Earnings Call: H2 2023

Apr 19, 2024

Good morning, and welcome to the Ashtead Technology Holdings PLC investor presentation. Throughout this recorded presentation, investors will be in the listen-only mode. Questions are encouraged and can be submitted at any time via the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I'd like to submit the following poll. Now I'd like to hand over to Allan Pirie, CEO. Good morning, sir. Thank you, Lily, and good morning, everyone. Thank you for joining us. It's an exciting time for the business. We've traded strongly through 2023, and the market is creating a strong growth runway for us. In summary, if I get the slides moving correctly, we increased revenue by 51% last year across all geographic markets. Of the revenue, we increased it 35% organically and 17% through M&A. Pleasingly, we increased renewables revenue by 50%, which now accounts for 31% of our total revenue. We also increased our oil and gas revenues by 52%. We increased cost utilisation, we increased pricing, which both drove gross margins, which increased to 78%. The business is positioned for growth. Last year, we invested GBP 19.1 million of CapEx in our fleet to expand its breadth and depth. We increased headcount organically by 25%, and we also added 203 positions through the acquisition of ACE to finish the year with 527 people. We fully integrated the acquisitions that we did in 2022, and we acquired ACE Winches in November 2023. We continue to view M&A as a key growth driver, and our approach will continue to be selective and disciplined. The structural tailwinds are providing a positive outlook. We continue to see focus on energy security and energy affordability, and we also see our increased recognition that all forms of energy will be part of the transition. Our outlook continues to grow in confidence given the customer backlog increase over the last few months. Combined with the increased customer backlogs and the internal positioning that we have within the business, we believe that the business is well set up for long-term sustainable growth. The board is encouraged by the group performance in Q1 2024 and our full year 2024 expectations remain unchanged. We are really pleased with how the business has come together over the last few years. The platform that we have creates a great opportunity to drive financial performance and further scale the business. We have substantially grown and strengthened the business since we listed in November 2021, and through both organic and inorganic investment, we are building unrivaled capability. We've a reputation for delivering differentiated customer solutions. The market outlook is significantly stronger, and we are well positioned to benefit from that. In summary, we know what we're doing, our strategy is clear, our team is focused on executing the plan. Drilling further down into why we believe that we're well-positioned, we're building integrated capability through our three service lines with a one-team approach and three core values at its heart: agility, collaboration, and excellence. From a customer perspective, we continue to innovate, developing new products and solutions for our customers. We have the experience and expertise to really add value. We have the biggest independent fleet in the market, and we have proper international reach. As we continue to go through the points on the right-hand graphic from the bottom coming around to the left-hand side. From an investor perspective, we're positioned to benefit from a high-growth market. Propensity for rents is continuing to increase given the skills shortage and the lengthy new times or lead times on equipment. Through complementary M&A, we are building enhanced capability and competitive advantage. The business produces strong margins and cash flow. We've got real momentum to continue the growth that we've seen over the last couple of years. I'd like to hand over to Ingrid, who will talk us through some of the numbers. Thank you, Allan. I'm delighted to deliver yet another excellent set of results for the year. 2023 was a transformational year for our business as we continued to increase our top line through both organic investment and M&A. 2023 sees the first full year trading of our 2022 acquisitions of Hiretech and WeSubsea and one-month results from ACE Winches, which we acquired in November 2023. Our revenue growth, as Allan said, of 51% can be split 35% from organic growth and 17% from M&A, so the full year impact of those two acquisitions and then one month of ACE, with a small reduction from FX. Our EBITA grew by 82%, and we continue to increase both pricing and cost utilisation, delivering a ROIC of 28% whilst maintaining a robust balance sheet. The below graphs demonstrate the growth journey the company has been on over the past few years. The dark bars are our actual, and the yellow shows the pro forma, which would add the 11 months pre-acquisition trading for ACE, so look at the business as a whole now. If we'd had ACE for the full year, we would have delivered GBP 149.6 million of revenue, GBP 60.9 million of EBITDA, that's a 41% margin, and then GBP 45.4 million of