Motorpoint Group Plc

morning everyone thank you for joining us for the most point group plc half year results for 2023 our financial year to 31st of march and our strategy update um this morning we're going to be looking at our uh oh there you go our uh our half one results which i'll take you through um our cfo chris morgan also joins me will be taking us through our financial results and ESG update. And they'll come back to me for a strategy update and outlook, and then we'll take any questions. So just to clarify a little bit, for those who don't know who we are, this is a beautiful photo of our new Coventry branch. But Motorpoint is the UK's leading omnichannel used car retailer. We only sell used cars. We only sell up to four years old and 30,000 miles. And currently we're investing for significant and profitable long-term growth. So many areas of investment and our key targets are to grow our market share through building our brand and rolling out our footprint across the rest of the United Kingdom. Again, just a reminder who we are. We have two distinct channels. We have a retail part of our business, which is the Motorpoint branded locations and also Motorpoint.co.uk. And through that, we sell the vehicles to the criteria mentioned earlier into consumers and also light commercial vehicles or vans, as we would call them. We have two businesses. The second part is auctionforcars.com. which is a trade-only website. So these are the vehicles that are above our criteria of four years old or 30,000 miles. And we sell those into the wholesale market through an entirely online process. Our operating model is the Motorway Virtuous Circle. It's very important to us, this model. It's been with us since I joined the business and our three key stakeholders of employees, customers and shareholders and how they interact. And the way we explain this to all of our team, I do many inductions for new starters in the business, is that our employees are the most important of that stakeholder, because if we get that bit right, the rest of it flows very well. Engaged employees, we've always been a best company to work for in the Sunday Times list. Engaged employees, I believe, provide dramatically better customer service. Those customers get great service and recommend and repeat purchase from us, which obviously pleases our shareholders. We create market share growth and that shareholder community then allows us to continue expanding the business across the rest of the UK, creating promotion opportunities for our employees. In terms of some of the KPIs, we have had record turnover in the period and further strong market share gains. As I said at the start, growing our market share is very important to us. The market has become smaller due to various different factors, mainly around supply. But it's important for us that we continue to grow our market share. So in the 0-4 market in Q3, our share rose to 3.7%. from 2.9% in the same period last year against 3.1% in all of FY22. So we're obviously pleased with that. And for those markets, for a 30-minute drive from a motor point branch, you can see our share increase a lot to 9.5% from 7.3% in the same period. That's mainly because we've got more market areas. We've got 19 now, we've opened five in the last year, and that's part of our strategy to make sure that we are nearer to our customers. Typically, when we open in a market or we put a branch in a market, then it dramatically increases our brand awareness and our market share dramatically increases also. So it's a very well trodden path for us to open a branch, take market share and be successful. Kieran Stonewall- In terms of revenues, you can see, they increased to 786 million from 605 in the previous year. Kieran Stonewall- And pleasingly for us our E commerce revenue continue to grow up to 350 million pounds and a half as a units and probably the part which we don't like is that, despite a dramatically. smaller market, we have also become slightly smaller. So our units have fallen to 49,000 from 53. Since the half year, the markets remained challenging. We expect that this will pick up at some point. Typically in the used car market, you get a period of decline or a period of acceleration, and then it does tend to stabilize. I think we're probably seeing the beginnings of that now and also the beginnings of the return of new car supply, which is encouraging for us. In terms of units sourced from consumers, the supply has been challenging. As everyone in the industry knows, we've continued to grow the amount of units we source from our consumers now up to over 22% versus 15% in the previous period. In terms of our momentum continues, as we've said previously, we will continue to invest strategically. We will remain profitable, but we will continue to invest strategically. So in a more challenging environment, we're aware that people would sometimes retreat from a strategy. We do not intend to do that at the moment. We can see that it's working. The numbers back it up, that growing our footprint, growing our brand awareness leads to a big growth in market share. And that's the path that we are following at the moment. But as you can see, that does have an impact on profit. So much lower profits compared to the previous year. I would remind you the previous year was probably the most stellar trading conditions I've ever seen in the industry in 20 years with values of cars going up every single month. However, that three million would compare to probably a normal period in the past of maybe six to seven million. So we are investing a lot. But it is within a controlled environment and it is within a variable environment that we can dial up or dial down as we see fit. Our customer acquisition costs come down a little bit. So some of that marketing spend started to work and making sure that we're not, well, that we're being very efficient with our marketing spend is probably the more important thing to say. So that has come down slightly, as has our days in stock at 50. Still too high for my liking, but we're working very hard on that to get that even lower. Chris will talk about cash shortly, but obviously we're pleased that we're in a cash positive position, which is very important in economic times as we're in now. And our facility at 195 million remains very, very