Welcome to the Cairn Homes 2025 Interim Results Analyst and Investor Call, which will be hosted by Michael Stanley, Chief Executive Officer, and Richard Ball, Chief Financial Officer. After the presentation, we will be conducting a moderated Q&A session where we'll welcome questions from anybody on the line. Participants can ask a question by slowly pressing Star, one, one on the telephone keypad. You will then hear the automated message advising your hand is raised. Please note that today's call is being recorded. I would now like to hand the call over to our first speaker today, Michael Stanley, Chief Executive Officer. Please go ahead, sir.
Thanks, Nadia. Good morning, everybody. Joined this morning by Richard Ball, our CFO, Alvin Maloy, our Senior Investor Relations Manager, and Deca Murray, our Head of Finance, who no doubt chip in later on Q&A and help us out. Thanks, thanks everyone for joining. Since we last presented to you, Cairn has celebrated 10 years in business. I'd just like to start by saying my colleagues and I are proud of what we have built. We built a business to a market leadership position where today over 30,000 people live in a Cairn home. That's only half the story. As you'll see from today's presentation, hopefully the momentum of the business has increased. Our strategy is working well. We have doubled down on work-in-progress investment, which, as it unwinds, will lead to a strong second half for this year and certainly bodes very well for 2026.
Most importantly, I suppose Cairn continues to play an influential role in addressing the acute housing shortage in Ireland. We'll go straight to slide four in our H1 operational highlights. Today, we've recorded a closed and forward order book valued at €1.54 billion, which comprises over 4,000 new homes. This has grown by, as you can see, €625 million and about 1,700 new homes in the year to date. Our private weekly sales rate of 4.1 new homes sold per active site is just one strong indicator of the consistent and realizable demand for the homes that we are building, particularly from our first-time buyers. We delivered 780 units in the first half of this year, generating revenue of €284.5 million. This is expected to grow to approximately €660 million, what would be a very strong H2.
This heavier weighting towards H2 is a reflection of the number of new projects we commenced in the second half of last year and in H1 of this year, and that is in support of our increased output, including which I'll chat a little bit about our regional expansion. Our gross margin is slightly higher at 22.2%, with build cost inflation of approximately 1%- 1.5% now expected for full year 2025. This is a reduction from our initial outlook earlier in the year of approximately 2%. We delivered an operating profit of €42.7 million, which we now expect to grow to between €160 million and €165 million for the full year following our upgraded guidance announced this morning. Today, we are also declaring an interim dividend per share of €0.041, an 8% increase from our 2024 interim dividend per share.
We are pleased to say that our dividends to shareholders will continue to increase as we continue to grow our profits. Moving on to slide five, I believe the strong sales performance is reflective of the quality and location of our new homes and, most importantly, our competitive pricing. As you can see from the slide, our average sales price of €387,000 is almost identical to our H1 2024 average. We invested €381.5 million in WIP in H1, which is 2.9x covered by the value of our forward order book at €1.26 billion. The combined value of our WIP and land is circa €1 billion, which will continue to support our growth ambitions. On our land bank, we have a current land bank that will deliver just shy of 17,000 new homes. Our land acquisition strategy has evolved. We have chatted about that before.
However, we do see and continue to see value in direct off-market land purchases, and we now have a growing strategic land bank. The more capital-light strategy has been achieved through option agreements that we have contracted and joint venture agreements we have entered into with large landowners who certainly see Cairn as a preferred partner. As I mentioned, due to the momentum of our business, we are today upgrading our 2025 guidance and providing strong 2026 guidance for the first time. I'll pass you over to Richard. He'll bring you through our half-year performance and maybe more detail on that upgraded guidance. Thanks, Richard.
Thank you, Michael, and good morning, everyone. I'm delighted to be presenting a strong set of results for the first half of 2025 to you this morning. As Michael mentioned earlier, they maintained great confidence and ambition to get a look at the business. This confidence is reflected in the upgraded market guidance for 2025 and the new market guidance we're providing for 2026 for the first time today. Moving next to slide seven, our first half trading performance was in line with expectations, reflecting our historically normalized H2 weighted trading transaction timing and mix. €285 million revenue was delivered in the period, including 708 unit sales. We delivered a strong gross margin of 22.22%, some 20 basis points higher than the same period in 2024, highlighting our scale platform efficiencies. Our OpEx investment was €20.5 million, resulting in operating profits of €42.7 million, delivering an operating margin of 15%.
