Mitie Group Plc

Okay, good morning. We've got a full house today, which is great to see. So good morning, everyone, and thank you so much for making it here today, and especially given the tube strike today. I think we're all getting used to it now. As usual, we are here presenting from our headquarters in the Shard. Nicely set in this photo here with our new corporate branding. And I hope you noticed when you came in at the entrance there, our recently awarded royal warrants are pictured here with Priscilla, the stalwart of our cleaning team here at the Shard. So welcome to MITEI's full year presentation for the 12 months ended 31st of March 2026. And as we'll show, our results in 26 were good. We're confident in delivering our FY25-27 strategic plan, which I'll talk on shortly. And we are building the foundations for 28 and beyond. Firstly, turning to the 26 highlights, we've delivered strong double-digit growth in revenue and operating profit, and that's for the third consecutive year. Excluding acquisitions over this period, our organic growth has averaged around 7%, and that's well ahead of the wider FM market, which grew 2% to 3%. We've shown our resilience despite the material headwinds from inflation in labor and higher national insurance contributions. With margins up a further 10 basis points, we've got high visibility of our future. We've ended the year with record 16.3 billion pound order book and a 31.7 billion pound bidding pipeline, which we'll touch on. Cash generation was also good and we plan to extend share buybacks in FY27 to total 100 million, inclusive of the remaining 40 million of the current programme announced last October. M&A is a key feature of our model, as you know, and I'm pleased to say that the Marlowe acquisition is progressing above our expectations. And taken in the round, this positive outlook gives us not only confidence in delivering our FY25-27 three-year plan, but belief also that the strategic foundations are in place for continued value creation in FY28 and beyond. So here are some of the highlights in numbers with double digit compound annual growth since 2023 in revenue, operating profit, and earnings per share. In wins, renewals, order book, and pipeline, as well as in free cash flow, capital deployments and dividends. And with FY27 still to come, I think we would have taken where we are at today when we launched our facilities transformation strategy at our capital markets event back in October 23. So that gives you some sense of the progress we've made since then. So over to Simon now. He'll help you navigate through the detail of FY26 performance, then I'll come back and touch on strategy.

Thanks, Phil. Good morning, everybody. So as Phil said, we're now into the final year of our three-year plan. So before we get into the detail of the FY26 results, I'll just give a little bit more color to the financial progress that we've made so far and the financial model that underpins our strategy. Our model's based on profitable growth and free cash flow generation, enabling us to compound earnings, drive value accretion, and increase shareholder returns. At the capital markets event in 2023, when we launched the Mightyverse, we said revenue would grow in the high single digits. As we enter the final year of the plan, it's exceeded that target, growing at 13% a year over the first two years, supported by the increasing pipeline and the much larger order book that Phil just referenced. Operating profits growing significantly faster than revenue, at 18% a year, and it's worth reminding ourselves that back in 2023, consensus profit for FY26 was £207 million. Today we're reporting £264 million, having made seven upgrades since then. Margins have been resilient despite the material external headwinds, and this good growth and increasing profitability has led to significant free cash flow generation, which at £162 million is already higher than our FY27 target. This good free cash flow generation has enabled us to return capital to shareholders and pursue value accretive M&A, deploying £414 million in FY26, including the acquisition of Marlowe. As a result of these actions, our TSR since the capital markets event is 78%, well above the FTSE 250 average of 29%, and we're compounding earnings with EPS growing at 13% a year. So with that as a backdrop, I'll move on to cover the FY26 results, starting with the headlines. Revenue's up by 10.5% to £5.6 billion, driven by good organic growth of 5.3%. operating profits growing by 12.8% to £264.1 million, and we've improved margins to 4.7% despite the significant profit headwinds. EPS is up 7.1% to 13.6p a share, driven by profit growth and share buybacks, offset by higher net finance costs and the shares that we issued to acquire Marlowe. The Board's proposed a final dividend of 3.1p a share, taking the total dividend to 4.5p, up 4.7% on FY25. And finally, as I mentioned earlier, we've had a free cash inflow of £162 million, with average daily net debt of £440 million. So moving on then to cover the performance in a bit more detail and turning firstly to revenue. This slide shows the key drivers of the revenue growth in FY26 with the good momentum from FY25 continuing both organically and inorganically. The first