Softcat plc

Good morning everybody and welcome to the Softcap results presentation for the year ended 31st of July 2025. Thank you very much for your interest in the company. I'm Graham Charlton, Chief Exec and I'm joined today by Katie Mecklenburg, our CFO, who you'll hear from very shortly. And a special warm welcome to those of you in the room with us here in person. This is our new, still relatively new London office, one of several new offices that we've created over the past year. And I hope it gives you a feel for the Softcat culture and energy, as well as seeing some of the new styling and our new logo come to life too. Before I pass to Katie, I'll begin, as we usually do, with a quick reminder of who we are and what we do. Because even for those of you familiar with our story, it is evolving at pace as we grow. And so it's a useful annual check-in, I think. Katie will then headline the annual results and I'll come back later to give you an update on the strategic progress that we're making. So here we are then. Softcat is the largest provider of technology solutions and services in the UK market. We operate across countries. the full spectrum of modern infrastructure encompassing security, hybrid cloud, compute and storage, data, AI, networking and workplace technologies. We offer a very rare capability in a highly fragmented market, the ability to help customers design, implement, manage and support increasingly complex and integrated environments through a single partner. We now have over 2,700 employees, and as well as in the UK, we operate in Ireland and the US, and we built a branch network allowing us to procure and fulfill on a truly international basis these days. We continue to work with all of the biggest and best-known and most relevant technology vendors globally, often as the largest or one of their largest partners in the UK market. And we have over 10,000 customers ranging from small and the mid market through to large enterprises and from the corporate into the public sectors. And I'll talk more later about how we continue to expand this range and capabilities and to deliver on what is still an almost unlimited growth opportunity ahead of us. But for now, I will pass you to Katie for an overview of how we've done in the last 12 months.

Thank you, Graham, and good morning, everyone. So I'm very pleased to share with you Softcat's results for FY25. In summary, our results for the year reflect the strength of our business model and ongoing success in strategic execution. Despite the continued backdrop of microeconomic and geopolitical uncertainty, we've delivered strong double digit growth in gross profit, which is our key measure of income. and in underlying operating profit. Gross profit of just over 18% reflects a 1.6% increase in our customer base and a 16.5% increase in average gross profit per customer, demonstrating further good progress on both metrics. This growth reflects broad-based strong performance across the business and the delivery of some larger solutions projects during the second half. Underlying operating profit of £180.1 million, which excludes the impact of £7.2 million of non-underlying costs, and I'll run through these in more detail shortly, increased by 16.9% versus FY24 and was ahead of our expectations at the beginning of the year. We have continued to invest in the business throughout the period. This includes, as usual, growing headcount, albeit this has been at a reduced rate compared to previous periods, and a significant investment in new offices alongside investments in our internal technology capabilities. We've also maintained a strong balance sheet with underlying cash conversion of 95.6%, which is at the top end of our guided range. We ended the year with more than 182 million in cash and therefore alongside our normal policy of paying out between 40 and 50% of profit after tax as an ordinary dividend, we are also able to recommend the payment of a special dividend of 16.1 pence. And turning to the summary income statement and starting at the top. Gross invoiced income grew by 26.8% to 3.6 billion, surpassing the 3 billion mark for the first time in our history. This reflects particularly strong growth in hardware, up 74.5%, with software up 14.8% and services up by 15.5%. Hardware performance was mainly driven by strength in data centre and networking sales, with also strong performance in server and compute services. and this was augmented by the larger solutions projects we delivered in the second half of the year. These large deals were very large, low-margin data center solutions projects. Software growth was broad-based across technology towers, while services saw strong growth both in internal and third-party support deals. Revenue grew by 51.5% ahead of GII, largely due to a higher share of hardware, which is reported on a gross basis under IFRS 15. Services revenue growth of 30.6% was ahead of GII growth, reflecting a higher share of internally delivered services, which are also reported gross. Software revenue grew behind GII due to a lower software gross margin, reflecting mix into low margin public sector deals and the impact of Microsoft EA changes. Gross profit, which is our primary measure of income, grew by 