Earnings Call: H1 2020

Jul 9, 2020

Earnings release

Hello, and welcome to the Vicinan First Half Trading Update. Throughout the call, all participants will be in listen only mode, Call. Just to remind you, this conference call is being recorded. I'll now hand the floor to Dave Jenkinson, Chief Executive of Fisimin. Please begin your meeting. Good morning, everyone. We'll follow the normal format we've historically done. I'll give a quick opening, picking up 1 or 2 items. We'll then go straight into question and answers, and then I'll jump on to the final summary. So it's just a nice opening is In these difficult times, we believe it's never been more important to be guided by our clear purpose of delivering long term sustainable returns In the best interest of all stakeholders, we're managing the risks to the housing cycle. I am delighted how the company has responded to the challenge of balancing the needs of all stakeholders, while ensuring the safety of our colleagues, customers and suppliers. In particular, I would like to draw your fact to the attention to the fact. 1, the role we've been able to play our part in wider society. And this has been primarily led by not making any use of any form of government support, either the government corona Job retention scheme, not accessing any money under the government COVID finance proposals and importantly and sometimes forgetting, We've paid all our taxes promptly and on time. Secondly, during this period, we support all our staff Through a challenging time by not only paying them full salary, but also paying bonus and pay increases recently. We've also continued to support our local communities. And in the 1st 6 months, we supported a number of charities in donating about 370 Operationally, we have benefited from this approach. Not furloughing our staff Enable us to be much more responsive and agile to the COVID issues. We've been able to get back on-site much earlier. We were able to continue to sell houses during lockdown. We're able to plan for new sites opening and provide all the technical information to support the sites. And we've been able to assess the landmark and progress appropriate opportunities. We believe this has produced a dynamic response to the situation, which puts us in a good position for half 2. Also, we believe this has manifested itself into a strong half one performance in the context of the COVID Challenges. We produced 4,900 completions, revenues of 1,190,000,000 Strong cash generation. And over the last 6 weeks, private reservations have been 30% ahead of this time last year. And then during the 9 week lockdown period, we were able to produce 900 gross reservations. This gives us a great platform for the future. We have an excellent forward sales position and a very strong work position We're 14% more EUs than this came last year, and that was from a position of strength. We have strong outlet numbers firmly established, And we have good product availability to meet the anticipated increased demand as Hub2buy comes to an end. So as we enter half 2, the business in Robust Health, which gives me confidence to deal with any future economic scenarios, which may have come along and produce a strong performance in half 2. If you find it answered, before it's your turn to speak, you can dial 2 to cancel. So once again, that's 1 to ask the question Our first question comes from the line of Gregor Kuclitsch of UBS. Please go ahead. Your line is open. Good morning, Greg. How are you? Hi, Greg. Thanks for taking my questions. So maybe 3, if The first one is just on sort of the volume outlook. I mean, obviously, you're up, but I think in the statement you say your productivity is almost back to normal, Sales was up 30%, your order book is pretty good. So can you give us some feel as to the directionality of volumes in the second half? Do you think it Stabilize or is that too aggressive? Is that kind of too aggressively positive, I guess? Then second question is on the margin. So I think we've had a lot of people Talk about sort of some loss of margin in the first half, and I'm sure you suffered some of that yourself. What I'm more interested is Going forward, is there any reason to think to sort of chip off So the last gross margin that you said, I think, was 33%, 34% in the land bank. So anything we need to think about To kind of deduct from that, obviously, absent assuming prices are stable, of course. And then finally, can you just Maybe give us a view on what you're doing in the land market. So you bought almost no land, I think 800 odd plots in the first half. What's the strategy going forward? Thank you. Okay. I'll deal with questions 13, And then I'll pass the question to Mike. Moving on outlook, obviously, you've seen the moving parts. We entered half 2 With a very strong forward sales position, we've got wood in the ground, which we're really pleased with because that was part of our strategy entering Into the year, we anticipate there'll be increased demand for some to buy come to the end, so we expect to get more build. And we are 14% more EUs in the ground than what we did this time last year, which is a relatively position from Strand, which gives us Confidence that we can produce a decent number for half 2. Obviously, this is still being the context of what economic scenarios come along. We plan for all the economic scenarios. We plan for the upside, stability and on the downside. All things being equal, We don't see another lockdown. We will be disappointed if we didn't see a number similar to what we did in half twenty nineteen. So now all things being equal, I think that's probably reasonable gains to take for now. Well, obviously, that's heavily caveated by what may happen in the future. In terms of the land market, hasn't really changed. We've had all our land people fully employed. None of them were furloughed. So we've been out in the market Please, we'll be actively engaging in opportunities and looking at opportunities. And this isn't the right time to call the bottom of the land market. Now isn't the deals out there which would be compelling enough in any scale to suddenly go out and speculate in a big way. However, as always, We continue to be agile. Every deal is looked at in its own merits. Every deal comes across my desk personally. There is 1 or 2 deals we may be at the pick off. We've taken risk versus reward in the context, but We have a highly strict and disciplined control on the criteria we apply to and we'll continue to use that criteria. At the moment, The number one opportunities meeting that criteria aren't that large, but we'll obviously keep our fingers now ear to the ground and we'll be responsive very quickly if that was the change. Meg, do you want to pick up on margins? Yes. I think, Gregor, as you say, given the lower volume Delivery in the first half, we mentioned in the statement that, therefore, we'd expect some margin depletion because our costs are our costs. As Dave has already said, we've continued to invest in our HR capability. We've not Taking any self help measures in terms of cutting staff or salaries, etcetera, In the view, again, it was part of the strategy that we thought that after careful thought, the activity would bounce back. So obviously, all our teams have been employed through lockdown, as Dave's already outlined, and Has continued to support the increased activity that we've seen and indicated today. So I think the cost of the costs and therefore the fact that the necessary reduction in Volume delivery in the first half because of the COVID constraints and readjust working practices, etcetera, in terms of build for a short period. That will lead to some margin depletion, if you will, sort of lower Overhead recovery efficiency. But as Dave has already indicated, if we get a similar volume outturn to The second half of last year, then we expect that to achieve some normalization as we go through the second half. So So when you put those pieces of the jigsaw together, I think we will see some depletion for the full year. That will be more accentuated in the first half. But in the second half, I think we'll we Our judgment at the moment will be approaching a more normal level of overhead efficiency. In terms of margin, gross margin, there is an interesting dynamic there in terms of Obviously, the site shutdown has lengthened development period. And I think there's 2 aspects to that. There's one which is an impairment issue. Does that additional cost burden on each and every site raise the issue impairment? With our margins, we were