress, and we have a series of AI advancements, and I'll talk about these a little bit later. But before doing that, I'll hand over to Guy for the financial summary.

Thanks, Mark. Good morning, everybody. Thanks for joining us today. We've got our usual financial slides today, including the pro forma we used last year to show what a full and prior year of the current roster of businesses looks like. I'll come on to that in a moment. Starting here with the divisional splits. The overall ongoing revenue growth of 37% includes growth from 8 of our 9 continuing businesses. Organic growth, which excludes acquisitions and currency movements and therefore, Conversia and Phoenix, but includes Astutis this year is 4%. Only Astutis didn't grow in the year. It was flat on last year, but has since returned to growth. It's included in the Health, Safety and Environment segment, HSE on this slide, which also contains the Phoenix acquisition. Phoenix grew 9% year-on-year, but was only owned for 8 months of the prior period and hence, the large absolute variance on last year. After strong double-digit growth from both businesses in FY '25, both have had sales headwinds in FY '26, particularly in the first half. Sales were better in the second half, but not enough to bring Astutis back to revenue growth for the year. The better H2 sales contributed to improved deferred income at the end of FY '26, which along with the continuing better monthly sales than last year, have given both businesses a strong start to this financial year. The legal sector on here contains Pendragon and Bond Solon. Pendragon grew 8% with continuing strong retention of customers and some new business. Bond Solon got back to growth, albeit small after a difficult FY '25. Conversia appears for the first time as the data privacy segment with more than 20% revenue growth in FY '26, actually 26% in our period of ownership. And a lot more of that business to come later on this morning from the guys who you'll meet later. Financial Services growth was led by ICA and CLTi at 7%, Axco at 6% and Mercia did 1% growth in the year but actually had 6% volume growth, which offset the price pressure they had in what is a very competitive market at the moment. Recurring subscription revenues continued to grow, up 6% to 38% of organic growth -- organic revenue, sorry, and to 41% of continuing revenue when you add Conversia in. A full year of Conversia revenues will bring recurring subscriptions to around 50% of total revenues as 70% of Conversia's revenues are subscription. Repeat revenues, that is those that come back each year from existing customers, but are not necessarily contracted in advance like subscriptions are, continue to be 80% of revenues for ongoing businesses. Operating margins for the group fell just short of the 30% we usually talk about as acquisitions that have not yet reached that margin have a bigger effect than last year. This is partly because margins and profits of the HSE acquisitions have fallen in the year as investment cost in sales has not yet been matched by sales growth. Excluding acquisitions, margins were at 37%, up from 35% in the Financial Services and Legal segments, which are our existing businesses pre-acquisition. This is in line with expectations previously set regarding our continued investment in operational process technology in these businesses. Moving on to Slide 7 and the rest of the P&L. Operating profits improved more than the interest income we lost by taking on the debt for the Conversia acquisition. So adjusted PBT, as you can see here, is up by 15%. PBT margin, however, was down slightly at 25% due to the same impact of acquisitions as we had on the operating profit margins. Below adjusted PBT, we show M&A-related items as adjusting items in the P&L. As usual, earn-out provisions for the recent acquisitions, which are required to be accounted for in the P&L and not on the balance sheet as the earn-outs of continuing employment requirements on the sellers make up part of this, actually GBP 2.7 million of it, along with amortization of intangibles at GBP 5.7 million and acquisition costs of GBP 3.5 million. Conversia obviously increased all of these numbers year-on-year. FRA is still profitable. It's the discontinued operations figure shown here and the business remains in a sale process. The business recorded a trading profit of GBP 1.3 million in the year. And the loss shown here is because there's a small impairment of the goodwill on the balance sheet from its acquisition in 2015. Tax remains at the U.K. corporate tax rate. And finally, on this slide, we've increased the dividend by 9% in total for the year, the final dividend of 9.4p being 11% higher than last year. On to Slide 8 that I mentioned earlier, which is the slide that shows the full year impact of acquisitions. It's -- the FY '25 numbers have all the businesses in them as if we owned them for all of that year. Revenue growth, if we looked at it on this basis, would have been 9% versus the organic figure of 4% that I mentioned earlier and profits improved by 6%, but operating margin goes down, again, because of the acquisition margins. And particularly, you can see on here the profits in HSE going down year-on-year. We're working on a growth strategy for the health and safety businesses in H1, and there'll be more to come on that the next time we come out to talk to you. And finally, on to Slide 9, the cash flows for the year. Operating profit conversion to cash was close to 100% as usual for the group. It was slightly below 100% this year following the addition of Conversia for 7 months. Excluding Conversia, cash conversion was 103%. A full year of Conversia ownership will reverse the working capital outflow you can see on here and bring the group conversion back to 100% for FY '27. The significant cash movements in the period, obviously related to the Conversia acquisition and its funding with our cash balance and the new debt facility. We've said we expect to reduce the net debt quickly, and it's significantly below 2x EBITDA at the year-end. Our cash flow remains H2 weighted, as we've explained before. And so further significant debt reduction will occur next in early calendar 2027, basically when we do most of our subscription billing. Interest expenses is budgeted within current market rate expectations and most of the debt is drawn in euros. So benefits from the lower base rates that are in place in the EU. With a total debt facility of GBP 80 million, we have over GBP 10 million available today for further acquisitions, and this will expand in H2 towards GBP 20 million by the year-end. That's all we've got on the finance side. So back to Mark.