EBITA, which is a 30% margin. As the mix of services continues to change, and we continue to build out our service capability, and with continued investment and growth, we see go forward margins in the high 20%. Our revenue growth came from both renewables and oil and gas, with 50% growth in renewables representing 31% of our revenues, and a 52% growth in our oil and gas business. We delivered strong margins while continuing to invest in people and facilities to build a business capable of continued growth. At the bottom line, we were delighted to deliver an adjusted EPS growth of 73%. Our cash flow remains strong due to our positive trading results and our positive inflow from working capital. We invested GBP 19.5 million in CapEx in the year, of which 19.1 million was in our rental fleet. We continue to maintain a robust balance sheet. Our net debt to EBITDA leverage was 1.3 times at year-end. If you look at that on a pro forma basis for the full year of ACE, it is one times. We delivered ROIC significantly ahead of cost of capital, and this will continue to evolve as we invest in growth both organically and through acquisition. If you look at our capital allocation priorities, these remain the same as we have indicated in the past. Our pro forma leverage of one times gives us capacity to continue to invest both organically and inorganically to build the breadth and depth of our business. We will continue with our progressive dividend policy and have recommended a 1.1p per share final dividend for approval at our AGM on the 30th of May. Finally, before I hand back to Allan, we have made good progress on our sustainability journey with our strategy linked to 11 of the UN's sustainable goals. We grew our revenue from renewables by 50%, and this represents 31% of our revenues, and we maintain a 50% target of revenues from renewables in the medium term. Our employees are at the heart of our success, and we remain focused on making sure that we provide support and development opportunities for them and are investing further in learning and development through 2024. Thank you, Ingrid. Turning to the market opportunity that is in front of us. We continue to see a strong growth runway for the business. If we look at the graph or the graphic on the left-hand side, Ashtead Technology's total addressable market is expected to grow to $3.5 billion by 2027 at a CAGR of 11% from 2023, meaning that growth is offshore wind, 25% CAGR, with oil and gas growing at 7%. As I said earlier, the need for a balanced energy transition is increasingly being recognized, driven by energy security and energy affordability. In terms of offshore renewables, despite recent headwinds, the offshore renewables market is forecast to grow strongly. Ashtead is very well placed to benefit from offshore wind because of the transferability of our skills and expertise from oil and gas, supporting the same customers with the same type of equipment from our existing locations. We see oil and gas very much being part of the energy transition and will fund Ashtead Technology's transition to offshore renewables. On the right-hand side, we show a graph of offshore greenfield investment by sanctioning year. As can be seen, over the last six years, the average has been $87 billion. That increases on a forecast basis over the next four years to $129 billion US, being an increase of 48%. In 2023, of the $128 billion of greenfield investment sanctions, we saw the sanction of Rosebank in the U.K., we saw significant activity in Norway, and we also saw significant activity coming out through South America, specifically Brazil. Ashtead Technology is very well placed to benefit from all those markets. Turning to offshore wind. To this business or this industry, instead of showing gigawatts as we normally do, we thought it would be easier to show the number of offshore wind farms that is in operation. From the graph, 194 offshore wind farms were operational in March 2024. Forecast by Rystad to increase to 501 by the end of the decade, being an increase of 158. If we dial back closer to where we are now and look at the timeline out to 2026, the increase is expected to be 43%, going from 194 to 277. Of the activity that needs to happen to achieve that, 34 wind farms or 41% is under construction. 31 or 37% is approved with the balance in application. In terms of backlog, Ashtead Technology is not a backlog business, but our customers are. What we have done here is taken publicly available information to show how backlogs have moved over the last few years. From the left-hand chart, you can see that for seven customers who made up a significant part of Ashtead Technology's revenue in 2024, backlogs have doubled since 2020. Looking specifically at certain customers, Prysmian Group, which is 100% pure wind, increased their backlog by 109% last year. Technip, were very much focused on oil and gas, increased their backlog by 41%. The others further down the list who operate across both end markets increased their backlogs in varying degrees, and with Sitech increasing by 51%. Not only are backlogs increasing, but they are also increasing in duration. If we take