Earnings Call: H2 2021

Sep 29, 2021

Welcome to the Origin Enterprises Plc 2021 Preliminary Results Conference Call. At this time, all participants are in a listen only mode. After the speaker presentation, there will be a question and answer I must I'd like to hand the conference Over to your first speaker today, Sean Coyle. Please go ahead. Thank you, Yola, and welcome, everybody. Good morning, and Welcome to the Origin Enterprises 2021 Preliminary Results Call. I'm joined here this morning by TJ Kelly, our Our Chief Financial Officer and Brendan Corcoran, our Head of Investor Relations. I'm delighted to report this morning a Strong recovery in profit from what has been a challenging 2020 year. And I think we've made progress on a number of fronts From a strategic perspective as well, showing underlying growth in a number of areas right across the business, Strengthening the balance sheet and also rolling out a number of strategic areas across the group. So The normal Safe Harbor statement there in relation to forward looking statements, if you could take note of that, please. So a stronger performance across all three segments in the group. Earnings recovered substantially from a base of €44,000,000 in 2020 up to €61,000,000 This year, which represented a 38% increase in operating profit, margin expanded by 90 basis points to 3.7%. Our net bank debt position came in substantially lower at 14 €400,000 And we continue to work on strengthening the balance sheet, forming what was a challenging 2020 year. And we're delighted to announce this morning that we are resuming the payment of our final year dividend. The total dividend will be €0.11 which represents a 37.3% payout of profit after tax. All of the individual segments across the group saw significant underlying growth. The most substantial of that was in the Ireland U. K. Segment at just north of 64%. Our Continental European businesses saw underlying growth at 21.6%, and our Latin American businesses Saw underlying growth of almost 17%. So we're really pleased with the significant progress that all of the divisions have made. And as I mentioned at the outset, the group continues to make progress in a number of areas. In particular, We're embedding the ESG agenda and sustainability into the organization and looking to get better Strategic alignment across the group and collaboration and cooperation between the individual Business units across the group, and maybe we'll touch on some of those. So from an M and A perspective, what we saw in the year was The acquisition of Greentech, which is a leading provider of products into the landscaping and The provision of services and products in particular into the urban renewal area, And we think that's an important stepping stone for our amenity business into new potential areas of growth. We also divested of our Belgian fertilizer business, Pilar, during the year. And as we said at the time, Pilar Has struggled to see any opportunity for consolidation within the market, and we entered the market hoping to consolidate in the Belgian market, but didn't find an appropriate opportunity to buy another player in that marketplace and have decided to divest and depart the market as a result of that. From a capital expenditure perspective, We've also invested in principally our Dynamics 365 ERP platform, which will replace Our current Ireland and UK ERP platform and will be rolled out over the next 18 months across our Ireland, UK businesses. And in addition to that, then we invested in a controlled release fertilizer plant in Brazil to expand our geographic Reach for what our controlled release fertilizer heavy ton, I suppose, From a logistics capability perspective, fertilizers, which need to be closer to Market. So investing in that plant in Munoz Gerrais meant that we opened up a new segment of the market from a geographic perspective rather than traditional the traditional Parana state where we have normally operated. We are embedding sustainability across the group. And in addition to the Green Horizons document, which is our sustainability manifesto for the agribusinesses, which was published last year, This year, we have announced the Fertile Future Sustainability Manifesto for our fertilizer businesses. We've seen continued improvement in our ESG ratings. And midway through October, we would expect to release Nurturing Growth, which will be our inaugural sustainability report on a stand alone basis for the group. So We expect to see more news on that later in the year. And then from an alignment perspective, Obviously, there's been a lot of work ongoing to bring the businesses closer together. And we have progressed the Romanian merger and bringing our 2 separate businesses together under the Agri brand over the last 12 months, and that has proved to be a success. We've also announced the integration of our amenity businesses under one brand into the Origin amenity solutions brand in the UK, and that Work is ongoing. And in addition to that then, we've done considerable work in rolling out Our existing in house products internally within the organization. So we saw 44% growth of our in house products across the European businesses. And we've now moved our in house sales from about 12% of the BAM portfolio, biologicals, adjuvants and micronutrients, up to about 16% of the BAM portfolio over the course of The last 12 months. So that's been an important consideration for the business. Turning to the Ireland UK segment, the business saw a strong recovery in profitability, albeit not as strong as the 2019 Profit level we saw and a delayed spring season, I suppose, curtailed some of the recovery in that respect. As we reported earlier in the year, there