Earnings Call: H1 2021

Aug 25, 2021

Thank you for standing by, and welcome to the Capital Limited 1H FY 'twenty one Results Investor Call. All participants are in a listen only mode. There will be a presentation followed by a question and answer session. I would now like to hand the conference over to Mr. Tony Drigeshevich, Managing Director and CEO. Please go ahead. Well, good morning, everyone, and welcome to Capital's 20 21 Half Year Results Presentation. I'm Tony Dragisevich, the CEO at Capital, and I'm joined on the call this morning by our CFO, Tertius Campbell. We plan to present in similar format to previous announcements for around 30 minutes. Before we dive into the results, I will start off by giving a brief overview of the business. So those of you who hope you have a copy of the presentation in front of you, just turning to page 2. So Capital is the largest supplier of aluminum extrusion and aluminum plate into the Australian market. Our core business is the manufacture and distribution of aluminum extrusion produced in 6 manufacturing plants, supported by a national sales and distribution network. Aluminum is a strong lightweight metal and is a preferred material used in lightweight construction applications. Our largest market is residential and commercial building where we supply fabricators of windows and doors and numerous other building products. We also supply into a wide range of industrial applications, including truck and boat building. Our annual sales revenue exceeds $500,000,000 Our market share is around 26%. There are 7 local extrusion competitors and with imports making up around onethree of the market. We currently employ over 900 people. So that's just a brief overview of the business for those that are new to Capital. So the agenda this morning is that I will take you through the first half highlights, then I'll hand over to Tertius to go more detailed look at the financials and then back to me for high level strategy and a discussion on the outlook and guidance. So the 2021 highlights. I'd just like to say that when lockdowns were lifted last year, our industry came out of the blocks fast due to pent up demand. And since then, government stimulus and import supply chain disruption has increased momentum in our key market segments. Turning to page 5. We had a very first very strong first half result, which is well ahead of our previous guidance, which we gave at the AGM and we'll update it at the end of the presentation for the full year. So volume was up 33% on the first half last year to 36,000 tonnes with our plants operating close to capacity throughout. This leads to sales revenue being up by a similar percentage up to $261,000,000 for the half year. With a trading EBITDA result of $15,700,000 which was nearly $10,000,000 ahead of the same period last year, we must remember the first half of twenty twenty was disrupted by COVID restrictions. With an EBITDA with a statutory EBITDA of $26,200,000 for the first half of this year. And the main difference between the 2 EBITDA is the statutory EBITDA doesn't include rent expenses as per the new accounting standard, but it does include a positive LME and FX revaluation of 1,500,000 dollars So we peel those two things out to give us a trading EBITDA, which we consider to be a more relevant measurable number based on historical accounting standards. It's still a very, very pleasing result and the best first half result for many, many years for capital. So net profit after tax, dollars 15,700,000 included a $2,000,000 deferred tax recognition benefit for the half year. We took up a similar amount at the end of the last financial year in December. That led to an earnings per share for the half of $0.93 compared to $0.29 in the first half of last year. The strong balance sheet with net cash of $3,800,000 and this has led to our first interim dividend for some time to be declared at $0.20 per share fully franked. And also just to note that the DRP will be active through this period. So these results were driven by buoyant market conditions leading to high sales demand, improved operating leverage in our manufacturing facilities and the benefits of the restructuring that we undertook in 2019 in our largest plant at Brimber Park. They all combined to lift profitability to high levels in the first half of the year. We saw strong market conditions prevailing in residential building and key industrial sectors or a lot of them were assisted by the government stimulus. We also increased share against imports and that's been maintained through the first half of the year. Very good safety performance considering the level of activities in all of our operations at 6.3 total reportable inventory injury frequency rate. So turning to Page 5 or page 6. We look at our volume breakdown in a bit more detail and look at where that growth has come from. So many of you will be aware that what our channels to market are and how diverse industry exposure. But just quickly, around 40% of our business is through our own distribution centers, both aluminum roll product, which is sheet and plate and aluminum extrusion. And around 60% of our business is aluminum extrusion directly from our manufacturing plants to our large customers. In terms of industry exposure, our largest markets are residential and commercial construction combined, representing around 55% of our total volume and then our industrial markets representing the balance around 45%, which including transport, marine and a significant number of other manufacturing applications. The split by product group in terms of our total out of our total volume, 85% is extrusion with 15% in aluminum sheet and plate. On the right hand side of page 6 at the top there, you'll