18.3% to £494.3 million. This exceeded our expectations at the beginning of the year and reflects strength across our broad portfolio of solutions alongside the benefit of the larger projects in the second half. Gross profit growth was broad-based across our customer segments of enterprise, mid-market and public sector, and on a product basis of hardware, software and services, with each growing at least high single-digit. By technology, area growth was driven by security, reflecting the ongoing customer focus on cyber investments, alongside growth in data center and networking, where demand was broad-based and supplemented by the larger solutions projects. In workplace, GP growth was more muted year on year, reflecting the impact of Microsoft incentive changes and ongoing subdued demand for devices, particularly in the first half. Overall gross margin declined by 90 basis points year on year, primarily reflecting the impact of the larger solutions projects at lower margin. Underlying operating profit grew by 16.9% to £180.1 million, with operating cost growth of 19.1%. Commissions and other variable pay grew broadly in line with commissionable gross profit, while wages and salaries grew by 11.2%, driven by a 7.3% growth in average headcount and a 3.7% increase in average cost per head. The cost uplift also reflects four months of the national insurance increases, which came into effect in April. During the year, we've invested in our IT team capabilities and in our offices, with three office moves to larger floor prints, including the London office where we're presenting from this morning. Included in the FY25 operating costs is also an impairment charge for Amalo office and some realised Forex losses. Moving slides, as a result of the investments, the operating profit to gross profit ratio declined slightly from 36.9% to 36.4%. In the year, we incurred 7.2 million of non-underlying costs. These included system development costs of 5.3 million relating to the implementation of the new cloud-based sales and HR systems. Typically, we would capitalise these types of costs, but neither system meets the criteria for capitalisation of cloud-hosted systems. In addition, there is a £1.9 million charge relating to the acquisition of Oakland, which is made up of £0.7 million in transaction costs, £1 million in respect to the fair value of the deferred consideration, and £0.2 amortization of acquired intangibles. We expect further non-underlying charges in the region of £20 to £25 million in FY26, primarily relating to the sales and HR system implementation. These multi-year projects with peak spend in FY26 build a foundational platform for Softcat's data, digital and AI transformation journey. And Graham will give more colour on this shortly. After deducting non-underlying costs, statutory operating profit was £172.9 million, an increase of 12.2% year on year. Net interest income from the year was in line with the previous year of £5.3 million, with an increase in interest costs from the new office lease liabilities, offset by increased interest earned from improved cash management in the period. And lastly, tax increased in line with gross profit, resulting in profit after tax growth of 11.7%. Touching now on our customer base and portfolio offerings. Our growth is supported by the diversity of our customer base and the breadth and depth of our customer offering. On the left, you can see the latest customer segmental view of our business, which remains very well balanced. The public sector and enterprise segments of our business together account for just over half of gross invoiced income, with mid-market accounting for the balance. The middle chart shows the spread of our activity between our traditional technology resale business and our services offering. And on the right, you can see that we continue to generate well-balanced income across all areas of our technology portfolio, ranging from the cloud and data centers through networking security and end-user compute. The diversity of our customer base and breadth and depth of our offering is a key strength of our business, and this underpins the sustainability of our growth model and our opportunity to further scale. Moving on to our customer metrics. The chart on the left shows the growth in our entire customer base and growth in average gross profit per customer, which demonstrates our ongoing ability to acquire new customers and sell more to existing customers. During the year, we have grown our customer base by 1.6% to almost 10,200 customers and grown GP per customer by 16.5% to 48,500 pounds. The graph on the right shows a more detailed view of those customers with whom we have an established trading relationship and where we thus experience lower churn rates. This view focuses on the more than 8,000 customers that deliver at least £1,000 of gross profit each year. In this cohort, there is a more balanced profile of growth between customer growth of 3.7% and GP per customer growth of 14.1%. The longer tail of transactional customers continues to represent an important source of future growth for us, but our established customers generally account for at least 99% of the group's current gross profit. And now moving on to cash. This year