Okay. Thanks, Guy. We're going to move on to Slide #11 for our capital allocation policy, which remains unchanged. So our strategy is to expand our positions in the international GRC markets and grow the group's quality of revenues and profits, both organically and through acquisitions by investing in our business and actively managing our portfolio of brands. Much of our investment is in technology and staff, and you'll hear more about our technology progress shortly. Acquisitions remain our priority for any other cash, whether sourced from borrowings, operational cash generation or raised from shareholders. We will continue to manage the portfolio, and we'll continue to pay a sustainable and where possible, growing dividend, coupled with reducing leverage. Moving on to Slide 12. At our interims, I described our markets as challenging and turbulent. This trend continued for the remainder of the year, and we now see this as the new norm. In this environment, Wilmington has delivered another solid set of results, which demonstrates yet again the resilience of our portfolio. 8 of 9 continuing businesses grew, and Astutis was only marginally behind against a very strong comparator. A reminder that Astutis was up 18% FY '25 on FY '24. Our group revenue stream continues to improve, both in terms of actual as well as recurring and repeatable. Our profitability and earnings continue to show good growth. And with strong cash generation, we've reduced our net debt to below what was expected. We continue to have one business held for sale, which is our U.S. business, which is called FRA, where the restructuring around a core set of events is now being completed. The major event in March 2027, which is RISE National and MMS is tracking slightly ahead of last year, which is encouraging at this very early stage. On our acquisitions, Conversia is performing extremely well and is ahead of our expectations. And you will leave us today with the knowledge this is a great business run by a first-class team. We systematically review all of our businesses. And currently, we're working with the management teams of both of the health and safety brands, investing in areas like sales and marketing, and I'm very pleased to report that both businesses have had a good start to FY '27 with both reporting strong revenue growth year-to-date. The GRC RegTech platform is now up and running across most of the group, and there's more on this in a moment. And as we've moved away from the media focus, Wilmington has repositioned and categorized as a GRC RegTech Business Services Group. And finally, for this section, our outlook is that current trading is in line with market expectations with solid Q1 revenues for all businesses. On to Slide 13. So that concludes the review of FY '26. So we're going to move now straight into the first part of the Capital Markets section. And then following this part, we'll be taking your questions. So on to Slide 14. Referring back to our agenda, over the last few years, we have referenced a consistent strategy for Wilmington, but a newer part of that narrative has been using the terminology around our RegTech platform, and I'm going to expand on this some more today. We will all have different understandings of the term RegTech. And so today, I want to explain what our RegTech platform actually is, what it does for our customers and why it matters to you in your investment cases. So moving on to Slide 15 and then on to Slide 16. Our vision for our RegTech platform is to complete the journey started more than 4 years ago to streamline our technology such that we have a common set of technologies powering our businesses, moving away from the disparate technology architecture of the past. By creating a single stack, we can better develop products, we can increase development velocity. We've already reduced legacy technology debt, and we can increase security, reduce duplication and improve many, many efficiencies. It is extensible and repeatable, meaning new companies joining the group get access to new technologies. The RegTech platform built in this way is sector agnostic, meaning it will be as proficient in, say, financial services as it is in health and safety, meeting multiple international GRC market requirements. So let me explain the RegTech platform in more detail than we've done in the past and also explain to why you, as an investor in Wilmington, why this matters. Slide 17. To start, I'm going to recap on where we have come from because it frames everything that follows. So since July 2019, we've pivoted away from a number of disparate media businesses and focused the whole group on international governance, risk and compliance, or GRC. As a result of that new positioning, we reduced from 15 brands down to 7, and we added 3, and we are now in 9 businesses with 1 held for sale. Moving to the middle section of the slide. As part of our portfolio playbook, we now focus on GRC sectors with large total addressable markets, selling to expert regulated customers, and we do so with brands that specialize in these high-value premium markets. This approach gives us vertical and horizontal opportunities. Vertically within the sectors, we fully understand those areas and horizontally, either geographically or through those specialisms that span multiple markets. To enable this opportunity, we've developed our RegTech platform using third-party providers technologies built on a composable technology stack, moving towards a single technology platform. Now this strategy is not new to you. I've explained it many times. So moving to the right-hand box, this shift in strategy and focus, combined with the technical consolidation and capability means that we are now in a position to describe ourselves not as a media company, but as a RegTech business services company. And from this month, we have transferred our sector classification on the London Stock Exchange from media to business services. However, as I said earlier, RegTech means very different things to different people and the components of a RegTech platform may not be commonly understood. So as we have more time today than we would normally do for our prelims, I'm going to explain more about what we mean by the term RegTech. Let's start by looking at the regulatory markets in which we operate, which start on Slide 18. Whilst our brands look unrelated, they all share the common aim of helping specialist professionals meet regulatory obligations that are getting tougher, not easier. We serve many customers over many different domestic and international markets, and each of these markets has its own regulator, its own professional standards and its own qualifications. A Financial Crime Officer needs internationally recognized credentials and career-long CPD that's continuing professional development. A accountancy firm needs data mapped to its own professional body, not a generic compliance feed. A health and safety professional must work within an extensive statutory framework. This chart shows some of the headline regulatory factors for each market in which we operate. And as you can see, there are many. You'll see on the bottom left that we have color-coded these businesses, grouping them into 4 markets where we serve today, which are financial services, health and safety, legal and data privacy. Because these markets are separate, each needs its own product set, which means that the cross-selling between these markets is very limited. Our products are built for the regulated specialists who operate in each of these areas. So for example, we cannot sell insurance data to, say, health and safety managers. Importantly, though, whilst the products, therefore, are unique to the regulated markets they serve, they do not need their own technology stacks. On to Slide 19. On this chart, we show 9 of our customer-facing brands, offering 9 specific market-specific storefronts to meet the needs of the customers in those markets, powered by one common set of technologies. Now admitted from this slide is our U.S. events business, FRA, which does not operate on the RegTech platform. With the exception of Conversia, which you can see on the right of the slide, which just prior to the acquisition had just redeveloped its platform and therefore, it is not efficient to immediately replatform it again. All of the other brands shown here take parts of the common Wilmington platform, and they deploy it as their own RegTech storefront, branded and configured for the professionals it serves. The customer never sees Wilmington, they see ICA or Axco or Bond Solon. We operate in unique markets. Our brands are GRC specialists in those markets, and we're serving our customers through 9 individual GRC RegTech storefronts, operating with the exception of Conversia on a consolidated common set of technologies. And these RegTech storefronts can share common components, on to Slide 20. To us, there are 5 components to the RegTech platform. Firstly, data and regulatory intelligence. This is the regulatory content. It's the market intelligence. It's the alerts that tell a professional what has changed. Next, there is compliance technology. This is the workflow and task management, the policy management, the reporting and the evidence packs. This is the part that puts us inside the customers' workflows and daily processes rather than running alongside it. A RegTech platform should also include learning and accreditation. This will be qualifications, learning paths and CPD tracking. These are the credentials that ensure professionals have the knowledge, skills and awareness to practice in their specialist areas. A RegTech platform should also have a community. This might be membership, events, peer networking, building a professional community. This is very much the human interaction part of the platform. And lastly, AI and automation should be embedded across every product line, offering services such as document analysis, summary generation, risk scoring and risk routing. For each brand to operate its platform, it does not need to have all of this in place from the start. We can grow from our existing positions. Moving on to Slide 21. This slide is a newer, more detailed version of an old slide and shows where we are on the journey against each of these component parts brand by brand. Across the top of the sectors in which we operate and underneath this are our brands. Down the left is now a new expanded view of what we've previously shown in terms of the RegTech platform components. Areas in green are live. The orange areas are work in progress and the empty boxes are future opportunities. So a few points about this chart. Learning and accreditation is largely green across the group, and that very much reflects Wilmington's heritage. Data and regulatory intelligence is patcher and compliance technology is the least developed row, and we're exploring solutions in these areas, for example, Mercia audit methodology embedded in accountancy customers' workflows. The other thing to point out about this slide is there's lots of empty space, which shows the opportunities for additional product growth, and that can be either organically or inorganically. AI is embedded across all of our operations, and there's more on AI in a few minutes. But just before I leave this slide, can I ask you to look on the left-hand side to the ICA column, which you can see is possibly our most advanced brand in terms of coverage of each component. Staying with ICA on to Slide 22. To evidence our progress around creating this RegTech platform, I'm going to use ICA as an example. ICA is our business that focuses on helping customers prevent financial crime and meeting regulatory requirements. And as I've already said, it is the first to approach coverage across all the components. Data and regulatory intelligence is in progress with alerts live and dashboards in development. Compliance technology is a gap, and those tools are being scoped. For example, ICA being embedded in customers' compliance training workflows and data from the workflow being exported and used in management information and regulatory reporting. Learning accreditation is live and mature. The qualification portfolio anchors a professional for their whole career and 35 hours of CPD a year creates repeating revenues. Several major international banks have now adopted the ICA Learning Hub as part of how they develop their people. Community is also live, well over 30,000 members are now part of the digital professional community with peer networking built into the member journey and established face-to-face events in the U.K. and Asia Pacific. These events and our focus on quality products and services leads to very high customer engagement with ICA's NPS at plus 60 and a CSAT score of 94%. AI is being deployed across the whole company with 11 initiatives at green status. And whilst ICA is not a Finnish platform, you can see how the business has moved from its heritage of being a training company and is organically and through partnerships, building positions across all 5 components, creating a broadening ICA RegTech storefront. Moving on to Slide 23. On a previous slide, I showed you the current sectors which we operate, that's financial services, health and safety, legal and data privacy. The same platform that serves 3 of these 4 regulated sectors today can be configured for other sectors. In 2025, we researched which markets demonstrate the characteristics we were looking for. We look for areas with active and increasing regulation with regulators able to employ legal and fiscal penalties, and we look for a large and growing population of regulated professional individuals. On the bottom of the slide are the sectors which grows to the top of the list, and they are retail, health care, pharmaceuticals and social care. These are adjacent verticals where the platform could be deployed, and we