With our improved FY 2025 operating profit guidance, we're expecting a year-end operating margin of circa 17%, which is strong relative to our peer group. Finance costs were at €6.1 million, and profit after tax was €31.7 million. Net assets remained relatively flat, with an average growth of €0.04 per ordinary share to €1.22. We noted an interim dividend of €0.041 per ordinary share today, which is an 8% increase on the same period last year. On slide eight, you will see that we have closed and forward sold 4,092 units with a net sales value of €1.54 billion, of which nearly 83% relates to H2 2025, 2026, 2027 pipeline, as we continue to actively pursue other opportunities. We always seek to de-risk our WIP investment through our sales strategy.
As you can see in the lower table on the slide, our half-year 2025 closing WIP of €435 million is 2.9x covered by forward sales in our order book, back within the normalized cover ratio of 2x-3x . On slide 9 A, we completed refinancing of our syndicate facility in February, increasing it by €75 million- €402.5 million and extending duration to 2029 with an option to extend for a further year. We also refinanced our private placement in July, meaning we now have access to €500 million of committed facilities to support our continued growth with an average maturity of four and a half years. When I last spoke to you in February, I advised that we'd be making a significant investment in WIP across a number of our recent new site commencements, which would increase our H1 2025 net debt.
We subsequently invested a net €188.6 million in WIP, growing the investment to €435 million at period end, which resulted in debt to gross asset value of $0.277. This net debt position will reduce in the second half of the year. Onto slide 10, we used €118.6 million in operational cash flow in the first half of 2025. Following shareholder returns of €29.4 million in the period and our investment in WIP, our closing net debt was €307.4 million, meaning we had available liquidity of over €150 million as we started the second half of the year. Now, I'm going to take you through our capital allocation priorities on slide 11. We are a long-term, ambitious, sustainable business which has consistently delivered multi-year growth in volumes, revenue, and profits. Our approach to capital allocation supports and underpins this growth strategy. We prioritize a strong, resilient balance sheet.
Efficiency is demonstrated by our 16% return on average equity target for 2025, a new committed flexible €500 million debt facility, and monetizing our land bank and quick asset turn of acquisition sites to drive significant cash generation. We invest significantly in our two main raw materials, WIP and land, a focus on investment to support and drive our long-term sustainability growth. We are actively implementing our land acquisition partnership strategy, as Michael referred to earlier, which is underpinned by our disciplined capital deployment approach at the start of our venue transaction, with additional considerations linked to value-enhancing milestones like a grant to planning and/or zoning. This strategy allows us to leverage our platform capability by influencing the design and planning results while enhancing our returns and growing our strategic land bank. We deliver shareholder returns.
We make progressive ordinary dividend payments under paying buyer policy, and we distribute surplus capital to shareholders after investing in our business and paying dividends. In total, we've returned over €450 million to shareholders since the start of 2019, including the interim dividend declared today. Our share buyback programs since 2019 have acquired over 23% of the issued share capital of the company at an average share price of €1.29, which has been significantly equated to earnings per share and equity enhancement when compared with the closing share price of €2.60 last night, a 67% difference. Next, on slide 12, and our upgraded guidance for 2025 and our new guidance for 2026, 2025 will be another year of growth in volumes, revenue, and profitability of our business. We're upgrading our operating profit guidance to circa €160 million- €165 million, up from €160 million released earlier in the year.
As you've heard from both Michael and myself, we remain very confident about the outlook for the business, as evidenced by the issuing of guidance for FY 2026 as follows. Revenue of circa €1.20 billion- €1.50 billion, an operating profit of circa €175 million- €180 million, and a return on average equity of circa 16.5%. As you can see from our release, we're quoting two ROE numbers as we're transitioning to an average ROE calculation from FY 2026 onward, which we feel is a better measure as to how our equity returns should be calculated going forward and is in line with our peer group. Finally, I'd like you to bring through some of our sustainability progress on slide 13. Sustainability remains a high priority for the leadership team here at Cairn, and we continue to demonstrate progress within our multifaceted ESG program.
