Earnings Call: H1 2023

Nov 24, 2022

Quarterly report

Good morning, ladies and gentlemen. Welcome to the Trifast plc half-year results investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged. They can be submitted at any time via the Q&A tab that is just situated on the right-hand corner of your screen. Please just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company will review all of the questions submitted today and publish responses where it is appropriate to do so. Before we begin, I would like to submit the following poll, and if you could give that your kind attention, I am sure the company would be most grateful. I would now like to hand you over to CEO Mark Belton. Good morning, sir. Thanks, Jake, and good morning, everyone, and welcome to Trifast half-year presentation. Before I begin, I would like to introduce two of my colleagues who will be joining us on the presentation today. The first is Andy Cooksey. Andy joined us in September this year as an interim CFO. Andy hit the ground running and along with the finance team, has enabled us to present the information today. The second person is Dan Jack. Dan has been in the fastening industry for well over 25 years and has a wealth of international experience. Dan joined us in June 2020 as sales and commercial director, and pleased and delighted to say that Dan has been promoted this month to chief operating officer. Without further ado, if I can move on to the next slide, which I will give you an overview of the company. Okay. Just a very quick overview, if I may. We were formed in 1973 and listed in 1994 on the London Stock Exchange. We are an international specialist in the design, engineering, manufacture, and distribution of high-quality industrial fastenings and category C components, principally to large global assembly industries. We have a fairly well-balanced sector spread, which you can see here. Then if we move on to the next slide, it will give you an indication of what the market looks like. It is a highly fragmented market, valued at around GBP 60 billion, and is not dictated by any one player. Our core strategy is working with our global OEMs and tier ones to get our parts designed in at the early stages. Then where we can, we try and manufacture those parts ourselves. Then from that, we get our parts designed in, we try and manufacture those parts, and then working with global customers, we are able to go across the globe to each of their sites in the four regions that we have. If I can go on to the next slide. We have 34 locations worldwide, split into four regions, and that is the U.K., Europe, Asia, and the U.S. 75% of our revenue comes from customer-specific branded or licensed parts, and I think that is a key thing to point out. We have seven manufacturing plants, and currently, these represent around 30% of our revenue. Finally, we have well over 5,000 customers, with no one customer being more than 7.5% of the group's revenue. Moving on to the next slide. I will give you the highlights of the first half of the performance of Trifast. As you can see, revenues have increased by 13.5% to GBP 117.8 million, and this reflects the market share gains that we've seen. This has also been reflected in the GBP 12 million wins achieved in the period, which Dan can cover later. Gross margins, unfortunately, have decreased in the period to 24.5%, and that's largely due to the lag between passing the high cost increases on to customers, which we will expand on later, and it will provide confidence looking forward of what we are seeing. An operational improvement program has already begun to drive recovery in the second half of this year and beyond. This will include margins and delivering the necessary price increases and cost efficiencies, inventory and the reduction initiatives, and Project Atlas, and that accelerated rollout. In addition, I would expand on a new exec committee that has been formed to increase agility and pace within the business. What I would like to say is currently, with the initiatives that we've already started, trading and margins are in line with our forecast expectations. If I can now hand over to Andy to run through the financial highlights, please. Thank you, Mark, and good morning, everyone. This slide shows the key financials. I'm not proposing to actually go through these in any great detail because I'll be covering them in the next few slides. However, the numbers and our performance in the first half of the year have been driven by two of the highlights mentioned by Mark in his last slide. Firstly, being the overall growth in many of our sectors, driving top-line sales growth. Secondly, the substantial inflationary cost increases we have faced and the lag in recovering some of these increases, which has resulted in reduced margins, profits, earnings per share, and return on capital invested. It is important to note, however, that this lag in recovering costs is improving with time. Q2 was better than Q1. We're already seeing that Q3 is better than Q2, and Q4 will even be better. This will help drive improvements in all these profit numbers in the