M&A Announcement

Dec 10, 2020

Morning. I'm Lucy Sharma, Investor Relations of Electrical Components, and I'm joined by Lindsey Ruth, our CEO, and David Eagan, our CFO. Thank you for joining this call. We've announced this morning 2 acquisitions to Novos and Needless. And a proposed placing of a £180,000,000 of our ordinary shares, about 5% of our share capital. We have released announcements and a short set of presentation slides this morning, which are on our website. Lindsey and David are going to use the presentation as the base give you an overview of what we have announced and then we'll open up for Q And A. Thank you, Leslie. Over to you. Alright. Thank you very much, Lucy, and a happy, very early morning to all of you. I am joining today from the United States. David's joining from the United Kingdom. And firstly, most importantly, I hope everyone is keeping well. And healthy. Health and safety remain the number one priority for us as a company internally as well as externally. So today, we are accelerating our growth strategy, getting our strong foundations. This is, I think if you look at the pandemic, you know, we have seen an opportunity for customers and suppliers, to be fast tracked towards our proposition And overall, I think that the business has performed quite well during the pandemic as we were well prepared heading into it. And then I think we'll emerge stronger as we come out of it. We've certainly taken share and outperformed the market. The momentum has continued and in the second half of this fiscal year despite the uncertain backdrop that we see. So we're streamlining the group as we talked about during the interim become leaner, more agile, and accelerating our growth strategy through our RISE initiatives, which is overlaid on our destination 2025 target or 5 year plan of a mid teens operating margin. Does the team really go in conjunction with one another? To help us move from a position of strength, a further position of strength. So we see the opportunity today really twofold. Number 1 is to go faster. We need we know we need to differentiate and stay ahead of our competition, and we need to do so at a much faster pace. So we need to have a sense of urgency in our business. And we also need to take advantage of increasing organic and inorganic opportunities. And the one thing that's come out of the pandemic is that an interesting to happen in supply demand imbalances is that we see an opportunity, where supply chain continuity is, again, a priority within supply chain and opportunity where our reliability in our service gives us a competitive advantage. So this is what we set our interim outline on slide 4. We're focusing on our organic and inorganic investment in 3 priority areas. Which are based on building the strength of the group. And they and they are an order of priority. Number 1, value added solutions, 2 product adjacencies and expansion, 3 geographic strength, and a today, as as we announced these 2 acquisitions, de novos, and Nielers, these pick these boxes and are right in our strategic sweet spot. So these are digestible bolt on, that we've looked at for quite some time. We know the business as well. We've been speaking to their management teams for a while, and we know we can drive revenue generating opportunities as well as synergies as these businesses leverage our differentiated group model. So these 2 acquisitions absolutely accelerate our ambition of becoming 1st choice for our stakeholders, our customers, our suppliers, our investors society, as part of our ESG strategy, and our employees. So firstly, Sonova, which we detail on pages 6 to 8 of our presentation deck. Novos is a very good outstanding integration supply business based in Pennsylvania, United States. It's very similar to Aiza who we acquired 2 years ago, it's gone from strength to strength, winning new contracts during the lockdown, as well as expanding internationally. Cinnovos manage these customers indirect procurement inventory and store management with Asurion supply and availability while reducing costs. Which is a mere image of what we do with IESA, again, the business we acquired in 2018. Sunobos has over 80 blue chip clients predominantly, and and then that's over 500,000,000 pass through revenues, but predominantly in the more 1,000,000,000 industry verticals of pharmaceuticals, consumer health, chemicals, and food and beverage. They've got a proprietary technology class form similar to ICE's MyMRO, which delivers the cost and differentiation advantage as well. So having the combination of ice and Tinnovos together means we can now offer integrated supply solutions to customers on an international base So customers in the Americas, the Synovus gives us, an enhanced platforms offer solutions in Europe and vice versa with AIDA in the Americas. And then together, the longer term will target Asia Pacific. So, definitely, the combination gives us a solution that are, I use the customers that have been asking for in the Americas, for the last few years, actually. So Innovus will strengthen our business in the Americas in 3 key ways. 1, it allows us to introduce Inovos to our allied electronics and automation customers in in the Americas. So customers where we have seek relationships that have yet to have an integrated supply solution ourselves that allows us to bring that to the customer. 