Trading Update

Apr 27, 2021

Earnings release

Good morning, ladies and gentlemen, and welcome to this IWG Plc Q1 2021 Trading Update. Can I just remind you that this call is being recorded? IW. I'm now delighted hand over to Mark Dixon, Chief Executive Officer. Please begin your presentation. Thank you, operator, and welcome everybody to today's call IW and our Q1 trading update. I'm joined on the call today by Glyn Hughes, the group's Chief Financial Officer, and we're going to take questions IW. As expected, Q1 was a very tough quarter as IWG as the impact of the pandemic continued. So we have our toughest quarter comping against what was our best ever start IW. So this clearly is reflected in the results announced today. In constant currency IWG terms. Open revenue was down 16%, and that compared to a net 18% increase in Q1 2020. However, as the quarter IW. We saw some positive signs start to emerge, most notably in occupancy. So after IWG. IW. In March, we experienced the first positive month on month improvement, IW. And this trend has continued into April and been somewhat stronger. We believe we've reached an inflection point IW. And this Q1 is the nadir of our performance. With the improvement in occupancy, we're also IW. We're seeing service revenue slowly returning, and we're starting to see some modest positive movement on price. But I stress these IW. These improvements to KPIs will evolve gradually at the beginning as many markets are still facing restrictions. We have seen evidence IW. We are reminded IW. By almost daily media coverage of the positive trends driving demand for our flexible work products, IW. And there's an increasing demand for hybrid working overall. With our network covering 11 IW-twenty nine towns and cities globally, which no other operator IW. We have a quite unique proposition, and this is reflected in the unprecedented demand for enterprise membership deals. IW. In Q1 alone, we signed 54 deals giving enterprise customers access to our network, and there are many IW. So it's early days, but we are encouraged by the early development of these deals and the usage of our products and IW. On network development, we added 43 locations IW. 10 of the new locations came with the acquisition of the number 2 operator in Italy, which IW. Strengthens our position in an attractive market. It's always been a very good market for the company. And particularly pleasing is that IW. Over 50% of the organic new locations that we opened were added via capital light deals. So it's IW. Very good trend, which we hope to continue. We've continued to make great progress on franchising despite the pandemic. In Q1, we added 7 IW. New agreements spanning all four regions, including our first two agreements in the U. S. These agreements IW. Further, 32 committed locations to the network. In total, we have 645 committed locations. We have 50 IW. 33 franchise agreements, 53 separate franchise partners and 367 of these committed locations have yet to open. IW. This provides a strong underpinning for future growth of our network in the future. The IWG. Same trends that are driving demand for our products and services have significantly increased the interest in partnering with IWG, and we have a very strong pipeline of potential IW's property and franchise partners that will fuel our growth into the future. As we've IW. Briefly reported, we have resumed discussions on a number of larger master franchise agreements, several of which are in the final stages of the IW-sixteen basis net debt at the end of March was $288,000,000 and we had $809,000,000 headwind. The net debt position is IWG improvement on the €351,000,000 position. Finally, a word on cost savings. It's only the first quarter, IW. We're tracking well in respect of achieving the annualized cost savings we previously announced and much more to IW. The world of work has been permanently changed by the pandemic. The overall geography of work has IW. And greater flexibility is demanded by enterprises and by workers. And this has created a dynamic and very attractive IWG market backdrop for us to grow into in the years to come. Although our business was clearly IW. We were resilient throughout, and we are now starting to see some healthy, albeit gradual improvements IW. These early signs of improvement continue to take root in many parts of our business. Those areas first IW. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Good morning, IW. S. As we said in the statement is also showing signs of improvements with some markets like Florida and Texas IW. We're again seeing healthy growth. Recovery has been slower in geographies where restrictions have been prolonged. We have a IW. A healthy pipeline of potential franchise partners and JV partners for management contracts, etcetera, and franchise agreements, as I said earlier, and discussions on several IW. The franchise deals have restarted, and I hope that we can report a continuing stream of positive developments in the coming quarters. IW. Overall, we look forward with cautious optimism to a future where hybrid working becomes the norm and we lead IW. And I'll hand back to the operator to open for questions. Thank you. IRR2 on your telephone IW point you wish to retract your question. There will now be a brief pause while questions are being registered. IW. Lovely. Our first question is from