Earnings Call: H2 2021

Sep 6, 2021

Good day, ladies and gentlemen, and welcome to Bitvist's Annual Results Conference Call. All participants will be in listen only mode. There will be an opportunity to ask questions when prompted. Please note that this event is being recorded. I'd now like to hand the conference over to Elzaru. Please go ahead, ma'am. Thank you, Judith. Good afternoon, everyone. Thank you very much for joining the Bitlis team today. With me in the room got Boonang Mohale, our Chairman Bumi Madisa, Group CEO Mark Steyn, Group CFO and Jill McMahon, one of our Executive Directors. The team are proud of these results and appreciate you taking the time to participate in the presentation today. Without further ado, I'll hand over to Benin, our Chairman to make some opening remarks. At the end of the presentation, we'll take Q and A. Benin, over to you. Thank you, Ilza. Good afternoon, everybody, and thank you for joining us today for the Bivas Group's results presentation. I'm very proud and honored to be introducing truly spectacular results, especially in the wake of these unusually deadly times, what with the pandemic recession, subdued economic environment and social unrest that were all operating headwinds. There's an African proverb that says, for tomorrow belongs to the people who prepare for it today. It aptly describes the real reason for these excellent results. Sisnompu Malelo, Tebikile Madisa and her team have done a considerable amount of strategic streamlining of the bid vest portfolio, which has included asset sales, considered acquisitions, improving costs and efficiencies whilst ensuring trading competence, collectively resulting in a bid vest that is positioned to outperform even in challenging markets. The real determination and dedication from all our dedicated management team as well as the over 120,000 people employed in the group must be acknowledged as a key reason for these results. This team perfectly describes that part of our vision that says people create wealth, companies only report it. With that, it gives me great pleasure to hand over to the BIDvest Chief Executive Officer, Sesnompu Melelo, Thembikele Magdisa to take us through these results. Thank you very much, Chairman. Good afternoon, everybody on the line. It's really with a lot of pride and humility that I present a truly stellar set of results. BirdVest has had an exceptional 2021 financial year, reporting strong operational and financial performance, notwithstanding the ongoing impacts of COVID-nineteen. Management's actions to stimulate trading, manage margins, contain operating costs and convert profit to cash have resulted in an incredible set of results and an even stronger balance sheet. What we did really well this year is take a very strong trading profit result, dollars 7,900,000,000 translate that into ZAR13,600,000,000 cash and use it to pay off debt. And at the same time, we kept our eyes above the water, focused on growth and concluded for offshore acquisitions. At Bitvest, our people, our most important asset. So let me take this opportunity to pass our condolences to the families, friends and colleagues of the 122 Bitvest employees who sadly succumb to the virus. We continue to support their respective families in various forms. The progress of vaccination programs globally and in particular in our key operating territories, South Africa, UK and Ireland is very encouraging. We're running a group wide COVID-nineteen vaccine awareness program to encourage all our employees to be vaccinated. We're also improving access to the vaccine through the use of mobile vaccination clinics. To date, we've dispersed $250,000,000 to our employees to supplement salaries for those who are unable to work and also to fund COVID-nineteen related community support, which amongst others included the distribution of food hampers to 37,000 households in the Eastern Cape, Northern Cape, KZN and Gauteng provinces. It gives me great pleasure to report that 98% of our employees are back at work from 75% who are unable to work in April 2020. Our 200 plus businesses continue to implement COVID-nineteen health and safety protocols, and this is now our normal way of working. It's been approximately 18 months since COVID became a significant part of our lives. And reflecting on the past 18 months, one cannot ignore how much the environment in which we operate has changed, and in particular, how the risk environment has changed. To ensure that the group remains cognizant of this change and positions itself to make a positive contribution to the 3 P's people, planet and profits. It gives me great pleasure to report that we have significantly enhanced our ESG framework. Our ESG priorities have been amplified and these priority areas have been cascaded into the divisions and obviously further into our individual businesses. We've introduced ESG specific targets and taken a very bold step to roll these targets into our incentives for the 2022 financial year. Lastly, as I close out the introduction, it would be a miss of me not to touch on the recent riots in South Africa. Whilst outside of this reporting period, the riots in KZN and part of Gauteng, South Africa a devastating blow. The group was fortunate to have suffered no loss of life. We had limited damage to infrastructure and all impacted operations have returned to normality. This incident reminds us how easily systemic inequality can be used for political point scoring. Very, very sad and very unfortunate. As business in general in South Africa, we must come together to in a more cohesive manner, amplify the fight against the scourge of poverty, inequality and unemployment. As business at the end of each year, we must ask ourselves, what have we done to reduce poverty? We must ask ourselves, what have we done to reduce inequality? And we must ask ourselves, how many more jobs have we been able to create? I truly hope that the incidences over that 1 week in July never ever repeat again in South Africa. If I move to the highlights, for the performance of the year, group revenue at €88,000,000,000 increased by 15% from $77,000,000,000 in the previous year. Trading profit at $7,900,000,000 is up 48% on prior year and the trading margin improved from 7% to 8.9% really, really excellent. Best ever performances were produced by commercial products, services, automotive and branded products. Freight and Financial Services delivered strong second half performances, propelling the division into a fantastic full year turnaround. PHS, which is now in the numbers for a full 12 months, exceeded expectations, delivering in constant currency double digit profit increase. We've made some fantastic offshore acquisitions to enhance Noonan scale in the UK and I'll provide more color on that later in the presentation. Keycline earnings per share from continuing operations at $11.83 is up 114% and normalized hips from continuing operations, which excludes COVID costs, acquisition costs and customer contract amortization increased by 26% to $12.92 Our normalized hips indicator this financial year is a very, very important indicator because this shows the underlying performance of the business, assuming that we didn't have COVID for the group to be up 26% is very, very strong. Cash generated by operations at $13,600,000,000 was higher by $4,500,000,000 mostly due to the increase in operating profit and a significant working capital release that Mark will talk to later. Cash conversion improved to 145 percent. The balance sheet remains strong and having paid down some debt, the group's net debt to EBITDA has reduced to 1.8 times. And in this calculation this time around, the restricted cash in Badwiss Bank has been excluded. Roughly improved to 31.6% versus 23% in the prior year. ROE at 14% is comfortably above our WACC, which is 10.5%. A final dividend of $0.03 will be paid, bringing the total dividend for the financial year to $0.0600 up 113% on prior year. So I move to the next slide, just on our business journey and exactly unpacking a little bit in terms of what we've achieved since the unbundling of Bittcorp in 2016. We've managed to execute a very focused and simple strategy. We've grown the group organically. Our businesses have been right sized for current demand and we remain confident that as demand and volumes