2, it allows us to be able to expand our product offer within Allied by evaluating suppliers within the Lenovo business model to understand it's the right fit for us, on the distribution side of the business, And 3, it gives us the opportunity to offer our private private label range or a pro to Synovus' customers. So similar to what we do at Aesys, it gives us the opportunity to add a value brand into the equation. So I used to know those are definitely a significant acceleration and expanding our value added solutions offer internationally, which as we refer to it and have in the past, our digital mode or e commerce mode, if you will, in regards to value added solutions, technical services, supply relationships and traceability. And while Cenovus will strengthen our business in the Americas as well and provide revenue generation opportunities and some moderate cost synergies, by the way. So moving on to needlers, which we cover in slide 9, dealers is a fantastic business in the UK that has high quality products and solutions in the critical areas safety, hygiene, and personal protection equipment, an area of business, which we've been tracking for a long time, So I think it's really important to note that we've been tracking this business before COVID 19 in the pandemic. And the COVID 19 certainly has brought an enhanced opportunity for PPEs or critical product that, the category, which, which, I believe, will will happen as we, maybe forward So I don't think this is, something that's a one time deal because of the pandemic. So I think it's a highly attractive gross market. We believe that's 5 and then they can complete it post. And it's a very fragmented market as well. So needlers provide the team and a trusted brand name in this segment. And just to please note that we we do have a small percentage of our business in this segment today. That this helps us to enhance it with the level of expertise that we don't have. And also there's a focus on the food and beverage sector because that's a stronger sourcing capability with private label brands, which account for 40% of their sales. So it's not just about the product offer. Nidlers has actually a growing solutions offer as well with technical expertise and consultancy where they advise customers on how to address increasing safety and hiking requirements and provide appropriate training, which again, I think, is going to continue post the pandemic. Levers And Electric Components capabilities are highly complementary, and we see significant, revenue potential possibilities in terms of synergies for utilizing our distribution networks around the world to overstate customers that we both have in the UK and Internationally. And all of our customers, for what it's worth, use personal protection equipment, every B2B customer that we deal with, at some sort of safety spend within their portfolio. So our digital capabilities and experiences in developing private label brands globally will also present significant revenue synergies and value creation opportunities. So at this point, I'll ask David to comment on the returns and equity placement. Thank you, Linkley. As soon as he said, we are announcing the acquisition of 2 high quality businesses today. Both with strong prospects and both aligned to our growth strategy. That both acquisitions will deliver attractive returns and further details of these are included on Slide 10. Looking at Synovos, we expect Synovos to make strong contributions to group growth in 2021, including revenue generation opportunities, and buying synergies from an expanded US offer. Our return on investment is expected to be comfortably ahead of our group cost of capital by year 3. For needless, we have adjusted the financial results to strip out the benefit from COVID this year and to give underlying sales and profitability. We see good cross selling opportunities between needlers and electrical components. Expected return on investments, to be comfortably ahead of the cost of capital in year 1. Both acquisitions are expected to generate operating margins in line with our group average in the 1st year and to be earnings accretive in the 1st full year of ownership. Under equity placing, which is on slide 11, we are looking to raise up to £180,000,000. Which is approximately 5% of our issued share capital. And we're planning to do this via an accelerated book build and a retail offer through primary bid. The placing will allow us to do three things. Firstly, to fund the full £150,000,000 cash consideration for cenovos and needlers. 2nd, to ensure we are not constrained in our organic growth strategy, such as funding working capital growth opportunities. And thirdly, to allow us to deliver on our disciplined acquisition strategy in a disciplined but agile and front footed manner. We have a strong pipeline of digestible bolt on opportunities, and there is a very active market associated with those opportunities. On leverage, we expect pro form a net debt EBITDA to stay below the one times at March 2021. We're confident that this is the right level of leverage for our business. It permits us to act on growth opportunities organically and inorganically, whilst continuing to manage our business, during these uncertain times and the environments in which we operate. Organically, we continue to see great opportunity I want to be able to continue to invest in our growth strategy unconstrained, with working capital investments to fund opportunities and some modest capital investments. And regarding inorganic opportunities, slide 12 outlines our disciplined M and A prioritization plan. We're highly focused on opportunities within our sweet spot and our areas of expertise. We have a pipeline of suitable opportunities, nearly four times as many as we had 2 years ago. Which meet our clear acquisition criteria of generating economic profit, plus being a strong strategic and cultural fit. Whilst we remain rigorous in our acquisition strategy and continue to walk away from those that don't meet our criteria, We are seeing increasing numbers of those who do, and we want to have the financial strength to continue adding