very positive that, that is not the case. And then secondly, there's a sort of A loss of productivity issue for the first half, and that's more of a presentational issue. I'm aware that 1 or 2 were thinking of perhaps presenting it in an exceptional way on the face of the income statement. We'll continue to assess that moving forward, and we'll provide a bit more detail on that in August. At this point in time, As I've already said, the costs were the costs. So there's no exceptional costs on costs, additional costs, if you will, particularly, that are material. But I guess in August, we'll be talking a bit more about the efficiency and loss of Productivity and impact on the margin in a bit more detail. So I think we'll put meat on the bones in August on that one. And the great thing for us, Gregor, is if we look at our headline gross margin, Sales revenues have been incredibly robust. In fact, it's take a little bit of anything. So our headline gross margin It's held strong. It's obviously the inefficiencies from not producing the volume in the overhead is not quite as efficient. Before we I mean, we've lost volume and revenue. The cost base is the cost base. I've said that three times now. What as Dave said, we've lost the volume and the revenue. That's the issue for the first half. And we'll see, as I say, as Dave said, see what we can do in the second half To get back to a normal volume run rate. Is that right, Gregor? That makes sense. Thanks a lot. It's helpful. Good luck. Thank you. And our next question comes from the line of Arnold Lehmann of Bank of America. Please go ahead. Your line is open. Thank you very much. Good morning, Dave. Good morning, Mike. Three questions on my side as well, please. Maybe starting with a follow-up on your comments. The surge in private reservations in June was quite encouraging. I Understand that you're taking market share to competitors, and I also assume there was some pent up demand That is coming back. So to which extent do you see that as a short term bounce? And could we see the surge in demand and reservation in the coming months. That's my first question. My second question is, any comment on the storm duty reduction? I mean, first time buyers On your side, probably wouldn't have paid anything anyway. So do you think that that's an incremental support on the demand side for the next 6, 9 months? And lastly, on the dividend, you're hinting that you could declare something in the second half. Is it still technically possible to declare a dividend for 2019? Or would it be part of a kind of interim H1 dividend? Thank you. Okay. Yes, just to pick up on the three points. The first one in terms of private reservations, Obviously, what we've seen has been extremely encouraging. It's fair to say, we've been a little bit surprised on the upside, both The number of reservations we were taking during the 9 week period and during the 6 week period. Personally, I think there's 2 moving parts to this. Obviously, there's the market share element and there's also our quantifiable numbers. I think it's inevitable that our market share will get eroded a little bit, but I think there's opportunity for a bit more demand to come back into the market And sustain these numbers. The truth is we don't really know. And as always, we have options and we plan for 3 scenarios. We have a business model that plans for 1, an upside 2, that stays the same and 3 and a downside. Whichever one plays out, we have a business model prepared for it. What I will say is there's a couple of push factors that do make a difference For half 2, the first one is which you touched on with stamp duty, which I'll come back to. And the second one is Help to Buy coming to an end. As I said previously, we anticipated back as early back as probably the beginning and middle of 2019 that There will be a push for demand. The time to buy came to an end. That's why we wanted to get so much wood in the ground and we continue to build And we've continued to build very aggressively even now to get the numbers up so customers who want to take advantage of how to buy are able to reserve our houses before it comes to an end in March, but more importantly, having practical completion by December. Now we believe we're in a great position to take advantage of that. We believe we know what number of stock properties we can still offer. And we believe none of our customers have been put in a vulnerable position where they may lose it as we sit at the moment. So we believe that could make a difference to demand. The truth is, Gur, we'll have to wait and see what happens with unemployment because I'll make another argument to see why demand wouldn't increase. So yes, we are pleased with what we've seen, but we wait and see and keep an eye on it and we'll respond to whatever comes along. In terms of stamp duty, Your observation is quite right. 50% of our purchase are first time buyers. So in some respects, it may not have quite the same impact. Well, anything that gives confidence to the market and gives short term impetus. And I think what it will do, it will help carry on the momentum of the marketplace, specifically people who are sitting on the fence who are thinking, well, I'm not sure whether to buy or not. It will give them the encouragement to buy. What I don't think it will do is encourage people who are sitting in the house who don't want to move to the subway by. So I think it's a positive, and I think it will provide a bit of momentum and I think it will support the activity which is taking place in the market at the moment. In terms of the divvy, I'll pass on to Meg. Yes. In terms of divvy, obviously, We canceled the surplus capital return that was scheduled for the 2nd April On reassessing business need effectively, that was obviously necessary. But As you can see, the cash position of the business is very strong on the back of the incremental sales that we've taken through these challenging times and managing the cost base as we've indicated. But I think that as we've already said, the decision and judgment that the Board takes around distributions Will be based on the continued performance of the business. Looking at The market in terms of indications of overall activity, Together with obviously a judgment around the macro, that's particularly foggy with obviously The pandemic issues and Brexit, etcetera. So it's quite a complex and Challenging assessment to do that on a continual basis. But I think that as Dave has already said, The strategy that we've had over 10 years now puts the business in a really strong position with a clear focus on the risks of the cycle. And as we've said before, really, the pandemic Accelerated probably it's the start of the end of the current cycle, the recession, the ensuing recession Because technically, we're already in recession, I think. Everybody would probably agree with that. And the Session will see the end of the current cycle and then the new cycle will emerge. And what we need to make sure is that the business Is in a very strong position to take advantage of the reinvestment opportunities that emerge over the next 12 to 24 months probably, if not a little bit further out. So as always, we're going to assess this Continually and make sure the business is in on the front foot in terms of its ability to Reinvest at the right time in the cycle to set up the next period of outperformance With a view on the sustainable returns that Dave pointed to at the top of the meeting. I think the great thing about that is we've got options. If there was a lot of compelling land opportunities suddenly became available, although I don't expect it, and obviously, we'll look to take advantage of that. Obviously, if we've got a lot of cash on the balance sheet, we continue to perform and the market looks robust. And obviously, that will be more favorable for a dividend. What we'd want to try and do is Get a bit more trading on the rub belt and see where we are in the middle of the year and discuss it in a bit more detail when we have a bit more information and it becomes a bit clearer. That's very clear. Thank you very much. Thank you. Thank Thank you. And our next question comes from the line of Rajesh Patki of JPMorgan. Please go ahead. Your line is open. Rajesh. Good morning, Dave. Good morning, Mike. I've got two questions, please. First one is on the fees. For H1, it seemed to be driven in large part by a change in mix between private and affordability. Can you help us understand the completion mix For the first half and would you expect that to