substantial with a lot of headroom for us. Continue to be pleased with our customer MPS at 84. I think anything over 80 is something we're happy with. And the best companies to work for, I mentioned earlier, but that's the eighth year in a row we've been in the top 100 of that particular survey, which we're delighted with. So our strategic objectives investment does increase our market share. We continue to grow the market share gains that we've had in the past. We continue to open in new markets, as I mentioned, five since the previous time we spoke in October 2021. We have 19 now, two of them opened in this half. They were in Coventry and Edinburgh. And as I mentioned, we've got no structural debt with substantial headroom in our facilities. We have maintained our price leadership. That is a key aspect of our proposition is to be the price leader. That does obviously impact margin at times, but we think it's better to maintain price leadership. We are very, very confident that when someone does buy from us from a MotorPoint store or MotorPoint online, they will not go anywhere else. The vast majority of our customers do stay with us post their purchase. In terms of the investment, the key areas are the infrastructure. So the branch rollout, the technology, a dramatically bigger team and in the brand and also the digital marketing capability within the business, which we'll talk about shortly. I think this is a slide that we've put in because I think this is really compelling for us to grow our market share in every single market in the period, in both periods that we're looking at here is really encouraging for us. So I think you can only control what's within your control. We cannot control the macro environment. We cannot control the affordability challenges that some of our customers will have with the cost of living crisis. But what we can control is make sure we are the cheapest and that we take share in an environment. MotorPoint has always done very well in situations like this. We tend to take share and then we tend to hold on to that share when the market recovers. So this is very much a play around investing now. As the market recovers, we will maintain and continue to grow that share and become a much, much bigger business in the future. In terms of the investments that we're making. Our digital team is probably the biggest investment that we've made. Dramatic increase in the skill sets that we've had previously. And to be to be open, you know, we thought we were pretty digital in the past. I can assure you that we weren't now that we are, that we really understand what this now means in terms of digital marketing. Bringing in-house those functionalities will lead to dramatic improvements in the long term. and also really has an impact on operating costs compared to using outside agencies. So I think we will always seek to internalize core parts of the business and we would not outsource that. So that's really encouraging that we've now got a very strong team in that area, which we'll talk about later. In terms of product, we've now got a product-led approach to our engineering that is leading to dramatically faster capability in terms of changing the website or changing something else within the engineering community. And that connectivity that we have between the product owners and the engineers working in partnership and really focusing on what is the stuff that we need to get done that makes the biggest difference to MotorPoint. So we'll come to that shortly as well. In terms of the opportunities to increase sales through the product, that's what the team have focused on by improving the customer experience. We have some examples of that shortly, but also generating business efficiency. So things like self-serve of customer, making sure that that is very easy to use and then driving customers to use that, which reduces the requirement for us to have people waiting for customers to come in because most of the work's been done by the customer when they arrive to collect their vehicle. As I mentioned, the reduction in development times due to that partnering with the engineering teams and also the development of new site features and functionality now looking to really make that seamless journey between a customer being online and offline. Almost all of our customers, no matter which way they buy, do visit our website for one reason or another. And it's very, very important for us that that feels very seamless to the customer rather than two separate businesses. In terms of content and design, we have also recruited a content team and that they will be making videos and putting lots of written content on that obviously drives our search engine optimization. And in terms of UI and UX, we've recruited those teams internally as well to test and enhance the customer experience. And all of these teams sit under our new chief digital officer. Andrew Thompson, who was making great progress with us and making us sound like we know what we're talking about on some of those things. In terms of digital marketing, key activities we've done so far, a paid marketing platform, so Google, et cetera, linking that with the business MI. So looking at smarter targeting, reducing wastage, you can blow an absolute fortune on Google Pay, as I'm sure you're aware. And it's important for us that that is an efficient spend and a controlled spend. The SEO strategy that we have in place with the new SEO team and the content, will drive significant long-term organic search growth and also the team are providing brand awareness support as an example with our new marketing campaign that launches on christmas day the team are obviously supporting that as well through a digital capability we've also continued to improve our crm and to make sure that we can personalize as much as we can and we've increased the amount of contacts we make with customers which are have been very good in terms of the successes we've had with those creating demand and creating inquiries from customers Going forward, we need to continue working hard in this area. Reducing the reliance on the paid media and replacing with organic traffic is important. We always rather it be organic rather than paid and increasing our content and production quality. So I think that is a good opportunity for us to