can get there by building, but most likely by buying or partnering. Other market opportunities exist, so the Wilmington of tomorrow will include additional markets, but not new technology stacks. As we said at the bottom of the slide, our technology -- the model for our platform has a very high ceiling in terms of markets in which we can explore. Now one of my and my Board's favorite questions for presentations like this is so what? What difference will a single technology stack make? What difference will the shift to RegTech business services make? We understand RegTech. We understand we have an exciting go-to-market strategy. It all makes sense, but what difference will it make to our customers and ultimately to you as our investors. And these are all very fair questions, and Slides 24 and 25 will show some of the answers. So moving to Slide 24. Firstly, cost and operational leverage. Our technology investment is now controlled centrally rather than repeated 9 times. This leads us to a synergistic approach with better prioritization and more accountable ROI decisions. Procurement is consolidated, and we run one engineering organization instead of several. Platform efficiencies, combined with AI have already saved 6-figure sums in FY '26 and will continue to make us more efficient moving forward. Speed to market. When one brand builds something, it becomes available to all of the others and smaller businesses get a more capable tech stack. Revenue in customers, a single destination for an increasing number of needs supports our ambition of increasing share of wallet and recurring revenue. A single customer view with each brand makes upselling better informed rather than speculative. And once we're embedded in a professional's workflow, we are much harder to remove. Slide 25. Customer and user experience. We offer a continuously improving customer service. That's going to be speed of response, accuracy of response, preventable delays, which aids the retention and will deliver us efficiencies. Our Net Promoter and CSAT scores are already very high across the group, and we can more accurately identify and measure operations SLAs to ensure that remains the case. I'll talk more detail about AI in a moment, but having customers on common technologies means we can build repositories of data and develop management information with aggregated data, enabling us to build benchmarking products for use for regulatory reporting, which feeds into my last point around compliance and trust. We can offer customers regulator-ready audit trails of data usage and security and resilience to certified once rather than 9 times. So on to Slide 26. And in summary for this section, compliance is not one problem. So our products are built for specialists rather than for everyone. The RegTech platform means 5 specific component parts. Nine brands will operate market storefronts on one common set of technologies. ICA proves the model works and shows that we can build out from an existing position of strength and the remaining gaps get closed brand by brand through building, buying or partnering. And our platform is repeatable into new regulated markets. On to Slide 27. AI has a big role to play in the delivery of this platform. The world of AI is significantly different to when we last presented for our interims, and there is no comparison to when we first focus on AI in 2024. And the 2 questions I get asked most often are, what impact is AI having on the business? And what is your business doing with AI? And the next few slides will answer these questions. Slide 28. Our approach to AI is to view it as a program, not a pilot. Let's first look at the scale of our activities. Every one of our business units keeps an AI initiatives register on a common format. Across those registers, there are more than 90 logged initiatives, from which more than 35 initiatives are already live or in day-to-day use and 30 initiatives are in build. The remainder of the initiatives are on registers, but they're not yet fully scoped. This chart on the left shows the split by business units. Now we've anonymized these as this is commercially sensitive information. The darker the color shows AI initiatives that are live. The lighter color shows those are in build and the gray are those initiatives that are being scoped. The balance differs by brand, which reflects the different shapes of these businesses rather than the different levels of ambition. The data that powers this chart reveals that the businesses have a combination of customer-facing and internal operational initiatives. So following our so what way of thinking, I have a few points to make about this slide, which are on the box on the right. Firstly, AI is being applied at the point of value to a lesser or a greater extent in every business. That's the blue areas on the chart. Secondly, there is approximately a 50-50 split between the total number of customer-facing initiatives and internal initiatives. That means that the management team see the value of AI across their entire estate. As we, in the center, have a single comparable view of all of our activity, we can better assess the return on investment. Our approach to AI is informed and selective. We understand the capabilities we are adopting and our security controls guide which features we enable and how we use them. On to Slide 29. This next slide provides more detail from the high level of the previous slide to continue to answer the so what question and show some of the examples of the initiatives in the business, which are customer-facing. We've added the detail here for you to review later, but I'm going to pick out a few from this page. So starting on the top left box at ICA, we have an AI tutor with text and voice plus Roleplay grounded in ICA's own course material and it's live. The first qualification using it launched in March 2026 and further qualifications are migrating. If we move on to the right-hand side of the slide, you'll find ICA, and we have an in-product AI agent, which is beta targeted for the first half of this financial year, alongside AI-assisted market profile summaries. You move to the bottom of the slide to the shaded boxes. The pattern across the portfolio is that our central coordination of AI prevents duplication of effort. We are comfortable with our businesses experimenting with AI. But with costs largely unclear, we're putting increasing effort into measuring the ROI of AI solutions and therefore, avoiding creating several different versions of the same thing. On the bottom right is a section on defensibility. In every case, the AI we are employing sits on top of something we already own. So accredited qualifications or proprietary course content, proprietary insurance data, long-standing professional relationships. So we see AI as an opportunity to increase our defensibility, not reduce it. Human in the loop is absolutely at the heart of our AI strategy. This is a mandatory requirement, not a preference because our customers are relying on us to help them meet very strict, very tight regulatory obligations. So staying with our sow what question a little longer, we move to Slide 30, where we'll share some headline metrics. The challenge here is much of the data we'd like to show you is commercially sensitive, but here are some examples of the operating gains we're either expecting to see or we are currently seeing. 735 hours is the projected annual saving on course development we expect to achieve through adoption of AI services in our content generation team for just one business. In another business where tenders and bids are a major part of their sales process, the time to accurately review highly complex tender documents has reduced by 33%. Our analysts working on market reports can save up to 4 hours per report. And we have made nearly 7,000 internal chatbot queries. So these would be used in our operations teams, for example, over 3 months, which will have the combined effect of reducing customer response time and improving the quality of our response. And just to be clear, some of these are expected outcomes and success measures. In parallel with these, we're also developing our return on investment measures so we can more accurately measure the impact of our AI adoption across the group, including maintaining a clear line of sight on costs, efficiencies and security. Slide 31. Another side of AI is how it's being used by our customers to find our businesses, products and services. So term Generative Engine Optimization, or GEO. This slide shows the current position of Wilmington brands through a series of AI searches. We ran 200 controlled tests across 10 brands using 4 models, making 5 sequential runs with the same prompt. The prompts were unbranded and never named a Wilmington brand. They simply described the buyer's problem in the buyer's language. In 93% of the tests, our brands were mentioned or commonly recommended by the LLM. Six brands were mentioned in every single run on every model with no variation at all. You can see them on this slide. There's Axco, Bond Solon, Mercia, ICA and CLTi. The sixth is FRA, which is on the next slide, Slide 32. And you can see RISE, which is FRA's main brand, was mentioned in all returns. Conversia is named in 13 of 20 tests, which mainly can be tied to LLM using training data and yet to pick up our recently launched website. So we expect to see this improve pretty quickly. Astutis and Phoenix appear extremely highly with 18 or 19 out of 20 returns and Pendragon possibly due to its specialized offering returns 16 out of 20. So there's an opportunity there. Now this data is hugely important and a clear demonstration of our market leadership. Businesses previously focused on Search Engine Optimization, or SEO. Then we moved to reliance on search engine marketing or SEM or paid search. And now the major source of sales and marketing inquiries is GEO. And I hope these charts show you we are acutely aware of this and have, for some time, been proactively ensuring our presence in this very valuable source of commercial activity. For clarity, this is a single wave of research at a point in time rather than a track trend. And for the presentation purposes, we've condensed the feedback into headlines only. Lastly, on AI, I'd like to look at how we're regulating and managing AI internally, which is on Slide 33. We operate a human-in-the-loop protocol. We have no plans to have agentic solutions running unmonitored. And here are some examples of how businesses are exercising controls and assurance for example, developing anti-hallucination prompt frameworks and mandatory expert review. On cost, this is being run as business as usual, i.e., it's expensed through the businesses to ensure the commercial operational efficiency is measured alongside other investments. Spending is essentially licensed costs managed through the group and business unit P&Ls with expenditure very closely monitored and controlled. The near-term ask of this program is for measurement discipline to drive growth and efficiencies, not -- not a large capital commitment. So in summary, AI is being applied where we already hold defensible assets, our registers show breadth alongside governance and the visibility work suggests we're benefiting from AI researching. All areas of the business are maturing or developing AI initiatives to assist with growth and efficiencies. On to Slide 34. This is the final slide, and it focuses on the risks part of AI. There is a significant commentary in the market around AI eroding established businesses. And commenting only from a Wilmington perspective, we hope that what we've shown you so far today demonstrates that AI is strengthening the group's position rather than eroding it. We have another lever, though, when it comes to managing the risks around AI, and that is the market environment in which we operate since we pivoted to focus on GRC. And we call this our regulatory moat. The regulatory accreditation achieved through our training or the demonstrable and evidence skills acquired through our other programs provides customers with a safe environment to learn and practice the skills and decision-making that will keep themselves, their businesses and their customers on the right side of the increasing amount of regulations. To remind you, we are working with the individuals who are required to demonstrate they have the knowledge and skills to meet regulators' requirements internationally. In addition, the proprietary data that we layer on top of open data provides a complete regulatory picture, not a partial one. Failure to fully scope and assess regulatory markets carries a significant risk. Now regulator activity remains at very high levels. For example, in July this year, the FCA published it had issued GBP 129 million of fines in the 2025, 2026 year. And in the year before this, this number was even higher at GBP 186 million of fines. So our experts have deep understanding of the many, many regulatory environments, and we work very closely with the accreditation bodies of which we are one, to ensure the accuracy and quality of our services. Our customers recognize these strengths, which is why we're embedded in some of their workflows. They recognize the accuracy and traceability of our information and services, and they're very aware of the punitive nature of failures to comply with regulations, and they choose trusted partners. This is evidenced by our 80% repeatable revenue rate with customers coming back time and time again. And lastly, AI recognizes our strength, too, with their models recommending us or mentioning us 93% of the time over the testing period I mentioned earlier. So rather than replacing us, AI models are recommending us. And I think that's a fitting note on which to end this part of the presentation. So I will ask Guy to rejoin me, and we'll now be ready for your questions.