the key subsea players of Subsea 7 and Technip, we can see that out of the backlog that existed at the end of 2023, 29% of that backlog was for execution in 2026 and beyond. Increasing multi-year customer backlog is Ashtead's growth runway for the future. These are all positive market dynamics, which underpin our confidence in our market and our ability to fully execute on our strategy. Last year, Ashtead continued to increase both utilization and pricing. Cost utilization increased by 1% to 45%, with pricing increasing by a further 13%, which offsets any price increases that we saw coming through on wages and supply chain inflation. We are delighted to say that the 22 acquisitions are performing strongly. These were acquired to build out capability in our mechanical solutions service line, consolidating a highly fragmented market. They are both now fully integrated and are now operating under the Ashtead Technology name. We have invested to expand the rental fleet, adding people, and also increasing geographic coverage. Customer feedback has been very complimentary, and we are continually seeing increased opportunity to hire bundled equipment packages. In WeSubsea, we increased 2023 revenues by 54% compared to the revenues that we acquired at acquisition. The fleet is being dispersed across the Ashtead Technology locations to drive revenues, not only in Europe but in Asia and also the Americas. Cost synergies were also achieved through subletting their facility and changes to the team. In Hiretech, on a similar basis, we increased revenue by 23% last year. We have also expanded geographic reach of this business and invested in the business through CapEx and building out the team. Both acquisitions are examples of how we fully integrate acquisitions, driving synergies through customers, investment, and geographic reach. The M&A strategy that we are following is the same strategy that we developed in 2016. The plan is to do more of the same. We operate in a highly fragmented market. We see an opportunity to build a business of scale with international reach. We plan to become more relevant to our customers through product and solution expansion and expanding further into offshore wind. The M&A criteria is very straightforward: to consolidate a highly fragmented market, to expand geographically, to build out our capability across our existing service lines, and to do more to focus in an offshore wind market. Critically, the target criteria that we follow is absolutely key to how we spend our M&A dollars. We are looking at five key attributes: strong cultural alignment, market-leading expertise, long-term customer relationships, opportunities to grow our service lines, and also revenue pull-through opportunities. We take a disciplined approach to M&A, and we believe that there are further opportunities out there that will considerably strengthen and expand Ashtead's capabilities. We were delighted to acquire ACE Winches in November last year. ACE Winches significantly increases Ashtead's capability in mechanical solutions and also increased our addressable market by 30%. The business that we acquired was in great shape. It has a great, well-invested fleet and a very strong team who have been very welcoming and are engaged with the integration process. We are focused on sales, commercial, and financial controls and processes to continue to build out the sales pipeline, to maximize the opportunity in terms of utilization and pricing, and to make sure that financial discipline is within the business. To date, trading has been in line with expectation. In summary, we are well placed to benefit from the long-term structural drivers that are at play in the market. Strategy conviction is high. We believe that we are very well placed to benefit from the energy transition, the supply of secure, affordable and low carbon energy from offshore energy sources. We are confident in the market, supported by record customer backlogs and increasing multi-year visibility. Turn our attention to 2024. Q1 trading has been strong. Activity levels are high with increasing customer propensity to rent. We remain confident in making further progress during 2024. With all that in mind, the board is encouraged by the group's performance in Q1 to date, and our full-year expectations remain unchanged. That is the end of the slides. We will then move on to questions. Allan, Ingrid. I am sorry. Allan, Ingrid, if I may just jump back in there. Thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions just by using the Q&A tab situated on the top right-hand corner of your screen. Just while the company take a few moments to review those questions submitted today, I would like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via your investor dashboard. As you can see, we have received a number of questions throughout today's presentation. Now please I ask you to read out the questions and give responses where appropriate to do so, and I will pick up from you at the end. There was a couple of questions around debt levels and interest costs and how we are going to manage the sort of debt position going forward. I will pick those