second half of the year. Which probably brings me onto the one point which I would like to talk about, is the last point about the interim dividend. The board, taking into account the ongoing activities and actions and the confidence they have in both the short term and the overall fundamentals of the business, have declared a 7% increase in our interim dividend to GBP 0.75. The next slide shows the bridge in our revenues. Our revenue is increasing from GBP 103 million to GBP 120 million, showing a 13.5% increase at constant exchange rates, and actually almost 16% when looking at actual exchange rates. The first item on there shows how successful we've been in generating GBP 6.1 million in additional revenue by passing through the substantial cost increases we have faced via contract price increases and surcharges. We have been faced by some geopolitical challenges, as we previously reported. The direct and indirect impact of the Ukraine conflict has impacted our Italian business in particular, and has reduced sales of circa GBP 1.3 million. In the first two months of this year, we were also impacted by the COVID lockdowns in Shanghai, impacting our Chinese operations, which reduced revenues by, again, approximately GBP 1.1 million. We have had good organic growth. This has generated just over GBP 6 million of revenues. Mark Belton will go into this into a little bit more detail, but the main areas of growth have been in light vehicles, general industrial, and the ET&I sectors. We have also seen the good benefits of the acquisition of TR Falcon that was completed in August 2021, and North America now accounts for circa 12% of total group revenues. Next slide shows the impact of our underlying profit before tax, the bridge between GBP 7 million in half year 2022 to the GBP 5.5 million this year. The first two items on the bridge reflect the profit impact from the revenue movements that we talked about in the last slide. The contract price increase is 6.5 million flowing through to the profit. The combined impact of the organic sales growth, the Falcon acquisition, and the geopolitical issues increased the profit by 2.3. As mentioned, we have been significantly impacted by inflationary cost pressures, main areas being commodity and raw material prices, people, freight, and energy. This has reduced gross margins by GBP 7.5 million, a substantial amount having already been recovered via price increases. Overheads increased year-on-year by GBP 3.3 million. There are three major items of this. Firstly, the full impact of the Falcon acquisition does add GBP 0.8 million to our cost base. Secondly, we have invested approximately GBP 1 million in our central support functions to help drive growth in our business, especially in the areas of sales and quality. Thirdly, in line with a lot of U.K. companies, we have undertaken a major benchmarking exercise on our salaries that we pay to our employees, and this has increased our overheads by GBP 1.3 million. Next slide, please. Net debt bridge. This slide shows the increase in our net debt. Our net debt has increased during the year from GBP 24 million to GBP 40 million, an increase of GBP 16 million. When we actually do strip out the impact of foreign exchange, then the net increase is GBP 13 million. Clearly, the standout item on this bridge is the continued increase in our stock levels, which has a cash impact of GBP 9 million in the period. When you look at the balance sheet, taking into account foreign exchange movements, that has been impacted GBP 14 million. The key fundamental driver of our higher stock levels has been our determination to ensure ongoing continuous supply to our customers amidst the global supply chain challenges, and almost chaos that started to exist with COVID. For the first half of this year, in particular, there have been four main drivers of the stock increase. Firstly, costs have increased, and that has impacted us by about GBP 2 million. New business wins, where we have had to actually build up our stock to ensure that we can actually fulfill the new contract wins that we have won. There has been some volume increases of just over GBP 3 million. We have seen some customers actually deferring some of their orders, arising from microchip shortages, coupled with a decline in demand from our health and home customer base. We are working rigorously and actively to reduce our stock levels, and this, coupled with a softening in supply chain lead times and costs, should lead to a reduction in stock levels in H2 of this year and also into the financial year 2024. Moving on to the last slide. The last slide talks about some key balance sheet figures. As mentioned on the previous slide, net debt has increased to GBP 40.4 million. We currently have facility headroom, including the accordion of 50.5 million and adjusted leverage ratio of 2.21 times comfortably well within the maximum covenant levels of 3 times. Q3 and Q4 trading will help boost profit and, along with a number of working capital initiatives, should see a sizable reduction in our net debt and adjusted leverage ratio prior to the year end. We have