Welcome to the Headlam Group Interim Results Webinar. We'll now play a recording of the interim results presentation given by Chris Payne, CEO, and Adam Phillips, CFO. Chris and Adam are with us and will answer questions straight after the presentation. Written questions can be submitted at any time by clicking on the Q&A button. This webinar is being recorded.
Hello, and welcome to Headlam's 2023 half-year results presentation. I'm Chris Payne, the Chief Executive, and I'm delighted to say I'm joined by Adam Phillips, our CFO, who joined us earlier this year. There are four sections that we're going to talk to today. One is a brief summary and reminder of what Headlam's about. Secondly, a look back of the performance in the first half of the year. Then we're going to provide us an update and progress on the strategic developments of the business, and then look forwards at the outlook in particular, current trading and what we might expect going forwards. So about us, there are four main sections to this slide. Firstly, talking about the experience of the business. Secondly, talking about the depth and range of the product that we have and we offer our customers.
Thirdly, the network and how we offer that service to different customers. And then lastly, customer service, and that's a key feature of the business. Headlam has been around for many years and does have this market-leading position, particularly in the U.K., offering great service, great quality of product through a mixture of distribution centers, trade counters, and an online business. So just turning to the overview, I'm going to cover this in summary before I hand over to Adam, who's going to cover some of these areas in more detail. So what we saw in the first half was revenue was up, so that was up 2.5% year-on-year for the first six months of the year.
But that belied a weakness in volume, and we'll talk a little bit more detail about volumes shortly, but we saw UK volumes under pressure, particularly on the residential side of the market. But we're still able to report revenue growth, primarily through a strong performance through the new areas of strategic growth that we've seen in the large multiple accounts, and through the rollout of trade counters. And that meant that our regional distribution business was slightly under revenue year on year. Now, profitability was affected by some of the macro and industry headwinds that we've reported. So clearly, from the macro side of things, consumer sentiment and RMI spend is down.
The cost of living crisis that we've seen has resulted in both cost inflation for us and also a depressed demand level, resulting in those weaker volumes. To offset some of those headwinds, we were able to take some mitigating actions. So we looked at some of the efficiencies in the business, and we were able to reduce our costs to offset the weakness in volumes. And also, we passed on some modest price increases that we'd seen through our cost inflation on the supply side, and we passed those on to some customers. So that was a mitigating action, if you like, to protect the profitability during the first half. So just turning to the balance sheet, we did see a strong cash performance during the first half.
So we reported some solid operating cash, which we generated through trading, and that's meant that we've been able to continue to spend on our capital investments to support the long-term performance of the business, whether that's through the continued rollout of trade counters, investment in new cutting equipment and operating equipment around the sites, and indeed, the investment in solar panels that I talked to before. That's also meant that we've been able to support an interim dividend, which we're announcing for the first half, and we trailed that during the trading update at our pre-close. I'll now hand over to Adam, who's going to cover the first half performance in a little bit more detail.
Thanks, Chris. I'll now talk through a few slides on the P&L, cash flow, and balance sheet for the first half, starting with an overview of the key numbers. Revenue, as Chris mentioned, grew by 2.5% in the first half, and this comprised 3.3% growth in the UK, partially offset by a 2.9% decline in continental Europe. On the next slide, I'll take you through a more detailed breakdown of the revenue movements. Gross margin of 31.5% was a return back to the pre-2021 average of 31% - 32% and reflecting the unwind of the significant manufacturer-led price increases in the previous year.
Underlying operating profit was lower year-on-year at GBP 8.2 million, reflecting lower volumes, the unwind of the temporary margin benefit in 2022, and high operating cost inflation, partially offset by a number of mitigating actions across price, margin, and cost. Cash generation was good, GBP 19.8 million of positive underlying operating cashflow, an increase of GBP 35.2 million year-on-year. Net debt, pre-lease liabilities, of GBP 19.6 million increased by GBP 21.4 million from the end of last year, reflecting the combination of good operating cashflow, offset principally by investments in CapEx, M&A, and shareholder returns. The board has declared an interim dividend of GBP 0.04, with dividend cover lowered to 1.5 times, reflecting confidence in the medium term and strong operating cash generation.