build real trust with customers. And of course, we will target our spend on the relevant keywords and search terms to make sure that we get the right results for those. Just some screen grabs of our website. You can see that we've replaced our new headroom footer. Really has a premium look now. Much dramatically improved performance on mobile, which is where the vast majority of our traffic is. And we've also replaced our home page. So much more look into a lifestyle approach to inspire customers to see what the vehicles can do in terms of their lifestyle. We believe that that's an important thing for customers. We've also improved the navigation and we've enhanced the content as well. In terms of the information we have available, we now provide EV data, which is still something that people don't really think about. You do not need to show miles per gallon with an electric vehicle. We show MOT histories and the number of keys that we have for that vehicle. So given as much information as we can to customers, being as transparent as we can for customers reduces the inbound inquiries from customers about a vehicle because we provided all of the information to the customer. So that helps the efficiency of the transaction from a customer perspective. but also a better visibility on the website now of our proposition. So to test drive, to reserve a vehicle, we offer nationwide transfers of vehicles and we also offer home delivery. And making sure that they are all very visible as a conversion point on the website has been important. And as I mentioned earlier, some improved sort and filter options to make sure customers can get to the product they're looking for more quickly. You can see the product delivery continues here with a new screen. So you can see the introduction on the left of a money off proposition. So obviously we do reduce the price of cars over time if they haven't sold. We've never really told customers that that car is now £1,000 cheaper than it was. And that is something that we've now introduced. That's been pretty recent development. And also including things like wish list and vehicle comparison tools. And as you can see on the right, an improved image gallery, which really helps the customer in terms of the desirability of the product. And there's more to come on that in the next couple of months also. terms of the the availability of vehicles so we will be now far more open with customers as to when is that vehicle actually available when could i get it home delivered and rather that rather than in the past customers have bought the vehicle and then found out when they could buy it so i collect it sorry when they could collect the vehicle so again up front giving the customer as much information as possible We've also improved the checkout journey. So it's very different now if you're buying or reserving. So again, give customers more clarity. And we've also upgraded our finance banner, which is shown at the bottom, to make sure that customers can really see the final proposition and the full details of the vehicle if you were to take our finance. As I mentioned on the slide earlier, we have achieved market share growth in every market. You can see the five locations we've opened recently in the top left. And we will be targeting a national share within 30 minutes of 10% at maturity. All of those branches can get to that, in our opinion. We have lots of market areas identified, whether we believe they're all economical or not is another matter as we come closer to the decision-making point. But we certainly will have more than 19 locations across the UK. And as I said earlier, our market share growth, when we put a footprint into a market, is very proven. We've done it 19 times now. We've never not taken share when we've opened a branch. And therefore, you know, we are very convinced that when we go into market, we win. And that's very important for us in terms of making the investment decisions right. as valid as possible going forward is very important that we get that experience of opening branches and taking share into the investment community. As you can see, our investment in brand drives market share gains. This is a summary slide from previous, but this also shows the linkage between the higher the brand awareness, typically the higher the market share in that market as well. So that's just by a cohort of openings. As you can see, the strong correlation between markets, brand awareness and market share. A few customer comments for you to read there. But I think the key thing on this slide is that AutoTrader, obviously the leading used car platform in the country, in terms of being the most cars on there. They do grade a vehicle based on the price, whether it's low, great, good or not good, which I forget the name that they use, but it's basically a higher price than you'd expect to pay. And 99.9% of our stock is in one of those sort of best in class categories for pricing. So something we are passionate about is it just validates our proposition on price leadership. Just a few examples for you. I know everybody likes to see these slides. So you can compare various different competitors there. We have Arna Clark, a traditional main dealer, which is Hartwell Group as well in the middle and Kazoo online only. But as you can see, we are always cheaper. We've got a very strong proposition. Our APR is 9.9. At the moment, lots of dealers have gone to 10.9, 11.9, 12.9, and even more in the independent sector. We are still holding at 9.9. For now, we haven't increased it recently from 8.9. So good savings there on customers for relatively similar cars. And our NPS growth is something in terms of our proposition continues to grow and make sure that we get to a good position on that. I think 84 is probably as high as we would want to see it, frankly. I think you can buy your way towards 100 if you want to. But we need to make sure that we're not giving too much value to customers in terms of if there's a slight issue with the car or something the customer's not happy about. We want to get genuine feedback rather than get a higher and higher and higher MPS score. We want to know exactly what our customers think. So I think as long as it stays around 80, I'm happy. I'll hand you over to Chris now for our financial highlights and ESG update.