working capital initiatives which cover stock, debtors, creditors, and also improvements in our internal cash application of funds within our global operations. I will now pass on to Mark, who will take us through the regional operating review. That is great. Thanks, Andy. At a high level, on those slides, you can see that all the regions grew in the period, with North America growing the fastest by nearly 81%. A large element of this is down to the acquisition of TR Falcon, but even so, organically it delivered a commendable growth rate of 24%. Again, all sectors show growth with the exception of health and home, which I flagged at the year end, which was softening. Light vehicles grew the largest in absolute terms, and it is pleasing to see the inroads we are making in heavy vehicle, which delivered the fastest percentage growth in the period of 41%. This, along with growth in other sectors, is creating a more balanced sector portfolio. I would say frustratingly, the revenue could have been much higher but is still being hampered by semiconductor shortages, which is affecting production at many of the OEM manufacturers. This was not just across light vehicles. Other sectors have been hit hard too. A high-level estimate puts this deferral of revenue at around circa GBP 800,000 per month, and we are beginning to see it ease slightly, which obviously is going to be beneficial going forward. Just going into a little bit more detail. Europe has probably had the biggest impact. I am going to talk about health and home first. This fell 13.5% and had the largest impact on our results. As I said, I mentioned the softening that we were seeing in this sector, as well as the impact of the Ukraine conflict. The indirect consequences of the Ukraine conflict had a big impact on some of our global domestic customers, more so than we anticipated. This had a severe impact on TR VIC and our Italian operation. However, I am pleased to report that those customers have been able to reallocate their production facilities, and we have started to see supply resume again. If we look at, for example, the ET&I sector, this delivered strong absolute growth, mainly from our Hungarian operations, which specializes in this sector. This operation moved earlier this year into larger and more eco-friendly premises and now gives us the capacity to grow the Eastern European region further. Likewise, as part of our core strategy, we have been working closely with a global power company, and I am pleased to see that invoicing has started in the first half of this year with more exciting opportunities for future collaboration globally, as well as utilizing TR VIC's manufacturing capacity. With respect to light vehicle, growth has been seen across majority of the European regions, and these are wins that were made 18-24 months ago, basically. Finally looking at distributors, this saw strong growth. Two main reasons. We transferred E.U. distributors from the U.K. to Germany, which I mentioned at the year end because of Brexit, and this will be completed by the end of this financial year. Also we have done a competitive push of our own branded products with these European distributors, and that has been successfully increasing demand there. If we move on to Asia, the Asian region grew over 14%, with the largest growth coming from light vehicle at 44%. This was despite the Chinese lockdown for 2 months. This was also boosted by an automotive OEM project that we have been working on for over 2 years, with tier 1 suppliers based in Thailand. Really, in contrast to Europe and the U.K., the home sector also grew in Asia by 18%, delivering a strong order book to one of our large domestic appliance customers. If we now move on to the U.K., this grew 5.5% and at the year end, I mentioned two large multi-million GBP contracts that we were working on. I am pleased to say they have been secured, and we have started invoicing in the first half of this year. Again, a good move in that area. With regards to the heavy vehicle, we have seen an increase in material handling equipment, but likewise a significant rise in orders in aerospace and defense, which should increase invoicing in the second half of this year. Finally, with North America, 57% of the growth came from TR Falcon, which is performing well, is in line with our expectations, and grew 20% on a like-by-like basis. General Industrial saw the largest growth. Our core strategy is to develop OEM customers globally, and we certainly have on the acquisition, we received a new customer which has grown locally in America, as well as developing inquiries for the rest of the group elsewhere. The same goes with a customer in the energy tech and infrastructure sector, where again, that large customer we are beginning to get inquiries for locations elsewhere in the group. This particular customer is a multimillion-dollar revenue customer with an order backlog in excess of that revenue due to chip shortages, which is incredible. If I can then move on to the operating profit. This is key, actually, and I know Andreas touched on it earlier. Underlying operating profit