Andy Grobler of Credit Suisse. Andy, your line is open. Please go Head. Good morning, Mark. Can I just ask a couple to start with? IW. You talked about the enterprise deals, the 54 you signed during the period. Can you give us some idea of the IW. Kind of size and scale of those some of those deals and what impact you would expect to have on the P and L through this year and maybe into next year? IW. And secondly, difficult question, I guess, but in the longer term, where would you like to think IW. It's clearly had a tough time through 2020 and the beginning of this year. What is the normalized level IW. Thanks, Andy. First of all, and gradually the answer IW. So both these questions, I think, are intertwined. So the size of the deals and the impacts, overall 54 deals, IW. It's around 700,000 members signed up. A lot of those came at the towards the IW. And we've also had more sign ups as we've gone into the second quarter. IWC. So impact comes gradually because it takes time for us to onboard the members themselves. IW. When the company signed up, it takes time to get individuals using, but we can see steady improvements week to week IW. So just looking at, I talked about this earlier on in the year, IW. We are watching it very carefully, mainly because we have our concern is that we won't have enough space. So even though it seems IW. Somewhat far fetched in the mode where we are today. But when occupancy does come back, that is longer term occupancy, we want to make sure IW. We have enough space to continue to service these customers. Overall, look, this short term use, which is IW. Drop in use by members was under 1% of our revenues before and therefore under 1 IW. In the future, this could become quite easily become 5% IW. And so, again, an additional 5% of high quality revenue IW. Makes a lot of difference. If we then turn to what levels of occupancy we may achieve, we don't want to give guidance IW. But I can give you a background of what we're thinking. We can see in countries where IW. We're through the pandemic and they're getting back to some kind of normality, the business coming back to its previous levels of occupancy or better. IW. Realistically, when we think about it, we had a business pre the pandemic that IW. We experienced the strongest quarter in our history, Q1 of 2020. IW. We should be able to build on that. And the demand can only be more IW. And it's a point again to Q1, more than 50% was done on capital light deals. So, by the franchise IW. We want to do more of that to ensure that we have enough space, which we think will be our problem in the future. Therefore, IW. We are expecting to come back to healthy levels of occupancy. It will take time, but healthy levels of IW. And a recovering price as we go through the year. And we've said, we expect to get back by probably mid-twenty IW2 to sort of full power, if you like, and that with everything recovering. But you would expect that the IW. The average occupation level should be higher because you have this new layer of business through large numbers of hybrid workers IW. In the 85% or so, is that an option or IW. A possibility for you guys in certain locations. Yes. IW. It's definitely in certain locations, we'd expect to be 100% occupied. And in some locations, we already are. IW. Jane, occupancy is an average, Andy. So it's getting all locations up. And IW. I would expect that occupancy levels should recover to the same level and beyond. IW. But yes, 85% should be possible. It's much easier to get higher levels of occupancy when you IW. A larger spot market that is short people dropping in and booking over the app. That's a very effective way IW. To sort of mop up additional availability. Great. Thank you very much, Mark. IW. Thank you, Andy. Lovely. Thank you. We'll now take a question from Andrew Shepherd Barron at Peel Hunt. Andrew, your line is open, so Please go ahead. Great. Thank you very much, and good morning, Mark. Two questions from me, if I may, just to keep the ball rolling. IW. One is simple question. Can you tell us whether in Q1, you were whether you were IW. Was EBITDA negative or positive, which would be a sort of useful guide to know? And the second for me is on the master franchise IW. Can you just talk a little bit more about it? Is it and do any of this the potential discussions, are IW. How do they square between brand and territory and sort of potential size or location? IW. Anything you could say would be useful. Thanks. So EBITDA, 1st quarter, IW. In terms of master franchise agreements, there's a number of them that have restarted, but they are IW. And they are spread. And that's parts of thinking about it. With the IW. The exception of the U. K. Sort of discussions going on in each of the 4 regions for some small and some IW- medium sized transactions. But what's happening is people there's a lot of interest now in what IW. As I said in my statement, the IW. People understand, people from the property industry, business people in general understand that this is going to be a major part IW. And so they want to get involved with what they see as being still an early stage. IW. There is going to be a fundamental change in the way companies are working. IW. You will see many commentators that say it's all going to go back to the way it was. It is not. And IW. Everything I know in speaking to senior people