block of the chart shows 54 million pounds worth of growth in core FM from wins and losses and incremental growth on existing contracts with wins significantly exceeding losses. Organic projects growth of 125 million pounds was driven by good growth in defense, data centers and healthcare. This growth includes a £20 million reduction in revenue in Mighty Telecoms, where we've exited unprofitable frameworks, as well as a £40 million reduction in central government, where we lost a high-margin contract that completed halfway through FY26. Pricing accounts for £151 million of additional revenue, and we've shown separately on this bridge the £59 million headwind from the completion of the high-margin, one-off surge security work last year. When we combine these four blocks, total organic growth is 5.3%. Finally, acquisitions contributed 5.2% of growth in FY26, and this block includes the infill acquisitions that we've made in the last 18 months, including Argus Fire and the two Spanish businesses, as well as the Marlowe acquisition, which added 208 million pounds of revenue. So sticking with the group numbers, next I'll cover operating profit. And this slide shows the key financial themes for the year on a profit bridge, highlighting the resilience of our business model. Strategic profit growth of 67.4 million pounds more than outweighed 37.4 million pounds of profit headwinds. Our growth strategy is focused on core FM projects and acquisitions underpinned by margin enhancement initiatives. Core FM and projects profit grew by £12.7 million, driven by new wins, combined with a good projects performance across most sectors. This block includes a £10.1 million loss on one specific contract, which I'll come back to shortly, as well as a £15 million headwind from the completion of the central government contract that I just referenced. Next, we added £12.2 million of incremental profit from acquisitions, of which Marlowe was £9.5 million. And when combined with £7 million of cost synergies, Marlowe profit for our first eight months of ownership was £16.5 million, significantly better than we initially expected. We made equally good progress with margin enhancement initiatives, delivering £25.1 million of savings, and we've turned the telecoms business around, breaking even in FY26, which is a £10.4 million year-on-year improvement. In terms of headwinds, the completed surge response work was an £11.7 million profit headwind. We made £7.1 million of investments to drive growth, including in our sales and technology teams. And the headwind from inflation and national insurance was £18.6 million, which I'll cover in a bit more detail now. So once again, we were successful in managing inflationary pressures in FY26. Our contractual protections and strong customer relationships enabled us to pass on 94% of cost inflation to our customers, resulting in only a £6.9 million reduction in profit. We said last June that we expected our employer's NI bill to go up by around £50 million in FY26, and that we'd recover around £35 million of that through contractual protections and commercial negotiations. The gross impact has been a little lower than we expected, at £48.5 million, and we've recovered more than we expected, meaning that the net impact is only £11.7 million. That's £3.3 million better than we expected. The total impact from inflation and national insurance, therefore, is £18.6 million, which has been fully offset by the margin enhancement initiatives. Looking ahead to FY27, the national living wage will increase by 4.1%, which is a smaller increase than in each of the last two years. We're confident that our contractual protections and strong relationships will enable us to price the vast majority of the increase through to customers, as we've done in previous years. We don't expect another national insurance increase in FY27, but we are affected by fuel price inflation. We expect the growth in fuel prices to have a five to six million pounds gross impact in FY27, most of which will pass through in pricing. We expect the residual impact to be around two million pounds, which is included in the 10 to 12 million pounds total impact from inflation in FY27. So moving on to cover the divisional performance, business services revenue grew by 17.6% to £3 billion, with particularly good performances in security, hygiene and in Spain. The security business grew by 8.8% despite the £59 million headwind from completion of the surge work last year. Growth was driven by fire safety and security projects, both organically and inorganically, as well as new wins in pricing. Growth of 10.6% in hygiene was driven by some new large wins and pricing, and the business in Spain has grown by over a third as a result of the expansion into security and significant wins in the public sector. Underneath the total revenue line, we show the growth from our three pillars of FM, FT and FC. Growth of 9.3% in FM is well ahead of market growth of 2 or 3% and reflects the strong performance in hygiene, in immigration and justice where we've just started the mill site contract and in Spain. The FT growth is driven by fire and security projects and the growth in facilities compliance is largely due to the 208 million pounds of revenue added