Everyone, welcome to the Helios Towers H1 2023 Results. My name is Nadia. I'll be coordinating the call today. If you would like to ask a question, please press star followed by one on the telephone keypad. I will now hand over to your host, Tom Greenwood, CEO, to begin. Tom, please go ahead.
Thanks, Nadia. Hi, everyone, welcome to the Helios Towers H1 2023 Performance and Outlook Call. Very good to talk to everyone today as always. I hope your families are well, thank you very much for your time today. First up on page two, we've got the usual lineup for you of me, Tom Greenwood, CEO, Manjit, our CFO, and Chris Baker-Sands, our Head of Strategic Finance and Investor Relations. I'll run through some highlights, Manjit will take us through the financials, we'll be open for Q&A at the end. Now to page five for our highlights. Today, we're reporting a very strong H1 of the year, tightening our guidance upwards for the full year. Many of the trends that we reported in Q1 have continued, perhaps even accelerated slightly.
We've grown revenues and EBITDA, 32% and 28%, respectively, with organic EBITDA being at 13%, up for H1 year-over-year. We've also delevered by 0.3x in the quarter to 4.8, and we're on track to reach around 4.5x by the year end. Very pleased with the performance of the business so far this year. Our financial performance has been driven principally by our tenancy growth, increasing site count by 30% and total tenancies by 26% year-on-year. A large contributing factor here being the closing and the integration of our Oman acquisition last December, very importantly, our organic growth is the best it's ever been.
We've added over 2,300 organic tenancies in the past 12 months, which includes around 1,400 in the six months year to date. This represents our highest H1 volume ever. We're seeing continued strong rollout from multiple customers across multiple markets, showing the strength of the diversity of our portfolio, both from a country and customer perspective, meaning we're not reliant on a single customer or single country for our growth. In addition to a strong H1, we've also got a robust pipeline for H2, meaning that we're tightening upwards our guidance for the full year, as shown on the right-hand side. EBITDA and portfolio free cash flow increasing by $5 million each at the bottom end, and tenancies tightened to between 1,900-2,100, up from the previous 1,600 bottom end.
As always, our future revenue base is significant, with around $5 billion of committed revenue corresponding to around seven years' worth, with all the usual CPI and power price protections embedded, and the majority being in hard currency. Moving on to page six to take a quick look in more detail at some key metrics which are progressing well. Our Q2 annualized EBITDA and portfolio free cash flow figures of $356 million and $234 million, respectively, as you can see, and now both around the lower end of our tightened guidance. I would view this as a very good place for us to be in Q2, given we've got two more quarters of growth remaining for the full year. Similarly, ROIC, at 10.5%, is now at the midpoint of our guidance at the midpoint of the year.
Moving to page seven, we wanted to highlight here the embedded returns growth of our portfolio assets over time and somewhat dissect some of the noise around ROIC created by a mixture of more established versus new markets. Here we show the ROIC for the Opcos bifurcated between the more established markets and the new markets and the trend over time. On the left, we can see that for our side established market, Tanzania, DRC, Congo, Ghana, and South Africa, ROIC started off around 3% and is now up significantly over time to over 15%. And we've added roughly one percentage point per year to the ROIC in these markets, and this, by the way, is still very much growing.
On the right-hand side, you can see we started off mid-single digits on ROIC and are expecting to see similar ROIC growth per year as we've seen for our older, more established markets. We've had a very strong start in all four of our new markets, as shown on page eight. Through demonstrating our exceptional customer service capability, we've fast become the trusted passive infrastructure partner for all key mobile operators in these markets. This has led us to increasing site counts and tenancy ratios almost across the board, which in turn has delivered significant double-digit EBITDA growth for all four new markets, as we show on the right-hand side. Our teams across the group are focused on continuing our service delivery quality and in turn, keep growing our EBITDA and ROIC at a fast pace as we move forward.