in many, many companies, IW. All of them universally are adopting hybrid work. It's just a question of how many people they're IW. And how long it takes them to do it. But there were very few companies that are not contemplating it for some parts of the workforce. IW. So with that interest, this is we've got the leading platform. We have technology, whatever anyone else IW. Our technology works and that's, as I said in the last call, that is why these large IW. The biggest one we've done, as you know, NTT, we could put 300,000 IW. People sign them up onto the system. All of these people get a personalized app. And then we've got the biggest IWG network in many, many cities. So it's much more useful. And what larger companies don't want is to be dealing with a lot IW. Players and have lots of suppliers. They want a platform approach to things, and that is what we have. IW. And so other people can see that as well and want to invest with us to help grow the network. And that is what IW. The next few years is going to be about partnering many, many more people to grow this platform as quickly as possible IW. Because you can only harvest the investment in the technology through having places, enough places and IW. Andrew, back to you. IW. I suppose just on the MFAs again, thinking about whether or not any of them could be by brand rather than by geography. IW. Yes, because people are interested. Look, the whole the brands work together. So they're picking off different parts of IW. The market that go from budget to top of the range, 5 star to say 3 star IW2 star. And you need to have all of those brands in order to hit the different price points and hit IW. So in the end, this is all about the effective conversion of inquiries. Inquiries are IW. You need variety to convert more, and those brands do exactly that. And so people do want IWG. It's a great addition for them. So a lot of our existing partners will also be opening up wing clubs. IW. Because it's a great addition to the it picks off another part of the market, which is a very attractive part, IW. Our IW. Our next question is from the line of Steve Wolf at Numis Securities. Steve, your line is open. Please go ahead. Thanks. Good morning, Mark. Good morning, all. Just IW. Just a follow on from the previous question regarding the openings of new locations. How do you feel now about what you've opened IW. And then in terms of the closures IW. Against that, are we still looking at some of the older parts of the estate that are under slightly more IW. There's an opportunity to put new brands close to those older locations. And then secondly, in terms IW. There is still a lot to go through on the landlord side of things. Thanks. Thanks, Steve. IW. I think just dealing with the growth, IW. It's not an easy answer. Some of the older sensors actually are the ones that have performed the best throughout the crisis, interestingly enough. IW. And the in terms of upgrading the network, IW. We have guided to spending some CapEx this year. That is largely for IW. Reinvesting in some of the older locations that happened to be in very good locations, but IW. That is the ones that we're going to keep. We've got many of these better deals to continue and we then IW. I think the are there going to be additional brands? Possibly. But we're certainly getting IW. A lot of additional centers, we continue to pick up from various competitors, WeWork IW. And many others, sort of takeovers that complement the geography the whole time. IW. So overall, we expect to have the closures are almost IW. It's finished. There's a few more left where we're haggling about whether we do or whether we don't, but there's not that many left now. IW. And then it will be you'll start to see net growth in the remaining as we come through into IW. We've got some exciting stuff going on that should get us we're looking to get a quite a good growth IW. Subject to us being able to grow in a capital light way IW as we go through the balance of the year. In terms of the savings, just stepping to the second The savings are largely there. We're just finishing things off. Again, it's IW. The legals are being finished off, but we've got a clear line of sight on to where we're going to get to. IW. And the next 6 weeks or so will be about just bringing everything hopefully to a close. IW. And then we and as I outlined in my comments earlier, We're absolutely in line with the savings that we put forward. IW. Our next question is from Michael Donnelly at Investec. Michael, your line is open, so please go ahead. IW. Two brief ones for me. First of all, can you tell us how much you delivered in terms of service revenue in Q1? And secondly, IW. Just give us some economics on how home to work is tracking so far. Thanks. IW. Okay. Services, look, services, as we've mentioned at IW. The year end has about halved, and that's a lot of high quality margin revenue, about halved. It's IW. It's gradually coming back, as I said earlier. So we're starting to see more people having meetings, and we're starting to see more people drinking IW Coffee. But it's going to be a gradual it will come back with occupancy. So IW. We're expecting gradual improvements as we go through the balance of the year. What you also heard me say in my IW. Statement was that we have seen faster springbacks in some markets without going into where they