we have slightly amended the definition of cash conversion to reflect the introduction of the underlying operating metrics that exclude non-underlying items. This means that our new APM is underlying cash conversion, which is net cash generated from operating activities before taxation and any acquisition-related cash flows, including deferred consideration outflows. Net of capital expenditure as a percentage of underlying operating profit. Underlying cash conversion in FY25 was 95.6%, reflecting continued good working capital management as we continue to manage customer and vendor payment terms in our deals. You may have noted that we are carrying more inventory at the balance sheet date than normal. This relates to a large deal which is still in progress and while the inventory is elevated it doesn't impact networking capital or year-end cash as we've been prepaid by the customer and we in turn have prepaid suppliers for the stock. Depreciation and amortization stepped up year on year due to the investment in offices and internal technology and capex more than doubled to 15.2 million in the year primarily reflecting the investment in new offices. The increase in other is due to the add-back of non-cash impairments and forex movements. Higher cash tax reflects the growth in profits in line with the income statement. We've returned £95.7 million of cash to shareholders during the year and the net cash paid for Oakland was £7.4 million. Thus we ended the year with a cash balance of £182.3 million and increase of £23.8 million year on year. Looking forward to FY26, we expect cash conversion to be towards the lower end of our guided range of 85% to 95% due to the cash outflows related to the sales and HR systems. This next slide covers the dividend. As a reminder, the interim dividend paid back in May was 8.9p. In line with our new policy of paying out one third of the previous year's ordinary dividend as an interim in the current year, the Board is proposing a final ordinary dividend of 20.4p. reflecting our normal policy of paying out between 40% and 50% of profit after tax. This represents a total ordinary dividend for the year of 29.3p, an increase of 10.2% on FY24. In addition, we're also proposing a special dividend of 16.1p. This is in line with our capital allocation policy to return excess cash to shareholders, subject to maintaining a cash flow which we've raised this year to £90m, from £75 million, reflecting the operational needs of the business as we continue to grow. Turning now to capital allocation. We have a disciplined approach to capital allocation and our framework remains unchanged. Our top priority is to invest in future organic growth, which supports our ambition to take further share in expanding addressable markets and enables us to scale our business over the long term. During the year, we've invested in the long-term growth potential of Softcat, increasing our office footprint, increasing headcount, developing our data and digital platforms, and investing in core systems and IT capabilities. Our second priority is to maintain a progressive ordinary dividend policy, Any excess capital is then either allocated to compelling strategic investments or returned to shareholders. In the year we've made our first acquisition, buying Oakland, a data and AI services company, and we continue to explore further acquisition opportunities, which could include further capability bolt-on acquisitions to expand our portfolio offering or expansion in international markets. And finally, moving to the outlook. Looking ahead, Softcat remains well positioned to deliver significant growth and our guidance for FY26 remains consistent with that provided at our FY25 trading update in August. We transacted a couple of very large data centre deals in FY25, some of which are recognised in H2 FY25 and some of which are currently anticipated to be recognised in H1 FY26. Large deals are very much part of our underlying business, but these are exceptionally large, and given the cumulative size and phasing of the deals, there is an element in FY25 that can't be replicated on a one-year basis, and we've quantified this incremental contribution as a beneficial £10 million impact on FY25 operating profit. Excluding this incremental contribution from large projects in FY25, we expect to deliver low double digit gross profit growth and high single digit underlying operating profit growth in FY26, which is in line with our normal growth framework. When we include the significant incremental contribution from large deals in FY25, this translates to high single digit gross profit growth and low single digit growth in underlying operating profit in FY26. I think it's helpful to note that this gives a two-year CAGR from FY24 to FY26 of circa 12% for gross profit and 9% for underlying operating profit, which effectively normalises for that incremental contribution in FY25. The FY25 second half phasing of these large projects and the anticipated H1 phasing at FY26, albeit noting that this is dependent on both vendor and customer timelines, means that the underlying operating profit growth for FY26 will be first half-weighted. And with that, I'll now hand back to Graham to run through the strategic update.