up. First of all, in terms of finance costs or net debt, we were at GBP 28.7 million in 2022. We are at GBP 61.7 million in December 2023, having funded the ACE acquisition fully through RCF. We have a GBP 100 million facility available to us, plus a GBP 50 million accordion, so there is still available debt to us. But we are very conscious that we do not want to overstretch the leverage. We are currently at 1.3 times as of December 2023. If we look at that on a pro forma basis, it is actually 1 times, so relatively low debt. We are very focused on maintaining debt levels at certainly no more than 2 times, but in that sort of 1 to 2 range as we continue to invest in M&A. The business is highly cash generative, so if we do no more M&A, we actually can decrease our net debt very quickly. Our cost of debt is around about 2.25% over SONIA. The current facility that we have was recently extended out to April 2028. I think the other question was around the cost of finance costs for next year. Finance costs, sort of gross finance costs in 2023 were GBP 4 million. Given that step-up in net debt, we do expect that to increase by just over 50%, so to just over GBP 6 million in 2024. But as I said, very conscious of making sure that we manage that levels. As we look at doing more M&A, we obviously look at the balance of ensuring that we are managing that net debt position, as well as looking into the market potentially to look at equity raise at some point, if it makes sense to do so. There was another question around our current WACC. That is sitting just over 8% currently. I think that probably deals with quite a few questions. There was a piece around M&A, sort of question which Allan can maybe pick up on, which is around obviously a lot of the growth this year. If we look at the market forecast and the guidance, we have been guiding to a sort of low double-digit growth on the pro forma numbers. The question was, what proportion will M&A play going forward? We have not baked any M&A into the numbers that we have obviously forecasted, but Allan can maybe pick up a bit on what the plans are from an M&A perspective. Yeah. Thank you, Ingrid. The plan on M&A is just to continue doing what we have done for the last seven or eight years. We have got a clear M&A strategy. We have got a strong pipeline of opportunity that we continue to build. But the one thing that you cannot forecast in M&A is the timing of it. We have been very fortunate to do the acquisition of ACE Winches last year. That is a super business. We did two acquisitions in the prior year. Since 2017, we have now done a total of eight acquisitions, four of which were international. The last three businesses have all been local here in Aberdeenshire. But we continue to look at acquisitions on an international basis, and it remains a key growth driver for us. There are still a few questions on here that are relating to the debt. If the guys that are hosting could maybe delete some or just remove some of those for us, that would be good. There is one question around the current gap between ROIC and WACC and where we see that moving to. So we have achieved ROIC of 28% in the current year. That has been trending up in recent years. When we came to market, our IPO in November 2021, we set a target of sort of mid to high teens, possibly hitting sort of 20% ROIC. In 2021 we hit 17%, 2022 we hit 21%, last year we hit 28%. We do expect that ROIC to sort of evolve, particularly as we continue to do some M&A, and we are very much continuing to make sure that we can target that sort of high teens, low 20%. There is a question around the fleet. What do you consider to be the critical mass for your rental fleet in terms of size and market coverage? How do you plan to achieve this to maximize efficiency and profitability? When we look at the fleet, we have to take that into context of the market. When we invest in equipment, we are making investment decisions for 10 or 15 years plus, given the longevity that we get out of equipment. We have been in business for 39 years, so we know the business well. We see a great opportunity in today's market to put more CapEx to work. Last year we had an initial budget of GBP 15 million of CapEx. We increased that to GBP 20 million and ended up spending GBP 19.5 million. The other half a million that we had approved, the equipment did not turn up in time to get into the books for 2023. This year, we have increased CapEx further to GBP 30 million and are making good progress in approving that and getting the equipment into the fleet. When we look at the market opportunity in front of us, we are looking at a number of things. Not only are we looking at the fleet, we are also looking at the utilization or the shape of the fleet. We are looking at the utilization that we get from certain items, and we are also looking at pricing. The way to drive a return on investment in this business is to win business, have the right fleet, get the right utilization, and maximize pricing. The business that we have got has got a huge amount of data in it. We are data-led, and we believe by focusing on the key KPIs, we will get the mix right. There is