was a strong carryover of seed, in particular on farm, and that restricted our seed sales In the first half of the year, and the delayed spring then restricted our crop protection sales to a certain extent. But our fertilizer businesses So strong volume growth and return to growth, both from a margin and volume perspective. And our amenity businesses also saw Strong growth with good recovery following the easing of COVID-nineteen restrictions. Our FEED joint venture businesses were challenged to a certain extent By the supply constraints, in particular, the challenges that we Experienced in Argentina in relation to product departing Argentina and getting to the Irish marketplace, which left us in short supply for a period of time. But on the whole, the business has performed reasonably well, and we're happy with the Recovery and profitability of our Ireland U. K. Businesses. Our CE businesses Also saw significant underlying growth. Operating profit at an underlying level grew by 21.6%. Revenue grew modestly at an underlying level, just under 6%, but shrunk at an overall level with Pretty much all geographies seeing backwards movement in revenue. And the focus that we've been talking about for the last Couple of years of increasing the margin within the business by focusing on more strategic Higher margin products across the CE segment has come to fruition there. So we're very happy with the performance of the business. Ukraine is probably the one cloudy spot in relation to the performance of the CE businesses. We did see a recovery back to a breakeven level within the Ukrainian market, but we are disappointed that the profit level in the Ukrainian business was not as we would have wanted it to be, and it does remain quite a challenging market from a pricing So from an overall perspective, very happy with the performance in Poland, extremely happy with in Romania, which has delivered despite all of the merger work that was going on there. And we're happy that the Ukrainian performance has improved, but we still think we can do better in that marketplace. Within Latin America, again, underlying performance of this business was good. We saw very strong revenue growth, Close to 60% at an underlying level, on the back of increased volumes and sales of our controlled release fertilizer products, And that's been very strong. Our operating profit was up by almost 17% at an underlying level. Unfortunately, the continuing weakness of the Brazilian reais has led to a translated profit Coming in at a lower level than we would ordinarily have liked. So $6,300,000 is down by 11% on the previous year's figure. But on an underlying level, the Brazilian business continues to perform very well, and we're very happy with the operating performance of that business. And just as a reminder, the gross margin on controlled release fertilizer products is typically about 50% The gross margin available on the more traditional product range of biologicals, adjuvants and micronutrients within that Latin American business. And that's the principal reason for the dilution of margin year on year. So I'll hand over to TJ now, who will talk through the financials. Thanks, John. Again, overall, pleased to report strong sales and financial metrics for FY 'twenty one. I'll focus Some of them on this page. Firstly, looking to operating profit, as Sean mentioned earlier, strong year of recovery of Operating profit increasing just over 38 percent to €61,000,000 compared to €44,100,000 in the previous year. That performance is primarily driven by recovering volumes and margins in the UK and Ireland segment, which we'll cover in a little bit more detail later. EPS similarly has grown by just over 38% to €0.355 adjusted EPS, Which is very much in line in the mid range of the guidance that we gave in Q3 of $0.34 to $0.36 adjusted EPS. From a bank debt perspective then again, obviously very pleased with the further net bank debt reduction year over year. Closing net bank debt of €14,400,000 represents a circa €39,000,000 reduction in debt when comparing the 2 year end acquisitions. That really is reflective of continued strong cash generation across the group driven by primarily the recovery in profitability in the year, Continued strong focus on working capital, the benefit of the Peeler disposal proceeds and generally reduced CapEx across the business in the year as well. Just looking a little bit further then at working capital, overall, we saw a modest outflow in the year of £4,000,000 compared to an inflow last year of £30,000,000 Underlying, we continue to see significant progress in working Capital reduction across our CE businesses. And the really what happened in the to get that net outflow position was that The later than usual seasonal volumes that we saw, particularly in the fertilizer business, we need to push BowWave to add that working capital to more Q4. 