has been impacted largely down to the inflationary challenges and also some targeted investments into overheads. of the 200 basis points drop, 140 of those basis points is down to Italy. Our operating margin profit reduced from 6 million to 5.1% compared to that 7.2% previously. The reason for that drop in Italy is that sales on that site had been severely impacted by the reduction in demand by the large domestic appliance customers I mentioned, and this reduction had a negative impact on the plant's utilization rate. Coupled with a significant rise in input costs such as energy and freight, resulted in a significant negative swing in the period of EUR 1.8 million against the prior period. To try and put that into perspective, pre-COVID, TR VIC's annual energy costs were €600,000 per annum. Following the Ukraine conflict, overnight, this went up to an annualized figure of EUR 3.4 million, and certainly impacted us in April and May. The good news is that we do expect to get TR VIC back into profit again in the second half of the year, and that's passing on further cost increases to the global domestic appliance customers through a process and a mechanism which Dan can talk about. Lots of activities have gone on in the cost and production efficiencies to mitigate the inflationary cost. Although early days, we are starting to see a softening in the energy commodity prices. The U.K., this is a mixed bag. We have seen price increases and margin increases in our distribution site. However, this has been offset by cost price pressures and our construction site at TR Fastenings in the U.K. We do expect these margins to recover in the second half of the year. Asia has been not as hardly hit, hasn't been as hit hard with inflationary costs as other regions, but you can see there that the margins have increased by 350 basis points due to higher growth rates to other distributors in Europe and North America. North America, although it is still a small loss, we have seen a margin improvement of 270 basis points. Again, we expect to see margins improve in the second half of the year, certainly as customer negotiations conclude and costs begin to soften. If we can go on to the next slide, just to give you an update on strategy. There are three core drivers to this. Firstly, organic growth. The core strategy remains working with our global customers as a full service provider, engineer our parts in, and use our manufacturing and then distribute worldwide to customers at their global sites. Margin expansion, commercially and operationally, look at market pricing, cost and operational efficiencies, and acquisitions to expand our global customer growth, risk and enhance margins. All of this is wrapped up under ESG, which for me is about investing in the long-term sustainability of Trifast. If I can go on to the next slide, please. We do have ambitious growth plans, and we need to protect the business against potential global recession. As a result, I recognize the need for pace and agility, and we changed the reporting structures, created a new executive committee. There is only six of us in that committee to aid pace and agility, looking at targets, performance metrics, and concentrating on those key areas. A key part of that is getting a team together that covers all the functions. That will be the new CFO, which I'm delighted to announce, Darren Hayes-Powell, will be joining us on the 1st of December. Global HR director, the company secretary, the business transformation director, and Dan Jack, as I mentioned earlier, our Chief Operating Officer. With that, can I now hand over to Dan, please. Thanks, Mark, and good morning, everyone. Yes, I do want to talk on a couple of points on organic growth before we move on to margin expansion activities. Firstly, it's without doubt noticeable that disruptive technology is providing us with opportunities to expand our part portfolio. Our customers and our core markets are finding new opportunities to utilize technology, and as that happens, or as legislation or public demand or the replacement of older technologies continues, we, our sales force, our engineering team, and our manufacturing teams are able to help design new products at higher profit margins with a smaller competitive footprint. This year, we've seen a substantial increase in those type of inquiries. We are seeing a substantial increase in our wins, and our order book is already reflecting that quality of higher engineered components. The second element of organic growth is about regional and sector rebalancing. We're being very deliberate in our organizational design and our marketing activities to maintain and improve the sector balance. Similarly, we want to continue and deliver a more poised revenue profile between key geographies. Now, a key to that is the continuation of our investment in a global sales force focused by sector and key customer, and supported by a wider organization and our supply chain and partners. We've invested in this significantly in the last 12 months. The successful completion of our Atlas program will be the icing on this particular cake, as we'll