Currys Plc U/Adr

And welcome to our new offices and welcome to our full year, financial year 22 results. What you're going to hear today is strong results from a stronger business. And you're going to hear how we produce these strong results and how we intend to keep doing it. And in particular, you're going to hear how we're going to use the strength that we've built to help customers through what's going to be a particularly tough year and this cost of living crisis. First up is going to be Bruce, who's going to talk to you about those results but also with a particular focus on something that's important and where we're doing a reasonable job of building more cost efficiency into the business, which is obviously essential if we're to help customers as we want to. Bruce, over to you.

Thank you, Alex. Good morning all, hope you're well. So as Alex said, I'm going to start off by just giving a high-level overview performance of the group, and then I'll spend some time going through each of the business units. Right, so from a high-level perspective, very quickly, our revenue for the group in financial year 22 was 10.1 billion, which was down 3% like-for-like year-on-year, but up 10% year-on-two years. Our adjusted profit before tax increased by 19% to 186 million. We had free cash flow of 72 million. We saw a substantial further reduction within our total indebtedness, falling by 164 million year-on-year to 1.5 billion. Our adjusted EPS stepped forward by 11% to 11.9 million. And finally, we returned 78 million to shareholders. We had strong performance across all of our divisions. So starting off with UK and Ireland, our like-for-like was minus 4% year-on-year compared to a strong base last year. But year-on-two years, we were plus 6%. And if you were to strip out the mobile business, actually our two-year like-for-like was plus 13%. Within our international businesses, Nordic, like for like, year on year, minus two. But over two years was plus 15%. And Greece was positive both year on year, plus four, but also year on two years, plus 14%. Focusing now on the UK business specifically, and what we've identified is a significant step forward in market share. Our market share grew by 0.9% year on year to 25.6%. And on the graph on the left, you can see that on the face of it, our market share stepped backwards by 0.9% year on two years. But actually, that belies the fact that we grew share both within our stores channel and our online channel. And it's only channel shift that caused that drop. In terms of a performance summary for the UK business, our online share of business dropped from 65% to 45% within the year. Our adjusted EBIT stepped forward by 22% to 111 million and our EBIT margins moved forward by 0.4% up to 2%. Our operating cash flows were 152 million, that was up 10% year-on-year, and we generated segmental free cash flows of 109 million. The makeup of our profitability within the UK, and particularly the movement year on year, is quite complex. So I hope you're going to bear with me as I step you through this waterfall, because I think it's quite helpful to understand the movement. And the reason it's complex is there are a number of one-off impacts that are useful to pull out to rebase last year's number. So if I step through those, FY21's profitability was 92 million. We faced business rates impact as the taxes increased as a result of losing the COVID relief. That was 39 million. We also had an accounting impact on our ID mobile business. Now, the good news was that we have taken ownership of the ID mobile customers, but the accounting consequence of that means that we need to spread the revenue. and that has a negative profit impact year on year of 20 million. Similarly, we have an accounting impact from the way that we're choosing to manage our IT business. Historically, we've done what many businesses do, which is use CapEx to build our own IT infrastructure and then see the impact through the P&L in depreciation. We're switching our business towards software as a service, which means far more of the cost is upfront directly through our operating expenses. And that is reflected as a 15 million headwind year on year. But going the other way within one-off impacts, we had a 22 million benefit within our mobile debtor settlements. That reflects the fact that we had a minus 11 million in financial year 21 and a plus 11 million in financial year 22, hence a plus 22. So therefore, rebased, our UK profit was 40 million. That then results in a set of underlying movements. We suffered cost inflation of 56 million higher year on year, offset by cost savings of 69 million. And in a moment, I'll walk you through some slides that breaks that down. We also had a mobile debtor revaluation that helped our P&L by 22 million. And then there are a whole range of other benefits that added up to be worth 36 million, which gets us to the 111 total EBIT. Another way of looking at the UK P&L that I think is quite helpful is to look through the lens of gross margin and operating expenses. From a gross margin perspective, we saw a 110 basis points improvement within our gross margin. And all of that is underlying improvement. because the mobile debtor improvement value offsets the ID accounting change. Within that 110 movement, we had 30 basis points of cost saving within our supply chain operations, 40 basis points upside from the network debtor revaluations, and 70 million of inflationary headwinds from both shipping and payroll costs within our supply chain. When you net all that out, you're left with a remaining movement of plus 110 basis points within gross margin. As I say, a whole range of different things going on there. But if I was to group them down into two buckets, one would be the benefit of stores reopening. We've been clear in the past that our stores make a better gross margin than our online business, and that is still true. And over the course of the year, and you'll hear Alex talk more about this in a moment, we've seen significant step forward in our adoption rate of both credit and services across both of our channels as we look to level up both across channels and within our channels. And that significantly helps our gross margin. In terms of our operating expenses, our operating expenses on the face of it have gone backwards by 70 basis points. However, more than all of that is caused by the isolated impacts. So the business rates tax headwinds that I described and the IT accounting headwind together equate to 100 basis points of headwind. which means the net position is a 30 million improvement within our operation expenses, with cost savings offsetting inflation. In terms of the inflationary impacts, they fall broadly into three buckets. The first and the biggest is our wage cost increases, which increased by 25 million. 