a question around trade receivables, given that there is obviously a noticeable increase in both trade receivables and the proportion of those past due. I think one thing that is maybe a little bit misleading in the accounts because of the timing of the acquisition of ACE, is that we have obviously got all of ACE's full debtor book and balance sheet in the numbers, but only one month of the revenue. When you actually look at the proportion, the debtor's days, it is not quite as bad as it may look from that. You will see in note 24 that we do have a sizable proportion in this sort of past due zero to 90 days. Just to give you some comfort on that, unfortunately, our industry is not one that is known for paying particularly quickly. We do chase down our debts pretty hard. We have got the benefit that because we do a lot of churn with our customers, we are not scared to put our biggest customers on stop if they are not paying us on time. We do have a centralized credit control function, and we actually continue to invest in that during the course of last year. But to give you a bit of comfort, the expected credit loss rate that is calculated, obviously, in terms of your previous history of credit losses for the sort of up to 90 days past due is less than 1%. So we have got a strong track record of recoverability. There are some of the older debts. You will see that on the far end of that trade receivables in the more than 365 days. Those of you that have listened to the call previously will know that we had one debtor out in Asia, which is currently in a scheme of arrangement. That scheme of arrangement keeps getting extended, and that is what causes that large number at the end. That is fully provided for. There is a question about where does the revenues come from. What proportion of your overall revenue is outside the U.K.? The way that we present the revenue is the location where the revenue, or the equipment was mobilized from or the facility it was mobilized from, rather than where it actually come, where the revenue comes from. Europe is our biggest operation. Our European operations account for 65% of our revenues. But from Europe, we are supporting not only the North Sea, the Mediterranean, the Caspian, we are also supporting West Africa and Brazil. If we take ACE Winches as a great example, ACE Winches is based in the U.K., but at point of acquisition, 79% of ACE Winches revenue came from outwith the U.K. We are a very international business. We operate across 12 locations. We are focused on a global market, and we will move our equipment and resources to wherever our customers require those equipment and resources to be. There is a question around competitors. Who do you consider to be your main competitors? Following on, what are your concerns about the business in terms of weaknesses? In terms of competitors, we have got a wide range of competitors. Certainly in robotics, we have got three main competitors, all private equity backed, all international like Ashtead, which are Acteon Group, which includes Seatronics. We have got Unique Powerclimb, which is based in the Middle East, and we have got Subsea Technology and Rentals, and then there is various other mom and pops in various locations. So a concentrated market, four main players, of which Ashtead Technology is the largest and leading player. When it comes to mechanical solutions, the market is highly fragmented. We have competitors across almost everything that we do, from winches to dredges, to cutting equipment to ROV tooling. That is creating an opportunity for us through M&A to consolidate a fragmented market. There is no one out there today with the range of skills and capabilities across three service lines that Ashtead Technology has. By continuing to build out that three service lines, we believe that we are increasing not only the moat around the business, but fundamentally positioning the business to add more value to our customers, which is at the center of our strategy. In terms of weakness in the business, I would not say it is a weakness, but I think the biggest challenge facing our industry is the skill shortage, the lack of people. The way that we have addressed that is that we continue to add to our team. We increased our team by 25% organically last year, and we are spending significant amounts of effort and time and money in learning and development. We added an HR Director to our team last year who comes from a learning and development background. That was not by accident. We selected Christine specifically for her skills and capability so that we could put more effort into growing our own talent. We recruited a recruiter, if that makes sense, to be in the front foot to continue to add to the business. While that is a challenge for us and a challenge for the rest of the industry, it also provides an opportunity for increased propensity to rent, because our biggest competitor is actually our customers, and the skill shortage that is in the market, it affects them as much as it affects us. By us investing in our team, growing our team, growing our capability, we are seeing higher propensity to rent as a consequence. There