normalize in the second half? And the second question is In terms of the delivery profile of the forward order book, can you help us better understand how that differs on private and affordable as well? Thank you. Well, you've done well there. I think they're both my mates, so I'm really thank you. Dave's taking the rest now. Yes. On half one sales, yes, I mean, we've seen And looking at price, the headline movement year on year is flattered, if you will, or accentuated by the fact We've got a lower content of affordable homes being completed in the first half Just under 18% of the mix. Mark, in the 4,900, We've got about 4,000 PD, the rest being So when you split that out, When you look at the PD, the private sales, the price is around 1.3%, 1.4% Up on the previous year, there's a bit of mix in there. As Dave said, a little bit of underlying improvement, But so the usual sort of drivers there. So That relates to the completions. In terms of the forward orders, It's a pretty similar picture. We give the detail in the statement where ASP on private sales is About 1.7% ahead of the previous year. So it's a pretty similar picture in our forward order book. So and the mix, which was your second question Moving forward, we would expect that in the second half, we'd see a greater or more normalized mix. So that may increase. I mean, if you look back at last year, that Probably provides a reasonable guide to the mix that we'd expect for the second half of this year on the basis that Dave's already painted in terms of our ability to deliver that sort of overall volume. Because the delivery of the in the first half has been held back because of the build slowdown, Whereas, obviously, we're now back up and running. So we'd expect a normalization of that delivery, if you will, in the mix. So is that all right, Rajesh? Yes. That's it. Thank you very much. Thank you. Thank you. And our next question comes from the line of Emily Bilduff of Credit Suisse. Please go ahead. Your line is open. Good morning. Good morning. I hope you are. I've got 2 questions, please. So first on just an update on build costs would be great. Are you sort of seeing those often into the second half and sort of what's your expectation there? And then secondly, I appreciate the position is obviously considerably better than it was sort of this time last year. But at the same time, can you look at the sort of strength of sales rate and think kind of we need to see it sort of come off at some point because otherwise we kind of Risk getting into the same situation again where potentially we're selling sort of too far ahead and maybe we face customer service issues again. So Is that potentially a limitation on sales rates at some point? Thanks very much. There's 2 questions there. I'll take the first one And making sure the build position, I want to maybe put you a bit on it as well. But the first one in terms of build costs, as we've said before, most of our materials are fixed for this year. We have done 1 or 2 good deals to give our suppliers certainty in a longer period, which we're pleased with, which are producing a quality improvement. We are up in spec More than cost, so we've took that advantage to get a better product for our customers. And in terms of labor, what we're really pleased with is there's been more labor available. What we haven't done is taken out as opportunity to try and reduce our labor cost base at this stage By reducing unit level, labor reduction prices. But it's really good that we're getting extra labor because it means Get to the build to meet the demand what we're seeing at the moment. However, what we are seeing on new sites where we are tendering that the new the build cost The element of it is coming in very competitive. So if this was to continue at these sort of numbers, then we would see some cost Reduction as we move into 2021, but a lot will depend upon what the market looks like. We have a strong demand out there and everyone's After all the subcontractors, and I imagine it's normal if it carries on at the moment that we are selling relatively better than other people, I suppose, would probably get a bit more advantage of that. So In real terms, there's no real change to build costs at the moment. On the work in progress, I think it's that dynamic in terms of the Interplay between our ability to sell and our ability to build, Emily. And I think that, Yes. The sales rates are positive at this point. But as Dave says, There's a lot of uncertainty out there. Other things could happen to change that rate of sale. And as always, what we do is we review this in each of our Business 31 House Building businesses every week. So we're reviewing our rate of build. We're reviewing our progress on-site and new releases, our sales rates, Our pricing, we do it plot by plot, as you know, every week on every side in every business. So we'll continue to do that, and that will allow us to manage our bill programs In tune with the sales activity that we're seeing And given that we've got ourselves in such a strong position, I think we'll continue as we've always said, we'll continue to build through this period. And as Dave has already said, that's put us in a super strong position to meet demand, has helped to buy runs off without any complications to support our customers in the right way. But it also provides us with a great platform to continue to deliver those build programs. And again, going back to the lockdown period, the fact that our procurement teams And our technical commercial teams were still beavering away in securing materials and Lining up subcontractors for the restart and beyond, the fact that we've got great continuity and strong activity It's very attractive for the supply chain. So we've got great support, and I think We'll benefit from that moving forward. And I think it's important, I think it's a point we'll make to be firmly, but as a business, Customer care is really important to us. And the key moving part in customer care is making sure the product is available to give reliable move in dates And give us paint to finish it to the quality of the customer expects. Now for me, that's been a big moving part in our customer care improvement plan. And what that means is that we do carry a bit more within the ground, but I personally think that's a customer well worth paying. It unwinds very, very quickly. We have a really strong balance sheet and personally carrying a bit more whip to ensure our customers get a product on time and to the quality to what they want is a cost worth paying. And if you take a step back, it's not really WIP that causes a problem for your balance sheet. It's land acquisitions at the long time and making 2 bigger land acquisitions at the long time Because they are with you for a long time and may take a long time to unwind, which is why we're not calling the bottom of the line market at the moment, but I'm more than happy to continue Could you still wait to support our customers? Does that make sense? Yes, absolutely. Thanks guys. It's really useful. Thank you. Our next question comes from the line of Chris Millington of Numis. Please go ahead. Your line is open. Good morning, Dave. Good morning, Mike. Good morning, Chris. Hi, Chris. Hi. A few quick ones for me, please, if I could. Can you just comment on what your outlook is for the site number profile? Just in light of that slightly more cautious land spend Over the last 18 months or so. Second one's just really if there's been any regional variance. I presume Scotland's probably lagged in the numbers because The later opening, but perhaps more on a run rate I'm interested in. And then the final one is just around mortgage availability And down valuations and whether or not you're seeing any change there? Okay. I'll pick up the first two and touch on the first one as well, then I'll let Mike pick it up. In terms of mortgage availability, Down valuations, no, we've not seen a material problem. We've not experienced any real issues of getting mortgages for our customers. We're very aware of what's happening in the market with high loan to value mortgages, but it hasn't really manifested itself as a problem for the company yet. And we're not really seeing any down valuations. In terms of regional variances, now the whole market has been pretty uniform, even Scotland, where we've been able to sell remotely, we're doing well. Obviously, we haven't been able to see them there because we're only just getting back. But in terms of regional variance, the market is very, very strong. In terms of