17 million of that is within our supply chain and our service operations, and hence are in gross margin. 8 million of it is within our stores. But as you may have seen when you walked in, the video showing our colleagues who are, of course, at the absolute heart of our business, it's an important investment that we're making. And as you can see on the graphic, over the last five years, we've increased the wages of our colleagues by 29% over that period. We've seen inflationary headwinds from energy, like many businesses. Now, we do effectively hedge energy on both a summer and a winter tariff. But despite that hedging, we've still seen a 38% increase within our energy costs. which equates to 8 million of extra inflation year on year. And finally, shipping costs. And this is fundamentally the cost of moving product overseas, particularly from the Far East. There we saw a 22 million headwind. We saw, for example, 134% inflation of container costs moving product into the UK. So some substantial headwinds that add up to 56 million. But as I reflected, we've been able to more than offset those with our cost program. And you've heard us talk before about our proposed 300 million of cost savings, and we're well on track to deliver that. The cost savings fall into four categories. These are the same four categories that we talked about at the Capital Markets Day. First of all, supply chain. Brilliant basics. Getting our supply chain working as effectively as it possibly can be and also the outsourcing of our warehousing and logistics to GXO has delivered 12 million of savings. Within goods not for resale, making sure that we're re-tendering all contracts when they come up and looking to consolidate our supply base has saved 19 million. Within our stores, for those of you who were at Staples Corner, we talked there at length about the new store operating model and the fact that we were retraining staff or multi-skilling our staff so they could be more customer facing. And that's allowed us to save $8 million year on year. And the biggest savings coming through in IC and Central. particularly within our IT team where we've dramatically simplified our estate. We've removed 391 duplicate applications and moved an awful lot of our IT into the cloud, and that saved us 30 million. So a total of 69 million. Important to reflect that that 69 million doesn't take any value from business closures or any value from volume reductions. These are true year-on-year savings. Moving on to the Nordic business. the Nordic business market share stabilized in the last financial year. And that's off the back of a very, very successful financial year 21, when the Nordic business was able to get hold of an awful lot of stock and really win during the pandemic period. Market share has stepped back in the year we're reporting on to 25.9%. However, we remain the clear market leader in all of the markets we operate within the Nordics. In terms of a performance summary, online share of business has stepped back from 29% to 25%. Adjusted EBIT has dropped back by 5% to 142%, although again, that's against the hugely successful financial year 21. If you were to look at it two years, EBIT has moved forward in the Nordic by 13%. In terms of our operating cash flows, very strong, 181 million, up 5% year on year. But I'm now just going to pause for a second when we get on to segmental free cash flow, because as you can see, a bit of a surprising number at plus 12 million within the Nordic business. And that reflects a very positive decision that we made at the end of last financial year within our international division. to buy stock. We wanted to buy stock for two reasons. Number one, to make sure that we were securing availability. But secondly, to make sure that we were locking in prices in a very inflationary environment. Now, we invested $113 million in working capital at the end of the last financial year. The good news is that we don't have any overhang. We've sold through between 60% and 70% of that stock already in the first eight weeks of the year. In terms of the EBIT margin between gross and OPEX, within our Nordic business, our gross margins have been flat with the incremental logistics costs and other inflations within our supply chain being offset by the store openings. and the improvement in margin that that's delivered. In terms of our operating expenses, our operating expenses as percentage of sales have moved adverse by 10 basis points. But within that, by far the biggest component is the loss of government support, which equated to £6 million within the Nordic business. In addition to that, we've been running two IT systems as we've put our new online system live within the Nordic market. We've opened four new stores, which carries incremental overheads during early trading periods, but that's offset by efficiencies that the Nordic business is driving through cost saving. In terms of the Greek business performance summary, first of all, online share. Online share has dropped back from 21% to 9%. Our EBIT has stepped forward significantly by 22% year-on-year to 21 million. Our operating cash flow is up by 26% to 28 million. But like the Nordic business, in Greece we've made a decision to invest in working capital, 30 million of working capital, which means our segmental free cash flow for the year in total is negative. Although again, we will expect that to unwind. The shape of the Greek P&L is quite different year on year. In terms of our gross