are because it's IW. Very early days, but we've seen much quicker pickups in some markets than we had expected or that we were seeing on IW. So there is some evidence of when you get through to the upside IW. The crisis when things do settle down that things could come back faster than we expect. We'd be in no way want to say that, that IW will be universal or give any other guidance and the guidance we're giving we have a week on which is back IW. In terms of home to work, this is an IW- It's experimental products. We're pleased with its progress, but it's not it is a means IW-two. We're only operating it in 2 countries, and it is a means IW. It's an experiment really to see if we can gain new members through this method. So this again supplements IW. The enterprise deals we're doing, this is providing a home service. But IW. It's very small numbers, Michael, so nothing that will move the bar and small amounts of revenue. Good membership numbers, but small amounts of revenue so far. IW. It will take some time to build that up, but we will continue with it. And we think it's a service IW. Margin is very small, but it doesn't it gets you more members that will drop in. Every home worker will be someone that will drop in, use an office from time IW. That's clear. Thank you. IW. Thank you. A question now from James Rember at Barclays. James, your line is open. Please go ahead. Hi, good morning. Yes. IW. Just on the franchising business to start. Currently, the sub franchising agreements seem to be on average for, IW. Should we think of this business being about a large number of partners each for a few centers? Or is there, I guess, a scope to IW. And I guess as a follow-up, would it be operationally commercially more attractive IW. To do that, are you supporting a smaller number of large partners as opposed to a large number of small partners? And then just on the membership agreements. IW. In terms of the uptake, can you talk about mix there, I. E, what share revenues, meeting rooms versus kind of office being booked versus co working respectively? IW. Okay. So first of all, Yes, interesting question on the franchises. So I've been pleased to see in the past, IW. I'm just trying to think when, but over the past 3 months, we've had, I think, 2 franchisees take IW. Another block of geography. Typically, these deals are 5 centers or 10. I IW. I think we've done one for about 20. That's the biggest one so far. But someone that has taken 5 has taken another 5. IW. I'm just encouraged by that, and I think there's another one that took the 5 plus of 5. So that's a sign that IW. They're comfortable with the returns they're making. They want to invest more. Overall, the biggest franchise IW. I think we have I have to check on this. Wayne, if you could make a note, but we have got one that we've done in IW-forty. So it really depends on the geography, James, to again and supporting. IW. It's clearly going to depends on geography. Much better to do 40 and IW. But generally, the 5s that we've done are in our existing geographies where we already have support. IW. These larger ones tend to be on the edge of our geographies, and we need to add support in order to get them going. IW. Coming to membership, it's very early days that IW. People aren't having that many meetings, but they are using meeting rooms. Meeting room usage hasn't really picked up. It's IW. It's getting better, but we're not really seeing that coming through as a significant improvement. IW. But again, I would expect that in the future, and we have been adding, even though meeting room usage today is low, We are adding inventory for the second half of the year because we can see signs of it being more IW. What they use is across the board. There's a lot of people taking offices. They're taking we can see them bring people together for collaboration IW. And these rooms all spaced out when they need more space. And then just drop into our lounges and co worker. IW. It sits across the board. Slightly more in revenue terms, slightly more office use Open space use. But it's early stages. I mean, we've had members for a long time. These members IW. It's not a few people from the company, it's the whole company. And that makes it quite a different mix. IW. But we are tracking it as we go through this quarter. That's it. Thank you. IW. Lovely. Thank you. A question now from Daniel Cowan at HSBC. Daniel, your line is open. Please go ahead. Thank you. Good morning, guys. IW. I've got two questions. One is around pricing, please not. You mentioned that in certain areas, you're able IW. Can you talk us a bit about how that's going for you? IW. I guess, how's competition? Is that holding things back? Or is it more to do with where you are in the recovery? Do we get back to pre crisis pricing for centers IW. Can you give us an idea of maybe what percentage of the network or of revenues are currently under discussion, IW. Okay. Let me give you the last one first, Sanjay. So percentage of the network, We can't give you guidance on that. And again, it's early stages even though we're in the final stages on some of these. IW. Good progress, discussions are ongoing. But it's going to again, it's all about funding the IW. It's not about the sale itself. It's finding the right partner that can then expand and make sure we cover that In terms of pricing, now During a crisis