is a question around on what basis do we depreciate our fleet. Our Survey & Robotics equipment is mostly depreciated over seven years. Our mechanical equipment is a bit of a mix. There is a pretty high proportion that is sort of seven and eight years. There is some at 10. The recent acquisition of ACE, the winches that we bought there, are actually depreciated over 15 years. They have got a much longer life. Obviously, we looked at that as part of our acquisition accounting, and we are very comfortable with those depreciation rates. The other part of that question was, have you had to do any large, unexpected writedowns? No, we have not. There's a question around project delays. You mentioned there were some project delays and cancellations during 2023. Can you talk about the reasons behind this? What is the current state of play? In the offshore environment, project delays is just one of these things that happen. Projects continue to slip to the right. Given the volume of activity in the market, given that our customers' backlogs are at all-time high, that is not a concern to us. I think the question may have been in the context of a comment I made in offshore wind, where there was some negative press around that market last year. The challenges around increasing supply chain costs, increasing finance costs, having an impact on the results of licensing rounds and the like. Companies like Ørsted pulled out a number of projects on the East Coast of the U.S. But we don't see that having any impact in our business whatsoever. The market outlook is very, very strong. There's a question around slowdown in the U.K. offshore given increasing numbers of projects being unfunded and under-invested by all oil majors, given the tax implications. I think when we look at the U.K. sector of the North Sea, whilst Rosebank was sanctioned last year, the North Sea is a mature basin, and we shouldn't expect to see major projects being sanctioned in that basin. We have focused our business on inspection, maintenance, repair, and decommissioning, specifically around oil and gas. We believe that we're very well placed to benefit from the activity in the North Sea. But if we look at the Norwegian continental shelf, which is obviously still the North Sea, there is a significant amount of activity, not only in terms of inspection, maintenance, repair, but also greenfield development in that market. As I said before, we're an international business supporting a global market. Our equipment is highly movable, and we will move our equipment wherever the activity needs to be. So at the moment, we see great opportunities across all markets. And we see pockets of high activity in the likes of Norway and Brazil, which we're very much focused on. There's a question around have any of your acquisitions underperformed post-acquisition compared to their prior years? The great answer to that is no. We've now done eight acquisitions. They've all performed well. And in many ways, the results of those acquisitions have been far better than their acquisition cases. We bought a decommissioning business in the form of Underwater Cutting Solutions to focus on decommissioning in oil and gas. We're now using that skills and capability to install offshore wind farms and for monopile work. We never saw that at the point of acquisition. I think the thing that we do is we spend a lot of time with the owners and management teams of the business. We diligence them very, very hard, and we make sure that we're buying these businesses for the right reasons. And then once we buy them, we fully integrate them to get the synergies, both revenue cost and the added value that comes from increasing the mix. So a big part of our focus is around remaining very selective and disciplined on our M&A to ensure that our 100% hit rate continues. There's a question around are you considering a move to the main market, FTSE 250 in the short to medium terms? If not, why not? As a business, we're watching all the changes that are happening to the regulations around the London markets. What we're aiming to do is build a business that is big enough that we have optionality. We've made no decisions on any of that. We're very conscious of the shareholder register that we've got, and it's something that we just want to make sure that at some point we have the optionality, but no decisions made. There's a question around comments on skills and whether competition or given your comments on skills and competition, do you see therefore more opportunity in services revenue? Yes, we do is the easy answer to that. In terms of services, this is a rental business because we rentalize everything. But we provide services across the three service lines that we've got. In terms of Survey & Robotics, that's electronic equipment rental. Most of that equipment goes into the field without people because our customers are well-versed in the operation of that. In mechanical solutions, a significant proportion of equipment goes into the field with our own operators. And on asset integrity, all of our equipment goes into the field with our own people. As part of building the business, people