OK, thanks, Mark. Good morning, everybody. Hopefully you can hear me. Hear me OK? So if you, I mean, the headline now, and Mark's already said record revenue, but really pleasing return to cash surplus in the half. We talked about market conditions and investment. So just go on to the next slide, please. So financial headlines again, probably picked up on some of these, but strong growth in the revenue is particularly pleasing is the market share up to 3.7% from 2.9%. The gross profit decline, we'll come back to the P&L in a second to look through that and obviously the BBT. Rocky has dropped from 51 to slightly over 40, which is still relatively high, but clearly that's been impacted by the profitability of the business. So if we just quickly look at the operating results. So as Mark mentioned, we all know the business is really split into two. You've got retail, which is sold via branches, call centre or digital channels online. And then you've got the wholesale platform, which is auction for cars, which go direct to dealerships. So if we take retail first, we can see record revenues. Revenue from retail customers is up about 28% and selling 32,000 vehicles and roughly about 34% of those were sold online. Interestingly, what we are seeing is that we're not seeing an increase really in customers sort of moving from the branch to the online experience ultimately in terms of how they buy a car. So I think, you know, that sort of reinforces the omnichannel model is the right way to go to make sure that all the touch points with the customer, whether it be through the website or the branch experience or somewhere in between, make sure that we've got the best possible experience for customers. So we'll continue to work through that. So retail margins did drop. As Mark mentioned before, they were stellar performance last year in the first half. They dropped to 6.6%. But again, price leadership is absolutely key for us. So we're very keen that we offer the best value to customers, whether it be in prices of vehicles or in finance. And off the back of that, we held our APR rates in the second half of the quarter to make sure we're giving best value to customers. But that did impact profitability, but we believe was the right thing to do. Finance for vehicles sold improved significantly. Now, that was partly because of the increased prices. for customers on cars because of the inflation. But importantly, penetration continues to increase. Penetration in September was around about 57%, so quite a few percentage points from what we're seeing historically. And as Mark mentioned again, our APR rates are competitive and will continue to be so. Just turning through to wholesale, so this is auction for cars, so this is either cars that we've purchased directly from consumers through the Sell Your Car channel, or indeed Part X from customers, and around about 17,500 vehicles were sold by this purely online platform. Gross margins did weaken somewhat to 4%. However, it was pretty much a game of the two halves in the first half of the year, where we saw that the margins did strengthen in the second half as we went through August, September, to roughly around about £300 a car, which is more normal going forward. So seeing that sort of come through. So that's good performance there. Looking at operating expenses, see the operating expenses grew roughly about 6%. But within that, there's a lot obviously going on. Firstly, there's about three and a half million of incremental investment costs. So that's in relation to the new branches, but also the digital and technology offering, again, which Mark mentioned earlier. um but despite new branches and growth of the digital marketing team then overall headcount did actually reduce around about eight percent so again you know we've got a strong focus in terms of efficiency uh whether it be in branch um preparation or indeed the head office um energy costs obviously that's a sort of a headline for for a number of businesses currently So energy costs actually fixed the prices for the current portfolio just over a year ago, which is clearly the right thing to do, as it turned out. But, you know, the really good news is that from a like for like energy usage perspective, if we look at the same branches, what we had a year ago, The natural usage is down 12.5%. So we're working through obviously our ESG agenda that we're coming onto later. We're working hard with everybody trying to make sure that every little helps in terms of how we can save energy across the estate. So that seems to be working well. Property costs obviously did increase because of the new branches. But obviously we had rates relief as well last year as part of the post-COVID support from the government, which obviously has fallen away this year. Marketing costs decreased from 10 million to around about 8 million. But that's primarily because in the first