outlook, I think we've benefited in terms of what our people are doing. And we, as Mike said earlier, so our site profile, we believe we're in a decent position for outlets. And we are being careful what we've bought and what we are buying. And our criteria is ensuring that we do have a decent site profile for half two this year and which is already secured and for half one twenty one. Obviously, we've done the work and looked at that, and we feel in a comfortable position. But maybe you want to provide a bit more color? Yes. I think that's a decent summary. I think that, Chris, as you know, it's a dynamic situation insofar as How long do your sites last? It's subject to the rate of sale. We've got a very strong pipeline of sites coming towards us that are Conditional, subject to contract, outstanding conditions of various sorts. We manage those very carefully, as you know, and construct our contracts to purchase in a way that we do maximize our flexibility to manage changing conditions. So as Dave's indicated, we've got a very strong base at the moment. We've got A lot of flexibility and choices in terms of managing the cycle and our commitments, future commitments to buy. And I think Dave has already said, we don't need to do a bad deal because we've got a very strong network at the moment. We've got an excellent high quality land bank That puts us in a great position as a product of our the work that's been done over the last 10 years or so. So we're fortunate in that regard, but it's about managing the cycle and making sure that we've got this flexibility To make sure that we when we do press the button to acquire a site, we've got the proper risk adjusted returns, as Dave has already said. And at this point, as you'd expect us to say, we'd want a higher level of return For commitment, because obviously, there's a lot of uncertainty, particularly on price. That's the elephant in the room, I guess. In the pricing, yes, continues to be firm in our experience. But who knows? As Dave already said, we don't know what's around the corner. So we do need to be quite cautious, But we'll stick to our playbook. And our criteria obviously looks to mitigate that risk you described, Chris, because the point well made. However, without causing us a long term problem, it's not hard to work out what that solution is. But that's in our criteria, and that's what some of the states we're looking at. So We're very aware of that issue. Don't need to protect our numbers and where the strategy and the criteria are due to that. Got you. All right, Chris. Yes. Just to push you a little bit further, if we weren't seeing the same rate normalized back to previous levels, And are your outlooks likely to stay flat over the foreseeable future? Yes, I think so. I mean, we've got a Through the first half of this year, we have average outlets of around 3.40 as a number. And I think that as Dave has already said, we've got good visibility in terms of the near to next 12, 18 months, which gives us a lot of flexibility. So we'd expect we ended that period about 3.35, So it may tickle back a little bit. But again, it's dependent on sales rates. It's in our gifting effect. It depends which contracts we want to buy. We've given ourselves that optionality. And it is important to point out as well, in the event that the market was much stronger and our company network It's the largest in the industry. We have 31 operating companies across the whole of the company. That gives us the opportunity in a scenario where they're using upside Take more advantage of it than anybody else and increase our volume on the upside. Obviously, if the market remains stable, Then we'll pick and choose which bits of land we want to buy according to our criteria. And if the market drops, then we'll be a lot more selective again which contracts we want to buy. It's really in our gift, and that's where we've positioned the business to give ourselves the options. And we're not going to press the button until it becomes clearer where we look The order may not be until January becomes clearer. The key is to give yourself options and never back yourself in a corner where you have to do something that you don't want to do. Absolutely, Claire. Thanks so much for that. Cheers, Chris. Thank you. Our next question comes from the line of Will Jones at Redburn. Please go ahead. Your line is open. Good morning, guys. Good morning, Will. 3 from me, please, if I could. The first was just, I guess, around Help to Buy. You've mentioned it a few times on the call. Just wondering, I guess, in that last 6 week period, had the percentage of your reservations from Help to Buy changed dramatically, given the Intending changes, I guess, at the end of the year. And with that in mind, obviously, we heard about Stampede yesterday, but we didn't hear anything specifically on Help to Buy. Is there any message kind of Circulating around the industry from government around any adjustment or not to that suggested change next year in terms of changes being able to use the scheme. You sound quite categoric in your thinking and planning, but it will definitely change at the start of next year. So any additional thoughts there would be great. Second one was around net cash. I guess, pretty similar half year position to the full year position when we look back, No dividend in the first half of free cash, basically pretty neutral for the 6 month period, which is a good outcome for you in the circumstances. But I guess when When we think in the second half, higher volume coming through, it doesn't sound like you're going to be out there spending a huge amount on land. So would it be fair to say, all else equal on the dividends, But actually, that cash balance should rise fairly sharply between here December. And then the last one maybe was just since we obviously last spoke to you formally, we have had the announcement of Dave's successor, the next Chief Executive coming in from the end of the year. Is there anything additional you can help us with on Learning about that sort of process to hand over any engagement that may have happened between yourselves and Dean, I guess, beyond what I assume is the Chairman led process. Any flavor there would be fantastic. Thanks. Well, I'll deal with the first two. I'll deal with the I'll open the room once very quickly in terms of my successor. We haven't got a firm date for when Dean is going to start yet. I've I've made myself available to the business consistently, which is why I gave early notice back in February. I've made myself available to the business as long as the need. The announcement was quite clear that's potentially to the end of the year. If something changes or not, we'll keep you informed. Our team becomes available earlier. I haven't probably got anything else to add on that. In terms of HubSpot, I think maybe I haven't been clear Because I've never categorically said that I think that the government will change Help to Buy. I've been slightly more reticent and we've never advocated at all ever I hope the buy should be extended because we believe we have a bit of self help in this. And as I said, we anticipated that this was going to happen as we came to the end with customers, which is why we put so much whip in the ground at the start of the year, even earlier than that, to make sure we had the whip ready for this anticipated increase in demand. And we're not aware of any customers who've got a material problem who will not be able to move in and hit the completion hit a CML date for December With the completion by March. So I'm not advocating at all Help to Buy extension. I think the government is doing exactly the right thing. Wait and see what happens in the momentum in the market. Wait and see what happens come the autumn period. If there's a bit of if it needs a bit of stimulus, they still got that In the meantime, we'll continue to build. We'll continue to make sure our customers are not put in a vulnerable position. We'll make sure as many houses are complete as possible To make sure that the Help to Buy can be used by our customers. In the 6 week period, it's tickled up a little bit, but not materially. There's a bit more there. But The market has been strong across the board. As you can see in the numbers, a 30% increase in sales is really pleasantly surprising on the upside. So In terms of the buying, that's clear. In terms of net cash, I think it's a really good observation. I think there's a point where I made and a good summary of the CVS. And I might add a bit color. Yes. I think, Will, your