like this, what happens is IW. There's a lot of pricing pressure, as you would expect, and the few people that are out there IW. Looking, this pricing pressure, so we've been running in some markets with introductory offers IW. And so it's the introductory offers that we have reined in since February. So during March, during April, IW. Again, statistically, we put the price up in more centers than we put down. So that's again, you can see an inflection point coming through. IW. Our pricing is done automatically, so it's happening real time. And as occupancy start as we start to see conversion, IW. So the pricing strengthens and so on. It's critical, we believe, not to get caught out with fast IW. You don't want to tie in these discounts for too long. And so IW. Which leads me to your second question. Again, will we get back to pre crisis IW. The answer to that is unlikely simply because we dramatically reduced IW. And again, anticipating IW. A world where rents in CBDs may be coming down. And therefore, it would be wrong to expect IW. To get back to the same level of price itself, we would expect to get to IW. The same level of margin and maybe better coming back to Andy's question earlier, maybe even better margin if we get higher levels IW. So in the end, it's price and occupancy that are a play here. So lower cost base, IW. Slightly lower revenues because you have to reflect the market price and the prices we're charging, but IW. A high level of occupancy could help us move the margin up again, not for a while, but hopefully, we can see that IW. What we believe is the demand will keep on opening up, and that's really the critical issue here. IW. The whole market will have difficulty, we believe, in supplying to what will be growing demand as more and more companies look IW. Super. Thanks. Thank IW. Lovely. Thank you. A question now from Berg. Adam, your line is open, so please go ahead. Thank you. Good morning, Mark. I just had one question hoping to ask about net debt IW. So just looking at it, when you strip out the return of the investment from the end of last year, it looks like there was approximately a 3.40 IW. So just kind of hoping to understand if there are any one offs in there or if that's what we should expect IW. The on this, IW. We always have a cash outflow in Q1. It's fair to say it's exacerbated by the fact that we IW. Closing off a lot of deals or have closed them off in Q1. IW. And so part of the leverage that we have is that we are then paying the rent in order to IW. So we get the benefit going forward, but we're paying the rent going backwards. So there's a sort of delayed cash effect IW. In terms of we would not expect that same IW. So we've now going forward, we've got the benefits of cost savings IW. I think again in IW. You've got a number you've got acquisitions, several of those that are also adding to the IW. And quite a bit of growth, even though their capital life is not capital free. So they it does take some working IW. So but IW. That again is the worst point as far as we can see at the moment, that first quarter. IW. We'll now take a question from IWAM Dimble of Stifel. Your line is open. Please go ahead. Good morning, Marc. A couple of questions from me. IW. Firstly, on capital allocation, I think it's €30 odd,000,000 on M and A and property deals in the first half. Is there much more coming down the pipe on that? And How do you see sort of future M and A versus shareholder returns given the cash raise last year? And then secondly, on franchising, IW. Given sort of we will have some more investment from a SPAC and it's targeting a bit more franchising there, do you think IW. Competition for franchises in general. Just interested in your thoughts around that. Thanks. IW. I'm hesitating because I'm writing it down. You haven't shocked me with that question, sir. IW Capital allocation. Look, there is a lot going on and there's a lot of things in play. And this is sort of so it is hard for me to answer that question at the moment. IW. I think we're looking at quite a lot of opportunities and IW. Looking at me cautiously. So we have the capital. IW. We are carefully weighing up this very question about in the end, it's got to meet. It has to have a high quality shareholder return for us IW. What's easy to decide on and go ahead with is the capitalized IW. It's a little more difficult when you are doing M and A, which does require capital. IW. If you look at the deal we did, Sam, in the Q1, what's attractive to us is if IW. We have a good market position. We can buy the number 2. There's the synergies are very attractive. IW. You've got to grit your teeth for the initial period because it's again a tough market. IW. But we know that historically, this is a great market, and it's a market that if you look through, so where would we like to be in 'twenty IW. So it is a challenge for us to work IW. How we allocate capital in Q2 and beyond. And rest assured, we are IW. Considering it very carefully, and we'll hopefully make the right decisions for shareholders. IW. If we then look to the WeWork franchising sort of idea, I mean, first of all, IW. This talk of franchising is they haven't done any franchising yet. The deals that look like franchises have been basically getting out of loss making businesses, but they're not really IW. They're the opposite to that. And essentially, IW. Basically, the