If you are online, please put your questions. [Operator Instructions] In all cases, could you please introduce yourself with your name and your company. So we'll start off in the room.

Alastair Reid from Investec. Three for me, please. FRA was included in your opening video. Can you just talk about the sort of attempted sale process. When does it come back to being part of the ongoing business? And secondly, can you just talk about the outlook for sort of health and safety side of the business in terms of the scope for margin improvement? And then lastly, banks always need more help meeting their compliance requirements. Can you talk about your pipeline of potential new clients for your RegTech platform in financial services?

Okay. I'll take the first one. Do you want to take the second one? So let me talk about the fraud. The FRA process has been -- I mean, we've documented this very clearly, which is that FRA operates in the GRC space because of the content it's working with, which is in the Medicare Advantage space in the U.S. The content of that is GRC, but it is a media business. So we're moving away from media. So the repositioning of FRA to really focus on its core events has repositioned the business into a much better place than it was previously. So that's the first piece. And that's been quite a lot of work over the last 12 months. We've been really clear about the disposal process, though, because this is a very good business, as Guy has already said, it's profit making. So we're looking for an acquisition there, which has got the appropriate value attached to it for the business. But we will take our time to do so. We'll take our time to make sure that the valuation we get for the business is appropriate given the new shape of it in terms of its new operating model. So that's the first part. There is no timetable to that because -- when it comes to these sort of processes, they can take some period of time. But certainly, we're in no rush, and we've been really clear about this when we talked about FRA previously. We're in no rush to make that happen, make that disposal. In terms of timings for FRA?

So you're probably aware of the accounting standards, you can hold an asset for sale for at least 12 months before you have to count it as continuing again. That 12 months is nearly up. So by the time we come to report our interims, we will have to be -- and if we haven't sold it, we will have to be looking at putting it back in the numbers. But FRA is a much restructured business from the one that has been presented in the past. It's much less than half the size that it was then. The headcount is much lower. It runs a much different set of events. So essentially, it's a different business than it was. And when that gets reflected in our numbers, the comparative will have to show the real comparative and not the old business that was doing 40 events a year when now it's only doing 6.

Do you want to take the HSE margins?

Sure. So we fully appreciate, and you could see it on one of the slides that HSE hasn't lived up yet to the margins we expected it to make when we bought it. It didn't have the best sales year. It had a much better second half than first half, and that's given it a very good platform to move into this year. Its cost base is now at a size that it can sell a lot more than it did in the past. So we shouldn't need to increase that a lot more. And as we get revenue growth, the margins will improve. We said when we bought both these businesses, there was no reason why they couldn't get to the same kind of margins that our other training businesses are at, and they're all at 30% or even slightly better. And there's no reason why this business -- and I know it only did 13% in the year just gone by, but there's no reason why that shouldn't be in the mid-20s in 12, 18 months' time, provided, of course, the revenue growth comes. So that's what we're aiming to do and get it back to the 30%. So I don't have to stand up here every time and explain why our margins are slightly lower because we've got HSE in it. We don't want to be doing that anymore, obviously.

And the last question is in the financial services space for new clients. One of the -- we have a monthly board with each of our businesses and one of the focuses of that is pipeline development. just to expand on what Guy was saying, one of the challenges we had in HSC for this financial year is a lack of pipeline building in the first quarter of the year, which then created a lag throughout the rest of the year. We're really pleased to say the HSE businesses are both showing strong growth. So all the work we put into sales and marketing over FY '26 is now coming through in growth into '27. And that's same for all the businesses. I can say that for each of the Wilmington businesses. The market you're referring to in the financial services space, that pipeline development is something which very much is at the core of the Wilmington business. When we restructured the group 6, 7 years ago, we changed the sales structure to make pipeline development a mandatory part of it. So rather than being quite reactive, we became very proactive, and that's built healthy pipelines across all the businesses.

Steve Le from TB News. Just following on HSE. Can you just explain a bit more clearly the competitive environment there? I know Astutis and Phoenix had a certain positioning towards the top end of the market. Just explain what's happening there? And is there a kind of competitive thing going on underlying as well? And just differentiate the performance of Astutis relative to Phoenix overall? That's the first question. Bond Solon, can you just delve into that a bit more? Obviously, it had a tough year last year. And it kind of felt like the message there was it was comp led initially, but the growth has remained relatively modest against previously. Just explain a bit better there. And then the last one on FRA. Can you give us like a pro forma revenue and profit number for the business in its kind of new form?