bolt on opportunities where we can generate value. And with that, I wanna hand you back to Lindsey. Alright. Thank you very much, David. So just to conclude, may we we've spent the last 5 years working quite hard on building the basics in this business in getting the building blocks right and in place to be able to do acquisitions. And to fix the house before we put additions onto it. So our momentum has continued to build in the second half with market share gains driven in particular by our private label, RS Pro, value added solutions, and our omnichannel service proposition, which is really important to be able to offer, customers what they want, why value the way customers wanna play for us, whether they see the web or e commerce or over the phone or via fax, whatever, you know, we do it the way customers want. And our strong product availability and best. But but let's be clear. This doesn't just happen on its own, and we we do remain cautious given them the economic backdrop. And there are some COVID related costs that are taking time to drop away. But as I said, it doesn't happen on its own business is in great shape because we're not sitting here waiting for the market to get better, the economy to get better. We're seizing the opportunity in prices to accelerate our growth. And I think it starts with our leadership. I couldn't be more proud of the leadership team we have today. The investments we've made in developing our leaders I think we've got great momentum internally with our morale and our engagement. And I just want to be very clear. In terms of growth, our first priority will always be organic growth, and it has been and will remain organic growth. But we've got a high quality pipeline of acquisition opportunities that will add significant value to the business and enhance our ability to drive organic growth now and into the future. So last payment, we're confident that we will take electrodes components to the next level. But it's one step at a time, not a giant leap, and we're very excited about the opportunities ahead And it's early in the morning here, but I certainly hope you are too. So with that, operator, if we can open up the questions. Of course, ladies and gentlemen, if you'd like to ask a question, please press star followed by 1 on your telephone keypad now. If you change your mind, please press star followed by 2. And when preparing to ask your question, please ensure your phone is unmuted locally. Our first question comes from Rory McKenzie of UBS. Lori, the largest of yours? Hi, Mario. It's Rory here. Thanks for any questions. Firstly, on on Sonova you've highlighted revenue synergies with them and the growth potential. Can you expand a bit more on on some examples? And and also, can you talk about your experience from Alyssa? You're now, you know, over 2 years into the I mean, I mean, that business, so can you disclose what that has delivered in terms of growth in cross sell and and where that's for where that is the birth that you've made budget at the time. And then secondly, again, on Snow Boss, I remember I used to it was a, I think, a 25 to 30% operating margin business when you acquired it ignoring the pass through revenues. So what's the difference with the Synovos being a mid teens EBITDA margin? Do you expect this business to be strongly margin accretive to your group, over time. So those two first please. Good morning, Laurie. Let me take the first part, Dave. We'll take the second part. In regards to your first question, I would say that there's quite. There's not a significant overlap between the 2 in terms of customers. There is some overlap. So we have identify the overlap in those customers. One of the first things we started working on almost 2 months ago was the go to market strategy without discussing specific customers, but how would we go to market together between the two leaders of the businesses in the Americas and Europe where we could cross sell. So there's a significant opportunity between the companies to follow customers in the Americas to Europe. I will say though, Howard. So now that I've had a presence in Europe. So they do have people in Europe today. I'll be at small. I'm whereas Ayesha does not have a present, strong presence in the Americas, but, those guys will leverage the supply chain and their proprietary platforms to accelerate revenue opportunities between those companies. We have seen a shortening of that development cycle through the pandemic what might normally take 18 months from presentation to close and implementation of the beta site and in many cases, it's down to 6 months because it is continuity of supply within the supply chain, smaller companies that weren't able to support customers in this virtual world that we now exist in. So that's 1, 2. Based on our experience with AIDA, we have found a good lead generation arm with the RS side of the business. And in Europe, we tend to focus a bit more on small to medium and a prior versus the Americans where we have a greater presence with larger customers and the volume and production environment. So I would expect that Allied would have electronics and automation in the Americas would have more opportunities as a long lead generator to provide into the Synovos model. And 3, we have launched what's called RS Plus in Europe. It's in more of a beta mode, but it's an I use a light version to be able to go to more medium to smaller customers that wouldn't necessarily require a spurs management solution, but RS can provide a solution in conjunction with IESIS will be something very similar in the Americas with Allied in the future. So great synergies in terms of revenue, opportunity to to expand our private label offering via Synovos as well into, Synovos' targeted