WeWork model, if we look at what was reported last year, they lost IW. $3,200,000,000 on $3,200,000,000 of revenue. That's not a business that IW. Franchisees would want to partner with because they're in business to actually make money, not burn it. So IW. I think and the investment overall, yes, the specs investing, but you've got, what are they raising, dollars 1,000,000,000 or IW. That's 6 months cash burn. It's not more than that. So again, we hope their eventual listing does very well, and it's going to IW. It creates a fantastic comp for us. But when you peel everything to IW. The company still got gigantic quarterly cash losses. We wait to see with interest whether they say Q4 IW. We think that's going to be very difficult. But again, we wish them the best. But we don't we're not seeing it at the moment IW in terms of the franchise market. Okay, sir? IW. I just have one sort of IW. Slightly bigger picture question. I'm trying to think how does the discussion with especially on the master franchise level develop vis a vis the membership model growth. Does that change the dynamic of the discussion in the sense of IW. Maybe I've got this totally wrong, but I'm thinking that the older model would have had a more set level of revenue versus now you have a significant potential spot component. IW. And I'm just wondering how you sort of align all those different dynamics? Well, it's IW. It comes back to the question earlier. Basically, the occupancy, I think in IW. Steve's opening question. Steve Walt's opening question. The whole dynamic of the business will change. So you will have your IW. You will have your services, you will have people working from home that we're supporting. And IW. You have a much more significant spot revenue, which is there and sits on top of the occupancy. IW. And so that boosts the return to a franchise partner. And that is IW. Again, it makes it even more attractive to be part of a network because you're just not going to get that spot revenue if you decide IW. Do it yourself or go to the smaller operator. They just cannot provide the coverage. IW. It's a bit like Uber. You could set up your own Uber, but you're just not going to get the same feed you get IW. A leading brand with a leading platform with the demand flowing through. So that is why franchisees and master franchises IW. Want to work with us and participate in sort of investing in growing a particular geography. IW. It's basic business. Return on capital was good before. It's likely to be better going forward because IW. The markets come to us. That's what happened in 2020 and 2021, and it's IW. So it's quite a it's a more attractive environment than pre pandemic. IW. Okay. And then just with regard to the comments on Florida and Texas, what are you actually seeing then? And are you IW. Back up to 19 levels? Or are you still tracking below that? And what is the service income doing in those particular states? IW. So if we look at these states, I mean, I've just picked out those 2 states. IW. I mean, the business picked up in California, a little slower in New York, but California is quite encouraging, but not to the same extent as Texas IW and Florida. Basically, again, the change in geography in the U. S, a lot more people have IW. Excited that they can work from Texas or Florida and are going there and are working. And that's helped in the recovery. So when I'm talking about sort of springbacks, it's IW. We're seeing quite strong recovery in those markets. We just hope then that sort of covers more markets IW. And we start to see that in more places. But if you look at Florida, that was essentially it's IW. More or less business as usual in Florida and in Texas. So as it gets back to that, then things start moving again. IW. But so you get back to business as usual plus you've got a lot of people move from the north IW. Because of basically lower cost of living, lower taxes, better weather, IW. So again, you will see more and more of the geography changing of where people work because of the IW. So, we think that the Southern states in America will continue to IW. IWG. Okay. And the last question, if you don't mind, is just looking at your comment with regard to IW. Realistic to actually see a positive EBIT IW. For this year, I mean consensus seems to be tracking around about €30,000,000 or €1,000,000 Do you think that is realistic on the visibility you've got at the moment, the cost saving phasing? What do you think one should sort of take a more cautious view with that, but then the inflection for 2022? We're not, as we've said many, many times, but it's just it's moving too quickly for us to give any reasonable guidance. IW. So we'd rather not give any guidance apart from we've said that we expect things to get back to sort of IW. So we expect and you can see it in my statement, We're seeing excellent signs. You can see that also in the statement. When things come back, they could come back eye double. That concludes questions on today's call. I would now like to pass the call back to Mark for any closing comments. IW. Thank you all very much for your questions and for joining us this morning. IW. As always, if there's any follow ups required, Glyn, Wade and myself will be available for the rest of the day IW. So thank you all very much and goodbye. Thank you, everybody. You may now disconnect IWQ