Now on to page nine, looking at our wider sustainability strategy and KPIs. I'm very pleased to say we continue to be recognized as top-ranked by agencies, including MSCI, FTSE4Good, and Sustainalytics. MSCI and FTSE4Good recently reaffirming us in these positions. In fact, this quarter, Sustainalytics has reduced our risk rating from medium to low, reflecting the progress we've been making in this area. On the right, you can see we're making good progress against all of our non-financial KPIs, on which management are financially incentivized and cover areas such as digital inclusion, people development, diversity, and carbon reduction. Finally, as an FYI, we're busy incorporating our four new markets into our carbon targets, and we'll be looking to release updated targets encompassing all nine markets early next year.
At this point, we'll have a year's worth of data for all the new markets, hence this timing. With that, I'll hand over to Manjit for the financials and look forward to talking to everyone for Q&A at the end. Over to you, Manjit.
Thanks, Tom. Hello, everyone. It's great to be speaking with you today. I'll be going through the financial results, starting on slide number 11. Continuing on from what Tom mentioned earlier, we have again delivered record organic tenancy additions, and strong performance across all key operational and financial metrics. This really puts us in a fantastic position for the H2 of 2023, and accordingly, we have tightened our guidance upwards, and I'll be speaking about that later in the deck. On this slide, you'll see that we've summarized the main KPIs, which I'll now go through in more detail over the next few slides. Moving on to slide number 12, our site and tenancy growth.
From a site perspective, we saw a 30% increase year on year, reflecting organic growth of 657 sites, and the 2,519 acquired sites in Oman. Year on year, we've added 5,334 tenancies, which is a 26% increase from a year ago. This growth was through a combination of our acquisition in Oman, and also strong organic growth across all our markets, with 2,317 year-on-year organic tenancy adds, which is actually our highest ever year-on-year movement on record. For the Oman operation, this has really integrated well into the business, and so far, year to date, we've added a total of 175 organic tenancies, which is a great start.
Our tenancy ratio has dropped slightly on a group basis, and this is largely driven by the lower tenancy ratio of the acquired sites in Oman, which on day one had a tenancy ratio of 1.2. But we've actually already increased that to 1.27, which again, is a fantastic start so far. On an organic basis, our tenancy ratio increased by 0.08x, despite the ongoing site rollouts, reflecting our strong co-location delivery in our existing markets. Moving on to slide number 13. We've seen strong, we've seen a 30% revenue growth and 28% EBITDA growth, as Tom mentioned, year on year, up 20% and 15% organically, respectively.
The organic growth is principally driven by tenancy additions across all of our markets, increasing our Q2 revenue by 10 percentage points, in addition to CPI and power price escalators, also increasing our Q2 revenue by another 10 percentage points. Adjusted EBITDA grew by 28% year on year and in line with our expectations laid out at the beginning of the year, and we're seeing good acceleration in our EBITDA growth across all three segments. Organic growth, as I mentioned, expanded 15% year on year, while inorganic growth contributed the remaining 13%, and again, that's predominantly coming from the Oman market. Our Q2 margin has stayed flat at 15%, at 50%, I should say. On a constant fuel price basis, however, our Q2 adjusted EBITDA would have been 53%, supported by our growth and tenancy ratio expansion.
However, due to higher fuel prices, which increased both our revenues through power price escalators and OpEx comparably, margin has remained, has diluted by 3 points and remained at 50%. Moving on to slide 14, I'll dig into this impact in a bit more detail. On this slide, we set out walkthroughs of our revenue and EBITDA progression year-over-year for Q2 2023. This should now be quite a familiar slide, demonstrates our now proven resilience to FX, CPI, and power prices. The first four bars of each bridge, organic tenancy growth, power escalations, CPI escalations, and FX, all combined to make up organic growth and acquisitions being the contributions from new markets.