see our volume seasonality, which shows our half year volumes. You'll see that typically the second half of second half years are stronger than the first half given the seasonality of our business, particularly in the construction residential construction industry. But this year, the first half has been the strongest in many years, in fact, outstripping our second half volumes in our peaks. And we do expect this to continue subject to the COVID restrictions, particularly in Sydney at the moment. So our first half volume, 33% above last year, which I said earlier was impacted by COVID and 7% above the second half of twenty twenty. This volume growth has been driven by a buoyant housing market, also obviously helped by the government stimulus packages, market share gains from imports due to supply chain interruptions and increased shipping costs, positive antidumping outcomes over the last few years and a growing Australian made sentiment. We're also seeing investment in infrastructure, which is also being stipulated by government as well. So turning to page 7, which is we talk a little bit more detail around the residential market. So the residential market continues to grow. In 2021, the latest forecast shows housing starts at 211,000 up 16% on 2020. As I said earlier, the residential starts are assisted by not only government stimulus, but record low interest rates, federal government homebuilder program and also state government first time only initiatives. So all combining together to see a 26% increase in detached housing, which is one of the key market and for us capital in this area. In 2022, the markets are forecast to soften a little bit. We do see a soft landing. There's a lot of work in the pipeline and the current restrictions that are operating in parts of Australia. We'll also see this carry into well into 2022. On the right hand side is a chart of dwelling commencements over the past 10 years. Capital's volume in the residential market is mainly aligned with the Patched and low rise dwellings, which is shaded in green on this graph on page 7 there. And you'll see that the detached and low rise dwellings are forecast to be at their highest level in the last decade. The high rise apartments are at relatively lower level after going through a boom through 2015 to 2018. But there's a lot of predominant players in the high rise apartments are imported aluminum windows, so that local manufacturers windows and doors are representing a small proportion of aluminum that goes into those high rise apartments. So we've had a very, very strong start in the year in this market segment. There's a little bit of uncertainty about what the COVID restrictions will bring in the second half of the year, but we do expect volumes to continue to be strong. On page 8, just some examples of recent residential and commercial projects that we've undertaken. Top left hand corner there is a high end house in South Australia. This house was constructed using the Schuco window and doorship systems, which are our top end range, which is a German European window and door system where the sole Australian agents formerly produced that element here in Australia. Top right hand corner is another upmarket home in Melbourne featuring Capital's high thermal performance systems, which is called Futureline combined with Schuco doors in that particular house. Bottom left hand corner is the Marsden Brewhouse in New South Wales, which is a good example of a commercial project using our commercial glazing system. Commercial project using our commercial glazing systems. And then bottom right hand corner, something a little bit different. This coastal luxury home in Victoria is clad with aluminum decorating deco cladding with our large customers in Sydney and also using Capital's architectural glazing systems and window and door systems in the home. So turning to Page 9, where we talk about the industrial sector, which we have seen to be very strong in the first half of the year. The chart in the top left hand corner depicts capital's sales over the past 10 years. It's an index of our volumes and you can see that in 2021, we've had a strong lift. And just talking about those markets quickly, those major markets within the industrial sector. So the marine market has improved conditions this year. Last year was a little quiet due to the timing of boat builds with our major customers, particularly Austell Marine. The manufacturing and general fabrication markets this year have come out of the block strongly. We've also gained share against imports in this area. The solar market where we supply aluminum solar rails that sit under the solar panels on residential and commercial roof roofs. We're seeing strong growth in the sector and this is once again as a result of antidumping activities that we've initiated and taken share of imports. In terms of resellers, we also while we have our own aluminum distribution business here at Capital, we also sell to other aluminum distributors in the market and that volume is lifted over the last 12 months due to the import replacement volumes that we put in there. Infrastructure continues to be strong. We've seen good strong underpinned, good strong growth both in infrastructure and the transport sectors, particularly with infrastructure investment underpinned by government stimulus. The largest sectors in our industrial market is the transport sector and that graph on the right hand side shows the new truck and van builds over the past 11 years. And you can see there in 2021 for the first half, those truck builds are up 9.2% on the same period last year. So we're anticipating good growth continuing and we're certainly seeing our large transport customers, which are