margins, our gross margins have stepped forward by 200 basis points. And by far the biggest impact there has been the reopening of the stores and the shift of our business back to our store base and away from online. And that's because within our Greek business, credit is so important. And therefore, without access to credit, we were a little bit curtailed, both in terms of our volume of sales, but also our mix. Now the stores are back open, we've been able to drive our margins forward. In addition to that, we've launched a new insurance product, which is very successful and is allowing us to drive our services adoption rates. In terms of our operating expenses, they virtually offset the upside in margin, 190 basis points adverse. Again, by far the biggest impact is lower government support year on year. That was also 6 million impact. But for a business the size of Greece, that is quite a substantial impact and is the majority of that drop. In addition, we opened new stores within Cyprus. and the Greek business also was suffering quite highly from pay and fuel inflation. We generated strong cash. If you added together all the numbers that I've walked through, our operating cash flow was 361 million, up by 23 million year on year. Against that, we spent 133 million of capex. That was 11 million higher. And if you wanted to badge that to one thing, we did the rebrand of Curry's, which would account for that. However, I would say that Even at 1.33, that is below a level of capex that I would consider to be normal for our business going forward. The number that we've got in our mind is around 150 million. The reason that it's lower than that is because we've made some choices. We've made some choices to not do some projects because we're not happy with the returns that they're getting. And also for some non-critical projects, we've decided to delay them based on the current economic environment. In terms of adjusting items, cash adjusting items have come right down to 33 million. If I just call out two components within that, there was a cash outflow in relation to property, predominantly exiting sites that we'd already closed. But offsetting that were some one-off settlements, leaving a net 33. Our cash tax paid was 18 million. And again, you can see that is quite a substantial drop year on year. That is simply phasing. There was a 15 million cash tax due to be paid in the Nordic. But because of some changes to structure, that cash has moved into the current financial year. So you can expect to see that reverse this year. And finally, cash interest paid has come down by 7 million as we've improved our average cash balances and right-sized our facility. That creates a sustainable free cash flow of 160 million, substantial step forward year on year. But as I've reflected, as I've gone through, we have then got this working capital headwind that we chose to put in place for year end, which means our free cash flow is 72 million. We've seen our balance sheet strengthen yet again. Our average indebtedness year on year has improved by $300 million. That's partly as a result of our average cash balances improving. It's also because we've seen our IS-19 pension deficit fall substantially to $257 million. partly as a result of the cash injections we're making to the pension scheme of 78 million a year, but also there was an increase in the discount rate which reduced the liability, offset by the inflationary impacts and a reduction in the value of our pension assets. And finally, we've seen a reduction in our net lease liabilities as we've managed to exit stores that we've closed. In terms of uses of free cash, As I've said, our free cash flow was 72 million. During the course of the year, we returned 78 million to shareholders, 46 million of dividend, and 32 million through buyback for cancellation. That matched the 78 million that we paid to the pension scheme. And further, we purchased shares of 41 million for the Employee Benefit Trust in order to support employee awards. and to avoid diluting the shareholders, which meant that we had an overall movement in net cash of 125 million. Our net cash position went from plus 169 to plus 44. We've done what we said we would do, which is when we have excess cash in the business, we've returned it to shareholders. And that very much matches our capital allocation priorities. Again, a repeat of what we talked about previously. Our first priority is to invest the cash that we have in the business, as long as it's generating an acceptable return with our 24-month hurdle rate. Secondly, we want to pay and grow the dividend to shareholders. And we're proposing a 5% increase in dividend to 2.15 pence, which will give a total dividend of 3.15. And finally, any surplus cash available, we would return to shareholders through buyback. So I'll then finish just by talking about outlook and guidance. Clearly, there's an awful lot of uncertainty in the market. We're also only two months into our financial year, so how the year is going to turn out is clearly highly uncertain. We're suggesting a range, quite a wide range of adjusted PBT between 130 and 150. And I just want to register in your mind that those numbers include some of the stuff that Alex will talk about in a moment. We're guiding to capital expenditure of a range of between 140 and 160. Why have we got a range? Well, we've got a set of plans that add up to the top end of that, but we may choose not to spend it, again, depending on the economy, but also depending on the returns once we get into the detail of those projects. We've got net cash, exceptional cash costs this year of 40 million, of which roughly half relates to items that have already been provided for, particularly property exiting the tail of stores that we've got left. And the other 40 is new transformation activity fundamentally around cost out. And finally, we've got the annual pension contribution of 78 million, which continues. So that's all I had to cover. I'm now going to hand over to Alex, who will talk a little bit more detail about how we've achieved the results that you've seen, but also what our plans are for the future.