increase, we won't need to increase the cost base significantly. We've streamlined the portfolio and simplified it having exited over the last couple of years, Kome, we exited our listed operations in Namibia, bought out the minorities and delisted that structure and our operations in Namibia now are branches of the South African businesses. We increased our shareholding in Adcock, moving it from an associate to subsidiary and we now consolidate Adcock like all our other subsidiaries. We disposed of bidet services and bid less car rental and through this process, we banked $1,200,000,000 in the current financial year from these disposals and cumulatively since 2016, we've raised ZAR4 1,000,000,000. We continue to enhance the diversification of the group and at a trading level, trading profit level, 62% of our businesses are in services and 38% in trading and distribution. The UK and Ireland are now material geographies for us with 20% of trading profit now offshore. If I move to the next slide and just talk about our growth strategy and what we've been able to do specifically from a facilities management perspective, we acquired Newnan. Newnan was our first acquisition from an FM perspective. And at the time in 2017, Newnan was the number one facilities management player in the Republic of Ireland with a very small footprint in the UK. In fact, they just only had one office in the UK. At the time of acquisition, Newnan was already looking at a security business in the UK to acquire. Once we concluded our transaction, the team was able to conclude their acquisition of Ultimate Security. In July 2019, we acquired Future Cleaning, a specialist cleaning service provider, specializing in cinemas and the broader Horica sector. In February 2021, we acquired the Axis Group, a majority security service provider with a small cleaning footprint. In March 2021, we acquired Interact, a technical facilities management services company in Ireland. And in May 2021, we acquired Chordant Security and Cleaning Business in the UK. And all of these acquisitions has basically taken Newnan in the UK from having one office in 2017 to now having 17 offices in the UK, a fantastic scale that we've been able to build and we're expecting strong organic growth from this team going forward. We now have a Facilities Management business that's number 1 in Ireland, top 5 in security in the UK and top 10 in FM in the UK. Also just to note that the bolt on acquisitions that I've just spoken through were done at about half the multiple that we've paid for Nynin and so have been very accretive. I'm going to hand over to Marc to talk to the financial review. Thank you, Boomi, and good afternoon, everyone. As per normal, I'd like to say a special thank you to all those involved in producing these results. They are a reflection of a lot of hard work in a challenging environment, not least of which was having an enhanced national COVID lockdown at the commencement of our audit process. A big thank you to all our business teams as well as our auditors, PwC, for the long hours in completing a successful year end process. As Mpumi has already indicated, we are pleased with these results, really pleased, not just because of the obvious improvement in earnings. More important is the portfolio effect of having improved profitability translating into very strong cash generation, which was then deployed to reduce debt and thereby strengthen our balance sheet. There's been a conscious focus on streamlining non performing businesses, which has extended from actions taken last year. And similarly, the process of disposing of non core assets, which commenced back in 2016, is now largely complete. The active management of the assets of the group has been a standout feature of the last year. Before we jump into the detail, it's important to also contextualize this result in particularly with respect to COVID-nineteen and its impact. 2021 gave rise to $180,000,000 in direct COVID-nineteen related costs, which is much reduced from last year. The trading impact though continues to be felt in certain sectors, specifically in travel aviation and related businesses, which have all been appropriately resized to absorb this new low cycle. Similarly, the extension of work from home and the delayed educational return has created pressure. And there's now also a noticeable supply chain impact, which is evident in some of our trading businesses as well as in our container freight movements. All these areas though will present opportunities in the next year. The strong steps we took last year to protect our financial position continue to bear fruit. Our liquidity and solvency have improved with a significant reduction in debt and improved maturity profile. Expenditure control has been good and cash management exceptional. In terms of acquisitions, as Zimpoomi mentioned, we concluded 4 bolt on acquisitions in the Newnan FM cluster, which significantly enhance Newnan's scale in the U. K. And will enable them to target a far greater market. From a disposal perspective, we reported last time on the disposal of our Mumbai airport investment. We've now also finalized the disposal of bidwest car rental, which was shown as a discontinued operation previously, as well as the disposal of bidwest services and a number of other smaller non core operations. Fortunately, from an order perspective, this year did not bring any new material IFRS changes. We did, however, complete the PHS PPA, which gave rise to a reclassification between goodwill and intangible assets on the balance sheet in the prior year. With this as the backdrop, let's have a look at the detailed results. From a revenue perspective, revenue up 15.4% to $88,000,000,000 enhanced by PHS now in for a full year. We had 2 months in the prior year and the new Newnan acquisitions. From an organic perspective, we've had good revenue growth at 6.6%, very pleased with that. And we've seen steady revenue growth improve through post last year's hard lockdowns. Obviously, to properly understand the group's overall revenue position, we need to unpack the individual divisional performances, which we'll do later in the presentation. But overall, we've had 4 divisions produce good revenue growth with 2 divisions slightly down. From a gross profit perspective and specifically our margin, our margin is up slightly to 30.8%, which is obviously we're obviously very happy with. We've had good margin growth in freight, commercial products and services with automotive maintaining margin in a declining market. The financial services margin was impacted by lower FX activity and interest rate cuts. While in branded products, we had a decline in margin due to higher cost of imported products, imported goods and a changed sales mix. From an expense perspective, I mean expenses are always a highlight in a bid based presentation. On a gross basis, operating expenses up 6.6% on a like for like basis, up just 3.3%. We continue to benefit from the quite extensive restructure programs that were taken in the previous year, and we continue to with a strong focus on cost containment. From a trading profit perspective, trading profit up 48 percent to $7,900,000,000 Very, very comfortable and very happy with this performance organically strong growth. We've had excellent results, particularly from our commercial products division with underlying trading performing well, improved factory recoveries and well managed costs. Services have performed particularly well overall with the PHS business, the acquisition exceeding expectations. The services profit now interestingly is equally balanced between both SA and offshore. In terms of automotive, there was a particular focus on margin rather than market share in the current year. And together with better efficiencies and cost management, they've significantly improved their performance in what is at the moment a declining market. Freight handled more bulk exports and the results from these more than offset the constrained import and export container volumes that we're seeing. In terms of branded products, including Adcock, we produced a good result, given especially given the changed working environment. Financial Services produced a reasonable result in what is a difficult environment. We had no ForEx from international travel. There were reduced