The record organic growth of 2,317 tenancies year-on-year, has driven the 10% growth in revenue and 13% growth in EBITDA. I'll take a minute now just to drill into the escalation movements. As a quick reminder, we have escalated almost every customer contract in all of our markets. For power, roughly 50% of our contracts have quarterly power escalators, 50% annual escalators, and these escalate in relation to the local prices for fuel and electricity. If local prices go up, then the escalator goes up, and if the prices go down, then the escalator goes down. For CPI, we have annual CPI escalators, and they typically kick in between December and February, although we do have one or two that escalate slightly later in the year.
We continue to see fuel-- local fuel price increases, that's principally been driven by DRC, which has accordingly increased revenues by 8%. As mentioned previously, we've created a robust business model by design, we've structured the increasing revenues to effectively offset the increased OpEx due to higher power prices to protect, to protect our EBITDA on a dollar basis. On the left-hand side, you can see that the power revenues increased by $11 million in Q2, that falls through to flat EBITDA on the right-hand side. From a margin perspective, there is some dilution because the EBITDA margin on the power price movements is lower than the overall group margin, and in this case, diluted margin by three percentage points.
However, in a period where we've seen significant power price increases, we've been able to keep our EBITDA roughly flat, meaning that our contracts are escalating effectively and offset the OpEx impact of higher power prices. Quickly to touch on CPI and FX. Local CPI is currently just north of 10%, which has resulted in revenues increasing by roughly around 5%. The CPI escalators have effectively more than offset the FX movements on revenue and on the EBITDA side. Again, the escalators have covered the FX movements very well.
I think this bridge shows a useful demonstration of our business mechanics. Again, standing back and looking at this from an EBITDA level, there is little to no impact to FX and power prices. We are well protected from macro volatility, with the key driver here being growth from tenancy additions, both organically and inorganically, operational improvements, both of which are under our control and how we want the business to operate. Moving on to slide 15. You'll see the usual breakdowns again provided, which is actually very consistent from previous updates. 98% of our revenues come from blue-chip mobile network operators, comprising mainly Airtel Africa, Vodacom, and Orange, alongside other MNOs such as Axian and Omantel. It's worth highlighting that our largest customers are spread across a few markets, showing how diversified our business is.
We have strong long-term contracts with our customers. At the end of the year, we had long-term contracted revenues of $4.9 billion, with an average remaining life of 7.1 years, and that's up 17% from $4.2 billion a year ago. Again, this means excluding new wins and rollouts, we already have that revenue contracted, and in the bag and provides a strong underlying earning stream to the business. We also have 64% of our revenues in hard currency, being either US dollar or euro-pegged, and 71% when looking at it from an adjusted EBITDA perspective. Again, providing a fantastic natural FX hedge for the business, and this is further complemented by the escalators, which I've just spoken about.
Finally, on this slide, with the new market expansion in the last couple of years, we're seeing a more diversified split of revenues, with the Middle East and North Africa segment now representing 8% of our H1 revenues. Moving on to slide 16, and taking a look at our cash flow. As mentioned earlier, we've seen portfolio free cash flow of $125 million, up 24% year on year. As you can see, the cash generated is almost covering both our interest expense and all of our discretionary CapEx, meaning that the group is bridging closer towards being adjusted free cash flow neutral/positive. With regards to working capital, as expected and communicated at the Q1 results, we've seen an improvement in working capital, with receivable days decreasing from 57 days- 49 days.
Receivables can be lumpy, and timing of payments can straddle period end. Whilst we always aim to reduce receivables days, the days can move period on period due to this. However, generally, they've remained within a relatively tight range, and movements are due mainly to timing rather than any bad debt issues. As always, we have disciplined cash flow management and capital allocation is top of mind, which brings us to slide 17, which shows a summary of our CapEx. On the left-hand side of the table, in H1 2023, we incurred total CapEx of $93 million, which is mainly made up of growth CapEx, reflecting again our strong organic tenancy growth in the H1 of the year.