expectation is correct. If we do get a similar position to the second half of last year, well, you can see the numbers Because they've been reported to the second half of last year. So that gives you a good template to think about With the additional dynamic around the land side, we're not completely out of the market, as David has already mentioned, In terms of the lot of potential to do 1 or 2 deals, so I don't think you should assume no unspend. I think that would be wrong. But I think it's going to be highly selective on a proper risk adjusted return basis according to our criteria. But I think your observation is right in that You would see a strengthening cash hold position in through to the end of the year. Indeed, I think well, Dave and I think that July August Nearer term, it's going to be quite strong as well because obviously, we have suffered delay in terms of legally completing A certain amount of volume, which as of necessity has been tipped into July August. So I think that we're going to see a different cash profile. If you're to map it week by week, you're going to see a bit more of a bulge in summer in terms of cash return back into the business because of that delayed completion. And given that we've got a strong Based at €830,000,000 at June, that puts us in a The cash book is going to be, if you will, in a stronger position earlier through the second half Because of that slight change to the normal profile. Am I answering your question there, Will? Absolutely. Yes. No, that's great. Thank you. And our next question comes from the line of Aynsley Lammon of Canaccord, please go ahead. Your line is open. Great. Thank you. Just a couple of questions. First of all, on the reservation, about 30% last I wanted to just give a bit more color. Has that been progressively increasing and improving week by week? So obviously, as it has last week, Would that be significantly higher than the 30%. Have you been doing anything in terms of change of incentives, more profit exchange or anything to boost that number? And then second question, just on the cancellation rates, you say been in line with historical trends. Just interested in a bit of color there. Again, what's the pattern been like over, I guess since the end of March, has it been consistently in line or has it kind of improved recently having despite the bit post the lockdown? Thanks. Well, that's great, Andy, because I think that's both for Mike and Sur. Thanks for that. Do you want to get there, Mike? Yes. No problem. I think in terms of last 6 weeks' reservations And that outperformance, well, last year's week by week performance, I mean, it goes up and down, as you know. So I would say that it's consistently outperformed, albeit from the lockdown period, which for us from week 12 to week 20, COVID first hit the market week 12, and you can see that in the HBS stats that we get. And we reopened our sales offices on Friday 15th May, which was the back end of week 20. So that sort of marked the end of the closure of site sales presence. So the 6 weeks from week 21 to week 26, we've seen a progressively increasing and improving trend In terms of sales performance, and I think we covered that earlier on and on another question in terms of, well, pent up demand, We've already just touched on Help to Buy content, customers using Help to Buy, etcetera. And I think there is a market Share gain in there as well. I think we've been a bit more agile perhaps than some. Our sales teams have been very active in following up leads That have been generated through our Homefinder websites, through lockdown and beyond. And we've been really pleased With the level of engagement with customer through our sales teams and customer care teams for that matter, which has generated this bit of outperformance. So but we'd expect our market share to get competed away as the whole industry starts gearing up again. But I guess, every sale that we attract around the edges makes us a bit stronger. So we are really pleased with that. In terms of accounts, we've not had to use PX particularly or incentives particularly harder. Pricing remains firm. If not, as already Dave's mentioned, tickle up a little bit. So that landscape still seems Pretty resilient. In terms of cancellations, obviously, in lockdown where we did the 1600 gross, The net number was around about 1,000 net. So I think cans there would be averaging somewhere between So the 35% to 38%, 39%, so a lot higher than normal, but on low numbers, yes. But more recently, through that 6 week period, you're nearer the 20% mark. And the same 6 weeks Last year, you'd have been at probably 70% -ish, so very similar to where we were last year, really. So that's encouraging as well in terms of attrition, if you will, In terms of customers maybe changing mind, but the level of gross reservations means that and that's the important thing And the level of gross interest that we're gaining in the market, as Dave said, is really pleasing. And that continues. Last week, again, not within this period, was again very encouraging, a continuation of these sorts of figures. Yes. As you know, we play what we see in front of us, and we continue to be encouraged by it. And just to be clear on that cancellation point during the lockdown period, the quantum was in line with historic trends. It was just because there was less reservations at the percentage window. That's right. We didn't see any real uptick in numbers. If there was less growth, which could increase the percentage. Because as you know that, Aynsley, the cancellations come from it's not that week's Reservations, obviously, it's previous week's reservations. So I mean, you get a trend on it. It's an indicator. But it's not I mean, that's why we mentioned gross reservations in the lockdown period because that's what matters really, the amounts of gross interest That you're attracting by offering new homes for sale into the private market, So which we're pleased with and we continue the website traffic is very elevated, appointment requests and Brochure requests and e mail contact and telephone contact, etcetera, we're really pleased with it. And that's testament to Not only the positioning of the business in terms of product and the sites that we have on offer, but also The active the hard work of the sales teams in communicating properly with customers And chasing down the leads, if you will. That's great. Over at Cleon, promising. Thanks very much. Thank you, Izzy. Thanks. Thank you. Our next question comes from the line of Charlie Campbell at Liberum. Please go ahead. Your line is open. Yes. Just one for me really. Just on the sort of build efficiency, You're saying you're back to kind of normal levels. Clearly, that's kind of better than I think anyone else is doing at the moment. So just wondering how you're achieving that. Is that just by using kind of longer site opening times or weekends or Yes, or just you started earlier. Just wondering if I can understand kind of how you're achieving that when others are struggling to get there? I think there's 2 main moving parts. The first one is if you look at the shape of sites and what we're building and how we build, unlike our peers, we haven't got a lot of City center developments, we're doing build high density schemes where there's large amounts of people on top of each other where it's much more difficult to respect social distancing. So I think the shape and format of our developments, which are much more traditional, it's much easier to get people to work using their own transport, etcetera. It's much easier. The second moving part is labor has become much more available. So all our build programs effectively had time built in from labor. And what's happened is labor has become more available. So the time we had in our build programs hadn't been as necessary The void period is what we allowed compared to what we needed. So the 2 main factors, 1 layer has become more available. So we're going to have 2 people working on 2 plots rather than working on 1 plot and have to drop from plot to plot. And secondly, the nature and form of our developments is much easier To respect the social distancing and in fact, they go further than that. We're not pleased with our method statements and what we've done and all the work we've done during the lockdown period But therefore, we don't believe there's any need to relax the 2 meter rule. We will continue to buy back that 2 meter rule for the foreseeable future. So I think that probably answers the question unless you want any more on