interest rates coming from last year's COVID adjustments, and we had delayed fleet decisions. Terms of our other costs, acquisition costs down significantly just because we didn't do any major acquisitions last year. In the prior year, we had the PHS acquisition. To counterbalance those, we had a significant increase though in the amortization of acquired customer contracts and that relates to the PHS PPA, which is now completed and then the new Newnan acquisitions. In terms of our capital items, significant reduction from the previous year where we incurred $2,000,000,000 in capital items largely related to the COVID impact. This year, dollars 180,000,000 to date largely related to closure of certain businesses, specifically on time automotive in the U. K. And the disposal of bid air services. And these costs were partially offset by certain insurance claim proceeds. Moving now to our finance charges. Overall finance charges up 2.9% including IFRS 16, very happy with where that's landed. In terms of pure borrowing costs outside IFRS 16, those are up 4.9%. We did through the year have a higher average debt level, and that is a consequence of the PHS bridge that we raised last year. Obviously, we dealt with that at year end, and I'll talk to that just now. But we also had lower average interest rates through the period. Our average borrowing cost for the group reduced from 5.7% last year to 4.6%, very happy with that. Our interest cover remains strong at 9.4 times. In terms of associate income, with the exit from Comair last year, the only material JVs are now within the Adcox table and the prior year in terms of our associate income included the Comair losses, which have now obviously gone away. Our tax expense, if you exclude the impact of the Mumbai airport ForEx impairment, which is now closed out following that disposal and our capital items, our tax expense is broadly in line with the statutory rate in South Africa, and that's our core effective rate for the group. We do note, however, that there are new proposed tax rates both in South African environment for next year and in the United Kingdom for 2023. Our non controlling interest on minorities is almost exclusively Adcock now, and we have an effective shareholding within Adcock of 57.9%. From a HEPS perspective, HEPS up 114 percent to $11.83 very pleased with that result. But maybe more importantly, as Anupamir referenced earlier, the real measure of our performance is in our normalized HEPS where you strip out the impact of the COVID costs from last year, that's up 26%. We're really, really happy with that as a baseline. In terms of dividends, we declared a final dividend of $3.10 which is up 7% from the $2.90 declared at interim. Total dividend of $0.06 which is 113 percent up. We paid the dividend within our cover ratio of 2x to 2.5x normalized hepts. The actual ratio we used was 2.15x this time. From a debt and funding perspective, we maintain a conservative and consistent approach. Our net debt after cash and equivalents is comfortable with our covenants. We've comfortably within both interest cover, as I mentioned earlier, at 9.4 times, last year was 8.4 times and net debt to EBITDA at 1.8 times, last year end 2.7 times. We've repaid a total of $4,900,000,000 in debt. Of our gross debt, 74 percent of it is long term, restructuring in terms of the underlying debt portfolio. And more specifically, in July this year, we raised a new offshore syndicated facility of £400,000,000 comprising an RCF of £240,000,000 and a term loan of £160,000,000 This will assist not only in lowering overall cost of debt, it also extends our debt maturity profile and creates improved flexibility via the RCF. We've used the proceeds of this facility to completely repay both the euro loan and the balance of the PHS bridge. Our current funding facilities, both locally and offshore, are more than adequate to fund our working capital requirements. In terms of the interest cover graph, you can see the stability of our interest cover over the period. It's been consistent for the last few years. The impact in terms of net debt in 2020 was the PHS bridge, which we bought on board to buy PHS and this has now been repaid in full in July. In terms of our debt maturity profile, we presented 2 pictures. One is the existing picture as of 30 June and the other reflects the post offshore syndicated facility position. Essentially, what's happened with this new facility is our maturity profile has been significantly extended. We've got a balanced domestic maturity profile through the timeframe and all our international maturities have been pushed out for at least a further 3 years. Moving out to cash flow. And cash flow is always it's a big focus for Bitvest. It's part of our DNA. And so we're exceptionally happy with where we landed from a cash conversion perspective at 145% versus 138% last year, because it's an exceptional result. Our cash generated by operations at $13,600,000,000 versus $9,200,000,000 last year was enhanced by a working capital release of $2,400,000,000 driven mainly by reduced inventories, which is a COVID partially a COVID-nineteen impact and also partially a supply chain constraint and also increased accounts payable, which is a result of improved trading. While we're very pleased with the inventory release, we are monitoring inventory levels quite closely in the light of exacerbated supply chain constraints in certain markets. Our CapEx spend continues in South Africa. We produced strong free cash flow of 10,100,000,000 dollars And as mentioned earlier, we've had net debt repayments of $4,900,000,000 Cash generation graph, I'm pleased to say that the second half, h y2 now reflects a resumption of our normal cash flow and working capital cycle for the group. We've had very good working capital management across the divisions. As the business cycles continue though to normalize, we are expecting an absorption of working capital, which would be normal as business levels improve to take place in the first half of twenty twenty two. Just some final concluding thoughts. It's very encouraging to see the improvement of COVID-nineteen vaccination stats, especially in South Africa. This will stimulate an acceleration of the return to work scenario as well as enhance international travel, both of which will obviously benefit the group. Our business has been appropriately rightsized for our current demand levels, and so we expect upside as trading levels improve. Our financial position is strong with good capacity for growth. We are actively engaged in seeking out new acquisition opportunities. Thanks, Pammi. Thanks, Mark. And before I go into the individual divisions, I'd like to talk through how we manage the businesses to achieve these results. So in the first half of the year, the focus was on monthly revenue recovery from the extreme lockdown months of April, May June. Most of the restructures had been completed by the end of the 2020 financial year. So we knew that as long as we could get the top line up expected profitability. Ladies and gentlemen, please remain on line. The main venue will be rejoining us shortly. Thank you. Ladies and gentlemen, apologies for the delay. Please remain on line. The main speakers will be joining us shortly. Thank you. Ladies and gentlemen, thank you for your patience. We have been rejoined by the main speakers. Thank you. Apologies for that. So I'll start with my previous paragraph before. So before going into the individual divisions, I'd just like to talk through how we manage the businesses to achieve these results. In the first half of the year, the focus was on monthly revenue recovery from the extreme lockdown months of April, May June. Most of the restructures have been completed by the end of the 2020 financial year. So we knew that as long as we could get top line up, the expected profitability would follow. And if you recall in the half year presentation, we showed the month by month revenue growth to demonstrate this top line recovery. Going into the second half of the year, we focused on growing on 2019. The 2020 comparative base is low, so it was important for us to ensure that trading profit in the underlying businesses, net net is above 2019. We monitored this, pushed business by business, bid versus the sum of the parts. So, we knew that this