be able to utilize the Microsoft CRM system, and that will help us to move away from a very manual process that we have today. Moving across to margin expansion, firstly, and most importantly, we talk about price. The key to this is for us to build pricing into our TR DNA. We talk about pricing every week. We talk about margins across geographies and customers. Pricing is now within our weekly KPIs, and is a core component to performance review. This is evident, frankly, as we've successfully concluded first, second, and in some cases, third-round price increases. We've significantly progressed the remaining negotiations, mainly in Italy, as Mark has alluded to, and we expect to conclude those before the end of this calendar year, and those pricing will be effective in our fourth quarter of this financial year. We've got a range of pricing tools available to us as we nuance from customer to customer. We go from open book, to surcharges, to straightforward price increases themselves. Coupled to price increasing, we have niche products with increased margin potential. These products can be produced by our own manufacturing locations or by working closely with supply chain partners. We introduce these to our customers, and we blend the competencies of manufacturing, marketing, engineering, and sales communities. Of course, a niche product by default has a smaller competitive footprint and a higher price and margin profile. We have spent a lot of time working on supply chain synergies. In this last year, we have overhauled our supply chain structure. We have created one voice to face our suppliers. Through a consistent message, we are able to standardize and improve credit terms, incoterms, pricing, rebate schemes, and frankly, place more business with fewer suppliers. On top of that, we have also worked with a flexible supply chain network to help us deliver onshore and nearshoring needs, and of course, improve our working capital by improving inventory turns along the way. To come alongside this, we have also focused a lot of time on intercompany. Intercompany spend is not a new initiative, but it is a deliberate metric. Again, we have woven it into performance reviews. Our sales communities and engineering teams and our supply chain teams are all committed to spend more money with ourselves. I think testament to that is we expect to see our intercompany spend increase from last year to this year, by 20%. Mark has referenced the operational improvement program already. We are going through a process, it is global and functional, where we look for synergy and sustainable cost improvement opportunities on our core operating model. We are taking action now that will deliver annual cost improvements. This is captured in our forecast expectations to a degree. Coupled to this, we have a wider reaching program running in parallel, which we will be enacting over the next couple of years. Finally, before I hand back to Mark, just wanted to touch on our manufacturing investments. They do allow a greater capacity for us to reach higher value components to our end customers, bringing in niche products, and of course, it supports our supply chain synergies. We have invested in world-class machinery, and we continue to deploy lean manufacturing principles wherever we go, and that enables us to win blue chip OEM awards and pass all the audits that go through almost every week. Thanks, and back to you, Mark. Thanks, Ben. If I can just give a very brief summary of Atlas. It is moving on swiftly. The final phase of TR Fastenings in the U.K., the largest and most complex site, will be implemented in Q4. This means the whole system would have been fully tested, and going forward, we should be able to lift and drop this into other locations, with only local regulatory and accounting changes required. This gives us the confidence that we can accelerate the rollout in FY 2024. After this date, we envisage that the Atlas name will be dropped, and any new sites to be included will be just a business as usual implementation. It does mean some of the benefits we were expecting in FY 2024 will be pushed out slightly to FY 2025. On the working capital, obviously, Andy has gone through that in detail. Move on to the next slide, Rachel. Regarding acquisitions, I have mentioned TR Falcon. It is integrating well, and it is performing on a like basis very well as well. With respect to further acquisitions, ongoing discussions are being had with potential targets, but obviously caution is being exercised at this moment given the current macro environment. With sustainability, there is a lot of work going into this, which you can find out more on our sustainability report on our website. But in general, you can see that we are moving in the right direction. We have been awarded Silver status from EcoVadis, which only 25% of the companies receive, and an A rating from MSCI. The main areas to bring your attention that we are working on is very much around aligning our scope one and scope two emissions reduction to science-based targets, and then implementing a network of sustainability champions