that, Charlie. No, that's very clear. And yes, congratulations. That's a great effort. Thank you. Thanks, Charlie. Thanks, Charlie. Thank you. Our next question comes from the line of Glynis Johnson at Jefferies. Please go ahead. Your line is open. Good morning, Dennis. Good morning. I'm going to take 4 questions, if I may. And with Farfetch and Mick, you put that in the case. You're only 4, all right, Lynette? And all for me. Just want to take this into the next era. In terms of the mix, you talked about the mix in terms of 8.5 versus private. But if we are seeing this push to get Help to Buy And deals over the line ahead of the change in regional cap. Is there also going to be a mix impact in terms of the private, I. E. Should we expect a higher private selling price Second half? The second one, just in terms of the 5 star rating that you've been at since the beginning of the year. I just wonder if you can give us a bit of Sorry on that. Are you well into that 5 star? Is there still upwards momentum? Anything that can provide comfort and sustainability, given All the issues that COVID will bring with that. Thirdly, just in terms of the guidance, just so I'm clear, You're talking that H2 completions will be similar to H2 last year, but are you also saying that the EBIT will be similar, given you're at very similar build rates as to where you were before. And then lastly, in terms of dividend, previously you've shown us that scenario where you can still continue to pay a final dividend even in the event of a situation similar to the GFC. And I was going to say without trying to pin you into a corner, but that's exactly what I'm trying to do. Is the scenario which you don't pay a final dividend that you anticipate Down with pricing similar to the last financial crisis. I think I'll deal with 24, and I'll let Meg deal with 13. The 1 on dividend, you are trying to put us in a corner. And I think Meg answered it very, very well. Just to be clear, we enter we're in a strong position, we know that. The business has got a good cash position. We've got strong forward sales. We've got an excellent land position. We've got strong build position, and we're broadly back to COVID production levels, and that gives us options. What I'm not going to do is commit at this stage to what that option is, and we'll come back to you Later in the year after review and see how trading goes and we get a bit more color on that. But as Mike says, we're looking at a really strong July August September, which is positioned If that manifests itself in the cash we hope it will produce, then that will give us even more comfort to consider positively more positively. So I'm not going to give any more detail than that, Glynis, as you would expect. In terms of the 5 star rating, yes, we're really pleased with what we've seen since January. And importantly, for the 3 months before January, we've trended very, very high. We're very, very close to 5 Star for the full year. Very close decimal points a year. So The performance has been excellent. But for me, it's never just been about the star rating. That's only one metric. It's much more important our customer care improvement plan, We're just starting to get embedded in the business. We're starting to see benefits in that improved communication. The retention is now firmly getting established in the business. Fiber, which is a much better service than anyone out there. And our customers are really benefiting through this lockdown period from having access to full fiber. And it's interesting the speeds that people are taking and now taking a much faster package and starting to value that offer. So it's a lot of moving parts in terms of improving our customer Not just the star rating, that is an important metric and we're pleased with what we've seen. However, I'm not going to get hung up about it. I want to improve every part of the business And we'll continue to try and improve that as we go forward. Do you want to pick up on one end? Yes. In terms of selling price in the second half, I think, I mean, it's very Difficult for us to predict what the second half is going to look like. I think that given The expectation of a greater proportion of affordable housing in the mix, you may see Some overall dilution because of that mix effect through the second half. So perhaps the headline ASP will come back a bit compared with the first half because of that mix effect. But and so if you're looking at PD pricing, I think the reasonable expectation at this point based on the information that we have is to expect maybe A flat sort of number compared with where the first half is. I don't think We should be speculating on the actual mix of private sales that we take off 3 30 sites through the second half. It's very, very difficult, as you'd expect, to be able to predict that with any precision. And it's a bit of a false precision, if you will, because of that. And on the EBIT, well, again, this is a Trading update, we need to pull the numbers together in full, which we'll be doing and put meat on the bones in August for the first half. I think we've talked about earlier on, and I think it was Gregor's question, but we do expect some depletion in the first half With a return to and if we can achieve a more normalized run rate in terms of delivery in the second half, then We'd expect an improvement on that. Gross, as Dave's already said, gross margin is proving resilient. But so I think, overall, there'll be some depletion for the full year because of the impact on the first half, We shall give a bit more detail in August, and we can perhaps talk about the full year on the back of That further detail. But I do think if we can achieve the sort of volumes we're indicating for the second half, then Our overall operating margin rate will improve because of the improved overhead recovery Because that's the flip side of the coin that we've seen, the same coin that we've seen in the first half of the year. Is that right, Gwyneth? Lovely. Thank you. Thanks, Lewis. Thank you. And our next question comes from the line of Clyde Lewis at Pierre Hunt, please go ahead. Your line is open. Good morning, James. Good morning, Clive. Hi, Clive. I think I've Still got 3 unbelievably. One, I think for you, Mike, on land creditors. Obviously, I sort of heard all the comments about sort of land spend and appreciate that. But Do you think you'll see a sort of an increase in the use of land creditors now in this sort of market? Or do you think it's, Again, something you'll continue to sort of look at side by side and see how it plays out. That was the first one. The second one or the second and third, I think, are probably more for you, Dave. One was sort of on, I suppose, the changes you might have seen since lockdown on the demand patterns from customers, Whether they're coming to you and asking for more bedrooms or sort of offices or sort of more outside space, What's been your experience in terms of sort of the appetite for sort of different types of product, I suppose, and how you're thinking about evolving your sort of product going forward. And the third one was on the government's comments about sort of trying to improve the planning further. It's still early days, but From what you've seen, how positive do you think that could be? Okay. I'll deal with 23. In terms of land credit, let's make them pick up on that. Obviously, in terms of land credit, it will depend what we see and what opportunities are there. We'll use them appropriately, but we'll put them out in the same. In terms of lockdown, when we are seeing a change in demand patterns, because what we try and do, Persimmon, Our product is placed at every price point. So just like a car dealership, we've tried to have a mix and range of choice of product on each individual site. So we have the ability to maximize opportunity and capture as many sales as what we want. So people at the end of the day can only buy what they can afford. So even if someone wants a 4 bed house, they can only afford a 2 bed house, they're still buying 2 bed house. So we've seen no real change in product or demand and what people want. What we've seen is an uptake across the board about people wanting to move. So there's no real change in product and any real change in what In terms of planning, you're quite right. It's early days. The general thrust sounds to be encouraging. Like all these things, the devil is in the detail. And I look forward to reading that in some detail when it actually comes out and say what it means and say that creates opportunities