Thanks Bruce. Strong results then from a stronger business as I flagged at the start and I'm going to canter through some slides talking about how we've done it and how we're going to keep doing it and what that means for our support for customers. Stronger business I say and that starts with being strong internationally. It's worth remembering that no more than 50% are we exposed to the UK consumer and the market that we're in is a more important market to customers and a larger one. And it has stayed sustainably larger, between 14% and 19% larger last year, depending on whether you're talking about the UK or the Nordics. And even this year, the start of this rather turbulent period, the last few months, the market has stayed larger than it was pre-pandemic, rather more so in the case of the Nordics than the UK. And we owe this... to more engaged colleagues and more satisfied customers. And one of the things that makes me most pleased about these results is they're not just strong financial results, but the strong, in fact, record levels of colleague engagement and customer satisfaction as well as you see here. So a balanced set of results across different stakeholders. And one of the things that makes me proudest is this result that we've had in the most engaged colleagues that we've ever seen. And one inflationary headwind that we're happy to face into is that £29 million that Bruce spoke about, that we're paying our frontline hourly rate 29% higher than we were five years ago. There was £25 million of wage inflation in our results last year. We're happy to face into that. Because capable and committed colleagues for us are a retail fundamental. It's very hard for the experience of the customers to exceed that of our colleagues. And it's a retail fundamental on which we've made some progress, but it's not the only one. There are other retail fundamentals, essential growth drivers in retail where we've posted important progress. The range. is twice the size that it was a couple of years ago and with substantial headroom to grow further. We are on the money on price, important in a category as elastic and transparent as ours. And the customer experience is easier, notably on delivery where we've seen some sharp increases in customer satisfaction. So some really important progress on retail fundamentals, foundations, you might say, for the progress that we're making. But on top of those foundations, there are a couple of big differentiators that we've got that competitors don't have and where we've also made important progress, omnichannel and services. Omnichannel first. Well, it's the winning model in this category. Customers prefer to shop in technology, both online and in store. And that's true in every market. And it's true in the UK. And we are making more of having both. Now, it wasn't so long ago that some commentators thought that stores had no future during the depths of the pandemic. And well, what have we seen? Well, obviously, online has stayed a larger part, both of the market and of our business. And we're not expecting that to reverse substantially. That said, the online market has stepped back significantly, as you see here, 21% last year and 19% this year so far. So the market online has stepped back at the same time as the stores have rebounded more strongly than anyone expected, including us. Online, yes, a bigger part, but it has stepped back and stores have rebounded more strongly. Now, luckily for us, fortunately, Curry's is strong both online and in stores. Online, for example, we are now big. We're twice the size of any of the competitors online, pure play or otherwise. And we're building on that scale, where we've grown the online business by a third in a couple of years. We're building on that scale by fueling new growth with new websites, which are now landed. We've landed the so-called NGRC in the Nordics and the new Salesforce-based platform in the UK. The riskiest and most expensive part of that transformation is behind us, but we've yet to feel the full benefits. the full benefits of scalability, of stability of the websites, but also what they enable. And the new websites enable better upsell, better cross-sell, better sales of credit and other margin accretive services. And through things like better recommendations, AI powered and better content and the like. So we are big online and we're also getting better. But we haven't neglected stores. Really important. And what we now have is a flexible and profitable set of stores. Because we've taken some action, it's worth remembering that four years ago, we had three times as many stores as we have today in the UK. And substantially all of those stores now make a positive contribution, not least because we continue to see circa 40% rent reductions. So big and better online. We haven't neglected our stores, not least in the investment in the colleagues in the stores that you've heard about. And we can put them together, online and stores, to give the customers the best of both in a way that nobody else can do. Three big ways in which we've made continued progress in doing that. You walk into one of our stores, I hope you will never be told by a Curry's colleague, I'm sorry, we haven't got one of those. We can always sell you something, because we can bring the full online range for sale in any store, whether they have it in stock in that store or not. And as you see, online in-store sales have more than doubled in a couple of years. Customers aren't getting any more patient. We can give them instant gratification better than anybody else. And you see the leap that we've seen in order online, collect in store, which is up by circa 50% in the Nordics, as you see. So we can get the product to the customers in less than an hour better than anybody else. And then third, shop live video shopping. A customer online, sat at home, can be helped by a colleague in-store, live, and that's here to stay as a channel. And we continue to see quite agreeable upticks in conversion and average order value over unassisted online. So lots of progress right the way across the board on Omnichannel. And I mentioned the other part. The other differentiator, if you like, over and above our retail fundamentals is services, how we build customers for life, customers who stick with us and who are more valuable, customers who keep coming back. And of course, we do have lots of customers. In one sense, we don't need many more. 80% of households shop with us already. Our prize is to grow the share of wallet of those customers. And one means of doing so is club. And in the Nordics, our customer club is progressing quite nicely, whether it's the number of members of the club, which, as you see, is sharply up to nearly 7 million now. And what we see with those customer club members is that they spend more and they're more profitable. So nearly 60% more revenue per customer and over 75% more profit per... per customer. And there's plenty more still to come in the Nordics. For example, our Danish colleagues are working hard to catch up their lag over our Swedish and Norwegian in customer club penetration. There's plenty more to go for here. And we've transferred that learning over to the UK with our customer club 1.0 Curry's perks, where we're starting to see some quite encouraging signs. We've got good take-up, 11 million odd members, and starting to see some benefits, whether it's a 20-odd percent increase in average order value for club members versus non-club members, or a still relatively modest but early double-digit uptick in shopping frequency. So they're shopping more frequently and they're spending more, but still very early days for the club in the UK and plenty more to do. Club's one way to build stickier and more valuable customer relationships, and services is the other big one. And what we're going to zoom in on today is two of these. The first of them, credit, how we help customers afford technology that's not cheap. And credit is good for customers, and it's good for us. It's good for customers because, of course, they need the help to spread the cost of this expensive technology, never more so than now during a cost of living crisis. And that's why our credit customers are 12 points happier in customer satisfaction than our non-credit customers. It's why credit's the norm in our category. In the market, two thirds of all spend on technology is on some form of credit. So this is good for customers, but it's also good for us. And good for us in the sense that credit customers spend more, as you see up here, both on products and on services. They are happier, as I mentioned before, and they're stickier. They're 70% likelier to come back and shop with us the following year. So let's hear from some customers and from some colleagues on credit.