There are a few key highlights on the slide, but the one that jumps out at me is the 202 apprenticeships now registered on the Cairn Apprenticeship program, a vein of learning and bursary support, and building and securing a pipeline of future talent into our industry. We also released our first Building Sustainable Communities paper, which documents several case studies and stories from our partners, employees, and demonstrates our commitment to our customers, communities, and planet. I'll now hand you back over to Michael, who will bring you through some operational highlights of the business.
Thanks, Richard. I'm going to bring you to slide 15 on our operational highlights. As I mentioned earlier, we've seen very significant growth, as you can see from the slide, in our order book year- to- date, an increase of 1,700 new homes. We've expanded our regional footprint, as you can see from the right-hand side, which shows our geographical sales analysis, and we will commence new developments in Cork and Galway this year, further developments. This strategy and our very strong spring sales rates across our numerous private launches have contributed to this increase. First-time buyers are a core market for us, and we have experienced very strong absorption rates, as you can see, of between 3.1 and 4.9 sales per week per active site.
The addition of first-time buyer sales of apartments through the new Croí Cónaithe (Cities) scheme support is very welcome and certainly adds to our customers' buying options. I'll speak a little bit more about this important government initiative later in the presentation. I'm going to bring you to another slide, which is a photograph on the next page. This is Seven Mills, which we are very proud to say is fast becoming Ireland's largest new town. I think the photograph here illustrates what we've achieved in just two and a half years since we commenced that development in January 2023. The scheme has also contributed over 300 individual sales this year, and most importantly, 3,500 people will be living in homes here by the end of this year.
Moving on to slide 17, this is really all about our average selling prices and how competitive we can keep our attractive average selling prices while generating consistent margins. Certainly, our low-cost land bank, our scale operating platform, the productivity, which we'll chat a little bit more about, and our procurement efficiencies all enable us to keep our sales pricing consistent year- on- year. Our apartments, of which a growing number are being delivered to passive house standards, are being delivered at a price point that is, we believe, significantly lower than other delivery options open to our state partners. Apartments for private ownership will also play a bigger role in our future output, with construction commenced on our large site in Montrose and with our increasing focus on providing apartments for first-time buyers, as I mentioned previously.
As you can see from the pie chart, we do expect our mix to transition to approximately 50% apartments and 50% housing duplexes in the medium term as we continue to grow our low-density housing output in Dublin and the regions that I've outlined. Turning on to slide 18, the challenge remains, and in order to achieve the estimated annual requirement of houses in Ireland of 60,000 homes a year, apartment completions must increase. Just to talk a little bit about the impact of land and available land in Ireland to achieve this target, as you can see from the right-hand side, 88% of unbuilt residential zoned land in Ireland today has a density target of between 35- 100 units per hectare. This is set by local authorities and permission, and it's set really to encourage sustainable land use.
What this means is that planning permission will not be granted unless applicants and their designs hit these targets. That means that developments must include some, or in the case of the upper end of that density range, all apartments. As a result, we believe the growth in low-density housing output could be stymied in the years ahead. It's likely that the only viable route to achieving higher output in Ireland will be achieved by increasing apartment completions from the current rate of 8,000 per year to as much as 25,000- 30,000 per year. The government's Croí Cónaithe (Cities) scheme, which supports private ownership of apartments, will certainly help, as will other government initiatives, many of which are designed to crowd in more private capital, which is definitely needed to achieve these numbers.
Supported by Croí Cónaithe, we expect to deliver 860 apartments across six developments in the near term. In June, we launched our first development in Douglas County, Cork, and sold over 70 apartments in one weekend. The average gross selling price of those apartments net of that Croí Cónaithe support or subvention was €316,000. Moving on to slide 19. On the top left-hand side of the page, you can see that Ireland's state lags behind many of its European peers in its ownership of occupied dwellings, and it only stands at 10% ownership. What does this mean? What it means really is many large economies in Europe have grown state-provided affordable key worker accommodation to augment their social housing stock. Considering the strength of our economy and near full employment, it is imperative that the government increase both its ownership share and influence.
Particularly, we believe in affordable rental through AHBs and the LDA. On the slide, you will see some examples of the large apartment schemes we are currently delivering for our state partners. These are being delivered at pace and at competitive pricing. The average net of that price of €376,000 has remained stable since 2022, and that's despite build cost inflation and our switch to passive house standards on many of these projects. Moving on to slide 20, our WIP investment, as Richard talked about this year, has grown substantially to €381.5 million. The unwind of this, much of this investment, will deliver a very strong H2 performance. As I mentioned in the highlights, we reduced our BCI forecast from 2%- between 1% and 1.5%.