approach would get us the desired results. So, as I talk through the divisional review, I'll also touch on trading profit performance by division against 2019. If we go to bid with services, revenues up 31 percent at $28,900,000,000 trading profit up 55 percent to $3,300,000,000 trading margin at 11.4% increased from 9.7% in the prior year, EBITDA up 51 percent to $4,100,000,000 funds employed down 25 percent at $1,300,000,000 and ROCE at 206% is now more than double the 84% ROCE in the prior year. The services team has really, really delivered an extraordinary set of results, bolstered by additional months of PHS and the Nuna bolt on acquisitions, but notwithstanding this underlying organic growth has also been strong. Nuna performed well, especially in Ireland. Nuna's Ireland operations delivered excellent growth, mostly relating to high margin COVID cleaning contracts. Nuna in UK was negatively impacted by the closure of cinemas and the partially open Horrica sector. PHS recorded an impressive set of results, increasing revenue by 9.3% and increasing trading margin to 16.3%. You'll recall that PHEESS's trading margin at point of acquisition was 14.7%. This profit growth despite the substantial number of contracts that remained suspended is really excellent. Services SAA delivered good growth, notwithstanding the year on year decline in the travel cluster and bidet lounges. The facilities management cluster performed well, Allied Services was slightly down year on year, but the laundry businesses performed well and the contract pool in Aquazania continues to grow. The travel cluster was loss making as it continues to be negatively impacted by significantly reduced international travel volumes due to lockdown restrictions globally. Domestic travel has improved, so that's a good sign. But to see a turnaround in this cluster's results, we need an increase in international travel volume. The security and aviation cluster delivered superb results with standout performances from Bitrack, Proteo Coin, BIDIA Cargo and GPT. Cash generation and conversion was exceptional. This division also successfully disposed of BIDIA Services to a black owned consortium and existing management are also shareholders in this new consortium. A key highlight of this division is that the offshore trading profit is now half of the division's total profit. Compared to 2019, the services division increased trading profit by 50%. If I go to branded products, revenue is up 3%, dollars 17,800,000,000 trading profit up 4% to $1,500,000,000 trading margin slightly up on prior year at 8.2%, EBITDA up 2% at $1,700,000,000 funds employed down 3% at $5,600,000,000 and Rafi at 24% is up from 21.7% in the prior year. A really solid performance from the branded products team, given that the current year for them continue to be dominated by the pandemic, resulting in a very complex and unpredictable business environment. The division faced ongoing challenges relating to the absent flu season, which impacted Adcock, constrained consumer spending, reduced occupancy levels in buildings and education facilities, supply chain challenges and the negative impact of exchange rates. Notwithstanding these headwinds, this team executed a massive turnaround in the second half of the year, shifting a 19% decline in trading profit at half year to a 4% growth in trading profit by year end, which is really, really fantastic. Operating expenses were exceptionally well managed, decreasing by 1.4% and cash generation was outstanding. Adcock delivered a resilient result and with the exception of a decline in the OTC business unit, consumer prescription and critical care were all up on prior year. The Plush acquisition and the Roche Reno portfolio were integrated into the business and ATCO also acquired a portfolio of generic products from Aspen as well as the 51% share of the Novartis Ophthalmic JV. Excellent profit growth came from the print, packaging and electronic products. However, with this data did decline due to significantly lower print to post volumes. The office products cluster was marginally up, impacted by low occupancies of clients work from home policies remained in place, but Walton's delivered a very good performance. The consumer products cluster delivered a fantastic trading profit increase driven by demand for basic essential products. Compared to 2019, the branded products division increased trading profit by 55%, driven primarily by the consolidation of Adcock. If I move to business rates, revenue is down 2% to $6,200,000,000 trading profit up 12% to $1,300,000,000 trading margin at 20.9 percent increased from 19% in the prior year EBITDA up 12% at $1,500,000,000 funds employed down 9% at $3,800,000,000 and raffia 31% is up from 28.9% in the prior year. Freight team delivered an excellent performance off the back of increased bulk agriq and mineral volumes and an 8 month contribution from the LPG terminal. The West Tang terminals delivered growth in both volume and profitability. The LPG terminal is operating well and profitability is exceeding expectation. The balance of the fuel and chemical volumes were lower than prior year. SABT delivered an outstanding result. Overall volumes at 3,100,000 tonnes were 12% up on prior year, comprising mainly maize export volumes at 1,200,000 tonnes, wheat import volumes at 1,400,000 tonnes and rice import volumes at 356,000 tons. Bulk connections produced an excellent result. Volumes grew by 17% with a record 4,600,000 tons handled, comprising 2,000,000 tons of manganese, 2,100,000 tons of chrome and iron ore was handled for the first time and that accounted for the remaining volumes. BPO had a really spectacular year, driven by a 72% increase in bulk volumes, again, mainly export minerals. The team's ability to secure cargo volumes in the second half of the year and the reduction in operating costs boosted the successional performance. But with SACD, but with international logistics, Naval and Manika unfortunately experienced a very, very tough trading year. Trading was characterized by significantly low volumes, shortages of containers and exponential increases in sea and airfreight costs. A key highlight in this division is that SABT, Bulk Connections and BPO reported ROPHIES in excess of 60%. For capital intensive businesses to report returns this high is really just outstanding. Compared to 2019, the Freight division decreased trading profit by 5%. This is really primarily as a result of depressed trading in 2 businesses, Business International Logistics and SACD. Outside of this, the rest of the trading result was up. If I move to commercial products, revenue is up 17 percent to $14,000,000,000 trading profit up 135% to $922,000,000 trading margin at 6.6% doubled from 3.3% in the prior year, EBITDA up 98% at $1,000,000,000 funds employed down 14% at $3,200,000,000 and roughly at 26% is up from 9.5% in the prior year. The commercial products team produced a really superb set of results. This exceptional performance is largely due to significant market share gains in all key markets in which they operate, outstanding gross margin and expense management, restructuring and optimization of the electrical cluster and excellent inventory management. The trade clusters performance was outstanding as the renewal plan implemented at Whitwest Electrical is yielding positive results and Plumbing's phenomenal trading year was driven by a substantial increase in turnover. The catering cluster posted an impressive trading profit increase despite major challenges the hospitality industry faces. Balkans export revenue growth was strong and King Pie's results increased considerably over the prior year. The DIY tools and Workway cluster produced a fantastic trading results boosted by the increase in DIY demand as people are now predominantly working from home. Exceptional market gains were also evident in this cluster as new product lines were launched in Academy Brushwear. But the leisure cluster grew profit exponentially as consumer spending patterns shifted and sales of luxury products increased. This is apparent from the terrific results reported by Yamaha. Supply chain constraints are concerning, but we're expecting this to improve over the next coming months. The industrial cluster delivered a really good set of results with the business securing