for the company I'll create some threats and deal with them appropriately as what we envisage is going to happen. I think online credit's a point, Clive, Dave has already said, we'll look at each deal on its own merits. We always do that. And The deal that we caught with the landowner will reflect those particular circumstances. And I think that's the way we approach it. And I think the important thing is by paying your land cutters down at the appropriate time in the cycle, which we've clearly done with a really long tail. What it means is if the market does get a little bit better and we do see opportunities in the land market, we can then start to use our land credit as gain because we've got Which means we don't need to employ quite as much cash to take advantage of the land position, and that was our strategy. If you look back in the day when we bought a lot of land, We use land cutters very effectively. And that's something in our army moving forward. If there's opportunities there, then we would use again. So If the opportunities were there, the right time to go back into the market in a big way, they would love to use loan credits because we have the flexibility because they're getting paid down. Okay. Thanks guys. Thank you. And our next question comes from the line of Anya Golla of Citi, please go ahead. Your line is open. Thank you. Good morning, guys. Just two questions from me. One is, as these programs in the industry come back to normal levels, do you anticipate any Shortages and material supply in the industry. And the second one, really on construction capacity, it's quite encouraging to see that your build Capacity is back to normal. I'm wondering is there any scope for that to flex up further? I mean, if the strength in the order book sustains In the second half, what are your options in terms of delivery in that sense? I think I'll take both of them. In terms of materials, We've worked very hard with our supply chain during the lockdown period. We supported them. We secured supply for ourselves. We went into deals to give them confidence to produce the product. And obviously, we've got our own brick and tile, Which supports that as well. So the materials, I don't see that being a material issue in terms of what's going forward. In terms of construction capacity, If the demand is there, the big restraint will be the same restraint as it's been for a long time is labor. We do have the infrastructure of 31 companies, which gives us more flexibility to grow the business than any other company. But the labor is to grow the business in any other company, but labor is the constraint. As we sit today, there's good labor available. We're able to get quality labor at a price which is attractive, and that does give us the opportunity. The danger to the business is that some of that may get competed away to some of our peers, but a lot of dependent on what their commitment is because I imagine 1 or 2 of our peers out there I'll not want to start new site, I understand. I'll not put in the infrastructure in the ground to capture this demand. Well, we are. So if there's a bit of an opportunity where Their actual supply drops a little bit, which means we've got less demand for labor. That potentially means that we could If the market was remained strong, that you could take advantage of it. So I think that probably answers the question, does it, Ami? Yes. Thank you. Thank you. And our next question comes from the line of John Fraser Andrews of HSBC. Please go ahead. Your line is open. Thank you. Good morning, gents. 2 for me, please. The first one on the WIP, The 14% year on year build, I mean, that was the same as the December level. And I hear the completions are guided flat for second half. So does that mean that, that 14% Year on year increase is what you've sunk into the business to support the better quality, the 5 star rating. Or is there any possibility that you could use that with actually to push completions up a tad in the second half and then into the into 2021. And Then the second question is we've had now we've got 2 government stimulus measures, both with a end March 2021 Windows. So clearly, there'll be a lot of customer demand to get completed by the end of March. Are there any levers you can pull in the short term to actually get your build rate up, your completion rate up to gain Even more market share than you have. I think that both points really well made, Jonathan. It's actually the thought process which has been going Our business made for some long time. And the answer is in the short term, it's not that easy to increase supply, which is why we planned for it 12 months ago. Obviously, it's been extension and not the vice stamp duty, but we're carrying that with primarily for the two reasons you pointed. 1, we want to improve the quality And also, we wanted to have the capacity to take more market share if it became available. Now, you're quite right. If the demand remains constant, We do have the width to take advantage of that demand if it's appropriate. I'm not going to start forecasting any more than what we've got at the moment Other than what I would say, if the market was very robust, so the oil impairment was to be sustained, we do have the whip and the ground to take advantage of it. Then in terms of what you've invested for your build quality and the improvement you've seen in your customer satisfaction ratings, Perhaps this is one for Mike. Is that sort of €140,000,000 WIP increase That we saw last year or reported last year, is that it now in terms of the investment in Build quality, and could you just update on any investments? I think it was €15,000,000 that were going through the P and L On customer care, is there any update on those, please? I mean, I think the additional investment in Customer Care Resource, obviously, we're well on the way in crafting and pulling together the Consolidated build regime in terms of what we're naming the Persimmon Way, that we give a bit more of an update in the statement, as you can see. But I think what we've said in terms of that €15,000,000 still stands. We're not particularly seeing Any real need to add to that cost base, if you will, or that investment to support further improvement. And indeed, a lot of still a number of important initiatives that Are underway, have yet to be introduced or gain proper traction in the market. And as Dave said, We view customer support and service in a more broader fashion. And I think the Persimmon Way is going to help Quality assurance, the investment in WIP, HETNISIST that itself, the retention scheme is Gaining traction now. But the customer portal is about to be released, And that's going through final proof, which we actually, Dave and I are looking at shortly and going through that. So yes, that's not even in the market yet. So there's a number of issues that are going to continue to add momentum behind The service provision, if you will, on a broader footing to our customers, as Dave has already mentioned, which I think we need to just see the consequences of that. We're very positive that we'll see further improved continued improvement on the back of those investments. So there's nothing really new that We would add on top of the issues that we've already highlighted over the last 12 months or so. But without a doubt, as you say, John, I think the WIP investment that we've made on a number of fronts for a number of reasons Has paid dividends in terms of availability, as Dave has already said, and quality. I think behind that question, you think, well, what's the cash effect for the rest of the year and into next? I mean, that's probably where you're coming from as well. And I think that we'll continue we've already said, we'll continue to build into the market. So I could see a bit more being put into the ground. You've already heard Dave talk positively about that. It does unwind quite quickly if we need to. If sales change, we can be more Circumspect on future build if we need to be. That's not a massive cash drain For a long period, we can turn that around. So as Dave says, the big issue What you don't want to get saddled with is large land investments that are not done at the right time at the right risk adjusted Sir, whereas WIP moves quite quickly. So I think we're still positive. So I think you should assume some cash absorption into WIP Moving forward, for the reasons we've already touched on. Great. Thanks, gents. Thanks, John. Thank you. Our next question comes from the line of Gavin Jago at Barclays. Please go ahead. Your