We have fixed our cost on circa €1 billion of our future procurement, and with over 95% procured across all current live sites for 2025 and 70% across all current live projects for 2026, we're in a strong position. Moving on to slide 21, this slide outlines how the knowledge we have gained over a 10-year period, as I mentioned earlier, and lean construction methods are driving our industry-leading productivity. One measure of this productivity is the ratio of homes built per 100 employees. Cairn builds 36 homes for every 100 direct employees and subcontractor employees, and this compares very favorably to an industry average of 29 homes per 100 employees. I think this is a good indicator of how we are relentless in our drive for continual improvement.
We've achieved this leading position through our ways of working, leveraging our approach to key areas, including post-planning optimization, digital technology, offsite manufacturing, and our newly implemented data scope system, which allows us to measure and improve our workforce productivity. What this delivers is an average completion rate of 3.3 apartments and 2.5 homes per week across each of our sites currently. Moving on, the government introduced a suite of impactful policies and initiatives since we last spoke to you. I want to now touch on some of these key policies and how we are ideally positioned to support these, as well as outline the strong macro environment we're operating in. On this slide, you can see the increased committed capital funding allocated to the Department of Housing and Local Government Heritage under the revised National Development Plan.
The revised plan outlines a total capital investment in Ireland of €275 billion over the period 2026 - 2035. €36 billion of this has been allocated to the Department of Housing for the period 2026- 2030. The Department's annual capital budget will increase to €7.3 billion in 2026 and thereafter to €7.4 billion. The macro environment continues to be very positive for us. Economic growth is forecast to continue. Extractor returns remain strong. Ireland is operating at near full employment. Importantly for our customers, the mortgage market conditions remain strong with a backdrop, we hope, of continued falling interest rates. Household savings continue to increase at a pretty phenomenal rate, and our population growth remains at historically high levels, driven largely by inward migration. I'll move on to slide 23.
This outlines some of the key policies and legislative initiatives that are being introduced and have been introduced in 2025 by government. We believe we're strategically aligned and ideally positioned to support these policies. We are Ireland's largest self-built apartment developer with industry-leading efficiency and output, and we'll embrace the new design guidelines that have been introduced. This will lead to building lower-cost apartments and delivering better value for money for our state partners and for private customers. We have a strong planning record, and that will enable us to respond quickly to the new regulations and legislative changes, with the additional headroom for density providing an opportunity for us to increase our output further. Most importantly, we have the balance sheet and permanent capital base to respond to government changes and deliver volume growth in the medium term.
Moving on to the last slide, I suppose, is really for us a reflection. We are 10 years in business. We've included some of the highlights that we see and some of our achievements. As I said earlier, on behalf of my colleagues and I, we are very proud of what we've achieved, and we want to thank you, our shareholders, for your continued support during that 10-year period. We look forward to seeing many of you over the next few days. Thank you for joining us this morning, and we'll move over to Q&A, Nadia. Thank you.
Thank you so much, dear participants. As a reminder, if you wish to ask a question, please press Star, one, one on your telephone keypad and wait for your name to be announced. To withdraw a question, please press Star, one and one again. Listening Bell will compile the Q&A roster. This will take a few moments. Once again, if you would like to ask a question, please press Star, one, one. We are going to take our first question. It comes to the line of Shane Doherty from Goodbody Stockbrokers UC. Your line is open. Please ask your question.
Thank you very much, and good morning, Michael and Richard. Just two from me, if I could. The first one just in terms of the land market, and just to get a bit more color generally there and how the type of opportunities that are coming across your desk now have evolved. The second one, just with regards to the planning environment and kind of any updates you can give us there, Michael, in terms of how things have evolved since you last spoke to us would be really helpful. Thank you.
Thanks, Shane. Yeah, the land market has been interesting over the last six or 12 months, Shane. Look, I suppose the challenge remains for the industry. I suppose outside of the two PLCs and a couple of very large private companies, it's very, very hard for the broader market, the sort of the rest of the house building market, to acquire large strategic sites. If sites are smaller infill sites for anything from 30- 75- 100 units, they're massively competitive. Those lot sizes might change to €5 million- €10 million, and lots and lots of smaller builders are in that bracket. I think what we're seeing is where there's larger and more strategic land opportunities. If you take, you know, Donovate last year, we bought off market for €50 million on a subject planning deal. Those sites don't go to market, Shane.