are at the core of what we do. That's the reason why we're investing in the team through recruitment and skills development. And by doing that, we believe that we will drive services revenue. There's a comment around the drop in Ashtead Technology's share value on Tuesday last week. I think the answer to that is that the market is a fickle place. We can control what we are doing as a business. We cannot control what the market does. The stock market on Tuesday was a difficult place with a lot of concern around instability in the Middle East and other places. We did see a significant reduction in share price initially, but it has rebounded well. And if you look at the context of how the share price has performed since we came to market in 2021, we came to market with a share price of GBP 1.62. It's now at GBP 7-plus. We believe that we've delivered on our promises. We've got a business today that is stronger than it was when we came to market. We've got a market outlook that is stronger. And our focus as a management team is to continue to do what we've been doing to add value to our investors. There's a question around what the risks that we face mobilizing and transporting equipment internationally, particularly on shipping rates and geopolitical risks. So I think that's a good question. I think the easy answer to that is that we can still move equipment with relative ease given the size of it. All of our Survey & Robotics equipment can be air freighted. Some of our mechanical equipment can be air freighted. Our bigger equipment on the mechanical solutions side can be air freighted but is generally shipped. I think the key difference between now and pre-COVID is it takes slightly longer to move the equipment than it did in the past. It may cost a bit more. We plan on where the fleet should be based on what we see through the budget process, through the forecast process that we do three times a year, and through ongoing customer relationships to make sure we've got the right fleet in the right place at the right time. I think one of the great strengths of this business is the fact that we're not locked into any one geography, and we've got that flexibility to move the equipment across the world, depending on where the activity is. Sometimes that is done on our account, if we decide to move it proactively. Quite often, the customers will actually pay for the transit of equipment into other markets or other geographies if the equipment is elsewhere in the world. There's a question around, do we intend to work in offshore carbon capture and hydrogen sectors? How would this be different for the company compared with oil and gas? Again, a great thing about our business is that we're focused on oil and gas and offshore wind. Two different end markets, but requiring the same skills, capabilities, and equipment because our domain is subsea. If you want to do things subsea, they have to be done from a vessel, and they will generally require divers or remote-operated vehicles and the equipment, the skills and capabilities that we've got. Carbon capture is not a new thing for us. We worked on the Northern Lights project, for Equinor back in 2018, 2019. We don't see carbon capture as being a massive opportunity for us anytime soon, but we're very well placed to pick up projects in that space if or when they come. I think that's all the questions, Lily. If you're okay, we'll hand back to you. Alan, Ingrid, thank you for answering all those questions that you can from investors. The company can review all questions submitted today, and will publish those responses on the Investor Meet Company platform. Just before redirecting investors to provide you with their feedback, which I know is particularly important to yourselves and the company, Alan, could I please just ask you for a few closing comments? Great. Thank you, Lily. Thanks, everyone, for your interest in Ashtead Technology. Thank you for your attendance on the call this morning. We believe that the business is ideally placed to benefit from the market conditions that are in front of us. We came to market in November 2021 with four growth drivers. We saw an opportunity in oil and gas. We saw an opportunity to grow our business on the back of a high-growth offshore renewables market. We saw an opportunity around increasing propensity to rent, and we also saw an opportunity to build and grow our business through M&A. I am delighted to say that those four growth drivers remain very much in place. The market outlook is stronger today than it was when we IPO'd, and the focus of the team is to continue to execute the strategy that is in front of us. Thank you very much, and we look forward to seeing you on the next call. Alan, Ingrid, thank you for updating investors today. Could I please ask investors not to close this session, as you will now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations. This will only take a few moments to complete and I am sure will be greatly valued by the company. On behalf of the management team of Ashtead Technology Holdings PLC, we would like to thank you for attending today's presentation, and good afternoon to you all.