significant market share from their competitors. A key highlight in this division is that Plumblink, Electrical, Academy Brushway, Matrix, Yamaha, AvComm, Burn Creek and Vulcan all reported high double digit profit growth of the 2019 financial year. Overall for the division compared to 2019, commercial products increased trading profit by 25%. If we move to the Automotive division, revenue is up 16 percent to €21,000,000,000 trading profit is up 2 67 percent to €652,000,000 dollars trading margin at 3.1 percent is up from 1% in the prior year. EBITDA is up 2 0 1 percent at $685,000,000 funds employed down 35% at $1,500,000,000 and Rafi at 38% is excellent, up from 6.9% in the prior year. The automotive division has produced a spectacular set of results. These results reflect strong strategic and operational achievements in a very challenging period. The team's focus on margin rather than volume yielded material benefit. Despite a 15% decline in new vehicle volumes, gross margin improved and trading profit increased by 20%. The used vehicle market was strong, delivering a solid set of results boosted by profits generated on limited stock supply. The ratio of retail used to new vehicles has improved to 1.2 used vehicles sold for every 1 new vehicle. And furthermore, McCarthy retailed 1.1% more new vehicles and 7.2% more used vehicles. In terms of after sales and parts, service throughput is at 86% of pre COVID levels. So we're not back to pre COVID levels yet and fleet sales also remained depressed as clients hold back on major procurement decisions. The balance sheet is strong and cash generation was exceptional. The team also successfully sold GoodWheres Car Rental, which we've taken as a discontinued operation in the FY 2020 financial year. And this business is now in the hands of a Black owned consortium and existing management are also shareholders and the new consortium. The supply chain remains a high to the risk in this division given the global shortage of chips, new vehicle stock and automotive parts. Compared to 2019, the automotive division increased trading profit by 23%. This is a really good performance keeping in mind that in 2019, we had a contribution from bid with car rental, which is not in the 2021 number. So really, really fantastic performance from this division. If we go to Financial Services, revenues flat at 2,600,000,000 dollars trading profit up 9% to $332,000,000 trading margin at 12.5 percent, up from 11.5% in the prior year. EBITDA is up 11% at $605,000,000 funds employed down 7% at 3,300,000,000 dollars and ROPHY at 9.1% unfortunately is disappointing, even though it is up from 8.2% in the prior year. The 2021 financial year was exceptionally difficult for this division, notwithstanding the negative impact of the pandemic and our cautious approach to accounting for expected credit losses, the division executed a very strong second half turnaround, turning a 59% decline in trading profit at half year and 29% full year increase in trading profit and that's very commendable. The bank's overall results remained adversely affected due to interest rate cuts resulting in lower interest deals, lower lending growth in fleet and personal and business banking, a declining leased asset book, significantly reduced FX trading income due to international travel restrictions and fee and commission income was also negatively impacted by low branch transactional income due to the reduced branch network. The bank's balance sheet remains strong and liquid and all the key ratios are well above the SARB minimum requirements and deposits continue to grow and investment securities were significantly up in the prior year. The insurance cluster grew gross written premiums, claims are stable and client retention has been very good. Compendium acquired Genesis Insurance Brokers and the investment portfolio also performed well boosting the clusters results. Trading profit comparisons to June 2019 reflects a 43% decline. This division is really still operating in a very, very tough environment. We expect recovery, but the recovery is going to take some time and it's likely to be uneven. Moving to corporate and properties, despite revenue declining as a result of rental reductions and increases in vacancies, the property portfolio did well to limit the negative impact on trading profit with only a 3% decrease to $561,000,000 The portfolio's value remains stable at $8,000,000,000 and comprises 136 properties. The trading loss in the Port Office improved by 22 percent from $813,000,000 in the prior year to $636,000,000 in the current year. Going to strategy and outlook, just to provide some progress in terms of what we've achieved in FY 2021 based on our kind of main blueprint. From a leadership perspective, our entrepreneurial leadership really just as it always does, it gives us agility, it gives us flexibility, it enables us to make decisions quickly and management has been able to be very, very decisive. And that's what's fit into all the divisions. I've spoken in some of the divisions around what the subsidiary performance has been like and that's really just our entrepreneurial management and doing what they do. From a diversity perspective, we've made a lot of progress in just 12 months time. Our board today is 80% black and 70% female. And our ex co team is 50% black and 42% female. And that's setting the tone for the rest of the group. In terms of our growth strategy, PHS, as I indicated earlier, has exceeded expectations. We did a post acquisition review and we're very, very, very happy with how PHS is performing. We've obviously acquired Axis Cordens and a couple of other bolt on acquisitions for Newnan and we'll continue looking for more acquisitions both internationally and locally. From a people perspective, health and safety has obviously been top priority. We rolled out a group wide wellness program last year to assist our employees. Mental wellness is something that is a key priority, not just for us, I think just globally and our wellness program is providing the required support. Over and above that, we spent $250,000,000 to date on employee and community support. From a technology perspective, we remain focused on technology. Innovation is very key for us. We've rolled out call center robots. We've rolled out payment robots. We've elevated digital assurance with Alice. There's a lot of take that's happening across the group. And obviously with the kind of work from home policies that are being implemented, IT governance in general is an elevated risk. And so our focus on technology and in particular, digital assurance is important. From a structure perspective, we want to stay focused. We want the group to be simple. We have exited our non core assets. The 2 businesses that were significantly impacted by COVID that we wanted to dispose off, that's been done. We're very comfortable with where the portfolio is at the moment. Our code of ethics continues to underpin the culture within this organization. We work all the time to make sure that we live our values of honesty, integrity, accountability and respect, and ethical behavior is part of the way that we run this business. I spoke earlier in my introduction on the ESG framework. I don't intend on going into too much detail on the slide, but just to give you a little bit of color in terms of what our thinking is from an environment, social and a governance perspective, I would request that once our governance report and our remuneration report comes out, more detail will be in there in terms of how we're going to be thinking more broadly around ESG for the FY 2022 financial year. And also we'll also show how the ESG KPIs are going to move through into our incentives. But ESG definitely getting a far more heightened focus and for the right reasons. I mean, I think it's important for us to create value, but it's also important for us to be cognizant of how we do business. And that's why we've spoken with innovative ESG. And then also from a portfolio perspective, no change. We've got our business services and our trading and distribution businesses. We will be looking for organic opportunities for growth across these 6 divisions. We'll also look for opportunities to make acquisitions that fit this portfolio, both in South Africa and offshore. And even from an offshore