So turning to revenue, and on this slide, we've broken down the revenue growth into its component parts and taken the UK first, where like-for-like growth was 1.0%, and this is before the impact of an additional working day in the UK, which added another 0.8% of growth, and also before the acquisition of Melrose Interiors in January, which added 1.5% growth, taking the total UK revenue growth to 3.3%. This growth is comprised of 5% volume decline, offset by price growth, principally reflecting the annualization of manufacturer-led price rises last year. Moving to Continental Europe, like-for-like growth was a negative 5.9%, driven by a particularly weak market in the Netherlands, with some suppliers reporting that their volumes into the Netherlands market are down around 20%.
In France, we did see revenue growth in half one, with price growth in the market offsetting volume decline. There was a small negative impact from change in working days, with one less day in France and one more day in the Netherlands, and foreign currency translation added 3.2% of revenue growth, taking the total Continental Europe revenue movement to a 2.9% decline. Now, in previous results presentations, you'll have seen a UK distribution daily sales chart. However, given the disconnect we've seen over the last 18 months between revenue, volume, and price, we felt it was more useful to show year-on-year volume. And this chart shows the monthly year-on-year volume movement in our UK distribution business from the start of last year through to the end of the first half of this year.
This is all of our U.K. business, basically excluding the Domus specification business, and we've also excluded Melrose from this chart, so that it gives you a like-for-like view on volumes. As you can see, there's been an improving trend from Q2 last year, all the way through the first half of this year until June. Volumes at the start of this year were trending around high single-digit decline, and this improved to around 1% decline in May. Based on this trend, we've been expecting volumes to return to growth in the second half.
However, June surprised to the downside with 9% decline, and a number of macroeconomic data points and external forecasts suggested that the recovery in residential-related spending would be more prolonged, and we therefore revised our expectations for half two in July, as per our trading update, to an assumption of broadly flat, flat volume overall for the second half. Chris will talk about current trading later. Moving on to the income statement. I've covered the revenue and margin movements already, moving on to costs. The total operating costs, which is a combination of the distribution and administration lines in this table, grew by 6.1%, but this includes the impact of the Melrose acquisition. On a like-for-like basis, costs grew by 4.1%. This is a combination of cost inflation and strategic investments, offset by cost savings and efficiencies.
I'll show a bridge of the year-on-year movements in costs in a moment. Operating profit declined by GBP 9.7 million to GBP 8.2 million, reflecting lower volume, the unwind of the temporary margin benefit in 2022, strategic investments, and cost inflation, partially offset by mitigating actions. I'll also show this on a year-on-year bridge in a moment. So moving down the P&L, interest costs increased by GBP 1.6 million to GBP 2.2 million, reflecting the higher average borrowings and increases in the base rate. Non-underlying items were a GBP 1.5 million expense, and I have a breakdown of those, which I'll take you through shortly. And finally, at the bottom of the table, the board has declared an interim dividend of GBP 0.04, as mentioned earlier, and this represents cover of 1.5 times.
Chris will talk through our capital allocation and dividend policy later on. Moving on to operating costs in a bit more detail, and on this slide, we presented a breakdown of the movement year-on-year. As I mentioned, these increased by 6.1% in total and 4.1% on a like-for-like basis, after excluding Melrose, which added GBP 1.9 million of costs in the period. Total cost inflation was GBP 5.8 million, mainly driven by payroll, with an average pay increase of 6.7%, and energy costs, with U.K. electricity costs more than doubling year on year. Strategic investments increased costs by GBP 1.8 million, comprising the costs of new trade counters and associated management team, plus investments in capability and resource to deliver on the other areas of strategic focus.
Efficiencies and cost savings provided GBP 3.9 million of year-on-year benefit. This included year-on-year reduction in operational headcount, reflecting the lower volumes, the transport consolidation project, and lower bonus accruals. Turning to a bridge of the year-on-year operating profit, volume drove a GBP 4 million adverse impact, and this is the net of volume growth from larger customers and trade counters, offset by decline elsewhere. The unwind of the temporary margin benefit last year from manufacturer price rises had a GBP 3 million impact, and strategic investments introduced an incremental GBP 1.8 million of cost. Cost inflation was GBP 5.8 million, as explained on the previous slide. Offsetting this then was GBP 5 million in benefit from mitigating actions, and this comprised GBP 3.9 million of cost savings year on year and GBP 1.1 million of price and margin benefits.