quarter, a year ago, when the branches reopened post-COVID, then we spent significant marketing to really push the performance. And again, you know, we saw record performance as a result of that. So that's on the marketing side. Just quickly on interest, you can see that interest has jumped quite strongly from 1.6 to 2.9. No surprise, quite clear to expect that growth to continue in the second half in relation to the interest costs. So that can be expected. And that's what ultimately overall we saw the PBT down to 3 million. Okay, Mark, if you jump over to the balance sheet. So from a balance sheet perspective, very pleased from a cash perspective in terms of how the cash improved from a debt position at year end through to a positive. And that's really around about the working capital control, not least around the inventories. So you can see the inventories have fallen from year end. from 228 to 286 million. But again, you know, that does reflect sort of tight control. And, you know, we feel, particularly as we now move into the busy Christmas, post-Christmas trading period, that we've got the right levels of inventory for the business. You can see the cash, though, is at 4.5. I'll come on to the cash in a second. We spent about five and a half million on CapEx, and that was primarily with the new branches, Edinburgh Coventry. We did a significant resit at Newport, which looks great, by the way, and also a million, 1.4 million on intangible costs, really around website and software development, which links in with the digital investments that we talked about earlier. Stock days around about 50, as Mark said before, we want to get back into somewhere in the 40s. So that continues to be a focus. And then lease liabilities increase, but that obviously reflects the additional leases. And just finally on that, you can see within the right of use assets and the assets held for sale. At year end, we had 9.2 million, and that related to the Stockton-on-Seas branch and the Peterborough Prep Centre. which were earmarked for saving leasebacks. And those successfully went through, realising about £9.7 million of cash proceeds in the first half. And they were sold and moved on at pretty much no gain, no loss. OK, Mark, if we move on to the... cash movement. So you can see we exited year end at 21.2 million of debt. That's the opening cash and RCF number on the far left. And that primarily included the RCF, which is fully drawn down at 29 million. And as we mentioned at year end, that was really around the timing of the availability of the stock in finance facilities and then using that to fund the stock. So we're able to use the stocking facility in the first quarter and you can see the 20.4, the stock net of financing facilities. So that reflects the fact that we're able to convert the RCF into the stock financing facility, which is what it's there for. The other big move is the 9.7. That was the sale and lease back transactions that I mentioned before. So yeah, so much happier from a cash perspective and a real focus both in terms of working capital and stock management. Okay, next slide please. And so just moving on to ESG, I mean, I think it's, you know, with the challenges that we have in the industry and some of the macro headwinds that we've spoken about, you know, it's quite easy to overlook some of these factors. But, you know, this is really, really important for us. as a business, not just now, but going forward. So we want to be viewed as the most environmentally friendly used car retailer. As we mentioned at year end, we've got an ESG board committee set up, so those have now been meeting and operating very successfully. We purchased carbon credits to offset the first year of customer drive-in emissions. um from an ev perspective we've already sold as many evs in the first half this year as we did in the whole of fy22 obviously to be expected but it's really important then that we can make sure we get the communication clear to customers uh and then mark show when this the screen grabs earlier about uh performance of evs so we've worked hard on that so so we're pleased with the ev performance Mentioned energy usage down 12.5% on a life-to-life basis and even despite the new branches down overall. We're carbon neutral for Scope 1 and 2 emissions and working hard on Scope 3 emissions and we'll be announcing more developments on that when we do our year end and zero waste to landfill. So again, successful. And on the right hand side, more areas about governance, talk about onboarding, talk about cyber attack resilience rolled out. So we've got stronger defence measures in those areas, improved business continuity plans, and again, real living wage employer. And again, we're looking at employees in that bracket going forward, so how we can best support them in difficult times. Okay. I think that's my slides. So I think I'll hand you back to Mark.