4, that would typically be the case that that offsets effectively the underlying positives that we've seen come through in the CE levels of working capital. But overall, as I say, good progress being made. I'm very pleased with the working capital What was the working capital reductions we've achieved? Dividends then, as Jean mentioned, again, pleased to announce the final dividend of 7.8 £0.05 bringing the total dividend for the year to £0.11 a payout of just over 37% of our profit after Saks And then from a ROCE perspective, again, good progress, up to 9.3% from 7.3% last again driven by the improvement in profitability primarily and also seeing the benefits of further reductions in average working capital levels as I mentioned. From a revenue perspective, overall group revenue increased 6.2%. On an underlying basis, that was 8.4 And within that, again, please, with the progress that we've made in terms of volumes. Volume growth of 4.9%, largely Fertilizer led, we've seen growth in fertilizers of circa 4.8%. Chemicals Roughly the same and seed volumes are back marginally in here as you'll be aware due to the carryover of stock that we have from the previous year. Pricing growth of 3.5%, again largely fertilizer led just over 4%. Feed similarly saw price inflation during the year of just circa 4% with feed pricing also up about 15% in the year. Moving to Page 10, again, maybe just draw your attention to a couple of the line items here. You'll notice that the finance Costs have reduced by €2,700,000 to €8,600,000 in the year. Again, that's reflective of your average debt levels in our business across the year. So not alone have we seen that strong year on year Closing net debt position reduction, I suppose, reflected really of the average position is that strong reduction in net interest costs In the year, again largely reflective of working capital progress and increase in profitability. The JV line, as As Jean mentioned, back versus the prior year largely driven by those supply chain issues that we've seen in our feed businesses. From a good revenue perspective then just to break out the €105,600,000 underlying revenue that was largely driven circa €75,000,000 of that €105,000,000 Coming through the UK and Ireland segments and really breaks out across the recovery in the munities business, post easing of lockdown restrictions, Recovering Agri UK volumes, particularly in the last quarter of the year and strong fertilizer volume and pricing growth in the period. LATAM, again, had a strong contribution, €80,000,000 of that €105,000,000 was driven out of LATAM, reflecting again Strong CRF volumes as we commissioned our new CRF plant in Munay dry, which went live in the second half of the year. The currency is primarily driven through the weakness of the Brazil Rail against the euro. From an OP perspective then, the growth of €18,600,000 again is largely weighted towards the UK and Ireland. Agri UK recovery, good volume performance in fertilizer, margin and volume performance in the fertilizer Businesses, again, been the key drivers. From a sea perspective, as Jean mentioned, overall, the region recovered and delivered well in terms of OP growth. Brazil delivered a strong underlying profit growth, which unfortunately is eaten away by virtue of the translation impact again of that weakening Brazil Real to the euro. From a free cash flow perspective then, again, as I said, the free cash flow Strong year overall conversion as a percentage of PAT just under 115%. And as I mentioned, while there was an underlying outflow in working capital, we were pleased with the overall underlying performance in reduction in working capital Absolute levels, particularly across the CE business. The CE business is a spherical context. We have taken out about 45,000,000 Euro of working capital over the last 2 years. And looking to our overall credit metrics, Again, that strong cash performance has left us in a very strong position relative to covenants at the end of the year. And we're also again pleased to announce that we've extended our banking facilities out to 2025. So over €400,000,000 banking facilities that we have extended, €366,000,000 of those now Rolled out to 2025 with €34,000,000 out to 2024. And you'll also note that the Pricing associated with the facilities is now linked to our sustainability ratings. So in terms of the evolution of the business over time, obviously, the business has always had Sustainable food production and soil health at its core, but we continue to refine our offering and tailor our solutions to what is an ever changing set of regulatory requirements and the regulatory environment for farming and For the, I suppose, business of agriculture and food production continues to change over time. And as a result of that, We continue to change and refine our offering to focus more on sustainability. Within the Agri Inputs division, which is the left hand side of the page, our fertilizer businesses and amenity businesses, the crop nutrition Continue to develop new product sets and more sustainable products and solutions for growers. We're continuing to focus on proprietary value added products within the product set, which typically attract a higher margin for the group. And we continue to expand our in house portfolio. And from an M and A perspective, we'd like to continue to add to our in house portfolio of Speciality Products within that. From an amenity perspective, I think COVID and the last two years has Taught us that social and health benefits related to green spaces and outdoor activities and the longer term move to, I So those boroughs and town councils and counties investing in green spaces and greenways Continues to be a trend that we will see. And if anything, hybrid working will continue to promote that type of activity. So We see ourselves moving some of our activities into that area, albeit agriculture will very much be at the heart of what we do, but we do see we have capability in that space from an amenity perspective. We continue to add in new value added technologies in the business, and we see the immunity business as a one shop stock, which is serving Several end markets. Within our agronomy businesses then on the right hand side of the page, our agri services businesses, Again, I've always been involved in giving trusted advice on sustainable food production to all of our growers, whether that's in the arable sector Or in the fruit and veg sector. And the business has always had trusted advisers giving that best advice For