$93 million, roughly trends in line with where we expect to be at, at the full year, i.e., driven mainly by tenancy rollouts. In terms of 2023 guidance, the CapEx range given, given the great organic tenancy rollout we've had so far this year and the organic tenancy rollout we expect for the rest of the year, we've increased the low end of our previously announced guidance by $10 million, increasing from $130 million- $140 million, with the top end of the range remaining unchanged. Additionally, worth pointing out that non-discretionary CapEx has remained unchanged at $40 million.
As you can see now in our CapEx guidance, now that we've gone through our key phase of expansion and acquisition integration, for the rest of 2023, we'll be focusing on organic growth, leasing up our expanded portfolio and keeping CapEx tightly controlled, as always. Moving on to slide 18, our net leverage at the end of H1 2023 has decreased by 0.3x- 4.8x. Whilst this is still above our medium-term target range of 3.5x-4.5x, this is driven by the closing of the Oman transaction, as I've mentioned previously. We do expect net leverage to be in or around the high end of our target range by the end of the year, so, so near enough 4.5x by the end of the year.
We have a clear pathway to deliver the business at about 0.5x per annum on an organic EBITDA growth perspective. We're on track to deliver that. As at today, we have ample liquidity, and have $420 million of available funds, comprising cash on balance sheet and undrawn debt cap facilities. Importantly, our debt is largely fixed, with 80% of drawn debt at fixed rate, which is long tenured, with average remaining life of around four years. We're pleased to say that we're in a comfortable position with ample time remaining on our facilities. Again, as previously mentioned, we do actively monitor our options and opportunities, and should we look to press ahead with anything, it will be for strategic reasons, which is a great place to be in.
On to slide 19, looking at guidance. As Tom mentioned earlier on the call, we've made great progress on our 2023 goals, accordingly, we've tightened our full-year guidance upwards. Given our robust tenancy growth and strong commercial pipeline for the remainder of the year, we've adjusted upwards the low end of the organic tenancy guided range. We're now targeting between 1,900- 2,100, compared to 1,600- 2,100 prior guidance, implying year-on-year growth of about 8%-9%. For adjusted EBITDA, the low end of the previous range has been tightened by $5 million, with the updated range being $355 million- $365 million.
Accordingly, portfolio free cash flow has also been tightened upwards by $5 million, again, moving to $235 million-$245 million. This is really due to the, the great expectations on tenancy growth, as a consequence of those went through, CapEx is also edging up slightly on the low end, but again, non-discretionary CapEx remaining the same. In general, it's been a fantastic H1 of the year with various key metrics hitting records, we're very, very excited about the, the opportunities ahead, and this looks to be another record year for Helios Towers. With that, I'll pass back to Tom to wrap up.
Thanks very much, Manjit. Just on page 20 now for the key takeaways, I think pretty clear messages today, to be honest. We're executing on our 2022 goals, acquisitions integrated, organic growth accelerating, EBITDA growth significant, and net leverage stepping down. Business model obviously robust with our hard currency mix, contractual protections, and attractive customer and market dynamics, with our strong positions in our market. Of course, FY 2023 guidance being tightened upwards. With that, we'll pause. I'll hand back to Nadia, and we'll do some Q&A. Thank you, everyone.
Thank you. If you would like to ask a question, please press star, followed by one on a telephone keypad. If you choose to withdraw a question, please press star, followed by two. When preparing to ask your question, please ensure your phone is unmuted locally. Our first question today goes to Emmet Kelly of Morgan Stanley. Emmet, please go ahead, your line is open.
Yes, thank you very much. Good morning, everyone, and thank you for taking my questions. My, my first question is on PoPs growth, just for Helios as a group. Historically, H2 has been stronger than H1. How should we think about H2 PoPs growth for the remainder of this year, given the very strong H1 you've already recorded and given the new guidance is in place? My second question is kind of related to the first one. It's on DRC. PoPs growth has been particularly strong in the H1 . Can you say a few words on what's driving the tenancy growth here, and how sustainable these trends are going forward, please? Thank you.