Okay. I'll talk to the first 2. Guy will come to you for the FRA. So the first one is about health and safety and the competitive environment. We are part of that competitive environment. We have 2 businesses in the health and safety space, Astutis and Phoenix. And up until very recently, Astutis has been on an earn-out. The Phoenix earn-out completes in March of 2028. So both businesses running in parallel. One of the things that we're now able to do and are doing is looking at how we can start to work on things like technology and marketing and products where we can get the expertise of both businesses involved, which is a new opportunity for us. So yes, there have been competitive elements to this. If you look at the Google ad spend, for example, it's becoming increasingly competitive marketplace that has increased marketing costs, and we are part of that because we have 2 businesses competing for that attention. So part of the work which we'll be undertaking from now on, I said earlier, we strategically review all of our businesses and health and safety is no exception to that. We're reviewing these as well. And the output of that is going to give us a lot of efficiencies in terms of marketing, technology and product in the areas I've talked about. So yes, we are -- it is a competitive environment, and we are part of that competition. Bond Solon, the Bond Solon story is an interesting one because it operates in 4 areas. And it had a very tough comparator from '25 versus '24 due to a number of one-off contracts that we talked about at the time, which we knew at the time when we guided against this, we're not going to renew. That had a bit of a lag into FY '26, but if you look at the performance of the business, it's very much moved through that now and is showing relatively good levels of growth as we stand here today. So yes, it is -- again, that's -- all of our markets are competitive in every space in which we operate. Bond Solon, though, was actually just getting through these large unwinding contracts historically, coupled with some other changes we've made to the group in terms of product development and the move to the new technology stack as well, puts it in a really strong position moving forward. The markets in which it's growing in are largely showing good positive signs. There's nothing too structural there to mention. And the FRA pro forma picture?

Yes. So FRA did GBP 8.7 million of revenue in the year that had just gone, which is substantially down on the prior year where it did over GBP 11 million, but that decrease was planned. We said at the time, we were reducing the number of events that it did significantly. And obviously, that made the revenue go down. The profits went down slightly, but actually nothing like as much as the revenue. It did GBP 1.3 million in the year. And we would expect in the year where in now to make more profit because we've taken half the overheads out at the end of the financial year '26. So the business should get back to some revenue growth. And in fact, the only indicator we get this side of Christmas is the one major event that it runs in Q1, which ran at the beginning of September, and that ran very successfully and larger than the event equivalent in the previous year. So it's got growth or it's back to growth in the set of events that it's got now, and it should be a lot more profitable because of that in this year. It's going to take a bit longer to recover than just this financial year, and some of it will have to come from its market. Its market has been quite heavily affected by the current U.S. administration and the previous one, which had big changes to the health care insurance market in the U.S. That does seem to have settled down a bit now and the customers are back to spending again, not as much as they were before the cuts, but they certainly are increasing on last year. So we hope to see some growth to report this time next year and then hopefully better growth after that.

Melvin Mehta from Sterling Investments. One for each of you. You mentioned RegTech and obviously, that's a super initiative and an idea. But the question then, Mark is, I mean, one of the fundal things about small businesses is this high fixed costs and just the cost of running the business is increasing. What else can we do with these 8, 9, 10 businesses and hopefully some more where we really extract cost either using AI or whatever, whatever, but really taking away and reducing that fixed cost beyond RegTech?

Did you have 2 questions? Okay. The first one was -- so this is around RegTech fixed costs. So it's important that I just outline how we run the group because the answer will be in our operating model. So areas where we can see opportunities working across the group are largely centralized, and we do that so we can develop skills, capabilities rather than creating individual pockets of expertise in individual businesses. So those areas, for example, guy's finance area, the technology area, the data area, the hosting, the security, our people teams and increasing over the last 12 months, we've also done this in marketing to create centers of expertise there as well. We run that across the group. And that gives us a tremendous efficiency because then we can have a central operation filled with the experts in those areas and those disciplines, and we can then offer those skills into the individual businesses. And that helps reduce the cost of the running of the businesses because we removed this effect of duplication, but it has a double effect of then increasing capability and capacity as well. And that's what we've been doing systematically. The other area, of course, as I know you said apart from the RegTech, I'm going to go back to the RegTech platform, which is that with this new platform and this common set of technologies as well, as we develop, we can measure things like engineering velocity far better in terms of the output from our engineering space, which we couldn't do previously when we're on siloed individual technology stacks. So it's not just about cost efficiency. It's also about productivity improvements as well. And I think that's something which we are looking forward to as well.

Okay. And in terms of our debt and acquisitions, I mean, is the management and the Board thinking of saying, okay, we're happy to kind of lever up? Or is the focus in the next 12 months going to be driving down that debt and that ratio?

We'll certainly be keeping it at 2x EBITDA or lower, which is what we've always said we would. The -- our natural cash flows will pay down the debt if we don't spend that debt on anything else. I can't say that we've got anything lined up to immediately spend it on certainly this half of the year. So -- but things come along. The M&A market is quite interesting at the moment. It's all over the place. I think people are trying to get their valuations in line with what public markets happening and that doesn't work for them. So we're seeing lots of processes push out. So we're not expecting to do much in the next few months. We're sticking to what we've already got. And -- but there will be the opportunity going forward to -- within 2x EBITDA to make further acquisitions. I mentioned the GBP 20 million number by the end of this year. We'll have that much or more in our debt facility undrawn at that time, and we'll see if we can put it to good use. And if not, we'll have to look at alternative things.

And any CapEx figure you can share across the group?

There's very little. Most of the technology that Mark has been talking about is paid for on a pay-as-you-go basis, just like lots of technology these days. Conversia is more of a software development arm or has more of a software development arm than the rest of the group does. So it develops a product that it actually sells. They'll talk about something called Signo when they come to the presentation in a few minutes. And so some of that gets capitalized, but it's to the tune of about GBP 1 million a year. It's not significant in our cash flows.

Okay. We have time probably for a couple more.

Richard Jeans from Hardman. Two questions. Firstly, just curious what percentage of the group remains is still face-to-face? And with the advent of the RegTech platform, how do you expect that to evolve over the next 5 years to shifting to, say, to online or to blended learning? And secondly, on the -- just further on the previous question about RegTech cost. I mean, obviously, the costs have gone through the OpEx rather than CapEx. But maybe give a bit of color on your L&M strategy? And do you have any sort of -- are you able to direct sort of to open weight models, for example, when you're doing certain tasks or rather than using frontier models for more complex tasks? And maybe just what your AI costs are. That's great.