sustainable food production and increasing farm productivity and enhancing the environment can sit side by side It's about getting an appropriate balance in that regard. And a good example of that in the last 12 months has been the launch of our Sustainable seed ratings within the agribusiness, where we are giving advice on the best type of seed or best variety of seed In certain climactic conditions or certain size types and giving each of them a sustainable rating. So we continue to develop the advice, And then our digital agronomy platform Continues to support and underpin that advice on farm. It will allow us to continue to give tailored advice at a subfield level and develop climate smart products that will facilitate sustainable practices. So whether it's identifying That part of the farm that is least productive and needs to be transitioned into ELMs, schemes in the UK Or identifying opportunities for variable rate application of fertilizer or variable rate application of seed, Essentially, the digital technology that we have supports that engagement with farmers and will allow us to deliver Internal Efficiencies and On Farm Efficiencies for the farmer. I mentioned at the outset our nurturing growth standalone sustainability report, which we'd expect to publish at the same time as our annual report In the 3rd week of October. And what we set out within that is a framework for action over the next 10 years to align ourselves with, I suppose, the UN Sustainability goals, sustainable development goals and a number of other areas where we feel that the business needs to improve. So as we said earlier, we published a Green Horizons charter and a fertile futures charter for both our agri and fertilizer businesses, which is focused on the top right hand side of that page there and the on farm products and services that we're providing. But we're also focused on a number of other areas, be it waste, water, climate change, operational excellence of innovation. We have a number of initiatives and a framework for developing in a number of areas, which we'll set out in that document. And in addition to that, Ben, we'll also focus on our society, our interaction with our customer base, our interaction with suppliers And most importantly, our interaction with our own people. And we set out within the document how we will engage with employees, our approach to diversity, Equality and inclusion, how we interact with the community. We did sign up to the UN Global Compact recently, and that sets out our policies in relation to human rights, labor, the environment and anti corruption. And there's a strong focus within the group on health, safety and well-being. We're rolling out, for example, at the moment, The new health and safety software across the group to record and track incidents across the group. And essentially, it's important for us that all of our staff get home safely every evening. So we're very focused on health, safety and well-being across the group. In terms of growth in the business from a strategic perspective, we do continue to have very strong market positions in the global food production and amenity sector. And we continue to focus on developing those and utilizing those We're very much seen as a trusted adviser and input provider On farm with very long term relationships, very long term partnerships, both from a supplier perspective and from a customer perspective, And we intend to continue to leverage those. We have and continue to invest in collaborative research and technical innovation, Transferring that new technology into commercial operations, so be it our conscious program, our investment in our digital platform, We continue to be at the forefront of developing new technologies. And we see ourselves as being positioned to Capitalize on evolving market trends. We are the leading advisor in terms of product capability and advice on farm and see ourselves as being flexible in that regard in terms of how we interact with our customer base. And our M and A activity, in particular, in the last 12 months has continued to introduce a sustainability focus on what we buy from an M and A perspective. And we will continue to have, I suppose, an ESG lens on the type of businesses that we buy within the group. So We've always talked about expanding our proprietary products within the group, and we've always talked about seeking to expand our amenity businesses from an M and A perspective. And that hasn't changed, and the ESG Those are micronutrients within our product set will continue to be a focus. We're also looking at areas such as seed and within that space, but very much in the specialty area. And those segments of the market continue to grow at a Faster rate than the general agriculture market that we are typically exposed to. They're growing Typically at 7% to 10% per annum category, so they are faster growing segments of the market. Within our amenity solutions businesses, we're looking at areas that can be complementary to the agricultural landscape, such Forestry and Landscaping, businesses such as seeds, the creation of new environments from an urban landscaping perspective, Plant Protection and Biologicals within that set. So our core was sports turf Within that area, we're moving more into environmental services and urban landscaping with the acquisition of Greentech And potentially, a subset of the Garden Products market could potentially be an area in which we'd have interest in expansion over the long term. So we're delighted with the performance for 2021. It has given us, I suppose a much strengthened balance sheet coming into 2022. The earnings and cash generation has led us And we're very happy to be reinstating the