perspective, we have said that we're not trying to duplicate bid best in its plus 200 businesses across very different industries internationally. We've chosen 3 niches. We're going to stick to those niches. We're going to grow our hygiene business globally. We're going to grow our facilities management business and we're still looking for an acquisition on plumbing and kind of related areas. Moving to the outlook, we are and remain very bullish about the 2022 financial year. We've already identified areas for additional organic growth opportunities in each of the division for the coming year. So we're very comfortable with the next financial year. As the global vaccine programs progress, the world will start gravitating towards a more normalized way of living and working. And this will definitely increase demand and volumes in sectors where recovery has lagged. And this will obviously certainly benefit the group. The 2021 GDP growth forecasts in our key geographies, South Africa, UK and Republic of Ireland are all in excess of 4.5%, again creating opportunities for the group to enjoy real underlying organic growth. Infrastructure spend is critical for the growth of our trading businesses. We have already seen private sector spend increase as mines build new shafts, upgrade existing ones. We've seen good opportunities as independent power producers come on stream and the recent announcement by the President that the cap on self generation without a license will be raised to 100 megawatts will also catalyze CapEx projects, availing further opportunities for our trading businesses. The unknowns are the pace of recovery in international travel. We need this, we need it for the bank, we need it for the travel cluster, we need it for lounges. The second unknown is the extent to which occupancies will improve from the current 10% to 15% occupancy we're seeing specifically in South Africa. I don't think there's any way that having 85% of your workforce working from home is sustainable. So I'm sure there will be some level of increase, how much and when is remains an unknown. But the one risk we are actively managing is our supply chain. Global supply chains have been materially disrupted and we're seeing significant shortages across various parts of the business. We've streamlined the portfolio, as I said, exited our non core assets and the remaining businesses have been optimized for growth. Our international expansion strategy remains a key focus and now that borders are starting to reopen, we are now able to travel and start acquisition discussions. I'd like to thank the Ecop team for delivering a truly spectacular set of results. The business did not just rebound from the 2020 financial year, but demonstrated just how powerful the bid with people are and how resilient the bid with business model of diversification and decentralization is. During good times, all businesses do well. It's in the bad times that business models are truly tested. And these results be a testament that at GoodVest, we have a formula that works and remains relevant even after more than 50 years of operation. More importantly, these results are not just an indication of the group's financial strength, but a reflection of how well we've looked after our people. We would not have been able to produce these results if our employees working in our factories and warehouses were not confident that they were working in COVID safe environment. We couldn't produce these results if we hadn't provided our employees reporting for work at external client premises with adequate PPE and related protective gear. These results reflect the amount of work the management teams across all our operating territories have put into creating a safe working environment. And for me, that's by far our biggest achievement this year. So to our 120,000 plus employees in Southern Africa, the UK, Republic of Ireland and Spain, I thank them very much and we'll do this again. Thank you. Thank you, Pumi. With the strong words there at the end. Operator, we are ready for some Q and A. And maybe while you give instructions on the voice lines, we can just have a look at some of the webcast questions. So maybe you just Thank you very much, ma'am. And Ilsa, do you say? Yes. I think we start on the webcast line and then we'll go for the book line. Thank you. So team, the first question on the webcast is PHS margins are well above pre acquisition levels. Where do you see normalized trading margin? And then secondly, also relating to acquisitions, Cordence and Access, if one looks at the acquisition note at the back of the booklet, the margin on those businesses look low. Is there opportunity to improve those margins? Let's deal with those 2. So, PHH margins normalized level, we think that where they're at now is probably a normalized level. I mean, one of the things that we had said when we acquired PHH is that we'd like to get their margin as close to the Rentokil margin as possible. And Rentokil's margin is in the mid-16s, I think it's about 16.5%, 16.8% somewhere there. So that kind of mid range is that is the normalized margin. They obviously got there far sooner than we'd expected. We didn't think that it would take kind of a 12 month cycle. There's reasons for that, but we're also very comfortable that even though that margin has been boosted by kind of non contractual work that's come through at higher margins, we should be able to hold that margin going forward. And there are opportunities to also improve that. Ladies and gentlemen, unfortunately, we have lost the main venue again. Please remain on line. They will be rejoining us shortly. Thank you. Thank you for your patience. We have been rejoined by the main speakers. Please go ahead. Apologies for the line dropping. We were saying that there are additional synergies that we identified pre acquisition for PHES that we haven't yet had the opportunity to fully implement, particularly because we can't travel internationally and thinking of some of the product range extensions and some of the supply development opportunities that we have, we'll bring those on stream hopefully within the next 12 months or so once we're able to travel. But there certainly is opportunity to take the margin which has improved significantly even further. Thanks, Mark. Quadrant and Axis, margins low, that is true. And in fact, in general, the margins in Facilities Management in the UK are lower than the margins in SM and Islands. So we expected that. Is there an opportunity to improve that? Absolutely. At points of acquisition, the Newnan team had already delivered a paper on synergies and how they'll be able to get that margin in line with a more new new UK type margin. So yes, we'll be able to do that very comfortable that the team will be able to deliver that. That shouldn't be a problem. All right. Thanks, Pune and Mark. The next question, I suppose it should not be unexpected. Atco has derated to a 11 times multiple. It's taking out the minorities looking increasingly attractive. If not now, when, why, not? It's always an interesting question and it gets asked in every single analyst session that we have. It's not just a function of the transaction being accretive. And while it is marginally accretive at where share prices are at the moment, it's more a discussion around capital allocation decisions and what other opportunities there are. So I mean, it would be a sizable check, call it, dollars 3,500,000,000 or there or thereabouts. At this point, there are other opportunities out there which we believe are more accretive. So no decision to take an active step at this point. But maybe to add to the question around this BP's position still and preference still remains to own businesses 100%. That absolutely remains and will always be the case. All right. Let's take one last one here from the webcast before we go to voice. Is there an exclusive arrangement between automotive division and the disposed car rental business with regards to the purchases and sales of new and used vehicles? No. Judith, maybe let's go to the voice lines, see the question. Thank you. We have a question from Roy Campbell, R. B. Morgan Stanley. Thank you. Good afternoon. Just one on the automotive, if you don't mind. Would you be able just to maybe relay the message that you're getting from the OEMs