The first one, so just prior to COVID, we can all go back to those days, we started a process, and this started in September of 2019. We started a process of digitizing a lot of what we were doing. So by the time we got to February of 2020, about 30% of our trading revenues were being delivered digitally, primarily through one brand in fairness. But then when COVID then hit, we already have that digital model to work with. So we were able to roll that out quickly across all the other businesses. Interestingly, since that time, so therefore, the customer, at that point, had no choice around digitization. But since then, we've kept our range of services. So you can do everything from a face-to-face in a room like this, in a session like this, all the way through to an online solution. And what we now offer clients is their choice. They can choose almost in some cases, they can mix and match whether they want to do online learning combined with some face-to-face or virtual tutors, which is a digital version that sits in the middle. But it's entirely their choice. And that's put us in really good stead because there are still individuals who would rather sit in a learning environment, which is in a classroom base, and there are individuals who would rather not do that and go and be online. So what we did after COVID is we looked at our pricing around our individual products. And where the cost of delivery increased, we were able to push that through on some of our pricing as well, protecting the margin on that individual training cost. So we don't have a sort of generic across the group sort of percentage face-to-face to online because a lot of people actually start to blend these together. They will have a period of online learning, then attend a face-to-face part of it, but it's entirely their choice, which I think puts us in really good stead because at the end of the day, the customer is going to make the decision as to the format they want to use rather than us telling them they must attend in a certain way. And it differs brand by brand. There are some things that we train, which we need to be face-to-face with you for. There are some things which we train which you can do very competently and capably just online if you need to. But to remind you about all of it, it's very high quality. We don't do huge groups of seats training. So the quality piece is intact all the way through. Second question was around -- I think it was around use of LLMs and our adoption of LLMs. So our CTO and a think tank, we've split that into 2 areas. We have the, let's call it, the productization and the use of AI piece, and we also have an AI security council as well. And the 2 meet to look at our adoption of LLMs and our use of LLMs in those 2 environments because the security element has to be taken, obviously, very seriously. I'll leave that to one side. We'll move to the product side for a second. In each of those, we sit down with the individual businesses, and we look at it, not from a technology perspective, but from a customer's perspective, what is the customer experience we're trying to achieve and what is the technology and how do we use the technologies to achieve that. And then lastly, there is the internal view, which is how do we operate more efficiently as a business. And there's a separate group who will look at that saying, okay, if you go to our operations area, where we have a new leader in that space in the group. They'll be looking at their operations team, and they'll be working with AI to see how they can deliver efficiencies in that operations area. So this is done on -- I'm trying to get the point across. This is done on a very local level within the operations area, but we see it in 3 very distinct areas. There's a security and protection piece. There is a productization using AI, and there is the operational and operating efficiencies part as well. But in all cases, the model is designed and the AI is then selected and then we test ourselves. So in each case, that's why we're working with a number of different LLMs across the group. Does that answer your question? Okay. One more and then I'm going to come to the online very quickly after this.

It's Roddy Davidson from Singers. In the interest of time, just one quick question. Coming back on acquisitions, you traditionally have had a pretty full pipeline of things under consideration, pretty active in that regard. Could you give us a sense of how the current pipeline splits between businesses that would be pretty much discrete, a bit like Conversia and those where there might be some scope for cross-selling or a little bit more integration with existing businesses? And do you have a preference either way?

Yes, sure. So the pipeline is split 50-50 pretty much in the manner you described. So things we could integrate, put on the platform and be another pillar on those different businesses, but with the same underlying technology. And versus businesses like Conversia, which already have their own platform that's had a significant amount of investment in it and really isn't something that it would be financially sensible to change a lot of for some years to come. Some of those businesses cost multi-hundreds of millions of pounds, which is beyond what we would be able to afford at the moment anyway. But lots of them do cost double-digit millions that would be sensible add-ons for us. As I say, it's not something we think we're going to get to this side of Christmas. But in the new year, we'll be looking at more. And typically, that changes processes as well. More companies either come up for sale or don't as the case may be depending on the market conditions. And so it's very hard to say when they will drop and become available to be in transactions, but that's what the pipeline looks like.

Okay. There's a couple of online questions, but I'm going to say to the people watching online that I think we've covered those. One was about HSE space. So forgive me if we haven't, in which case you can make contact with us, but I'm going to bring the session to a close. Thank you very much. We're very excited about the next session you're going to hear, which is the Conversia team.

Well, good morning. As Mark mentioned, my name is Alfonso Corral, and I am the CEO of Conversia. And here with me is [ Giorkienez ], the CRO of our company. We will try to cover in this presentation all these items in our agenda. Starting with a brief an introduction of our history. Conversia was founded in 2007. Jordi and I joined the company in 2009. In 2014, we launched our property managers vertical. Property managers are professionals or companies that manage homeowners associations, HOAs. In 2015, we began a major digital transformation of our training services, moving from distant learning to online training. At the same time, we began increasing our investment in technology, making our service increasingly technology-enabled. This is the only way to deliver compliance services of high-quality standards at an affordable price. We call this second phase of our development, the tech-enabled service model. In 2025, we launched Signo, the first Software-as-a-Service solution powered by advanced algorithms and AI that enables any Spanish business owner or professional to bring their business into compliance with regulatory requirements, initially GDPR in around 15 minutes and with very high standards of personalization and quality. In just 1 year, almost 20,000 clients are registered in Signo. Conversia became part of Wilmington that same year. In 2026, the time line you see here includes the launch of Magna, our service platform for property managers. Here, we have the evolution of some key KPIs in our company. As you can see, from 2023 to 2026, our revenue has evolved from EUR 27.1 million to EUR 44.7 million. And we -- if we talk about net renewal ratio, this evolution has been from 75.3% to 84.6%. If we talk about FTEs, FTEs people working in our company, the number increases from 327 to 503, working in 2 headquarters and in 31 branches this year. This slide shows how the scale of the company has developed. From our perspective, it presents a solid, consistently growing business whose service is increasingly valued by customers and which has been built the capabilities to meet the challenges and face the opportunities in the market. Customers engage us to comply with the law. We specialize in making expert knowledge accessible to SMEs and self-employed professionals who need a solution they can understand and manage in their everyday work. Data protection, an area subject to particularly close regulatory scrutiny in Spain through its supervisory authority, the Spanish Data Protection Agency is a central part of our activity alongside other areas of compliance. We combine tailored documentation, specialist guidance and training and use our own technology to organize and automate service delivery tasks. Our offering includes ongoing support because needs change as the customers' business and the regulatory environment evolve. The value lies in helping customers implement requirements and keep up to date. Pay attention. Every day, 3.2 new provisions are introduced that business must apply and businesses themselves evolve every day. That is why our service needs to be continuous. This slide brings together Conversia's main activities across its 2 verticals: SMEs and property managers. For SMEs, we combine our tech-enabled service with Signal, our digital solution. Training complements this offering. And for property managers and homeowners associations, Magna provides the platform for organizing service delivery. The rounded figures shown here give a sense of our scale around 31,000 customers in our SME service and around 19,000 customers registrations on Signal in just 1 year. In the property manager sector, the presentation shows approximately 2,400 property managers and 71,000 homeowners associations. If you compare this data, TAM and our actual customer, one perception arises. The gap between our customer base and the potential market gives a very clear picture of the growth opportunity ahead of us. We are now market leaders, but our market share still give us room to be very ambitious about the future. We talk about why. The starting point is the gap between the complexity of the obligations and the resources a small business can devote to managing them. Any SME whose employees, customers or suppliers are people, must comply with GDPR and quality requirements. As you can see in the figures, the Spanish government is especially intense in the GDPR enforcement, EUR 48 million in fines, 31 complaints received, 32,000 inspections in 1 year. In addition, if the company has a website and communicate with customers by e-mail or WhatsApp, they must comply with the Spanish Information Society Services and Electronic Commerce Act, known as [ LSSAAA ]. If criminal offenses could be committed within the organization, they must put a criminal compliance system in place and et cetera, et cetera. NSME needs support to cope with this overwhelming regulatory burden. Regulations and changes to them require interpretation and implementing them involves procedures and documentation that the business owner must incorporate into their operations. For the vast majority of small businesses, employing in-house specialists in every area is simply impossible. Our role is to make that complexity understandable and easier to manage. How? The diagram shows the relationship between customer acquisition and service delivery. It's a little bit complex, but one of our routes to market is through referral partners, professionals and organizations with trusted relationships with SMEs who can recommend our services. This recommendation help us establish contact. We then need to identify the need, explain the scope of the solution and guide the customer through onboarding. Once the customer has signed up for the service, the documentation and subsequent contact help sustain the relationship. To deliver the service properly, we must ensure that the customers' business network, that's very important. The companies in its ecosystem with which it works as a supplier, a customer or a partner also complies with the regulations. This is a legal requirement. By assessing the companies in that network, we will find new businesses opportunities as many will not be fully compliant as well as opportunities to meet potential referral partners again for our services. The diagram illustrates this relationship between commercial activity and service delivery. This map shows how our presence is distributed across the SME market in Spain. Colors of this chart are not very dark, meaning market opportunity. Here, you can see how we connect personal service with technology. The process begins with a consultant's visit and the digital capture of their required information. Contracts are upload to the system and work is organized according to the type of customer and service. Tasks that can be standardized are supported by automated workflows. Documentation is made available through the customer portal and the relevant communications are generated, where a case requires intervention, the process provides for specialist work to be assigned. This approach aims to reduce repetitive tasks and support consistent service delivery. It also helps our professionals focus on matters that require judgment or guidance. The process continues after the initial delivery, customers may need guidance or implementing a measure, maintaining documentation or resolving a query. That is why ongoing support is part of our offering. Training here addresses a complementary need to apply certain procedures correctly, people need to understand them and know what to do in their work. The process begins by identifying the customers' training needs. We then arrange the contract, manage the relevant documentation and deliver online training with tutoring and follow-up. In Spain, the government supports vocational training by allowing part of employers' contribution to be set aside for training such as Conversia. This is administered through the public body Fundai. That is why the service includes Fundai-related administration, subject to applicable requirements. Throughout the program, learners receive support and their progress is monitored. At the end, we carry out the planned assessment and certification activities. For the customer, the value lies in receiving support through the learning process as well as access to the content. For Conversia, this activity allows us to address another aspect of compliance needs within an existing customer relationship. Let's talk about Signal. Signal brings our experience into a digital solution for SMEs. Guided onboarding collects information about the business and enables documentation to be tailored to its circumstances. Customers then have an environment in which to manage the service and access the support provided. The platform brings together tools that make follow-up and updates easier. For Conversia, Signo expands our service delivery options. It allows us to serve customers who prefer to interact digitally and to complement the support provided by our teams. As businesses across Spain and Europe become more digital, more customers will prefer to use software to maintain compliance in their organizations. This allows them to ensure compliance using a more affordable and convenient tool while maintaining high standards of quality and personalization. The software must be backed by specialist expertise and allow for human intervention when needed, for example, when dealing with regulatory inspection. Signal provides all of this. It is Conversia's response to a future that is already here and is making a turning point in our sector. The Signo journey is built around an initial assessment, as I mentioned, tailored documentation and ongoing support. Information about the business helps identify its needs. The platform makes it easier to generate and manage documents alongside features such as signatures and evidence storage. A quick setup can make adoption easier by implementing the measures requires the customers' involvement. That is why expert support and updates are important parts of the offering. In our view, the value comes from combining an accessible digital experience with Conversia's expertise. This is the principle guiding how we want to develop the solution and serve its users. So far, we have a look at our SME service and how we support it with technology. And now Jordi, please, will explain the model for property managers and take a closer look at our customers' competitive advantages and develop opportunities. So Jordi?