They by and large come directly to us. That's really due to, I suppose, landowners knowing that we are a genuine buyer of those larger strategic sites. We can get good value at those sort of price points, and we have very little competition. We've probably built a credible track record and reputation, and some of it comes through historical relationships as well, including, for example, this year with the Cosgrave family. The Cosgrave family is a brilliant house building company over many, many decades, and we were very fortunate to do some land acquisitions with the Cosgrave family. That's a big part of how we get there, Shane. Also, both Rich and I, and working with our Chief Investment Officer, Gerry Horr, over the last 12 months- 18 months, have appreciated that we don't always just want to write the check up front for development land.
If land needs to be brought through rezoning or through the planning process or de-risked through infrastructure, there are good opportunities for us to either joint venture that land with a large landowner that maybe doesn't have that skill set, rarely does. There's still a lot of unnatural owners, as we call it, of large residential land in Ireland, and they see us as a partner of choice with a track record and scale. We can also do something similar on what we call option deals on strategic land, Shane. It's an interesting market, but we have a much more diverse, and I suppose we now have different ways to acquire land, and we believe that will give us strong medium to long-term underpinnings for the margins we're generating. We're still building on many schemes on land that we bought in 2016 and 2017.
That certainly helps when it comes to our margin. The planning environment, Shane, is improving. The LRT process is working pretty well. Obviously, it's taking time, but we are seeing really good engagement from local authorities. Most importantly, local authorities have been asked to look at significant headroom now on their own targets within each local authority, and they've been asked to go out and zone more land and create more headroom. This, we believe, will create more good land opportunities for us in the years ahead. When you look at Cairn's performance, I think we've had about 2,600 units this year granted full planning permission across eight grants, I think, this year, Shane. It's been a great year for us on planning, and we're very pleased to see us working better.
Brilliant. That's really helpful. Thanks, Michael.
Thanks, Shane.
Thank you. Now we're going to take our next question. Just give us a moment. The question comes to the line of Colin Sheridan from Davy. Your line is open. Please ask your question.
Yeah. Thanks, guys. Good morning, and congratulations on the 10 years. Just a couple from me, if I can. Maybe just talk a little bit about house price inflation. Obviously, it's at least enough to be covering the modest build cost inflation that's going on, given the margin moves. I just wonder how you're seeing that in different segments at the moment, and what's your strategy for pricing when it comes to the most recent launches? What kind of opportunities are there? I guess, secondly, one of the themes that's coming across is the re-emergence or increase, certainly, in first-time buyer exposure from the company. Just wondering, you know, what's driving that? Is it just down to policy changes? Is this the nature of the land opportunities that are coming? Is it just more first-time buyer-oriented? Just trying to get a feel for what's driving that trend. Thanks.
I'll maybe start with the second one, Colin. I mean, look, for first-time buyers is what we built our business on. Obviously, you know, we acquired a very large land bank, Colin, back in 2015-2016, as I mentioned earlier. I think we certainly had first-mover advantage. We focused very clearly at that time on trying to acquire as much low-density land as possible. We focused on bigger sites, as you probably know, in urban areas and close to transport links, and a lot of it was low density. In the early years, a very high percentage of our apartments or of our output was low density.
I think we recognized quite clearly, and I think it's a strategy that stood to us, Colin, that over time, and this is not just in Irish, this is, you know, sustainable land use and trying to ensure that land use is appropriate and trying to hit higher densities would, in time, become a much bigger part of Ireland's housing output and a necessary part in order to hit our carbon targets, etc., etc., as I say, to even support the massive level of investment in infrastructure, including rail infrastructure and electrified rail lines. We all know how important transport is and other infrastructure like water and power infrastructure. Hitting appropriate densities, we always felt, would be direction travel. I suppose, Colin, that's why we put a lot of focus in those middle years to increasing our capability on apartment developments.