At Curries we're on a mission to help everyone enjoy amazing technology. Our credit facility helps them do that.

I had to replace my own washing machine because the other one I'd broken it was faulty and at the same time I bought a new fridge freezer. Before I came into the store I hadn't known about the different payment options. I was originally going to pay in cash but after speaking to Diana I decided to go for the buy now pay later option. It helps to spread the cost.

So you've got static term which is anywhere between 12 to 36 months, you've got buy now pay later which is your 6, 9 and 12 months and the offer interest free on selected products which is 12, 24 and 36 months.

It just helps keep the money in my savings and for other holidays which is far more important these days.

Credit is great for the business because customers are given a credit account. They have access to all the finance options that we offer.

No more paperwork involved. So customer can just get their products. They'll be given a limit and then they can come back month after month or weeks after weeks, get a new product. No big hassles involved.

In between buying my previous purchases, I accidentally smashed my oven door. I went back to the store and bought a new oven and hob. While I was there, I replaced all my other appliances, buying a new microwave, a new toaster and a new kettle as well. It was really easy to add to the existing credit line and it was completely hassle free. If I paid cash for the first purchases and then the oven broke, I might have been without an oven for months on end. Because he had a credit account, I was able to get the appliances there and then. Well, I've got all the appliances I need, I just need a new kitchen to match.