So taking a look at the mitigating actions in a bit more detail, and these actions build on previous efficiency initiatives and include, in the period, reducing operating headcounts to reflect the lower volumes, transport centralization, renegotiation of fuel contracts, targeted price increases and margin improvement actions, and lower bonus accruals and other cost savings. In the second half, these will be supplemented by further cost efficiency initiatives, including dynamic route planning in the UK, which optimizes vehicle and fuel requirements, and renegotiation of energy contracts. Moving on to non-underlying items, which this year totaled GBP 1.5 million in the first half and were all acquisition related. The main component was the amortization of acquired intangibles, which we consistently report as non-underlying, as in previous years.
This increased from GBP 0.7 million last year to GBP 1.3 million this year, reflecting the acquisition of Melrose in January. In the previous year, we had a significant credit from insurance proceeds relating to the fire at the Kidderminster site in 2021, and we expect further proceeds in the second half of this year. Turning to the cash flow. Working capital was broadly flat year-on-year compared to the GBP 33.8 million outflow in the previous year, and this reflects a stabilization in the working capital position following the unprecedented inflation in inventory costs seen over the previous couple of years. Underlying operating cash flow was strong at GBP 19.8 million, a year-on-year increase of GBP 35.2 million.
In January, we acquired Melrose Interiors for GBP 3.7 million, and so far in the second half, we've made two small acquisitions totaling GBP 2.3 million, which Chris will touch on later. Capital investment in the first half was GBP 10.1 million, principally comprising GBP 3.3 million relating to trade counters, GBP 2.8 million on cutting tables and associated safety equipment, and GBP 1.5 million on solar panels. Lease payments of GBP 7.2 million were up year-on-year, reflecting new leases for trade counters. Finally, there were GBP 14.2 million of shareholder returns in the period, comprising GBP 9 million ordinary dividends and GBP 5.2 million in respect of the share buyback program that completed in March this year.
The net cash flow before movement in borrowings then was a 21.3 outflow, representing the combination of the strong underlying operating cash flow, principally offset by investments in CapEx, M&A, and shareholder returns. Headlam has a strong balance sheet, underpinned by a freehold property portfolio, valued earlier this year at GBP 149 million, and inventory of GBP 148 million. There is significant liquidity headroom, with nearly GBP 80 million of cash and undrawn facilities available at the end of June. Net debt, excluding leases, was GBP 19.6 million at the end of June, representing 0.5 times EBITDA. Now, this is a chart that's been presented before, showing the daily net debt balances, and I find this a useful illustration of the profile of cash generation.
You can see that there is relatively small peak-to-trough swing in the net debt balance within each month or half-year period. The red line shows this year, and the final dividend in respect of 2022 of GBP 9 million was paid in June, which creates that dip that you see before stepping back up as we exit the first half. Chris will talk about outlook later, but we expect that red line to trend upwards slightly over the second half. I'll now hand you back to Chris to cover the strategic progress in the first half and the outlook.
Thanks, Adam. So turning to an update on our strategy. Now, as a reminder, there are five pillars to our strategy. The first one talks to service, and delighted to say that our latest customer survey that we do every six months sees us remaining as the number one service provider in the UK. The second pillar talks to revenue growth, and now I've got some detailed slides that talk about an update on the growth initiatives that we've been working on in the multiple retailers, the trade counters, and our brands in particular. The third pillar talks to operational efficiency, and we've heard at length from Adam, the steps and actions that we've been taking to mitigate the cost base during the year and some things that are planned for the year ahead.
The last two pillars, the fourth and the fifth one, relates to our sustainability and environmental agenda, together with making Headlam a great place to work. Those two pillars are really covered by our ESG strategy, which I'll talk to again in a moment. Just providing a bit more detail about the strategic growth initiatives that we've talked to so far. As a reminder, this covers the multiple retailers, the trade counter rollout that we're midway through, and the development of our own products and brands, all aimed at giving us around GBP 200 million worth of growth in these areas. Firstly, if we talk about the multiple retailers. As a reminder, this is a very much bespoke, service-driven offer that we give to these customers.
This is all about offering a specific product or specific logistics service that no one else can offer in the UK, and it's a really compelling offer. For these large customers, we can offer consistent service across the country, and previously, we've talked about having Tapi as a significant customer, Homebase as a new customer we introduced into 2022, and Screwfix as a new customer for this year. So we've seen significant growth in this space year-on-year, 26% up, on last year. And that remains the trajectory that we're looking for in the future as we continue to roll this service out to new customers. Secondly, trade counters. We talked at length about this, and the trade counter rollout continues. As a reminder, it's aimed at offering new customers in the kind of white space around the UK, if you like.