Thank you, Katie. And I will now talk about Softcat's future, because although the market hasn't been easy over the past few years, it is still in long-term structural growth. And I can't think of a more exciting industry for us to be in. And to set the scene and remind us of that, I'm going to start with the momentum with which we enter this year. And it's not momentum that we've gained just over the last 12 months. It's momentum that we've developed over 32 years. And you can see it visually represented here. And as you can see, we've come a long way in that time, relentlessly scaling our business to become the biggest operator in the UK market, create the broadest and deepest offering. And yet, despite that, as I said before, we still have almost unlimited room for future growth. Our industry is highly fragmented and we estimate that at most we've got a four or five percent share of the addressable market and that is to say the market that we're equipped to directly address today. The breadth of our offering has served us very well through both upswings and periods of more challenging market conditions and you can see that clearly through the consistency of our growth and mainly through organic investment but also now our acquisition of Oakland we've extended that addressable market and relevance further each year. We've moved into new and exciting high growth areas such as data services and AI. And over the past five years, we've also begun to expand internationally. We've established a strong foothold in Ireland and with more customers pulling us into overseas opportunities such as in the US, we've got the capacity and capability and reach now to accelerate further. So in terms of our future opportunity, I will come at it from a few different angles. But before I get into that, I'll pause just for a minute on something that we won't be changing and something that will be totally consistent about how we will grow in the future. And that's where we get our primary source of advantage from. And as you know, that is our culture and our people. And this simple illustration, which you've seen before, is still the driving force behind our success. The industry leading customer service that our special culture delivers creates trust that enables outstanding performance and growth, which enables further investment in our proposition. So this flywheel is still the heart of everything we do. And you can see in the center of it. The two sources of advantage that I think we have, firstly, the highly engaged employees that are the product of our culture. They will always be our number one priority and the main source of advantage. But the second element of that advantage in the middle is the best in class proposition. And there is a lot going on within that to enhance the value that we can deliver for customers. And we've previously shared the different components of that proposition and described how we intend to develop each in turn. And we've refined that down now into three key themes and combined those with the culture to create what I now call our four big engines of growth to power us towards our future ambitions. And you can see them illustrated here. And I'll talk about each in turn about what we've done. and about what we will do to build them and tune them up for the opportunity ahead. the encompass, the special culture, but also sales and customer excellence, the breadth and quality of our offering and operational excellence. Continued investment in all four of them will drive our strategy and so I'll talk about each in turn. So firstly, our special culture. We are not a special place to work because we've been successful. Softcat has been successful because our people have made it a special place to work and the drive, the energy, the positivity of our people, it's a force of nature creates a momentum and forward motion like nothing I saw before joining Softcat. We devote enormous amount of time and effort to preserving the power that that creates. And as we continue to grow, the empowerment and support that we give to the incredible people who lead our local office leadership teams, that becomes ever more important. Culture happens at a local level and in a physical environment. And this is one of the reasons that we've invested so significantly over such a long period of time in our workplaces and the training, coaching, and support that we give our people. And we've stepped that up over the last 12 months. We've carried out four major moves and refits to some of the biggest offices that we have, and we've got more yet to come. So you can see Birmingham, Bristol, Manchester, and obviously the London office that we're in today on the slide there. But Dublin and Glasgow are next, and the new styling's been updated across the rest of the offices as well. But alongside that work on the fabric of our buildings, we are stepping up the recognition and support that those local leadership teams get as well. Each office has got a local identity and a way of doing things, but the ethos, the energy and the drive is the consistent theme based on a genuine care for people and a shared purpose and celebration of success as a team. We've continued to receive positive external recognition for the strength of the culture including for the first time being certified a great place to work in the US alongside the existing accreditations that we have in the UK and Ireland. And we've just had the whole company together at the NEC in Birmingham for our annual kickoff to celebrate what we achieved last year and plot our route forwards together. And we're now in the process of getting our people's feedback, whether from new apprentices or veterans of 30 years, and we do have some of those, to hear what they feel that we're doing well and where we need to improve and evolve. And their feedback, along with that that we get from our customers, those are the two single biggest and most important inputs each year to our strategy. And so that leads us on to the second one of our engines, which is sales and customer excellence. And this is all about ensuring that our sales teams continue to lead the industry through the training support that we give them. But it also extends beyond the sales teams to encompass what is truly an organizational approach to customer service. This pyramid, which is familiar to many of you, and we've used it before, shows a representation of how our salespeople shape that customer opportunity over time and deliver growth through outstanding service, building trust and loyalty. Each layer of this pyramid is defined by the amount of gross profit delivered by our