as to the supply chain challenges and when in their opinion, the supply of new vehicles will improve? And maybe from your point of view, is that more in the premium sector or is it across the board that you're seeing some of the supply issues being challenged? And then in terms of the overall results in the automotive, it was a record result. So does that maybe speak to more consolidation rather than growth within automotive? I'll leave it there. Thank you. Thanks very much. I mean the supply chain challenges are interesting. I mean I think you would have all seen the announcement from Toyota International. They've cut international production by 40%. It's a big step. We are seeing supply chain issues through a number of the other OEMs, as you're aware. It's across the spectrum. So while it started off more on the high end, we're now seeing it right across the board. As to when it's going to normalize, we're not entirely sure, to be honest. We're seeing certain product lines coming back on stream now. The chip challenge is particularly problematic, because the problem is that doesn't impact just your high end, that impacts right through the range. And so my guess, it's not just going to be the next 6 months, I would reckon the next 6 to 12 months. In terms of the automotive results themselves, not so much of a consolidation. You'll recall that last year we did quite significant restructuring in terms of the cost lines of the businesses. There were unfortunately quite a lot of job losses within that environment, but we streamlined that cost structure significantly. We kept roughly the same number of dealerships, so we didn't lose a lot of dealerships in that mix. But the big focus for this year on top of a base, which is a lower cost base, has been chasing a higher margin sale. So what we've done is we sacrificed a little bit of market share. It wasn't a lot, but focused much more on the sales, which would help much bigger margin. As a consequence, you've seen that drop through to the bottom line spectacularly. So it's a combination of lower cost base coming from restructures last year and then chasing higher margin individual sales this year as opposed to volume. Thanks, Mark. Does that but does that then mean that it's just in terms of the sustainability of that, if the supply challenges do free up then because obviously in this environment, you're able to sell quality used cars at a higher margin, but potentially those new vehicles as well. So once the supply becomes a lot more apparent then maybe the competition is there and so that result is not sustainable. Well, yes, but then you're going to be able to retail more volume again, because at the moment, that's what the supply chain is constricting. I mean, we could definitely sell way more cars if we had that supply. We just don't have it at this point. So yes, you may sacrifice a margin at that point, but you hope to get the volume back. Okay. Thank you. At this stage, we have no further questions on the lines. So let me go back to the webcast. There is a question around the sustainability of the acquisition pace. It clearly picked up considerably in the second half of the financial year. What does the pipeline look like? How does one deal with acquisitions in the current environment? Okay. So it feels like it picked up because we announced 4 offshore acquisitions at the same time. But in a normal environment, we would have actually done these acquisitions last year. So we picked up on these acquisitions in 2019. All the due diligence work, etcetera, was done in 2019 and then COVID hit last year. And so we then put a freeze across the group on all acquisitions. We then allowed the teams to go back and start relooking around October and essentially because due diligence has had been done already, you were really just looking at trading, call it your COVID months and how those businesses had performed in those COVID months. And so it just happened that we then therefore then announced kind of all four within a 2 month period. And so that I mean just gives a bit of background. How is the pipeline looking? Look, we've got a nice pipeline. We just haven't been able to travel. I think Mark spoke to it earlier. We're not going to do due diligence on Teams and remotely. You can't buy a business like that. So whilst we've had a pipeline, we really just unfortunately haven't been able to engage. We do have plans towards the end of the year to start traveling and go see some of those potential acquisitions. But these would be face first intro meetings, right. So whatever we're starting now is really starting from 0, but we do have a nice pipeline. There's targets in Europe. There's targets in Australia. We'll see what we'll be able to do. Thank you, Kummet. And then just as we are still on M and A, there's a question on once the disposals of bid air and car rental to management consultants done on a loan provided from Bitvest or did you receive cash? So we didn't go into finance those. We did receive cash for both those transactions. Thank you, Mark. Kumi, maybe this one is for you. Please can you provide more color on the financial impact of lower office occupancies in South Africa and offshore? Okay. So where should I start? Let's start offshore. Occupancies and impact, look, what we've got from a services perspective is we've got the ability to get non contractual revenue in our facilities management businesses. And in the hygiene businesses, we've had quite a significant increase in sales, whether in PHS, it's because of services that we're providing into vaccine sites and just testing sites, etcetera. So this kind of one off business that's increased quite significantly. And so the impact of that from an international and offshore perspective is that it's more than offset the decline in the contractual revenue because of the lower occupancies. Coming to South Africa, we are looking at occupancies that as I indicated around 10% to 15%. Again, in SA, we have the ability to do the same. So our cleaning businesses have gotten COVID cleans, extra one off work and that's more than far more than compensated for the decline in the contractual revenue. Steiner also similarly similar to what I've explained in terms of what PHS has done. We've seen similar in South Africa with Steiner. The only place where the office occupancies have really had a negative impact that we could not offset is in branded products. In branded products, there's no one off work or non contractual stuff that you can bring in, either you're able to sell in furniture, either you're able to sell stationery, either you're getting the clicks from Konica in terms of office automation or you're not. And so in that environment, the impact of kind of work from home and learn from home has been far more material. And we just unfortunately haven't been able to replace that with something else. So that division in particular, really any kind of uptick in people coming back into the office will at least be able to sell more office products and related products into the workplaces. Thank you, Pumi. Let's shift to freight. And the question is a little bit like asking for a little bit more color around the 10 year extensions and what's happening on leases in the ports of in the port of Durban? And then secondly, it looks like we've managed it quite smoothly, but what is the view on how serious is the general logistics and the trade issues globally and how that's affecting us? Thanks, Ilsa. From a freight perspective and obviously the relationship with Transnet and lease tenure is a key dynamic for that business. We have successfully renegotiated our rental increases, which we've been in discussions with TransLink for a little while now. Very happy that certainly all the Durban leases we've got over the line. In terms of ongoing lease tenure extensions, I think everyone's seen the announcements in the press from Transnet in terms of the Portmaster plan that has been in circulation for a little while and then a further submission more recently with a I guess you could call it a ZAR100 1,000,000,000 funding discussion. I think all these 10 year extensions are going to 4 parts of that mix. We're going to need clarity firstly in terms of how the master plan will actually be rolled out because there's obviously an interplay between this