mainly truck builders, delivering good volume to us this year. On page 10, turn to page 10, just some examples good examples of recent capital industrial projects. Top left hand corner there, a 41 meter catamaran ferry produced by the Austell shipyards in Vietnam. This vessel features capital marine grade plate and extrusion supplied here out of Australia. Top right hand corner, HVAC platform mounted on top of a commercial building roof produced by Conform Group. So we supply them with all the aluminum extrusions for that platform. Bottom left hand corner, good example of a trailer unit produced by must get trailers here in Sydney with Music Capital Plate and extrusion. And bottom right hand corner is a bit of a unique industrial project for us in commercial infrastructure. This is the ventilation shafts at the in flight inmate tunnel, which is due to open sometime later this year. So it's capital extrusion and gold amortized. So some very nice projects and good examples of where our products end up in a variety of industrial sectors in which we deal with. So I'll now hand over to Tush just to take you through the detailed financials for the first half of the year, then I'll come back and talk about the outlook later on. So over to you, Tertius. Thanks, Tony, and good morning, everyone. I agree with Tonya's very pleasing result indeed. Capital delivered a very strong performance and above earlier expectations. Our integrated value chain benefited from higher volumes, better asset utilization, strict cost control and disciplined capital expenditure. Overall, the key financial outcomes for the first half were very strong earnings, solid balance sheet and a comfortable cash position. So if we turn to Page 12, capital results for the first half was significantly better than both the first and the second half of last year. Sales volumes were 33% up on first half twenty twenty. This led to revenue growth of a similar magnitude delivering a $7,100,000 positive impact on our EBITDA. In addition, a slight improvement in the margin boosted profit by a further 1,500,000 euros The higher demand led to better utilization of our production and warehouse facilities, providing operating leverage gains in the order of CHF 4,400,000 These gains were partly offset by cost increases in line with the higher activity levels and the non repeat of the reduced salaries due to COVID last year. Trading EBITDA at CHF 15,700,000 is significantly better than last year, with the second half expected to continue this trajectory. Brimmar Park after the 2019 restructure produced positive earnings in line with expectations and will continue to deliver improved outcomes. EBITDA of CHF26.2 million is CHF9.2 million better than half year 2020. In line with the expectations of sustained future earnings, capital started recognizing additional deferred tax assets in FY 2020. A further $2,000,000 was recognized in this half. Net profit after tax of $15,700,000 represents earnings of $0.93 per share, more than 3 times the first half twenty twenty earnings per share. Turning to Page 13, the balance sheet. Overall capital's financial position remains strong and we ended the period with a solid cash position of 33,800,000 dollars Higher sales and increased global aluminium input costs led to higher selling prices and higher receivables and also a requirement to hold increased levels of stock at these higher costs We substantially increased working capital requirements. As foreseen in our full year 2020 presentation, overall working capital requirement increased around $15,000,000 this half and will continue at this level or higher depending on the sales levels and aluminum input costs. Capital still has CHF 15,000,000 credits available for distribution, of which CHF 1,500,000 will be distributed with the interim dividend next month. Also, a further CHF243 1,000,000 of accumulated tax losses that are still available for future recognition. On Page 14, the cash flow shows strong cash earnings offset by working capital increases as explained earlier. This led to a reduction in operating cash flow. In addition, a net CHF5.4 million was paid as dividends during the first half, as well as around CHF 10,000,000 for the Smithfield acquisition, which included plant, spares and inventory in addition to the actual asset. These outflows reduced net cash flow by around CHF 16,000,000 Enclosure, flowing from the strong first half outcomes, this FY 2021 interim dividend of CHF0.20 will be paid in September, with the DRP again being active. Thanks, Tony. And back to you. Thank you, Tertius. Certainly, nice to be able to present such a good set of numbers for the half year. So turning to the strategy and outlook. Our overall drive is to get a return on the recent investments that we've made, but only in terms of new plant at Smithfield that we acquired earlier this year, but also the investments that we've made in our other manufacturing plants and also into our distribution business to help us keep improving our long term competitive position. So turning to page 16, the key focus is to improve productivity and competitiveness and to retain the market share gains against imports that we've endured over the past 12 months. So in the manufacturing business, our focus is on delivering the benefits of the Smithfield acquisition. We aim to we're currently up running at 2 shifts. We aim to run get up to 3 shifts by the end of the year and to run at capacity in the Q1 of next year. Significant amount of work has gone into integrating that plant into Capital's extrusion operations and we're now starting to see the benefits of that acquisition, which I think would be an excellent one for us in the years ahead. We continue process improvement