customers, and as you move up the chart, you can see an increase in customer tenure as we form deeper relationships. We have more vendor presence in each account and the lower churn rates that result as we build that trust. In the bottom layer, the customer pool are customers with whom we've either not yet trading or have just made a transactional start. And these customers are generally with our and being targeted with that by our junior account managers and just beginning to work with us. But as you move up through the layers, the relationship builds towards that trusted And so at the top there, the pyramid at the top, it isn't simply a reflection of the size of the customers and IT budgets in that layer. You can see that only around a third of the customers up the top there are the largest enterprise scale businesses. organizations that we work with. Two-thirds there are still mid-market businesses. That shows the success that we are able to have in the mid-market space, but also that we've got very significant scope to do more in the enterprise segment as well. And on the right-hand side, we've outlined the number of large solutions that we are delivering each year, which is up by around 50% in the last 12 months. And as we keep growing our capabilities and our offering and deepen those relationships with more and more customers, we expect to continue to grow that large solutions element of our business as well. And turning the slide again now, but staying on this topic, And as I alluded to earlier, feedback from our customers is a key input to how we build for the future. We formally survey all of our customers on an annual basis, and that feeds into the customer satisfaction report, some of the results of which you can see summarized here, and they remain exceptionally high. We had a record number, far more than ever before, actually. Customer contacts respond this year, and we've never had more people telling us so clearly how highly they rate the value of the service that we provide. Our NPS score increased by one to 64%. But the survey results also give us insight into what our customers are focusing on and planning for their businesses. Unsurprisingly, data, security and AI feature prominently. And our acquisition of Oakland is helping us to drive more conversations across those areas. The desire in our customers to innovate their business models is also very clear. And having a single partner, as I mentioned before, that can collaborate on all these areas is a huge advantage. We can advise on integrated solutions that can be implemented part of long-term strategic roadmaps and our account managers they can remain focused on working with a customer in the areas that are important to them and not banging a single self-interested drum and that alignment of interests is an incredibly powerful force for performance especially in more challenging conditions and for sustaining our long-term relevance to the customer And turning now then to the third engine and the breadth and quality of our offering. And this slide's another one that should be familiar. I think it neatly captures the range of our portfolio, comprising the technical skills that we have, the services that we provide across all the technology areas, along with the vendor accreditations that we hold. And across the top, you can see how we segment our technology proposition into five key areas. And this gives us a very rare span across the entirety of modern infrastructure, from the edge to the cloud, from software to hardware to services, from physical supply of devices to the re-architecture and management of data. We work with all the largest and most established vendors. We're accredited to all of their top-level programs, and we are the first port of call as well for exciting and emerging new technologies. Our services range from advisory and architecture through to implementation, support and management of solutions. And this gives our account managers the confidence and credibility to work with their customers, knowing whatever issues or challenges that particular customer is currently facing, regardless of where it is in their technology stack, soft cap. is best placed to help them in some way. And over the past year or so, we've been adding to and deepening those capabilities and services as we always do. That's been again through organic hiring, but also for the first time this year through acquisition. So we'll have a look at a brief overview now of that Oakland acquisition, which we completed back in April. And it has significantly enhanced our capability in the data and AI space and among other technologies. It also supports perfectly our partnership with Microsoft. Now, we originally worked with Oakland as a customer of theirs and to help us, they were helping us with our own data transformation. And in working with them, we could see a number of things. Firstly, that they were a quality provider, they were capable and they could execute. But we could also see a very clear affinity between their culture and ethos and ours. And we could see that the help that they were giving us was relevant across all of our customer base too. Data engineering and governance is the key foundational layer to AI transformation and the creation of agentic AI systems. And as we say internally, the more that we looked at that on that previous slide that I showed you of our proposition, the more that we could see an Oakland shaped hole in it. They could see it as well. We brought the two businesses together. They were with us at the all company kickoff event, which I just mentioned. And watching our two businesses come together has been really exciting because the pipeline that we're developing, And the response of the vendors, like Microsoft, but also like IBM, like NVIDIA, Intel, and many, many others, and the conversations we're having with customers about their data is really exciting. And this isn't just of benefit to SoftCap for the consultancy and data engineering revenue stream that it will bring to us. The acquisition significantly expands our addressable market in other ways, too. And as you can see from some of the vendor names that I just mentioned there that play in that data and AI and high performance compute space. But it also deepens our relevance to the expanding portfolio of many other traditional players that operate across our portfolio as well. So we're delighted with the progress we've made on the joint integration plan. It's been focused so far on very carefully and selectively linking up our sales motions. And that, as I said, has generated a terrific pipeline both for Oakland and for the