fundraising program and bringing new investors into the port mix with the master plan. And how those 2 gel together, we're not exactly clear at this point. And that's part of a discussion we're having with Transnet. We have established a working group with senior Transnet executives or TMPA executives and our own team. They're busy dealing starting with the master plan and working through that and then that will evolve into the other investment opportunities in that mix. The second part of that question was? The issues around global general logistics and supply chain and how that's affecting volume? So the supply chain issue, I mean, we've touched on it in the presentation itself. I think it's exacerbating from what we saw, call it, 6 months ago. And what we talked about previously on the call is, obviously, there's a significant east west supply at the moment in terms of containers going from China to the U. S. To resupply the U. S. And back. What that's done is caused a significant lack of availability for lines coming south. As a consequence, you've seen freight rates triple, quadruple in some instances and supply time line significantly delayed. So we haven't seen that significantly release in the last 6 months. It is still continuing. You can see it in the results of both BIL and SACD. I'm hoping that at some point soon, it will start coming back. But it obviously isn't helping that you've got certain major manufacturers like the motor manufacturers who also having supply chain issues of their own. So at the moment, we're hoping that sort of beyond the next 6 months, we'll start to see that easing isn't easing at this point though. Thank you, Morgan. And just sort of let me just sort of tag this question on to the freight one is what is the capacity utilization of our freight assets And does it differ massively between the first half and the second half? So it's a really interesting question because it's all about mix. So if you think about our grain facilities, the utilization was exceptionally high in the first half of the year and that's really around maize and then you move into wheat and then it eases off a little bit and then you start getting the grain starting to come back in the latter part of the year. So sort of the quarter, the middle part of the year is quieter with extreme volumes at both the beginning and the end of a year. Whereas if you're in for example, the liquid scenario, it's a lot more of a constant supply. We've seen obviously a bit of an uplift for ourselves because of the LPG project which came online that came online in October last year, towards the end of October. And those volumes from an LPG perspective have been steadily increasing beyond expectation through the year. So we've seen an uptick in that. We have seen a little bit of a drop off though in both chemical exports and vegetable oils. From a minerals perspective, I think everyone knows where the sort of bulk mineral pricing is at the moment. We've seen quite extreme volume exports, iron ore, manganese, chrome, all heading east. Those volumes have been really strong through the year and continue to be strong at this point. Thank you, Mal. So let's give Commercial products a little bit of the time in the sun. The question is how big is DIY within the commercial products division? And why is that specifically influenced in that division? Yes. So I mean it's difficult to say how big it is because it's spread across multiple businesses. I mean there's DIY in Academy, there'll be DIY in Matrix, there'll be spread across a number of the businesses. So it's difficult to give you a number in terms of how big it is. But suppose a better way of answering the question is that our commercial products division provides basic essential trade required products. And so as kind of the DIY market increased, we were able to see that uptick, but we were also seeing uptick just from an industrial perspective. I think, I don't know if I spoke about it in my presentation, but we certainly seen an uptick in private sector spending, whether it's mines who are upgrading shafts, we've seen benefits from the IPPs. So the whole focus on alternative energy, we're picking that up in our electrical division. Yes, and so I mean, it's a mix we've got the DIY stuff in there that's pushing the numbers. There's a definite uptick in industrial demand and we're picking that up. If anything comes back from a public sector spend perspective, that's going to be good. And there's been significant market share gains. We've really taken a lot of market share from our competitors. And more importantly, we've had the stock. So I mean, the one thing that this team has done exceptionally well is just managed stock supply. And so as we've had the excess orders, we've been able to supply into that extra demand. And we then kept some of those new clients because they haven't gone back and reverted back to the guys who couldn't supply them during a difficult time. Those are really the main drivers in terms of what you're seeing in commercial products. Thank you. I've got 2 more questions here on the webcast, but Judith maybe we can have a look at the webcast and whether there's any questions on the line. Thank you. At this stage, there are no further questions. Over back to you. Thank you. Okay. Well, one question that we have here relates to the blended product conversion. There has been some margin erosion in the second half if one splits that out in a sequential downturn from the first half to the second half? What could sit behind that, Mark? I think it's not a simple question and there are a number of elements to it. The big one is data printer post, which has come off significantly, particularly in the second half of the year. Then in terms of the educational system and obviously work from home, etcetera, there's quite a lot of print room work within the branded products environment. Essentially those are large print rooms that sit at universities etcetera. And obviously with the students not being at university, the print room workers has dropped off quite a lot. Then within a whole environment, Home of Living Brands, we have seen some gross profit margin depletion, if you like. That's a function, I guess, of ForEx rates worsening. So the cost of our imported goods has gone up and we haven't been able to move the pricing quite in line with the increase of the import costs. But there are a number of elements that have led to it. Thanks Mark for that. And then Pumi you spoke just now when you spoke about the M and A pipeline about Europe and Australia. The question is do you need something with critical mass there or can you do smaller deals in a rollout consolidation type of approach rather than a PAGES if we have to put it? Yes. So maybe let's answer that question directly. No, we're not going to do another ZAR11 1,000,000,000 transaction now. Definitely want to do a more roll up consolidation type approach. I'm just thinking about the size of the businesses that we've got in the pipeline, nothing like PHS, nothing at all in terms of quantum of size, but certainly roll up, consolidate acquisition by acquisition. Thank you very much, And I think with that, we have oh, wait, there's one on the infrastructure spend that's just come through. Is it so our infrastructure exposure, is it more focused on Eskom and the municipality spending or is it on other infrastructure spend more general? It's more general. So yes, Eskom and municipality spending will be good for us. That comes on stream nicely. But for example, I mean, we've seen data centers go up. I mean, that's general infrastructure. So if buildings are going up, if dams are being built, all of that kind of general infrastructure we're able to supply into that. It's not only public sector infrastructure. We've seen quite a lot of development on the mining side. Obviously, as the export volumes have significantly gone up, we've seen the mines reinvest in maintenance and in shafts, etcetera, etcetera. So there's quite a lot of money going into those environments that also helps as well. Now on that positive note that we haven't heard in South Africa for a while. Thank you very much for joining us on the call this afternoon. We appreciate the interest and the questions. And we'll talk to you all soon. Thank you very much. Thank you. Cheers. Cheers.