dividend as we exit the year. The acquisition of Greentech has complemented our ambition to grow our offering of sustainable solutions within the group. And the business has had a good start to 2022. Things like Seed sales across the U. K, which struggled because of the carryover on farm last year are much improved year on year. Any of the challenges in relation to stock on farm that we experienced last year are no longer evident. There's certainly some evidence that the planted area of oilseed rate is up year on year. And in geographies such as Romania, for example, which had experienced drought over the last couple of years, our start to the year has been quite strong because Planting conditions have been pretty good due to rains, which they've experienced over the last couple of months. Generally speaking, farmers are in a pretty good position from a balance sheet perspective. The high crop output prices that they have experienced in the last 12 months have allowed them to repair their balance sheet and improve The position on farm. Now I would caution that high fertilizer prices going into next year will remain a challenge and Availability of raw materials from particularly from a fertilizer perspective, you'll have seen the news in relation to CF Industries and Yara and other producers of fertilizer raw materials, which will be a challenge over the coming 12 months. But it's always difficult to predict the outcome for Any fiscal year at this stage of the year, the start has been good to the year, and we need to keep an eye on some of the supply chain challenges That may be experienced over the coming 12 months. But in general, we're reasonably happy with how the year has started, and we think that The business model is in good shape, and a lot of the strategic initiatives that we've been taking leave us well placed to see further growth in 2022. So with that, we'll hand over to questions, Yola, if you don't mind. So we'll open the floor to questions. Thank you. Thank you. Your first question comes from the line of Jason Lamanna from Goodbody. Hi, good morning. Sean, you touched a bit on conditions In terms of the start to 2022, can you maybe just delve a bit more on the UK side of things, Soil conditions and obviously the recent weather that we've been seeing in the UK and how you think that feeds into the autumn winter planting season. And second question is really around the dividend. With the reintroduction this year, how should we think about that threshold and the payment threshold going forward would be helpful. And my 2 main questions. Thanks. Sure, Jason. I'll take the one on planting in the U. K. And maybe I'll let TJ take the question on dividends. So Yes. U. K. Harvest was delayed, I suppose, because of that cold spell during spring. Crop development was not necessarily as Strong as it might have been and with a little bit of rain through August, which delayed harvest. But that being said, Conditions are reasonably good in the UK, I would say, for planting at this point in time. As I mentioned earlier, the oilseed rate Area seems to be up. Now we don't have final figures on that yet, but anecdotal evidence in the UK market is that There is more oilseed being planted in the UK this year versus previous years. And winter wheat planting will take place over probably the next 6 to 8 weeks. And the reason that, that goes into the ground a little bit later is for good agronomic practice reasons. But also The delayed harvest has meant that there's a challenge in terms of turning around seed, getting it Sent to seed dressing plants, getting it cleaned and back out on farm for drilling. So there's plenty to happen over the next 6 to 8 weeks from a winter week perspective. But as it stands now, I would say The U. K. Farmer is in reasonably good shape from a weather perspective, and they probably need At least a 10 day to 2 week dry spell at some point in the next 6 to 8 weeks just to get drilling done properly. Jason, on dividends, as I said, it appeared at 37% to over 37%, happy To be reintroducing at that level, I suppose in terms of how to think about it, I would say subject to earnings progression, we have stated our policy is to pay out greater than 35% PAT And to be a progressive payer, I think at this level, we would hope that we could be a progressive payer Subject to earnings. I mean, I guess, that's all of the caveat on this, right, is that we maintain earnings momentum and growth. And on the basis that we I think it's reasonable to think at $0.11 as a reasonable base to build from into future years. But as I say, the health warning is profile of earnings momentum out over those coming years. But on the basis that, that could happen, I think that's a reasonable assumption to make as we stand today, that $0.11 is the base we can grow from. Okay. Thanks very much. Your next question comes from the line of Kevin Bogarty from Numis. Hi, good morning, guys. Thank you for the presentation this morning. I guess I have some Two questions really and one is really on product mix. We've clearly seen some impact of that During the last financial year, I just wondered if you could give us a kind of view in terms of how that might progress going forward? And then just secondly, when you think about M and A, clearly, there seems to be a shift, You sort of called out the immunity space and others. I just wondered sort of what you think Competition looks like in those spaces and particularly kind of valuation multiples compared to what you paid previously? Sure. I suppose on the first question, product mix, The BAM portfolio, so biological adjuvants and micronutrients, Typically represent about 10% of our crop protection sales. And then within