Hey, Emmet. Tom here. Thanks very much for the questions. Yeah, look, I mean, we've been very pleased with the progress in H1, clearly. I think H2 is also looking strong. We have a strong pipeline. You know, to be honest, that pipeline is actually now extending beyond H2, and, you know, we're starting to look at planning tenancies for 2024 as well. You know, now we've upped our bottom end of our guidance, as you've seen, to 1,900-2,100. When we report our Q3s, we'll give you any further update on that. Yeah, now, now focusing on the guidance range for now.
Yeah, decent pipeline growth, growth for next year, actually, as well, which is good. Yeah, look, DRC, clearly, having a strong period at the moment. I think, you know, with DRC and, you know, to be honest, a number of our other markets are the same. There's a very good mix of mobile operators in the market, you know, with Vodacom, Orange, Airtel, and Africell. There's a fairly level playing field when it comes to market share in that market. You know, the population is about 100 million, and about 40 million people still live in areas with zero cell coverage today.
Therefore, there's a lot of coverage demand, you know, going into new areas and, and doing new builds, build to suits. Equally in the big cities in DRC, and I was actually in Kinshasa a few weeks ago, there's, you know, huge demand for data and technology. 5G trials have now, have now started in Kinshasa. I was actually roaming on 5G when I was there a few weeks ago. Of course, that brings the need for more densification in the cities, as well as extra equipment and amendments on existing sites. All of that really is a, you know, very good environment.
Of course, us being the largest tower company in the country, with 65% or so of the, of the towers today, it puts us in a good position to capture a lot of that growth coming.
Super. Thanks very much, Tom.
Thanks, Emmet.
Thank you. The next question goes to John Karidis of Numis. John, please go ahead. Your line is open.
Thank you. Good morning, everyone, and warm congratulations to the entire team for the, this, another set of good results. Very good results. I, I'm being really picky, so I apologize for this. What's happening with Tanzania, in terms of sites and and tenancies on a quarter by quarter basis? They seem to have gone backwards. Can you give us some visibility there, please?
Yeah, sure. Hey, John. Yeah, in Tanzania, this relates to a small operator who we removed from the sites. To be honest, there's barely any financial impact, if anything, and as you've seen from the financial numbers in Tanzania, you know, from a year-over-year perspective, revenue and EBITDA are both up about 20%. Quarter-on-quarter, revenue is up 2% and EBITDA is up 3%. Year-over-year tenancy is over 300. Yeah, so that was effectively just a one-off where we removed a bunch of small operator equipment from sites, and so that's reflected in the tenancy numbers, but virtually zero impact on the financial.
Thanks, Tom. Lastly, could you update us a little bit on the progress you're making on the uptime metric across the footprint, where you are and where you're headed, please?
Yeah, absolutely. You, you mean on the, the power, power uptime, metric?
Yes, sir. Yeah.
Yeah. Yeah, yeah, yeah. Absolutely, yeah. So look, at the moment, I think we actually state this on page nine. Yeah, we're at 99.98% uptime across the entire portfolio. So that's up 0.01% from last year. And, you know, obviously, this is now encompassing all of the new markets. And, you know, it's great to see actually in all four of the new markets, for example, we've already delivered significant improvements in the power uptime across all those new four portfolios since taking them on, which obviously is part of the reason mobile operators will outsource to us. Yeah, so we're making good progress, and, you know, I expect that to continue to improve.
We've set ourselves a fairly tough task of hitting 100% by 2026, or just shy of 100%, I should say. Yeah, we're on track for our longer-term goal on that one as well.
That's great. Thank you again. Congrats to all of you. Thank you.
Thanks, John. Cheers.
Thank you. As a reminder, if you would like to ask a question, please press star followed by 1 on your telephone keypad. Our next question goes to Giles Thorne of Jefferies. Giles, please go ahead. Your line is open.