There are parts of the country where we have little or no offer, and we've done some work to look at a heat map of where people are and where flooring demand is, and we are going on a program of filling in that white space with new locations, small footprint offers, bringing our service to customers. This trade counter rollout is going very well. We're tracking in line with the business case that we expected, and we undertook to come back and provide regular updates to shareholders on the performance of this initiative. Again, pleased to say that that's reporting strong growth, just under 9% year-over-year, and we've also been able to drive down and make efficiencies in the cost of fitting out the new sites, which has meant that we're able to save some of the capital of each of the site openings.
We're expecting that to mean that we'll end up probably closer to 100 sites in the UK rather than the 90 we talked to previously, and that's really driven by the fact that when we've looked at this heat map across the UK, we do think there are other towns that we can include in a new site opening. And in fact, we've been able to reduce our capital spend, so we should come in at a similar level to that we indicated before. So thirdly, we're going to update on the product brands and a rollout on how we're investing in those initiatives. So I mentioned earlier that we've had an award-winning new product hit the market in one of the other slides, and that's called Everyroom , and some of that is behind me on the screen here.
So that was a new product launched at the end of last year, and that's seen some significant growth and enabled us to drive demand up in our own brand part of the market to +7% year-on-year, despite the weak residential volumes that I reported earlier. So very much a product for the moment, very well received by our customers. Good quality, good price, and that's something which is seeing good traction this year. We're also investing in the digital side of our business. Now, it's something that we've feel that is important, that customers, both in the multiple space but also in our brands, we need this sort of digital awareness and engagement with our customers.
And we have been investing in kind of e-commerce and digital capability, launching new B2B websites and are planning a new overarching Headlam website later this year. And finally, Adam mentioned acquisitions. We made a couple of small acquisitions in the last few weeks, and they are relatively small, but very much aimed at adding capability to our own brand business by offering a kind of in-house sampling service in the business that we acquired in Yorkshire, and another one where we're looking at product expansion in our own brand business in the Netherlands. So just turning to ESG, I sort of moved together the two strategic pillars that I mentioned earlier into a single update. So we did launch a new ESG strategy in our March update. So as a reminder, I've just reproduced that on this slide.
So just a handful of points really to update since that strategy update in March. Pleased to say that we've been awarded AAA status by the MSCI ratings agency for our ESG credentials, which is great to hear. We've also engaged with SBTi to make an assessment and commit to the net zero and interim targets for our Scope 1, 2, and 3 emissions. And building on the great work that we did in 2022 with our people, we're just doubling down on our focus on health and safety in particular, and we've rolled out some leadership training about health and safety awareness in the workplace, and keeping people safe in the workplace and getting them home at the end of the day is our number one value. So Adam mentioned I'd be covering the outlook, so just turning to current trading first.
July and August, very similar to what we've seen so far. So Adam shared with you the trend of volumes. So we've seen pretty flat volumes for July and August, which has meant that revenues remained relatively flat, year-on-year. The same sort of pattern, residential volume, slightly negative, but probably improving a bit, and commercial volume remaining a bit more robust, but certainly the positive, sort of declining a little bit as well. So everything normalizing back to a relatively flat position. What does that mean if I look forward? So the outlook, we said in the trading update and the pre-close, we expect that the outlook will remain relatively subdued for the rest of this year, as that RMI and residential spend remains subdued. But we do expect in the medium term that that will improve.
Now, whether that happens sort of second half of 2024 or beyond, we'll see. But I, I think our expansion of our offer to customers and the efficiencies that we've developed mean that we should see, in the medium term, a significant improvement in profitability as that volume comes back and we get the operational benefit of putting more volume through our network. So I think a more positive outlook, perhaps in the medium term, albeit the short term, is obviously affected by the macro factors we've discussed previously. So capital allocation, just a quick refresh on this really. We've been considering how we talk about capital, how we use the strong balance sheet that Adam mentioned earlier. We've just clarified what we meant by a target leverage, and we've talked about 0.5-1 times, depending on the point of the cycle.