programs at all extrusion plants. All our plants are operating very, very well, pretty much at full available capacity. The restructuring we undertook at Brammer Park in second half of twenty nineteen is paying dividends and is generating the returns that we expected. Just to remind everyone, that restructure took out $8,000,000 worth of ongoing cost of that site, and that plant continues to is now delivering strongly to capital is bottom line, and we expect it to do so and continue to improve over the years ahead. We need to spend maintenance capital to ensure the ongoing reliability of our plants and improve our efficiency and we have quite a heavy and strong capital program around maintaining our facilities to high standards. Our extrusion plants can operate efficiently and effectively for up to 30 to 40 years and providing we maintain them to good standards and update them as required. We're progressively upgrading the shop floor control systems to the common platform right through our manufacturing operation, and we hope to have that complete through 2022. In our distribution business, we're upgrade we nearly finished completing the upgrade to capital our own proprietary window and door systems product range and also our system software to support that product range and hope to have that complete in the Q1 of 2022. Those products are being rolled out as we speak. We're also looking to increase warehouse capacity in our 2 main markets in New South Wales and Victoria. In New South Wales, we signed a new lease for a building at Honeywood, which is nearly twice the size of our current facility. And we'll also be moving the Parramatta head office into that site later this year. So we hope to be in that, all things being equal and COVID permitting over the Christmas break. We've also taken on some additional warehouse capacity overflow capacity in Victoria to help us improve our customer service levels and hold the more inventory given the higher demand. Our long term goal of our distribution business and for capital is to increase the volume and profitability of our own direct distribution channel and be less reliant on other volumes coming from other distributors. In terms of sales, our ongoing technology investments to improve our sales effectiveness include EDI. So we continue to ramp up our EDI engagement with our customer systems. CRM with our sales force running on capital CRM system and enhancing and growing our digital marketing campaigns. We've upgraded our website recently and we're currently upgrading and rebuilding e store to provide more information and ease of interactions for our customers, both direct customers and our specification specifies in the architectural community. And we recently implemented a new sales reporting software tool to help us manage and improve our margins and manage our customer database. In terms of market development, the key focus areas in the year ahead firstly, solar. As I said previously in earlier slide, the antidumping outcomes have provided the opportunity for local manufacturers to compete in this large solar rail market. We signed last year, we signed an agreement to become the exclusive local supplier to the largest solar rail and component distributor in Australia, a company called Clean Energy. So we're working with them and those volumes are growing quite nicely. We expect that to continue in the years ahead. In the government defense areas, we are the preferred an approved supplier to all the major defense contracts, including the frigate, submarines and also the landframe components of those defense contracts. The biggest ones for us are the frigate programs where we have a fair component of aluminum in those aluminum in those frigates that are being built mainly by Austin and Western Australia. In terms of cladding, this is a growing opportunity. We're working with a number of cladding system suppliers to address the new fire standards and the cladding opportunities is a result of flammability with those cladding systems in a number of buildings, both in Australia and worldwide. In terms of import replacement, retaining the market share gains is a that we've enjoyed over the or we won back over the last 12 months, focus on that through service differentiation. Our shorter lead times are very important in the market, particularly in the current environment and also providing competitive local pricing. We certainly have been able to do that now that we've got more of a fair fight playing field in terms of getting real healthy dumping outcomes and also the higher freight costs that are being imposed upon imports over the past 12 months. Okay. Turning to Page 17, just talking about some key industry influencing factors. And firstly, anti dumping, which is briefly mentioned a minute ago. Capital has taken the lead on behalf of the aluminum manufacturers in Australia, aluminum and extrusion manufacturers in Australia, and we've been at this for over 10 years. The original case was taken the 1 in 2010 and won't go through all the detail here because many of you would have heard it before. But the most important ones recently have been the extension of midges on Chinese imports for a 3rd of 5 years until 2025. And this year earlier this year, measures were imposed on some exempt Malaysian imports. It's currently under appeal by those importers. And also, we're just about to initiate a continuation case against to see continuation of duties against Malaysia and Vietnam, which we have to do every 5 years. Border Force continues to have an increased focus on transhipment and misclassification, which is very important to us in this year alone. Border Force report that came out last week, they issued 3 they recovered $3,000,000 in additional duties as a result of misclassification this year alone, the majority of that being in aluminum extrusion. So a very important initiative and one that we will continue working both with manufacturing Australia and other key supply partners to in the Australian aluminum community here in Australia. Now, aluminum price. So turning to global aluminum prices here, you'll see a chart on the right hand side of page 17. The price we pay for this is the price we pay for aluminum billet, which is our key raw material input. And we pay the global alumina price for aluminum plus a regional premium that applies, which you call the EMJP, which applies in the markets of Asia. As you can see by the chart there that we've seen that both the LME and the premiums have escalated this year. The regional premiums have been relatively stable for around years. So in the first half of the year, they jumped 67% and will continue to rise in the second half of this year. LME, which is the largest component of the aluminum raw material cost, increased 18% during the first half of the year from AUD2660 a ton to AUD3,100 at the end of June and significantly above the same as it was in June 2020 at 2,200. As we speak today, the LME is AUD3600 a ton this week. That's up 35% of where it started the year from significantly up on the same time last year. So that's going to be challenging for us, particularly in terms of our working capital levels. So turning to the outlook on the page 18, which is the final page of the presentation. We have we will be announcing as part of this results presentation an upgrade to our guidance. Before I go through that, Just the remiss of me not to talk about how capital is coping and how we're operating in the current COVID restricted environment. So we have fortunately been able to continue to operate as an essential business during all of the COVID restrictions over the past 18 months. On demand in on demand in the second half. I guess it's probably a big call to make at this stage. We are seeing an impact in our New South Wales business. We're starting to see an impact in our New South Wales business with a good portion of the construction industry being under being locked down under restrictions. One of the benefits of being a national business is that we've got good volume still being generated out of our our WI, Queensland, South Australia. Victoria has also been really strong. Tasmania is strong. And so we do expect that while there will be some impact on the New South Wales construction close down well, partly the New South partly close down, we do we don't expect that to have a significant adverse impact in the second half results. The Smithfield plant we acquired earlier this year will continue to ramp up production levels. It's a big focus for us at the moment to reach capacity by the Q1 of 2022. In the second half of this year, we expect residential building to continue to grow. As forecast, non residential construction is also forecast to recover in this year. That may be impacted in New South Wales to a degree, but overall, we still expect to be relatively strong. And the industrial sectors all around are anticipated to remain strong even here in New South Wales. As we speak, many of our customers, particularly in the transport sector, are very busy with very high books in front of them. Calamere, as we spoke about, is forecasted high levels in the second half of the year, reaching 10 year highs and some 30% plus above where it was at the start of the year. So taking all this into account and absent any major unforeseen events, we expect our full year 2021 trading EBITDA to be in the range of $31,000,000 to $33,000,000 which would be a very, very strong year for capital and probably the best or certainly the best on record for the past 20 years as opposed compared with our previous guidance range here, we can see a $25,000,000 to $27,000,000 also resulting in a statutory EBITDA of $51,000,000 to $53,000,000 Obviously, that number excludes the impact of bank costs. On this basis, capital will be in a position to continue the payment of a fully fracked dividend at year end. So very pleased to be able to present what we consider to be an outstanding set of numbers for the first half. And all things change equal, we should have a very strong year. So handing back to the operator for questions. Thank Your first question comes from Simon Mulaney from Allen Gray. Please go ahead. Hi, good afternoon both of you and congratulations on I'm just curious how you would have us interpret the dividend on two levels. Firstly, its modest size relative to your current profits. And then secondly, your decision to DRP some of it or potentially all of it given the strength of your balance sheet? Simon, I'll answer that one. Look, Capital's major objective here is to be really is to become a solid dividend payer and the introduction of an interim dividend is a key component of that. It's modest because we're very cognizant of the fact that we want to be able to maintain a consistent level of dividends through the high periods of the peaks of market demand and also through the troughs. So it was important to us to at this stage is our 1st interim dividend for, I think, somewhere around a decade or more to pay a to single to the market that we are that we intend to pay interim and final dividends on an ongoing basis. And the volume of those or the level of those will be obviously, we'd like to see consistent through the period as it is our first one. It is modest given our current given the earnings for the first half of the year, but also a step a strong step in the right direction. In terms of the and of course, we still got the final dividend to be declared