However, I did mention earlier that it's going to be difficult to see the broader market increasing first-time buyer output and housing output, which means it's going to be in demand. Where we can acquire large sites and where we can, I suppose, supplement our land bank, much of which we built through with lower density opportunities, particularly scale ones, we want to do that because that's where continued demand is. I mean, just to put it, I suppose, one perspective on how we think about it, Colin, I think there's close to 400,000 people in Ireland today earning between €15,000 and €90,000. They are in the main working between the age of 25 and 40, and homeownership rates are as low as circa 10% or 15% for that cohort. There's going to be massive demand from first-time buyers.
It's our job to try and step up and provide as many of those homes as possible. We remain committed to apartment delivery, and we're really pleased that our first-time buyers now through Croí Cónaithe (Cities) scheme have the option to buy apartments because many of them will find it difficult to be able to, at salary levels of €70,000 or €80,000, be able to get access to a mortgage to buy a three-bed semi or a four-bed semi. Chat a little bit about HBI, Colin. Our model has been consistent. We want to deliver as many homes as we can at competitive price points and at price points where those customers can get a mortgage. We're a strong believer in realizable demand. The more competitive our price points are, the higher our sales rates, and that's our model.
We deliver big sites, close to Seven Mills earlier on, 300 unit sales this year. That would be 400 by the year end. We want to be achieving six, seven hundred unit sales from next year on a scheme like Seven Mills. Pricing is important. House price inflation in the second-hand market is a lot higher in Ireland at the moment for the last couple of years in the new homes market. I think it's a great indicator if the broader market is seeing new homes HBI at 4% and our HBI is flat or close to flat. That tells me that we're running a more efficient business and we're using our advantages to deliver more homes. Makes sense. Thanks for that.
Thank you. Dear participants, as a reminder, if you wish to ask a question, please kindly dial in the audio line and then press Star, one, one on your telephone keypad. Now we're going to take our next question. Just give us a moment. The question comes to the line of Shane Carberry from Goodbody Stockbrokers UC. Your line is open. Please ask your question.
Hey, guys. Just to follow up with one more, and it's kind of on the back of Colin's HPI question. Just in terms of the other side of that equation, obviously, you gave more kind of confident guides from the build cost inflation side of things. Just wondering if you could talk me through the dynamics of that more confidence guidance. Is that just underlying build cost inflation being a little bit lower? Is it levers that you're pulling in the business? Just a little bit more color there would be really helpful.
It's a bit of both, Shane. I think it definitely is the levers in the business. When you see our WIP spend increase as much as it is, obviously, we're procuring more. We talked in previous updates about how we've moved to a more evolved procurement model and a centralized procurement model. We're able to negotiate better, particularly in Europe, on imported product, for example, when we're bringing in either large components or even what we're delivering offsite. There are going to be a few headwinds. There could be some increases in the year ahead on labor costs. We're conscious of that. Timber prices look like they're moving in the wrong direction for us. We're conscious that we could need to work hard to keep our pricing where it's at for our customers.
On the flip side, policies like we spoke about earlier help, like the new apartment guidelines that will allow us in time to deliver and design more efficient apartment typologies and get some of that build cost inflation back. It's a balance of how we approach our design, our value engineering, all the things we spoke about, and then being conscious that there will always be headwinds. No one is saying we're completely out of the woods on what's happening in international trade, for example. We're conscious of that. We haven't seen a big impact in our business, but we remain vigilant. Richie, anything you wanted to add on that?
Yeah, I think the other point, Shane, there is, obviously, as Michael's referred to, is a significant increase in our WIP investment this year, which has allowed us to sit down with our partners, who are most of our subcontractors, and map out their business plan. We definitely get some different benefits from that. Giving them the more clarity we can give them, the better, obviously, pricing power we can achieve in the business.
That's a good point, Shane.
Brilliant. Thank you very much.
Thanks for that.
Yeah, really helpful. Thank you.
Thank you. Dear participants, as a reminder, if you wish to ask a question, please press Star, one, one on your telephone keypad. Dear speakers, we'll just give a moment to our participants to press Star, one, one if they wish to ask a question or to leave any comments.
Dear speakers, there are no further questions for today. I would now like to hand the conference over to our speaker, Michael Stanley, for any closing remarks.
Thank you. Thanks, Nadia. Thank you all for joining. As I said earlier, we look forward to seeing many of you on the road over the next week or so. Thank you for your continued support, and chat to you all soon. Bye-bye.
This concludes today's conference call. Thank you for participating. You may now all disconnect. Have a nice day.