Thank you, Alfonso. Hi, everyone. Right? This map shows that Conversia has a strong market share across Spain, especially in Northern Spain and the Valadic Island. And as you can see, although we are the market leader in Spain's property managers market, there are still many light color areas in the map. This means that we also have significant room to grow in this market. This diagram shows how we deliver the service in this market. Our relationship is with the property manager who may manage dozens or even hundreds of homeowners associations. Magna centralized the information for every HOA. It creates the necessary document, shows the status of every service and identify compliance needs that are not yet covered. Our key account managers and support team review the situation with the property manager throughout the year. We mainly offer 3 services in this market: data protection, contractor management and digital certificates. In contractor management, Magna combines the technical inspection of the HOA with compliance checks on its suppliers. We usually identify compliance gaps among the HOA suppliers, and each supplier has 3 options: stop providing the service to that HOA, find a consultancy that can solve the problem or subscribe directly to Signo to resolve the gaps easily and affordable. So the model, therefore, creates value in 2 ways. We provide a strong and secure service to the homeowners association and the property manager as well. And we attract a new SME customers to Signo. This allow us to make the flywheel that Alfonso show even bigger. Let us look at 2 real Conversia customers. The first example is an independent fashion shop with 5 employees. The owner is effectively the CEO, the CFO, the CCO, all the Cs in the company. She managed every area of the business. So she has little time, limited resources and a low to medium level of digital maturity. Her main concerns are data protection and electronic invoicing. She knows that she has other obligations, but the daily priorities of the business have not allowed her to address them. For this customer, our value is simple, trust, peace of mind and freedom from bureaucracy. We make compliance easy to understand and manage so she can focus on her business. This profile represents the core of Spanish market. As we said, Spain has around 3.3 million active businesses. Of this, 1.8 million have no employees, another 1.2 million have between 1 and 5 employees. This means that more than 3 million Spanish businesses, over 90% of the total, have 5 employees or fewer. The second profile is a logistics and transport SME with around 50 employees. It has more structure, greater digital maturity and more people involved in our internal processes. Its compliance needs are broader, so this type of customers normally buys more services from the beginning. It values expert advice and good coordination with its internal teams. These profiles have different needs. The smaller businesses value simplicity, speed and cloud support. The larger company needs greater expertise and better integration with its own processes. Conversia can serve both, but we must adapt the service to each customer. One thing -- one of the things we are most proud of is our customer journey and our ability to cross-sell. We see the relationship with our customers as a long-term relationship. We normally start with data protection. It's a familiar need with significant regulatory and performance pressure, as Alfonso said, and our product is simple, safe and affordable. From that starting point, our advisory service makes the sales process natural, consultative and without friction. As we build trust, the customer becomes more aware of its compliance needs and gradually buys additional services. As the chart shows, during the first year, a significant percentage of customers go from 1 product to 4. When we combine this with our high renewal rate, customers continue to buy additional products over the time. This slide shows our NPS. As you all know, it's one of the most widely used KPIs for measuring customer satisfaction. We are very proud of our NPS of 69 because it confirms that we are moving in the right direction. We believe it is especially meaningful because compliance is not naturally a source of customer satisfaction, quite the opposite. Having to deal with more lows and obligations can be frustrating for customers. So an NPS of 69, therefore, tells us that we are taking a heavy complex and unproductive burden away from. And why do we win? Our position is based on several strengths that work together. Our network of referral partners and our sales presence give us access to SMEs. These relationships take time and constant work to build and maintain. Our local presence also helps us stay close to the customers and partners. Our customer base give us a deep understanding of real customer needs. It also gives us the opportunity to develop each relationship further. The regulatory knowledge we have built over the years is embedded in our content and processes. Our ability to offer additional solutions builds customer trust, strength, loyalty and increase profitability. And finally, Signo is a game changer in the market. It combines the knowledge of the market leader with the power of AI and just as important, Conversia guarantees and support. Extraordinary figures of more than 19,000 customers in its first year shows that we have something very special and disruptive. We are in the right path at the right time. We must continue to develop these strengths. And what about the future? We see 3 clear growth opportunities. First, we can broaden our offer. We have a clear product road map that combines new regulations with existing nomigations that are becoming increasingly important to our customers. These products will be developed for our Each-enabled services and especially for Magna and Signo. Second, we can reach more customers. We are the market leader, but the maps still contains many light color areas. The rapid growth of Signo and Magna give us the opportunity to turn these maps deep red within a relatively short period of time. And third, we can provide more services to our existing customers. Our digital products do not make us lose our [indiscernible], quite the opposite. They strengthen our ability to retain customers and cross-sell additional service. And what about AI? Is a risk or is an opportunity? We do not see artificial intelligence as a threat to Conversia, quite the opposite. We see it as a clear opportunity. We base this view on 3 main reasons. The first is the digital gap among Spanish companies. We have seen that Spain is mainly a country of maker businesses. These customers generally have a low level of digital maturity. In fact, a recent survey found that only around 13 of businesses with fewer than 10 employees, which account for approximately 95% of Spanish businesses use AI in some form. But simply using AI is not enough. Writing a good prompt and providing all the necessary context is still not easy or obvious for many companies. However, we know that this barrier is temporarily. The digital maturity of Spain businesses is increasing quickly and so is the adoption of AI. This brings us our second reason. Let us imagine that the Swift barrier has disappeared and the most companies are using AI extensively. With the right information, AI will, of course, be able to create legal documents that are as good as those provided by Signo. But as also has already explained, having the correct documents does not mean that the company is compliant. In fact, creating the document is only the beginning. They must be implemented, sign it and stored. More important, they must always be update when the regulation change or when something changes with the company. For instance, the company may hire a new supplier, launch a new marketing campaign or create a new website. But let's suppose that a more advanced company could even build an AI agent that not only creates the current documents, but also automate some processes to help meet these requirements. Technically, if this would be possible, it would be not easy or quick, but it would be possible. This brings us what we believe is the most important reason. The third reason is security. If you think carefully about everything we have explained today, you will see that our customers do not really hire us to obtain documents. They do not even hire us simply to help them manage or update their compliance. This is how we do what we do. But the reason why they hire us is that they want peace of mind security and guarantees. Conversia service, both tech-enabled and digital are backed by Conversia guarantee. providing protection in the event of an inspection or penalty. No general A model guarantees its answers and no one ever will. In fact, these models always include a clear disclaimer. AI can make mistakes. There is also a bonus reason, the economic argument. Let us take the example to its limit. Imagine a company that is highly advanced in its use of AI. It decided to build an AI engine that creates and manage its entire compliance system. It then arranges its own insurance cover and legal defense. How much would this cost? Would it makes sense when Conversia can provide all of this continuous support and create a great expertise for an average cost of around EUR 600 per year. For SMEs, it simply would not make sense. This is why AI will not take away the value we provide. Quite the opposite. We can use AI. We are already using it to deliver that value faster, better and much more efficiently. This is exactly what Signo is about. AI will create more value for our customers and greater profitability for Conversia. And with that, I hand back to Alfonso for some closing remarks.