Thanks, Chris. So we'll just go back to our strategic update. So really happy with the progress that we've made on our strategic targets. And as I said at the start, we are continuing to invest despite the current macro headwinds, mainly because we can see that it's working and therefore we intend to continue. In terms of the particular progress, we have grown our market share, which you've mentioned several times already. We've opened five branches. We have a customer acquisition channel called Sell Your Car. We continue to invest in that digital capability and our efficiency activity is improving our KPIs. So that's another part of the benefit of technology investment is that we're becoming a leaner business going forward. So despite the challenge of headwinds, we have lots of things that are making life a bit more difficult. New car registrations remain very subdued. That obviously impacts new vehicle supply so that we have remaining shortages. Right now, we are expecting 2023 to be a much, much better year in terms of supply for new vehicles. Clearly, we need to manage carefully the impact that has on the value of our used vehicles, but we will be the first beneficiaries in the used car space of those new supply channels becoming more open as the supply eases. So there is a reduction in the market size, which we talked about, which is causing us to have to work much harder to grow our share. And we've seen obviously unprecedented vehicle inflation in the period of cars sitting still 40 to 45% more expensive than they were pre-pandemic on average. That cost inflation is something we're grappling with like every other business. Customer affordability challenges continue to be an issue as well going forward. So We've got to be very careful with how we price our vehicles. That price leadership should allow us to be relatively insulated from that. And obviously, we've got a much more diverse competitor set with the huge investment from the online players in the market. So despite all of that, I think the important thing is for us that we continue to roll out new branches and continue to take market share, which I think we'd all agree is a good result given those macro headwinds. In terms of our e-commerce capability, something we talk a lot about, I mentioned our chief digital officer earlier. We've also appointed a technology adviser to the board and we expect our new CTO to join in early 2023. That's taken a long time, but we know who we want and we're waiting patiently. And we think we've got that person now, so they should be joining in early 2023. In terms of the capability, in technology that continues to build, as I mentioned, the focus on product and engineering working together is really important. And we continue to build our data science capability and that is increasingly driving business decisions with some oversight from humans. We think that that's the balance that we've seen. We've tried data science alone and we've tried human alone. We think the best answer is to merge the two. In terms of generic paid search bids, that is something that you can automate. That is informed by a lead score based on success of previous campaigns and what volumes they lead to. And obviously, we are continuing to increase our email communications volumes. with the digital activity so customers are getting more personalized more frequent email communications which is leading to an increase in sales through that channel which we're delighted with and another thing we have a um a store in manchester and we've actually converted part of that store to be a technology hub There's a lot of talent in Manchester in the digital space. And I think that's important recognition from us that if we want the best talent, we need to be in the best market. So we've created a technology hub within our Manchester branch and that team. Because a lot of people are based around there, they can go in and collaborate in that space and that will help to attract the best talent in the country. So continuing our investment into that technology, data, e-commerce capability will accelerate the future growth. And I think we've not seen much benefit of this yet in terms of what it will bring in the long term. But we continue to build that capability and that will be very, very powerful for us going forward. In terms about customer acquisition and retention, so we have five new markets as we talked about. We do have more opportunities in the pipeline. Nothing concrete yet, but some coming. We know that new branches accelerate the market share and that price leadership combined with that delivers significant market outperformance, which is why we continue to grow our market share. We do continue to also allow our customers as much range and as much choice as possible from our products. So our unique mix is over 80%, which means 80% of our product is individually make, model, colour. Our EVs, as Chris mentioned, continue to grow. So as that supply comes into the used car space, then we will see it first because we are the key operator in the zero to four. So we get the new technologies first. And we've also introduced, as well as an ESG board, a customer board. So something I felt that we needed to do was to really focus in a dedicated session on customer experience and KPIs. And that is now up and running and we'll focus on driving those improvements. And we also have a project underway with our entire company on how Motorpoint will operate. the future so it's the motor point of the future project and it involves everybody across the business with all of the ideas that they may have and the goals are for us to give the best service to our customers to