that, our owned product, The proprietary businesses we own ourselves represent about 16% of the Total BAM portfolio. The total BAM portfolio grew by about 12% year on year last year, but our own product range grew by 45% or 44%. So We do have ambition to grow that total portfolio number by certainly a high single digit Level again in the coming 12 months. The margin on BAM products It's typically twice that of traditional crop chemistry or crop protection products. So yes, it's product mix is important. It's probably incremental over time, Kevin, and Replaces, I suppose, some of the margin that may be lost over time through products being revoked are the general pressures on the major R and D manufacturers from a price perspective. We see it as an opportunity to with gross margin and perhaps add a small level or incrementally to margin. But at an overall level, it's an important part of the group's From an M and A perspective, I think it depends on What we're buying and it depends really on the growth rate of any asset that we might buy. So you might find assets are growing by Double digit percentages are growing or have net margins of 10% plus. And clearly, they'll be offered at multiples, which will be higher than the traditional 6 to 8x multiple that We might have seen within the acquisitions of the past. But there are assets still available At high single digit percent high single digit multiples. And We may see a mix of any acquisitions in that space between Perhaps low double digit multiples and high single digit EBITDA multiples depending on the type of asset that we buy. Okay. Thanks very much. That's helpful. Thank you. We currently have no further questions. We have another question from the line of Jason Malin from Goodbody. Yes. Hi. Sorry, just another question, if you don't mind. Sure. Just in terms of Brazil, you're expanding your offering in the CR with your CRS facility. Can you just talk a bit about the market there, your aspirations with what you're doing? And then sort of finally wrapping that together in terms of the margin profile, you mentioned where it sits from an existing Position versus the remainder of the Brazilian business, but how should we think about that margin evolution as I guess that part of your portfolio increases? Thanks. Thanks, Jason. Yes, I mean our Ambitions in relation to CRF are reasonably modest at this stage. I think the plants that we built there is capable of Producing something in the region of 25,000 to 30,000 tons of product per annum. We did about 12,000 tonnes last year of CRF products. So we could potentially double our CRF business there Over the next 12 months, we are seeing continued double digit growth in the core product range, which is the biological adjuvants and micronutrients business. And the margin differential between the 2, I mean, typically, CRF has about 50% of the gross margin level of our BAM portfolio. So that's about a 50% gross margin in the BAM portfolio and about a 25 And gross margin in the CRF portfolio. In terms of operating margin, We think that the business will retain a low double digit percentage operating margin. So I think So looking at an operating margin at the moment of in the region of 16%. It could settle down depending on the mix of products, Somewhere in the 12% to 13% range over the next 12 months. Okay. That's helpful. Thanks. We I have another question from the line of Kevin Fogarty from Numis. Hi, guys. Just a quick sort of follow-up, if there's nobody else in the Sean, I guess sort of going back to your earlier piece, you mentioned sort of greater collaboration across the group. I just wondered if you shed a bit of light on what might that look like in terms of what could be done that perhaps sort of hadn't been done in the past? I was going to close that integration or collaboration. Yes. I mean, primarily, Kevin, it's in relation to the proprietary product sales Intra group in between business units across the group, and that's that has yielded a 44% growth. Our GreenTech acquisition and our Agri businesses and our other amenity businesses are also collaborating on opportunities Across the group. So things like the wildflower seed mix, the John Chambers seed mix, which exists within the Greentech Business should have an opportunity to be sold within agri. There are other elements of the Greentech product range, which will Developed into a bespoke kind of environmental ELMs suite of products And which can be delivered with agri branding and agri badging out to the farmer despite the fact that it might be picked and packed in the Greentech warehouses. So That's ongoing. There are ongoing discussions between our Greentech businesses and a number of the other amenity business, The Origin amenity solutions business, which will allow further collaboration there into golf courses and other Public Facilities, which are not traditionally in the landscaping space. So we do see opportunity for continued Collaboration across the group and even across our CE businesses and Agri, The way of working has continued to get closer together. So there are a number of pieces of work Ongoing in relation to training and upskilling of staff, the production of technical materials for our CE businesses using our U. K. Platform as a base. There's collaboration across The digital platforms as well. So there's plenty of internal projects ongoing to keep us busy in relation to collaboration Nothing else, Jarlow. No, we still have no further questions. All right. Okay. Well, look, thank you very much, everybody, for joining the call this morning. We look forward to seeing you on the road or in person over the coming weeks. And thank you for joining the call this morning. Bye bye.