line is open. There we go. I'm in now. Yes, the first one is on ParTech. You touched on that earlier, Mike. But just in terms of the usage through the first half, I guess, if you look at it through last year, like 6% of revenue, You don't use it that much in the first half. Is that because you haven't needed to? Or is there, I guess, a little bit of fear around the second half market? Just talk us through how that's been And the second one is just really around, I guess, the mortgage market, Help to Buy and I guess the strength of your balance I guess if you look in medium term, maybe you could call it a downside scenario. But if Help to Buy comes to an end, the government don't Accelerate. What's your kind of appetite to be using the balance sheet, I guess, for share let's see if the mortgage market is also Still got a lack of IOTB mortgages. We'll make them pick both of them, and I'll pick anything up that comes out of what makes it. So if you want to pick On the last question, the more our appetite to do share deck is 0, I would suggest, because firstly, we would become regulated If we start originating financial product, and that's why we use a third party to manage our back book, Yes, they acted our agent and the properties and fees, etcetera. But we don't want to use we're not a bank. We don't want to use our balance sheet to provide credit to customers particularly. So I think our appetite is, as I say, very, very low in that regard for the obvious reason. I think the government really wants us Put money in the ground in terms of opening up new sites and building homes. And really, that was one of the prime movers why The government introduced Help to Buy and its predecessors because They wanted the builders to build rather than to act as banks. So that's a pretty Yes. Sort of clear answer on that point. And with respect to part exchange, As Dave already said, we do offer products around across the range on each and every site at the different price points. So we do offer Larger, higher priced product relative to your typical first time buyer product on-site. And obviously, we've got the Charles Church business offering a more aspirational product. And we look at part exchange on a case by case basis for existing homeowners. It's been a slower market. As you know, the secondhand market has been quite Slow. And I suppose our lower use of PX has reflected that to a degree, together with our positioning towards the 1st time buyer, 1st time mover end of the market. But the great thing, and it's similar to the land credit supply that Dave Mentioned earlier, the great thing for us is that our PX our ability to use PX is a lot higher than we're currently using. So in terms of dealing with perhaps tougher market conditions if they emerge Moving forward, we've got another club in our bag that we can play to get out of Yes, the bunker, if you will, to assist customers who would like to move, who are currently owner So I think that, again, we've got the ability to use PXML. We've got the balance sheet to do that. And indeed, we continue to target the use of that on a proper basis. Strict criteria again in terms of use of that PX facility that all the teams are adhering to. NPX is moving. We haven't got a lot of stock. The aged stock is low. We're managing to clear Value in terms of both in value on the PX that we're doing, that's a reflection of current pricing. So yes, I mean it's an attractive opportunity for us in the market to use a bit more of. The only other thing I would add, Gavin, is it's a Well, we made on the mortgage market, but we shouldn't forget, Hunter Buy is still around with 2023, 1st time buyers. As 50% of our purchases are first time buyers. So for us, the impact is a lot less I hope the buy coming to an end and mortgage availability than other builders. However, I still think the banks will respond and come up with some form of Product or the products available in the market to showcase the gap to ensure there is more visibility in the wider market. But for us, where we are in the market and where we position the business It means a lot less exposed to any change that happened by the loss builders. Great. Thanks very much. I'll put it back on mute now. Thanks, Gavin. Thank you. And we have one further question that's from the line of Sam Cullen at Peel Hunt. Please go ahead. Your line is open. Yes. Good morning, Mike. Good morning, Dave. Just one question for me if I may. Can you just give some comments coming back to the growth reservation or market share point Can you just give a comment about whether you think that you can taking share from peers given in the newbuild market given you've been a bit more agile reopening? Or is it more a factor of do you think the newbuild market taking share of the whole housing market, perhaps You can identify and that given your agility, given the Helpdesk by bridging that kind of mortgage gap that some of the previous questions alluded to. I think as little doubt during the lockdown period that we were taking market share because we were out there, we were more agile. We still employed all our sales staff who are all working from home. Most of our peers furloughed their sales staff and looking at the numbers coming out from some of our peers, You can see that during that period, we took a lot more reservations. And also, as we come out the 6 week period, the fact that we were already trading, All our staff were fully employed and up and growing meant we also probably did take a bit of market share as well by being a bit more agile. What we take from the secondhand market, it's a bit more debatable because you look at all the information coming from Zoopla, you look at the information coming from the state agents and on one evidence on part exchange property, The secondhand market is moving pretty well as well. So I think in the short term, we did probably take a bit market share. As our peers become a bit more developed And back up to speed, then that market share will be traded away. Although, we'd like to try and think we can keep some of it because of the WIP investment we've got in the ground. So I think it's more to do with the markets generally bounced back pretty strongly. How long that lasts for, we don't know. But I think it's more to do with the market confidence Coming back rather than just taking market share as we move forward. And I think, Sam, just on the overall picture, the whole market, I think Given the overall transactions will be a lot lower than first expected for this year, I think newbuild will Take continue to take more market share of overall housing transactions because of that. I think we're If you went back 15, 20 years, Newbuild would probably have 10%, 11% Share of the overall housing transactions in a year. More recently, it's we've managed to the new build sector is Probably up at 14% to 15%. And we believe that we will continue To take a bit more market share of the overall market as an industry because we've got better availability. As I've Already said, we've seen over recent years the secondhand market become slower, whereas the newbuild contribution has You know, Groun back from the GFC, obviously, taking a hit this year, and we need to see how that develops with the ensuing recession thereafter. But I think the new build We think the new build industry will continue to take a bit more market share of the overall available demand. Understood. Thanks very much. Thanks very much. Thanks, Al. Thank you. And as there are no further questions in the queue, I'll hand back to our speakers for the closing comments. Thanks for that. Persimmon is in robust health We have a very strong balance sheet with cash in the bank, which gives us options. We have an industry leading land bank With limited line creditors with an excellent payment profile, which gives us options. The benefits of the customer care improvement plan are now starting to manifest itself in the business. We have a good outlet share and product availability And WIPP is in a very strong position, which gives us the ability to meet any demand, which is out there and gives us options. But finally, and most importantly, I believe we have the best employees in the industry. Their reaction has been incredibly resilient, flexible and most importantly, Very supportive of the actions the company has taken and our aim to produce long term sustainable returns for all. Thank you. I think we're finished now, Mark. Thank you. This now concludes the conference. Thank you all very much for attending. You may now disconnect your lines.