broader soft cap portfolio. And finally, now we'll turn to the fourth engine, operational excellence. And our vision is to build a business which is increasingly automated, smarter, easier to interact with for both customers and our supply chain, and using data more intelligently. This will improve both the scalability and also the effectiveness of our business, but also enhance customer and employee experiences, helping amongst other things for us to get the right part of our service deployed for the right customer at the right time. And we've been investing for years now in our own internal processes and systems. And we'll continue to do that to modernize how we work. We've got a representation here on the slide of what we are doing. And we've indicated how, as we get these base systems and the data governance and other foundational layers complete, then we'll be able to move into the optimization and innovation of how we deliver. And the timing of these investments, starting as we did around four or five years ago to plan and develop some of this, starting with the implementation of a new finance system three or four years ago, a new database architecture and integration layers, now extending into a new service management system, which we implemented last year, and now into our sales system and a new HR platform. All of this comes just as these core platforms are beginning to embed AI in the way that they work. And the creation of agents and agentic systems with the overlay of Copilot, which, as you know, we fully deployed a while ago across the organization, I think this puts us in prime position to truly transform the ways that we soft cap work in the years ahead. And as I said, during the year, we started work on the deployment of Microsoft Dynamics as a replacement for our existing sales system. The latter had been in place for more than 20 years. We expect user testing on the new system to begin next year in the early summer. And ultimately, all of this work and investment is designed to enhance about what I talked about before. an organisational approach to sales and customer excellence. The technology and tools that our salespeople, technical engineers, credit controllers, legal team, amongst many others, will have at their disposal will be contemporary and AI enabled. And as we look to scale our business in the UK, in Ireland, in the US and beyond, these investments will provide us with the operating platform to do what we do best, fantastic customer service delivered by a special team of people. So those are the four aspects of our strategy going forward and a flavor of what we're doing within each to make Softcat an even better partner for our customers into the future. But I'll finish by talking about where we will begin, where we will deploy this approach and what we're doing in the different geographies that we're now operating in. So this next slide shows the geographic range of our operations today. And despite having the largest share of the UK market and having created the presence that you can see on the page there from the US out to the Far East, despite all of that, we're not even yet in the top 10 globally in our industry today. And that's great news. Because while the UK is and will remain a core focus and a market with more than enough opportunity, even and of itself, to perpetuate the growth rates that we have been delivering, despite that, the UK is now only one of the markets that our customers are asking us to do work for them in. As I mentioned earlier, we've made a great start in Ireland. We have a local team there selling to local customers. We will keep investing in that team. And I believe that we can aim to be the biggest player in that market one day. And we also have an emerging presence in the US with a team there now of around 20 growing in tenure. It's a mixture of new local hires and tenured soft cap UK exports. And in that market, we are not yet selling to local customers. We are just delivering for existing UK and Irish multinationals. But the culture in that team is already as strong and vibrant as in any of our UK offices. And we're developing some really good momentum. And we've got lots of good options through which to keep building in the US, chief amongst them. And the one certain way through which we will do it is by continuing to organically invest in the team and office that we've already got there. But we also believe that Softcat could be a fantastic owner for an already established operation in the US. And the evaluation of inorganic options there is something that we've previously described before as a no-lose effort, because just by doing that work, by looking and evaluating, we are learning more about the market and how to build the existing team. So our progress in the US could continue to be a steady organic build, or we could accelerate it through acquisition. Either way, we've made a great start there. We've got the capability, capacity, and ambition to act if we see the right opportunity. But finding the right opportunity is the key phrase in that sentence. We've set a high bar, and finding a management team with an ethos aligned to ours based around genuine care for their people and culture, like we did with Oakland, that's the non-negotiable part of it. But also, like with Oakland, I think we've shown that we can extend and accelerate our business through M&A, and so we will look for the chance to do that in the U.S. In addition to the plans we've got there in America, the UK and in Ireland, we'll also continue to build on the growing network of branches that we've established across the rest of the world in Canada, Europe, Asia-Pacific. We do now have an office of three people out in Singapore, but we'll keep developing the rest of world fulfilment capability too. And so to summarise now, we've delivered, I think this year, another year of very strong performance. We bring fantastic forward momentum into this new financial year. We've refined how we think about the strategic priorities that will power this next exciting phase of growth for Softcat. And we've got really well-defined plans to invest across all of those. We are expanding the horizons over which we can deploy our model for future success. But while we might enable new tools and new approaches in new markets, we will always have people and culture as our number one priority and principal driving force. So thank you again for your time and interest in Softcat today. We're happy to start taking questions now. We'll begin in the room and then we'll open it up for anything that comes in on the lines as well. Morning, Andrew. You've got the mic.