around the group, which will support those energy saving initiatives. This leads me onto the next slide, which we all know how challenging it is at the moment. But it does not prevent us moving forward with our medium-term aspirations. You can see that the core strategy is working by taking market share, which gives us the confidence that we will exceed gross domestic product each year. With the commercial and operational margin initiatives that we have shared, we should expect to achieve 10%-13% operating margin as we have done in the past. Careful investment and allocation of capital, coupled with increased operating margin, should get us back to the 10%-15% ROCE. North America, as you know, is a strategic region for us, and by organic and acquisitive means, will enable a better rebalancing of the regions. Implementing Atlas by FY 2024 will certainly facilitate the group's future growth and margin expansion plans. If I can go onto the final slide, please. As you all know, macro and geopolitical challenges will continue. However, currently, as I mentioned, trading and margins remain in line with our expectations. Momentum is growing on passing pricing through to mitigate further cost inflation, as you have heard. Operational margin improvements have been identified and are being implemented for now and the future. We have put mitigating actions in at TR VIC to reverse the losses of the first half of the year, and hopefully you have heard that the new executive committee has been formed to ensure all of the above happens at pace. All of this gives us the confidence for the future and our medium-term goals. With that, I think we can go to questions and answers. We have got a few in at this moment. Mark, absolutely. If I may just jump back in there. Andy and Dan as well, thank you very much for your presentation this morning. I will just bring back up your cameras there. Ladies and gentlemen, please do continue to submit your questions just by using the Q&A tab that is situated on the right-hand corner of your screen. Just while the team take a few moments to review those questions that were submitted already, I would like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via your investor dashboard. Mark, Dan, Andy, as you can see there in the Q&A tab, we did receive a number of pre-submitted questions ahead of today's event, as well as a number of questions that have come in during your presentation today itself. Firstly, thank you to everyone on the call for taking the time to submit their questions. Guys, if I could just hand back to you to run through the Q&A tab to respond to those questions where it is appropriate to do so, and then I will pick up from you at the end. Thank you. No, that is great. Thanks, Jake. I think the first one is: Could you elaborate as to what the new Chief Operating Officer will do, which will speed up decision-making, and do you have a current example of that in practice? That is a very good question. Dan, what do I need to do? No. I think the first thing is about having a smaller team in the exec committee. That exec committee covers all the functions that we need in the regions to be able to act quickly. That meets on a frequent basis, currently on a weekly basis, and that will cover some of the key performance metrics that Dan alluded to, such as the pricing, such as stock reduction. Part of Dan's new remit is having the reporting lines of the regional entity directors report into him, so that we can monitor exactly how each of those regions is doing and by location as well. The second question says: Absolutely, we acknowledge that stock inventory is high and are working to normalize the inventory. Do you have an estimate of the running value of write-downs due to the obsolescence and a current budget figure for the full year? Andy, can I hand over to yourself to answer that? Sure. Okay. Thank you for the question. First of all, I would say that our stock provisioning policy is aggressive or prudent from an accounting point of view. We are more aggressive for customer-specific stock than we are for general stock. It is an area which the auditors at the half-year end spent a lot of attention looking at and feel very comfortable in our provisioning. To give some figures for you then, the stock provision at the end of September is approximately GBP 10 million, which represents about 9% of gross inventory. An important point is just because it is shown as we have got GBP 9 million obsolescence provision, sorry, GBP 10 million obsolescence provision, it does not mean that stock is obsolete. The vast majority of that will be sold and will be sold at normal prices. It is just a provisioning that we do to produce prudent and reliable sets of financial accounts. That is great. Thank you, Andy. Next question is: You mentioned throughout the report medium-term, do you have a timescale in mind, or is this a broad general view which can be flexed as figures become known? Realistically, providing the world does not fall off a cliff, with the initiatives that we are putting in place, we would hope to start seeing those margins get to where we want