So credit's good for customers, and it's good for us. So it's good that we're growing it. And we are. And as you see, both credit customer numbers and credit sales are up by over 20% year on year. And we're well on track to do better, I'd say, than the 16% credit adoption rate target that we've set ourselves by FY24. And in fact, actually, in the early months of this financial year, we're trading at those levels already a year early. So credit's good and we have scope and plans to grow it further. I mean, first of all, Bruce mentioned levelling up, which is perhaps a slightly unfashionable phrase given current news flow. But nevertheless, it's got some currency internally. Leveling up credit adoption across channels, important driver of sales and of profitability. And as you see, we've done a pretty good job of improving credit adoption in both channels, but most strikingly in online. Second, better offers. We're announcing today a richer market leading buy now pay later offer. 12 month pay delay for every product over £99, which is, as I say, market leading. The competitors are going to struggle to match it and it's great for customers. We're going to see much more powerful messaging to go along with that as well. So really good for credits, great. It's good for customers, good for us, it makes us money, and it keeps customers coming back. We're going to see a lot more of it. In fact, we already are during the start of this financial year as customers need it more. The other service that we're going to zoom in on today is longer life. So Curry's is not just going to be all about selling customers shiny new technology, although we like doing that. It's also about helping give longer life to the technology that customers already have. And that's something that we can do because we're the market leaders in everything from protection to repair to trade in to recycling. But it's also something we want to do because it makes us money.

Let's hear more about that. Every aspect of our lives, whether it's keeping us connected or healthy and entertained. We all love new tech and want to feel good about buying a new piece of kit. But we also know that e-waste is the world's fastest growing waste stream. We can't keep throwing stuff away. As well as helping everyone enjoy amazing technology we want to change their relationship with it so that we don't just sell amazing technology but we save it too. Our scale puts us in the unique position to make a difference. Our network of colleagues help customers extend the life of their tech which is not only great for their pocket but better for the planet and good for profit too. Here's how we're doing it. Our colleagues are passionate about helping customers make decisions that are right for them and for the planet. And when they buy amazing tech, we help protect it from day one. Our care and repair and tech insurance plans give 13 million of our customers peace of mind, with every plan giving a promise of longer life should something go wrong. And we're delivering on that promise. Last year, we made nearly 1.7 million repairs across the Curries Group. We have 1,600 experts committed to giving tech longer life, and over a thousand of those work in our repair lab in Newark, the largest in Europe. Also, we have 244 field engineers carrying out repairs across the country. When you're ready for something new, trade-in is the bridge between old and new tech. It gives value to the old to make the new more affordable. But that's not where it ends. We'll refurbish or reuse parts from the old item, giving it or another device a longer life in a different form. Or we'll try and get it into the hands of those who need it the most. People or families in digital poverty who would otherwise be excluded from access to tech. Whether your tech was bought from Currys or not, it can be handed in for free in store or picked up by our home delivery team. We will then recycle or reuse it. Our reused tech helps support charities and low-income households. What can't be reused is responsibly recycled. We're proud to be giving technology longer life. Everyone benefits. It makes commercial sense for us, financial sense for customers, and environmental sense for the planet. Purpose and profit working hand in hand. That's how it all fits together and we know it works. We've been recycling and repairing technology for over 20 years. We believe we are leading the way in changing everyone's relationship with tech for the better. We've come a long way, but we're just getting started.