Thank you very much, Jorde. Okay. To close, I would like to highlight just 3 points. First, we address ongoing need, helping SMEs and homeowners associations comply with demanding regulations in a simple, accessible way. Second, Conversia is a leading provider in Spain, but our market share remains small. We have opportunities to reach new customers and provide more services to those who already trust us. And third, we have a solid foundation to build on. Our businesses is delivering double-digit revenue growth, combining technology with personal support and Signo has already generated 7-figure incremental revenues in its first year. These results give us confidence. Our priority is to keep growing with discipline, improving efficiency and delivering value to our customers. Thank you. Jordi and I will be happy to take your questions.

[indiscernible] From Berenberg. I'll ask 2, just not to hog the microphone. Just first of all, kind of what attracted agents to Wilmington kind of and how has the relationship been kind of subsequent to the ownership? And also, how is it different from the previous private equity ownership, if there is a difference? And then I guess my second question is, it feels very much a first-mover advantage here play. I guess why has no one done this already before? Why is the market still so fragmented and no one has already kind of seized the moment.

Well, the experience within Wilmington has been very positive. We are, for the first time in our life inside a group that has the same ambition of us. Obviously, when in our past private equity experience, the horizon was a selling of the company. But here, we can develop our capabilities, not only in Spain, but maybe in the future in Europe, not only in our company, we can combine capabilities and synergies with other companies inside the group. We are analyzing them. And we have a very good personal affinity with Mark, Guy and the rest of the team. We have the same analysis of the future of our sector. And we are aligned in the road map that we think that we must follow in order to be bigger this project. And the second question about why is the market so fragmented in Spain, it's shocking really is that this sector was in the hands of lawyers in the past. And many of our competitors are lawyers, generalist lawyers that provide services of any different lines in law for the clients, not specialized in compliance, but they offer all the different services. There are many local small companies that are trying to imitate what Conversia has been doing in these 15 years. We are talking -- I am talking about SMEs, obviously, because bigger companies, they are in the hands of, et cetera. But yes, traditionally, this has been a sector in the hands of professionals of lawyers.

A couple from me. Firstly, I think even if you sort of -- depending on what you mean by a sort of 7-figure revenue number for Signo, even if you took that out of your revenues in 2026, there seems to be a big acceleration in the growth you saw in that year relative to the growth the previous year. Can you just talk about sort of why that happened? And then secondly, can you just remind us, if you're allowed, how long are you guys sort of locked in working for the business for? And sort of you folks -- are your targets revenue or profit driven?

Do you want to do the financial part?

Yes, so we think, and you can ask the guys to what they think as well is that the business was going through last year a sale process for quite a number of months. And the guys can tell you how much time they had to put into that sales process. It was a very thorough one. It went on from January until about August and took up their major selling time in the period. You'll see when the half year numbers come out that the second half of the year is much busier, our financial year that is much busier than the first half. So the January to June period in that year was taken up more with the sales process. Their eyes frankly back on the ball now, and you've seen the result, the numbers -- all they're doing is pushing the revenue and the products and everything else. And I think that's the reason I...

You want to add to that?

Was the sale process going away.

The second one was -- excuse me. The second question is around your incentive plan. So -- which I'll take is easier. So we -- the team are with us for a minimum period of 5 years. We put that -- we announced that when we made the acquisition. And the metrics of that, I'm not going to go into too much detail, but broadly, it's all around growth and improvement in margin as well. So we have a 5-year plan in place. That's constructed by the management team. We then apply our own oversight to it. But not just Jordi and Alfonso, but the 6 strong management team are all hooked in for that 5-year period and incentivized around growth with margin improvements across that period as well. Okay. [indiscernible] front.

It's very striking looking at the map, how many areas there are where you are either underpenetrated or just not very active. So a huge opportunity geographically. How in practice will you go about that? Are you targeting particular regions? Or how does that look? And also, I think you said you've got 221 offices at the moment, 31, sorry. How many will you require? I mean, to sort of build things out? And just could you give a sense around how scalable the sort of central cost base is within the business, please?

Well, I think I can answer the 2 questions together because really, our penetration with our branches is oriented to have this special relationship with referral partners that are experts that are in these provinces providing service to the final customer. And we are in the areas when there is a higher density of this kind of professionals. So now we are quite happy about our network. And there is not an urgency to increase the number of branches. And how can we cover these areas in a deeply way and the rest of the areas -- and the answer now is Signo. Signo, give us the opportunity to reach every part of the country with less effort and in a more profitable way.