That's just to give a bit more clarity and guidance on our approach to leverage. We've also recommitted our commitment to the ordinary dividend, and we see that as a fundamental part of, I suppose, the cash generative nature of the business. As Adam mentioned, in the short term, we're looking to drop cover ratio for our dividend to support the ordinary dividend during this sort of cycle, this down period of the cycle, as we see confidence in the outlook returning later. Then lastly, I suppose it's a restatement of how we see the other elements of our capital allocation. Now, whether it be through special dividends, share buybacks, or in M&A, we are looking to create flexibility in, whether the market factors are supporting one of those capital return mechanics or indeed M&A opportunity exists.
So I think we're gonna look at those based on more of a returns basis. In the past, we've looked at those in a more vertical way. So we're looking at these in the round, looking at the market metrics at the time, and the availability of M&A. So a subtle change to how we're presenting capital allocation, and hopefully that represents the market conditions we see at the moment. So just to close the presentation with a summary, we're seeing revenue performance broadly in line with expectations. In the medium term, the broadening business base, the continuing delivery of our strategic growth plans, will stand us in good stead, for a return to improved profitability, as the market recovers and we see an improvement in volumes.
That brings me to the end of the presentation, and I'm also happy to take some questions.
So to ask your question, click on the Q&A button and type your question. The first question is: What did the increased revenue contributions from larger customers and trade counter rollout contribute to profitability in the period?
So, yeah, the volume benefit from trade counters and large customers in the first half of the year is worth about GBP 1 million of profit. In larger customers, that flows, that element of larger customers flows through to the bottom line. Trade counters, as we talked about before, as we're in the rollout phase, that is diluted to profit, and you'll have seen in the profit bridge we presented GBP 1.8 million of strategic investments in the first half of the year. The majority of that is trade counters. So trade counters is diluted to P&L this year and next year, and then year-on-year becomes accretive thereafter. Larger customers supportive to the P&L this year, so that adds to the bottom line.
Great. Thank you very much. What's the current annualized turnover of the trade counters relative to the aspirations of this being a GBP 200 million activity? And if this objective is achieved, what level of incremental profit will it produce?
Yeah, we're, we're about halfway to our target. So we talked about this being a GBP 200 million revenue division of the group, and we should be getting towards GBP 100 million of that this year. We talked about 9% revenue growth year-on-year. We're nearly up to, on a run rate basis, 90-something, so we, we might well get to a 100 run rate by the end of the year, so about halfway. The other indication we've given in the past is that we'd expect, once it's got to scale and maturity, and Adam described, we, we effectively carry a cost for a period until this ramps up.
We do expect that on a, say, an average site might be a GBP 2 million worth of revenue, at that level, would create around about GBP 200,000 pound operating profit for a site, so around about 10% operating margin. So you can imagine, once we've got to scale and we're looking at a GBP 200 million division, I imagine that will be high single digit operating margin. So, you know, high teens in terms of operating margin, so quite a step up on where we are now, maybe as much as another GBP 10 million worth of operating profit.
Great. Thank you very much. You suggest the downturn in residential figures is due to the larger macroeconomic factors and suppressed spending. Do you recognize any migration to competitors by bricks and mortar retailers, primarily driven by Headlam's strategy of rolling out trade counters and its increasing support of the man in the van sector? Is there anecdotal evidence to suggest that many retailers are feeling this as a direct assault on their business and years of loyalty to Headlam is no longer recognized?
Yeah, that's a good question. I've actually spent some time talking to some of our teams about that. So we, t here are two things to say. One is that Headlam's always been servicing the man in the van, if for want of a better phrase. So we call them independent fitters. And independent fitters have been a long-standing feature of our business for decades. So independent retailer is one core group, the other one is the independent fitter. So that's always been a part of the business. We've also carried out six monthly customer surveys to assess their views, thoughts, wants, desires, needs, how to service the customers better. And I think one of the things that we have seen change is a slight change in attitude over the last few years, particularly post-COVID.
There's a much more complex and intricate supply chain than there ever has been. One of our competitors, for example, is completely integrated, and they have not only a retailer in their business, they also have an online retailer as well. So you'll find some of our customers will actually buy from one of our competitors as a distributor, knowing that they've also got a retail business and knowing that they've also got an online business directly competing with. So it's not a clear playing field. Having said that, I think we did recognize. I was expecting there to be a little bit of confusion or perhaps clarification needed when we rolled out trade counters. Most of the trade counters are aimed at white space.