customers. We're excited about the opportunities, and I'll be there first thing tomorrow morning, at the headquarters in the United, Pennsylvania. And the second part I'm going to Sure. Good morning, Rory. So Ayesha currently, their charging model is more of a management fee and also then a supplier charge, with, Synovos, they have a couple of additional, charging mechanisms. And so there's a little bit more sort of gross revenue reported. The apps, the margins on the same like for like management fee are very, very similar. So it's more just the way we account for it. As we look forward, we certainly expect the operating margin to be moving further to the right hand side for Synagas. I think bear in mind, similar to what you said, there will there are benefits that are not net necessarily going to be reported through the IES slash Cenovos numbers, but they will sit within the core business, whether at the RS Pro as a synergy, whether at the product going through the allied channels. So that, that will be, that will be, synergy benefits being reported in other parts of the group, not necessarily attributable to the acquisition. Okay, thank you. Just one follow-up. Could you sort of comment on how Ayesa has grown over the past 2 years? Yeah. I think Yeah. I I used to be in in the last 6 to 12 months and accelerate the final they've grown. As we expected them to do, they've done well. We haven't put the numbers on, quantified in the market because we rolled that into European numbers. And We've intentionally done that. But the funnel and the new contract wins are at an all time high. So I can say that and, we're, we're it's very similar with Sanderus in terms of their funnel as well and our funnel now. We're really excited about the opportunity between the organization you know, combined, it's more than a $1,000,000,000 in past revenue. That's a pretty sizable venture when you get into a global integrated supply organization and gives us scale to be able to accelerate that growth on a global basis. Especially, you know, just one important problem on this space is customers talking to customers. And we've got, and both sides phenomenal blue shift clients from pharmaceuticals to food and beverage industrials and I think it's really exciting when they talk to each other. They share information because this is really not a great customer. It's something that you just can't shut the line down. So they're not threatened by talking to competitors in many cases and getting testimonials, and it really helps us in that case. So the stickiness factor in, it's also pretty significant, Royce. And once you're in, you're in, And you said we can continue to provide reliable rate service, and and ownership solution. Yes. I think the only thing I'd add to that, Rory, just two quick things. One is, Ayesha has a quite a good broad range of customers as does Sanofi, you know, through COVID, over the last 12 months or so, they've had a few, say, customers that have been down. They've seen some customers have just continued on, but those are seeing strength of existing customers. The other one is pipeline's very strong conversion is good. So just one example is either just one a European based pharmaceutical company Sanofi. And once that's ramped up, that's a EUR 50,000,000 you know, contract. So again, the size of the opportunities are there, the pipeline thing, and and we see no reason why that will not be replicated in Sonovos. Great. Thank you. And one final one, just on the the leverage target. You mentioned targeting net debt EBITDA below one times. Is that a new kind of formal midterm condition, you have a stable low, or is that just literally in in in the short term while you've got all these opportunities? Sure. I wouldn't say it's a target per se. And what we said is that the leverage for us in the world stayed below the one times. We've been below the one times for a little while now. You know, having leverage down below the one sort of gives us access flexibility to continue to invest in the business organically as we see that top line grow whilst still maintaining strong disciplines around working capital. But equally, it just gives us that flexibility for the inorganic where we can complement that, and accelerate the, the organic growth. So you know, for us, it's a, it's a point in time. It's based on the opportunities as we see them going forward. And, you know, we're not going to do anything silly balance sheet. We wanna have a strong balance sheet, but if we want to be agile and flexible such, we can take advantage of the opportunities that they arise. Our next question comes from David Brockton of Numis. David, the line is yours? Hello. Can you hear me? Yes. Your line is open. Oh, good. Good morning. Two two questions, please. Further in relation to to needlers, it it looks like you haven't sort of priced in the COVID benefit that that business would have seen through this pandemic. I just wondered whether you can quantify how much of a benefit the business has seen because that could clearly continue in in in the near term. And then the second question, I mean, did these transactions feel more about just strengthening the business and generating revenue synergies as much as anything else, but wondered whether you could touch on or quantify any of any of the cost savings that you you could expect to achieve. Thanks. Yes. So let me touch on the person, David, and good morning, by the way. Our strategy is very much about enhancing our capabilities inorganically to accelerate organic growth. So the number one priority priority within the business is accelerating profitable organic growth. These two acquisitions give us the capability to do that, to move faster and to take advantage of organic