So long live your tech, giving technology longer life is first of all a commercial imperative for us. And it is that because increasing numbers of customers are making their decision about where to shop based off the sustainability credentials of the retailer. And this obviously puts us in a very strong position to trumpet those credentials. But it's also helping the customers in their pocket, whether it's giving longer life to the tech they've already got or helping them trade in their old for their new. It's good for their pocket as well as for the planet, and it's good for our sense of purpose for our colleagues internally as well. So it's pretty much a win-win. And we make money doing it. This is really important. Stand alone, these longer life services are profitable, and we have scope and plans to make them significantly more so. So this is a way to get customers to shop with us rather than somewhere else and for us to do it profitably as well. Now, I mentioned that it's primarily, first of all, a commercial initiative. It is, of course, also a sustainability initiative. You'll see that on sustainability itself, we continue to make very strong progress, whether it's the near 90% reduction in our scope one and two emissions that we've seen over the past seven years, or whether it's the higher ESG ratings that we're getting from outside observers, whether it's Sustainalytics, for example, who rate us in the top 4% now of large global companies on ESG, or CDP, bottom right here, you'll see we are rated amongst the top 2% of companies worldwide. So... What have you heard? A stronger business then and a stronger business that's therefore in good shape and has the firepower to step up our help to customers through this cost of living crisis. And that's precisely what we're doing. We see the following year tough as it's going to be as an opportunity. It's an opportunity for us to cement our customer relationships and to gain significant market share. And we intend to come out of this year not just registering a solid level of profits but also in a significantly stronger relative competitive position. And we're getting behind that and we're investing significantly but judiciously to achieve it. So what are we doing? On range, we're getting behind and investing harder in our go greener range of energy efficient products that helps lower customers' energy bills. That range is going to be more available. At a time when some of our competitors are having to close warehouses to preserve cash, we're investing in extra capacity to improve our already market leading levels of availability. Our availability is up four percentage points year on year last year. It has continued to improve in the early months of this year. We're going to keep our foot down on that retail fundamental. But it's not just about range and availability. On price, we have invested to be on the money on price. That's taken some quite painful gross margin investment over recent years, but we are now on the money on price. As you heard from Bruce, we have invested, particularly in the Nordics. in locking in some valuable product at good prices at the end of the last financial year. We'll pass the benefit of that on to customers right now. But more than that, we are going to be freezing prices on dozens of top lines at good products to help customers afford the technology they want now, but at last year's prices. And on credit, you've seen the success of credit. It's demand from customers. It's commercial value to us. We're doubling down on that with this BNPL 12 on everything over £99, which is the market-leading offer. So when you think about it, this might be an LG TV, for example, the customer wants. They can have that TV at last year's prices but not pay for it until next year. This is very powerful for stimulating the market. And last but not least, cash for trash. Your old tech, no matter how knackered, has some value to us. So you bring in anything for trade-in and you will get some value, at least towards your replacement product. And we're reinvigorating that cash for trash. and the broader trade-in program. So right the way across the range of these initiatives, you can see we're stepping up the help that we offer customers in what is going to be a tough year. But it's not just altruistic. We are doing it in a way that is going to be valuable for us as well as valuable for the customer. I said that we can do all of that. We're confident we can make all of those investments within the range of 130 to 150 million pounds of PBT, which Bruce guided to before. And we can do it while remaining free cash flow positive this year. Looking out a year to FY24, we have been more prudent. on the EBIT margin, both because of the outlook for the market. We can't quite see our way towards the gross margin improvements that we had hoped for. And of course, the cost inflation is harder and faster than anybody expected. And so all those three things have caused us to take a more prudent view of the EBIT margin. But nonetheless, a decent level of profitability, a good level of sustainable free cash flow is absolutely within our grasp for FY24, and our ambitions for the longer term are undimmed. We certainly haven't stopped targeting that 4% EBIT margin in the long term. To wrap up, what do I hope you've seen? First of all, that these are strong results from a business that is significantly stronger, not least for being international and diversified geographically. We're the growing number one in all of these markets. We've got strong market leadership positions, which we're improving and will continue to improve. And this in a market that is sustainably larger, even now in the current We've got happy colleagues making for happy customers. Record scores on both of those. And on top of some really strong retail fundamentals, we've got a couple of differentiators that no one else has got. And we are making more of having online and stores because you do need both to win in this space. And we are making more of the services that help the customers all the time. Not just the few times a year when they come and shop for technology with us. We can help them all the time afterwards and be paid for that. In many ways, not least in the spend and the risk, the hardest parts of our transformation are behind us. And you've heard from Bruce how the balance sheet has been transformed here, whether it's the total indebtedness down, whether it's a healthy level of net cash or ample liquidity headroom. This is a strong business, and therefore we can use that strength, we can use that firepower to step up our help for customers through what's going to be a pretty tough year. Thanks very much. Well, thank you very much for your time this morning in what's hardly a slow news day. And enjoy the coffee and the nibbles and what is, Bruce is delighted to tell you, a cost efficient as well as an engagement boosting new office. So many thanks for your time and have a great day.