Thank you. It was a question for Manjit. Picking up on the commentary around reaching the top end of your leverage channel this year and then deleveraging, if everything goes to plan, by a further 0.5 times every year thereafter. I'll be interested to get an update on what condition-- under what conditions exactly, Manjit, you would consider initiating some kind of shareholder remuneration, and indeed, which would be your preference out of buybacks and dividends? Thanks.
Hi, Giles. Thanks for the question. Yeah, look, I think we still want to be getting towards the, the middle end of the range, at least, in terms of the leverage, but buybacks at the current share price does actually make a lot of sense. We're certainly kind of reviewing that, that option. We think it's highly undervalued, so we will be kinda monitoring that, over the, you know, the, the short-term period. Yes, absolutely, it's our desire to pay a dividend in the short to medium term as well. As long as we continue to delever, getting within our desired range, preferably towards the middle of that, at least, then we would absolutely start to, to look at some kind of shareholder disbursement, if not a little bit sooner.
Great. Thanks.
Thank you. The next question go to Rohit Modi of Citi. Rohit, please go ahead. Your line is open.
Thanks for the opportunity. Some of them are already answered, a couple of follow-ups, actually. Firstly, in Tanzania, when you talk about, you know, you have to let go one of the operators from your network. Definitely, is this the part of your already part of baked into your guidance earlier when you announced the guidance, you know, early in the year, or this is kind of a one-off, so, you know, your tenancy growth in the H1 is actually much higher than what you were expecting in the first, you know, at the start of the year? Secondly, on return on capital employed, you mentioned 10.5% ROIC.
If possible, can you give any color on what is the ROIC on your mature markets like Tanzania and DRC, what is your ROIC in the new markets like Oman and Madagascar? That would be really helpful. Thirdly, on the leverage side, you know, and also the shareholder remuneration, just trying to understand now the priority will be M&A or shareholder remuneration going forward. Is there a change in the view there? Thank you.
Hey, hey, Rohit. Thanks very much for the question. First one, the answer is yes.
Yes, so that's, that's, that's sort of within the guidance, and, you know, obviously, the net tenancy adds so far this year of around 1,400, obviously, obviously reflect that already. So that's, that's all there and accounted for. Regarding the ROIC, yeah, so if you look at page seven in our presentation, the chart on the left reflects the established markets of Tanzania, DRC, Congo, Ghana, and South Africa. Tanzania and DRC are by far the largest out of those five markets, so the 15.5% ROIC that you see there for H1, is largely reflected of Tanzania and DRC. Then on the right-hand side, you see the blended ROIC for the new markets.
Now we don't split that up by market, but, I think that gives, gives a good sense of, of kind of where we're starting from. you know, obviously, as we move forward and add co-locations and tenancies, they should be, they should be ticking up as well. On page eight, we show the CAGR, the EBITDA CAGR so far of the four new markets, all of which are, are very strong. Senegal, 14% CAGR, Madagascar, 16% CAGR, Malawi, probably a little bit of an outlier at 38% CAGR, and then Oman at 15% CAGR. That's, that's, you know, that I, I would say, very strong start in all four, and that will obviously start to be reflected in the ROIC as we, as we move forward.
Sorry, your third question. Sorry, can you just repeat that, please?
Sorry, third question, was on now the priority will be leverage or shareholder return. As you mentioned, you're also considering shareholder return in some time. Just trying to understand what you will consider, like, how many years is shareholder return?
Yeah, no, absolutely. Well, look, as, as Manjit mentioned previously, you know, as we move forward on this trend, clearly, you know, reasonably soon, there starts to be surplus cash in the business. Now, it will always come down to decision at the time, but for sure, getting to be a dividend payer, you know, and or doing, doing a share buyback, is clearly where the business is heading. You know, we'll continue to monitor that as we move forward, both looking at external opportunities as well, and weighing that up.
Certainly becoming a dividend payer is, is where we want to get to, and you know, on, on this trend, you know, we, we, we get there, you know, reasonably soon in the short to medium term.