opportunities via inorganic acquisitions. There are moderate cost synergies that we haven't disclosed at this point. We obviously wanna get through the acquisitions and then work with those needlers as well as Sonovos to to work through those those energies over time. But the primary focus, these are both 2 good businesses. If you remember these are not distressed businesses, These are 2 good businesses that we want to enhance, and we wanna take to the next level and make great businesses. On on the first part of your question, I'll put back to David be closed at benefits. You're on mute, David. I'm sorry. Yes, so for the COVID benefits, we went through customer by customer and we we removed all of those benefits, both in terms of revenue and a profit. Those benefits or some of those benefits may continue to the future. We look at that as pure upside, going forward. If, you know, there certainly was one off or, you know, enhanced purchases but we stretch it all out. But as I said, if it continues, then that's not fine for us. Are you able to say whether it sort of mirrors what we've seen with with, I guess, some of the other listed distributors in terms of that benefit, well as things with PPE up to 30% year on year. Yeah. Pretty. Yeah. Pretty close. Okay. Thank you. Our next question comes from Keith Martin of Jefferies. King, please go ahead. Good morning all. I've got a few questions, first of all, on Needham's as well. So how do you try to operate the business because I think your spare capacity in the UK isn't a substantial that you may have certainly out in the space at the moment. So you're gonna drop the, the stock into your front end and back end, or it's just gonna run on a slightly more standalone basis. And then a quick question on on the Unilever's financials. So I think it's more to your sort of undisturbed your precoded revenue guidance is about 40,000,000, I think for the the December 20 year. And I think you've talked about, an EBIT margin in the year 1, close to the group average, which is quite 10%, 11%. If I look at the company's highest filings, then needed to have about $31,000,000 of revenue in the December 2019 year. So it looks like even on a pre COVID basis, the revenue seems to have stepped up by about a third, which looks quite substantial. And the EBIT margin, excuse me, for a lot of couple years, has been more like 4 to 5%. If you can help us bridge from that sort of level, which I appreciate has got different accounting policies. Just sort of the low teens number that you're talking about. And then I've got one follow-up. I'll stop by rather than giving you a big list. Good morning team. Let me start with your first question. Our plan is this will report entire European, but not into We, obviously, is safety business standards. This this, dealers in GRC registry. British retail consortium, you have to add into the food industry standard. So for food and beverage, they've got a focus in that area. There are various nuances across countries in terms of safety requirements and regulations that impact the product We do have some suppliers in common. So number 1, we see this again as a revenue and margin synergy opportunity. First, There could be moderate cost synergies that will work over time, but our real focus is taking advantage of the product portfolio that technical expertise and value added consultancies they have, which is key and leading in this category. You gotta go out with a solution First, customers are looking at safety and quality over cost and then bring the products in seconds. So that gives us a huge advantage. We obviously want to take this cost year as well as international, given 40% of the business is private label. So we've looked at in the American pack of which products you think they can sell and move. So we'll do our best to quickly move the product into the overall electric component system from the standpoint, and then we can just control that business. So that's priority 1, but let's not forget the private label and biometric solutions, consultancy arm that they have will add significant value to our overall strategy and enhance our capabilities. So there will be some moderate cost synergies over time, but and I would say that we do have quite a bit of bandwidth still in the UK. We've really been building out our strengths in terms of capabilities and people. And the biggest enabler for us moving forward is people culture. A lot of time is asking over the last 6 to 9 months in the virtual world at developing the leadership question, I'll I'll put that to David. Yep. Sure, Kean. So I guess they've seen a step up in revenue. We were looking at this business pre COVID. So we were looking at it last year. And they were they secured new customers during the course of last year, which was annualized during the during, 2020. So this is a step up in revenue for that annualization and it's all come from their pipeline. And as I say, as I look forward from where we are today into the future pipeline, it also looks very strong. In terms of the EBIT margin, it is a it was, it was a family owned business and there were quite some substantial family costs sitting in the numbers. Yeah. Yeah. Understood. Okay. Before you move forward, let me just add for everyone on the call that both leaders of Manolis as well as dealers will be paying with the business. So the Managing Director that Mr. Niela brought in Mark Day We'll stay with the business as well as Carlos tell us. Very impressed with both individuals. We've got them for a number of years incentivize locked in. I hope they're listening. We have great expectations and working together, but Mark Day will play a critical role for us in this category on an Internet on basis, although it will