at the end of the year. We're also very mindful of the fact and the fact that this will also come to the BRP activation. We've had the BRP in place now for a few years. It's been well received and well contributed to by a number of shareholders and the Board felt that those wanted to be consistent in having that DRP available to shareholders should they wish to undertake it. And one of the key thoughts in our minds at the moment is that with the significantly rising Alameda, which drives which really drives our working capital levels up significantly is that while we've got strong cash earnings, we've also got strong outflows this year, in particular with the rising LME in terms of their investment and working capital as well. So just on the cautious side, I think that we're being modest in terms of the dividend that's been announced as an interim. And we also I guess, the consistency also looking to maintain that PRP as well. So hopefully, that answers your question, Simon. It does. Thank you very much. That's quite clear and well done again. Thank you. Okay. Thanks, Simon. Thank you. Your next question comes from Simon Samuel from Delta Asset Management. Please go ahead. Thank you and well done again for turning good numbers in. Could you tell me how you're exposed to inflationary pressures? Obviously, the LME price is out of your control, but my understanding is you're able to pass that on with some sort of a lag to the customers. But I'm thinking more labor costs, freight costs, those sorts of things. Could you tell me how those are tracking and how much of an issue they may be? Or if you think they're transitory like everyone or the central banks seem to be persuading us? Thanks. Simon, that's a really, really good question. We with the LME, over 60% of our total volume is back our sales are back to back with the LME, some monthly, some quarterly, but pretty much generally over 60% of the volume is back to back. The rest of our customers through our distribution business, we have regular price increases and we just announced we're announcing this week our 3rd price increase for our distribution business this year, which will be effective 1st October. So we're keeping ahead of the LME increases. We do intend to recover the inflationary impacts of the annual price increase we have on the 1st February each year. But there is inflationary pressures coming up under us in terms of packaging. A lot of that we use a lot of timber in our packaging cases with and that's gone up threefold. Gas has gone up significantly over the last quarter. And we're now starting to see with the inflation numbers that we will start to see a high level of, I guess, requirement for wage increases in our EBAs. We've got 4 EBAs coming up this year. We're in the process of negotiating those. Now over the last 12 months to 2 years, those have been negotiated for multiyear agreements sort of at the 9% to 1.5% level. But with the current level of inflation, we are expecting a small increase on that in the year ahead. But we've got no choice but to pass those increments on to our customers, which we normally try to do or normally do at the start of each calendar year. And what about actual staffing? I'm concerned that if you're going to put on a 3rd shift in New South Wales, I'm hearing around various industries are suffering from shortage of personnel. They just can't get anybody to do what it is that you want them to do. Are you seeing any of that? We certainly are. It's been challenging because we've ramped up demand on our existing plants and also and Denham Park now running at 9 ships plus over time and all our plants running at close to capacity and adding a second shift and potentially also planning a 3rd shift at Smithfield. It has been quite difficult to get reliable or to recruit additional employees for those roles, train them, given the quite high levels, relatively high levels of government support for those people not wanting to work. But as we saw when JobKeeper finished, we saw that came the labor market freed up a bit. We were able to take on new employees. But it has been challenging and but we continue to just recruit and find the right people to join the organization. So it has been a little bit difficult, but a little bit challenging, but we don't see there's a major impairment taking us forward. Okay. And on the outlook, you're basing your predictions on what will be built largely the housing construction market. How much confidence do you have that the building approvals numbers will translate into demand for window frames? I mean, how long does it take? I imagine window frames are sort of reasonably early in the piece, but how long can that last is what I'm trying to get to, with the approvals there. Look, the window frames typically go into housing sort of the second half of the construction phase as they hit the lockup. There is a cut putting COVID aside, which is very, very difficult to do at the moment because we live in Sydney like I do. Putting COVID aside, our residential window and door fabricators have very, very large order books and do not see an end to this for 18 months. Good. All right. Thank you. Thank Thank you. There are no further questions at this time. I'll now hand back to Mr. Trigeshovich for closing remarks. I'd just like to thank you all for your attendance. I know that a number of you will have 1 on ones over the next couple of weeks. Just pleasing to present such a strong set of numbers, and I'm confident we're also going to have a good set for the full year as well. So thank you for your attendance this morning and look forward to speaking to a number of you over the next few weeks. Thank you. Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.