Thank you, sorry about missing that slide. Thank you so much.
Thank you. Thanks, Rohit.
Thank you. As a reminder, if you would like to ask a question, please press star followed by one on your telephone keypad. We'll pause for just a moment. Our next question goes to Stella Cridge of Barclays. Stella, please go ahead. Your line is open.
Hi there. Morning, everyone. Many thanks for the update as well. I just wanted to follow up on those prior questions regarding the intentions to look at shareholder returns. Yeah, I'm just wondering, when you're looking at the bond market or borrowing rates at the moment, you know, how will you balance, say, accumulating some cash ahead of the maturity in 2025, versus the other potential options that you, you mentioned just there? That would be great. Thanks.
Thanks, Stella. Manjit, do you want to take that one?
Yeah, absolutely. Hi, Stella. I hope you're well. Look, we will have to look at the, at the balance at the time. I mean, clearly, it's all dependent on what rate we can get for a potential refinancing of the bond. As we get closer to that decision point, we'll have to review it at that time. All things being equal, we are now getting into a point where we'll have an inflection point where we're really starting to generate good capital, and we'll be able to, in our opinion, be able to do both, potential paydowns, but also look at actually distributing capital to shareholders. We should be able to do a bit of both, in short. Again, it all comes down to the decision point at the time.
It also comes down to what opportunities are available, for the company in terms of organic and M&A growth as well. We have to look at it on a case-by-case basis. From what we can see today, we think there will be, the potential to do, both deleveraging and also, some form of shareholder disbursement, in the short to medium term.
That's great, and many thanks for, for those comments. I mean, in terms of the work that you've perhaps done since the last quarter, you know, do you get a sense at the moment that there might be, you know, potentially more attractive options in the loan market, you know, at, say, either wholeco, you know, potential wholeco level or versus the bond market? Just wondered, you know, where, where that's kind of heading in terms of cost of funding as well?
Yeah, it's a good, it's a good question. We continue to engage with both bond investors, convertible investors, and also the loan market. I think that there are certainly opportunities in all three of those, actually. The loan market certainly does offer up a few opportunities that we are exploring at the moment. Yes, in short, there, there does seem to be some potential opportunities in that space. Again, we do also really like the high-yield bonds. We have a good relationship with our high-yield investors, we are keeping a close track of that, too. I guess the good point here is that we're under no rush to do something. If something comes about, and if our work continues and provides us with a good option, then we, we may look to pursue that.
I think the positive thing that we've done over the last few years is open up a few of these different streams to ourselves. We do have good relationship banks, and which is expanding. We have a, you know, a well-known bonds universe and now convertible universe. It means that we've got a few different strands that we can pull out.
That's great. Many thanks for those extra comments as well.
Thank you.
Thank you. Our next question goes to Lino Schutz of P Squared Asset Management. Lino, please go ahead. Your line is open.
Hey, thank you very much for, for the question. Actually, mine is just a quick follow-up from, from the last one, on, on funding. Do you, do you have kind of a sense on, on the timeline when you would kind of look at taking care of the bond in terms of refinancing? Thank you.
Yeah, I'll pick this one up. The bond is due in December 2025. We'd want to, at, at the latest, like to deal with that before it becomes current, so end of next year. Realistically, we're kind of actively monitoring it at the moment now. Any time between, I guess, effectively now, end of year, early next year, all the way up until the end of next year. I think we've still got a good period of time before we feel as though we have to do something. This is more around just being strategic, pre-monitoring at the moment.
Perfect. Thank you.
Thank you.
Thank you. We have no further questions, and I'll hand back to Tom for any closing comments.
That's great. Well, look, thank you very much, everyone, for your time today. Thanks very much for the questions. As always, please feel free to contact us for any follow-ups. We're always available. Thanks, everyone. We'll be talking to you at our Q3 and potentially seeing you on our roadshows in the next couple of weeks as well. Look, look forward to that. Take care, everyone, and stay well. Thank you.