them to get to during FY 2025, to be honest. Obviously, if the world goes to hell in a handcart, then that is something that we will obviously have to address. No, that is our aspirations. This is from Tom. Thank you, Tom. You referenced significant benefits of Atlas that were both expected and unexpected. Can you expand on the unexpected benefit? One of the—and it is a really good example that came out recently when we are looking at the data, actually, of our sites. This is just one example of picking up a part, and it had one part, had 17 different suppliers with nine different prices from those suppliers. Part of what we are looking at is, well, that is crazy. You do not need nine suppliers. We can consolidate that down into one or two, basically. Instead of with a fixed price and be able to negotiate with those one or two suppliers. As customers are consolidating their supply chain, and thankfully we are part of that supply chain and that consolidation process, likewise, we would want to be doing the same with our suppliers. Instead of doing small margins from each of our sites going to the different suppliers, we can have a bigger volume going to one or two suppliers, and therefore, have better supplier synergies and terms. I think that's a key benefit going forward. Just trying to think. "Have your significant investors explained why they have punished the share price so much?" That's a really good question. I think going around today or going around this week, I think it's been quite therapeutic because we're able to explain where we are. I mentioned about trading is in line with expectations. I think at the half year, a lot of pricing negotiations kind of happened throughout the second quarter of the first half, and you don't get to see those benefits that have been concluded in that first half. But we do get to see them in the results, certainly from October and looking at November as well. I think for us, that's the positive. I understand the concern, obviously, with the margins dropping and the stock increasing. I think what we've got to do is to show the data on that in Q4 and show the success that we're making in that area. There's another question. Where's that? So I guess there's this good to see the depth on the board. What key strengths do the new board members have that will help strengthen the position of the company? I think if you look at the PLC board, Scott McMeekin has come to the 10-year tenure. Scott has been really good to us, good for us. He has worked in our industry and has been very good from an industrial point of view and support on our strategic initiatives. We're really pleased to find Louis, who again, has worked in engineering component business, gets pricing challenges and gets what we need to do. And having somebody as a CEO that has worked in that will be superb, basically, as a sounding board to bounce ideas off. No, really pleased with that. Andy has done a great job coming in. But we have a new CFO also joining us, Darren Hayes-Powell. And again, Darren has worked in Rolls-Royce as a CFO and in Goodyear Tire with huge amounts of international experience and really good practical hands-on working capital and margin enhancement initiatives. So again, will hit the ground running, basically. I am conscious now it is 10 past, and if there is any other questions, happy to answer. Mark, Dan, and if I may just jump back in there, thank you very much indeed for addressing all of those questions that came in from investors this morning. And of course, if there are any further questions that do come through, we will make these available to you immediately after the presentation has ended for you to review to then add any additional responses, of course, where it is appropriate to do so. Mark, perhaps before redirecting those on the call to provide you their feedback, which I know is particularly important to yourself and the company, if I could please just ask you for a few closing comments to wrap up with, that would be great. No. Well, firstly, thank you all for joining the call today. It is very much appreciated. There is quite a few of you on the call. And yeah, I think from all three of us here, we really do appreciate it. And I do not think we are alone. It is a very challenging environment at this moment in time. But what I am hoping is the presentation that we have provided will give you some reassurance and the confidence that we are heading in the right direction. And with that, thank you all very much. And thank you, Jake. Mark, that is great. And Andy and Dan as well, thank you very much indeed for updating investors today. Could I please ask investors not to close this session as you will now be automatically redirected for the opportunity to provide your feedback in order that the management team can better understand your views and expectations. This may take a few moments to complete, but I am sure will be greatly valued by the company. On behalf of the management team with Trifast plc, we would like to thank you for attending today's presentation. That now concludes today's session. So good afternoon to you all.