I describe that as we're filling in towns and areas of the country where we don't have a physical presence, so that is aimed at our existing customers. Clearly, what we're trying to do is take share from our competitors and maybe even win some business in kind of non-flooring builders. So that's the aim, that's the discussion we've had with our customers, and indeed, some of our sales team have tried to talk to customers about that. Clearly, we do get one or two customers looking for clarification to make sure that we're not trying to take their customers, but very much the focus is on customer service and offering new service to new customers that we don't currently.
Great. Thank you very much. And just a reminder, we've got a couple more questions, but if you have a question, click on the Q&A button and type your question in. So the next question: with the benefit of hindsight, how would you rate the success of the share buy-back program? Do you think that the decision to buy up to 50% of the daily volume enhanced shareholder value?
Yeah, it's always difficult when, when you look back with hindsight, of course, you know. We, we tried to reframe and reframe the capital allocation policy to allow us flexibility at any point in time. It's particularly difficult to make that assessment when you've got some quite difficult macro factors, which are causing quite big movements in share price as well. But what we, what we did say was given the share price, given the liquidity, that's deployed the capital in this way. I think it, the, the success enhanced when we increased the speed of it. It was a much shorter, sharper process once we moved to 50% of the buyback. So I think that, you know, it, it did the job that we set out to achieve. Again, would we do it again? What would you do differently?
I do think, given our scale as a small cap business, I think having something that's big and meaningful is, may well be worthwhile. You know, something that's meaningful buybacks, clearly that makes more sense than small amounts nibbling around the edge. If you're in a FTSE 100 business or something, you clearly set out a program of rolling buybacks, but it doesn't really work so smoothly for a small cap business. So, you know, again, it's not easy to answer that question directly, but certainly once the we took the brakes off some of the buyback process, it achieved the outcome more quickly.
Great. Thank you very much. At this stage, a final question. In the financial crisis, the basic earnings per share fell to a low of 19.1p in 2009. The equivalent figure in 2023 will be lower, even in nominal terms. Can you comment on why the business is performing less well today than it was back in the financial crisis?
Yeah, sure. I mean, interestingly, actually, when you look at volumes, sort of the volume movement back in the global financial crisis and now, so peak to trough, we've seen about 20%. So now, at the moment, we're seeing about 20% lower volumes in 2019, and 2019 actually wasn't, you know, wasn't necessarily even a peak. We saw a similar volume movement back in that, that period, you know, 13, 14, 15 years ago. However, there is one other big differential between those two periods. There was almost no inflation at that time. Obviously, we're now seeing some quite unprecedented levels of inflation. We've seen about 7% payroll inflation in the first half of this year. We've seen electricity costs in the UK more than double.
You know, we're taking actions, efficiency actions to mitigate those, and those will build in the second half of the year, but they have had a net impact on the first half of this year. So I think it's a combination of volume, similar, but then this time, much more inflation.
I think just to add to that, you know, we've also chosen to invest in broadening the business space, and we disclosed in the half year the amount of investment we're making in setting up the trade house business, for example. So you know, that is dilutive to profitability. So we are taking strategic steps to broaden the business footprint out so that when the market returns, we'll see a stronger recovery. So as Adam said, I think it's a mixture of macro factors and also company choices around the investment that we're making.
Tremendous. Thank you both very much. Do you have any closing remarks, Chris?
Yeah, look, I think it's pleasing to see that we're seeing some revenue growth, albeit in the new areas that we're targeting. So we can see that those new customer targets that we're focusing on are delivering. We're seeing some growth, which is great to see. You know, volumes are under pressure certainly in the residential space, so it's you know, it's a tough market. I have the pleasure of speaking to lots of our competitors, lots of suppliers, and I can see it's a pretty much challenging picture across the whole of the residential market in the UK.
So, that being said, we expect that softness to remain for a period, so all of the investments we're making, the steps forward, do bode well for when that recovery finally happens. You know, the RMI spend will come back, those volumes will return, and it's pleasing to see that we're gonna have a broader business base to offer that service to the market when it comes back. So yeah, a tough, tough first half, and, as I say, we're looking forward to that sort of medium-term recovery.
Many thanks, Chris and Adam. To everyone listening, you'll now be taken to a webpage to give some feedback on today's presentation. If you can't complete it now, you'll receive a follow-up email. We would be really grateful if you could take a few minutes to complete. Many thanks for joining. This is the end of the webinar.