report into the President of Europe. Right. And then one more follow-up. So, obviously, you referenced quite an active M and A pipeline at the moment. I guess, I'm, yeah, personally, I was on track but the acquisition wasn't, more sort of businesses in the less today. So I think sort of needle is, I think, is not a surprise strategically, but maybe not in, in the geographical region that are expected. Should we look at that pipeline that you have at the moment, is it more skewed towards US opportunities where, you know, obviously with the US distribution center, expanding over the summer, you've got considerable spare capacity to you guys? Yes. I wouldn't say there's used to the U. S. Team because we're building in around the funnel of opportunities around the world and the pipeline around the world. However, since obviously I'm sitting in the US the moment. Hopefully, we'll be back in London soon, depending on the vaccines, etcetera. But I I've been building relationships virtually with CEOs across the Americas that are in our strategic suite class that we're looking at right now. And I would say, yes, there you know, it's inevitable at some point. We'll do more in the Americas because of exactly what you said. We have expanded the warehouse in the Americas. We have the opportunity to significantly expanded product portfolio. I will comment, however, that the broadest range in our group is in the United Kingdom. So we have almost 3 x number of products, number of categories in the UK as we do. In the United States. So we already had a pretty substantial product, a personal protection equipment safety and hygiene product portfolio. In the UK. So that's why it makes sense for us to do this there because it's easier for us to bring the product in we've got close to 180,000 B2B customers in the United Kingdom. So it's a natural fit for what customers already buy, as I said, earlier that every customer has some sort of safety product spend. So we see this as significantly revenue enhancing for dealers with our UK customer base, but we are building a very healthy pipeline in the United States, your point, and the Americas overall. Our next question comes from Henry Carver of Peel Hunt. Henry, please go ahead. Thanks. Good morning, guys. Just one for me, in terms of, I mean, you talked about you've been tracking needed to to full COVID. For for both of them, can you just give me quick idea of how long you have been sort of in conversation with them? And also how they came about where they are for sale did they approach you? Did you approach them? Did you work in a in a competitive environment or Yes, thank you. How's the other thing about that? Thanks. Hi, morning, Henry. Yes, so for Meada's we've we've known them for for a number of years. The the owner, family owned, decided that the the his kids didn't wanna sort of take it on. So he decided to create an exit strategy we were engaged with him, exclusive, for the last couple of years. He appointed Mark Day CEO, and we've engaged with them all along in an exclusive arrangement and it's a clean deal, so there's no earn out. But Mark Day will continue with the business as well as the management team. In terms of cenovus, private equity owned or private equity and investor backed. A well supported business. So we're not sort of worried about the under capitalization or anything like that. They'll supported and a very strong management team. We began, or AIDA created the first, interaction with them a few years ago, Lindsay then met with the CEO earlier this year, and then we've been building that relationship and rapport. We were their preferred bidder, but it was an option. And that we've been at the front of the queue, for a variety of reasons, as a consequence, we've been able to get it into exclusivity across the line. That's great. Thanks, David. Our next question comes from Daniel Hopton of Credit Suisse. Oh, good morning, ma'am. Take her control. Just two left for me if I may, both around Midwest. I was wondering if you could say around customer concentration in that business, and the second question is, you know, being in the UK and being Brexit which seems to be in the news of the time. I was wondering where to where do you need the source their products from? And maybe if you could say thank our MS supply chain, that'd be helpful as well. Sure. Sorry. I'm struggling going in and out for me, but terms of customer concentration, no, not significant, quite broad, although it is a little bit more focused on the food activities, but it is transferrable into other segments of the product range that they have. In terms of their supply chain, They do procure from multiple sources around the world. They do procure from Asia, but those have been procured from, across Europe. They have strong relationships. They have strong supply chains, and they've been very, very good through COVID. So their whole sort of business continuity has been very, very strong for them. Again, for any further questions, that star followed by 1 on your telephone keypad. We have no further questions on the phone line. So I'll hand back. Okay. Thank you very much, Jordan, and thank you, everyone, for taking the time. Short notice to be on the call this morning. As always, if you have any further questions, you can direct them to Lucy. We're always available for you. We thank you for your continued support and for those investors that are reading and listening to this. Thank you very much for your support for our company and our business. And we look forward to working with you closely now and in the future and happy holidays to everyone. We hope you and wish you the most healthiest and happiest and safe holiday season. Thank you, Jordan, and thank you, everyone. Bye for now.