have a seamless website and branch experience making sure that our people are rewarded to drive market share growth and in essence how can we be the best at what we do in every single aspect In addition, just finally, we have a new brand advertising campaign launching on Christmas Day. And again, that's another step up for us working with a new partner in that area and something we're very excited about. Maybe you can tune in on Christmas Day to watch it. So just to summarize on that, we are creating a truly omnichannel experience for our customers. And that seamless is the word that we really tend to use a lot internally. But we don't want customers to feel the difference when they are online than when they come into store. we want to connect those journeys as far as possible In terms of auction for cars, so in terms of wholesale, sell your car obviously creates supply for Motorpoint, but also for auction for cars. That's a part of the business where there's no admin fees or payment fees. We do stand on our bid. The payment's made whilst the customer's in the store and it lands in their bank account, which always customers seem to be very impressed with. But we continue to source more in the half than we did in the entire last financial year. Vehicles sourced from customers. And you can see some of the stats there. where the customer car is is over our criteria then we sell that vehicle through auction for cars and we've also continued to expand our home delivery and collection fleet so we have our own trucks now and our own drivers and making sure that we can be as agile as possible in terms of doing those things And I mentioned operational efficiency and technology innovation. So there's a few points on this slide to just show that that technology investment is not all about having a better website. We have seen dramatic improvements in efficiency across our branch preparation and back office functions so that the system is being upgraded. The system is being automated and that has supported some headcount reduction. Despite the increases in the digital capability, we do have less people. An ongoing review of what is left as processes that can be automated is continuing. And as an example, we have upgraded our quality control app, which has taken the time to prepare a card down 11%. In terms of the technology and innovation, so this is around customer self-serve, you know, what information do we need, how quickly can we do it? Some of the processes were probably quite clunky, which we probably didn't realize until we get technologists involved. And that has allowed us to improve and automate quite a few of our processes. Like I said, there's more to go, but that has reduced our branch. like for like the headcount, but down by 16% following our automation and customer self-serve. So something we're very, very pleased about. We have a company-wide procurement review launch. So I think it's a drains up period when the macroeconomic times are tougher than we would all like. And then it is an important function to go through and make sure that everything that we're spending is justified, valid, and is great value for the business coming forward. So as well as those website enhancements I've talked about, our other projects around this technology include the Salesforce CRM being increased in capability. We've refreshed all of our IT hardware across the business. We've upgraded all our networks so we're faster and slicker. as a business, and we've also launched a new collaboration platform, which is basically a new telephony system, which has a lot of capability going forward in terms of things like chat and AI capability as well. So that will all lead to enhanced customer experience. Just in terms of outlook, I think we've said this so many times in the past, but it is important. Price leadership, we believe, is absolutely vital, especially in times like we're approaching an in Right now, we continue to offer the best value for our customers. We believe value wins in the long term, but value should win even quicker in an environment where customer affordability is challenged. We obviously have the macro challenges of inflation, rising interest rates and consumer uncertainty, as well as vehicle supply challenges, which are unique to our sector. But all of these have obviously contributed to impacting used car demand. In terms of macro factors, we see that those will continue well into next year. And like I said earlier, it does tend to stabilise. We're not really seeing it stabilise right now, but used cars normally do suffer less in any downturn than new cars. So it will be very interesting to see what the size of the new car market will be going forward, particularly our 0-4, which we believe will be just around 2 million units a year when the market recovers. We do have a strong track record of demonstrating that resilience. We've never lost money. We've always made a profit. And as we've said previously, we are continuing to invest. Our only goal is to remain profitable. But in the long term, we think that that will lead to dramatically higher long-term profits than we would have otherwise achieved if we'd not embarked on this strategic journey. So we do see profits being lower in the short term compared to the previous long-term averages as we continue to execute on these investments. But in the future, the business will be a leaner business. Technology will create that efficiency and our lower non-strategic costs will give us a very lean operating model that will lead to substantially increased profits as we move forward. So that's all from me. I think now we'll hand you over to Alex and then we'll take questions.