with Marlowe. Profitability in business services has been resilient, growing by 3.7% in FY25, but margins have reduced by 80 basis points to 6.3%. Revenue growth, MEIs, and the contribution from Marlowe have been positive drivers of profit in the year, but they've been offset by the completion of the surge security work and the large central government contract that I mentioned earlier. Moving on to technical services, which has grown by 3.5% to £2.6 billion. Engineering, which includes our private sector maintenance contracts and larger engineering projects, grew by 1.4% in FY26. New wins, project work and pricing more than offset the loss of one notable contract and the contracts that we've exited in the telecoms infrastructure business. The defence growth of 9% and HLG&E growth of 3.4% were largely driven by increases in projects work. In defence, this included projects for the DIO in Gibraltar and Cyprus, and in HLG&E, the project's growth was in healthcare across a number of different hospital contracts. As we show again underneath the revenue table, this project's growth was the key driver of the overall technical services growth, with FT growing by 14% to 1.1 billion pounds. FM revenue reduced by 2.8% to £1.5 billion as a result of one notable contract exit and a reduction in volumes on the landmark contract. With a new senior management team in place and some early wins, we expect FM growth in TS to improve in FY27. The good projects growth combined with MEIs and the turnaround in the telecoms business drove a 24.6% increase in profit, boosting margins by 90 basis points. However, although margins have improved, they continue to be impacted by the headwinds from inflation and national insurance, as well as one loss-making contract. As I said earlier, this contract was a £10.1 million headwind to technical services profit in FY26, but it's now completed. It sits in a structurally low-margin sector, which we're exiting. Without this contract, TS profits would have increased by 34%, and margin would have been a further 55 basis points higher. My final P&L slide shows the consolidation of the group numbers with the BS and TS profits that I've just talked through, combining with 58.9 million pounds of corporate costs to make up the 264.1 million pound group profit and 4.7% margin. Corporate costs are a little higher than in FY26 as we've invested in sales and technology and due to the inflation and national insurance increases. So my last few slides cover cashflow, the balance sheet and capital deployment. We generated a free cash inflow of £162.1 million in FY26, with the key driver being the operating profit of £264.1 million. Other items was a £59.3 million outflow of cash and was largely made up of acquisition-related costs as well as the costs of delivering our margin enhancement initiatives. The year-on-year increase was driven by the Marlowe acquisition and the Marlowe integration costs. Next, the pension deficit payments combined with the add-back of share-based payments was a £24 million inflow of cash. With our DB schemes now in surplus, payments have ceased and we expect to undertake an insurance buy-in of our DB schemes in FY27. Working capital was a cash outflow of £35.7 million. driven by the continued growth in the projects business, the longer payment terms on retail wins, and a one-off £10 million impact from the new Procurement Act. Offsetting these outflows, we've made further one-off process improvements and continue to rationalise our supplier base. CAPEX leases interest and tax was a £126.9 million cash outflow, which was £21.1 million higher than in FY25. That increase was driven by CAPEX for new contract mobilisations including MILSIC, lease payments for the Marlow fleet and interest costs resulting from our capital deployment actions. These capital deployment actions account for a £414 million cash outflow which I'll come back to. And then finally at the bottom of the page we see the overall increase in net debt of £251.2 million. This increase results in a closing net debt of £450 million and an average daily net debt of £440 million, with the average leverage ratio of 1.2 times remaining within our targeted range. Debtor days have got a little worse due to the acquisition of Marlowe and growth in the projects business, and creditor days have improved despite the new Procurement Act as we rationalise the supplier base and continue to improve our processes. Rowick reduced to 18.1% as a result of the Marlowe acquisition, where we've added £414 million of invested capital, but only eight months of operating profit. And finally, net assets increased to £533 million after adding the net profit for the year and the shares issued for Marlowe, offset by dividends, share buybacks and market purchases for employee share schemes. Our strong balance sheet and ongoing free cash flow generation underpin our capital deployment actions. In FY26, our deployment has increased by 75% to £414 million, including the £228 million of cash used to acquire Marlowe and £15 million of infill M&A across high-growth sectors. We've increased our dividend to 4.5p a share at a 33% payout ratio, spent £29 million purchasing shares in the market for incentive schemes, and spent £63 million acquiring 38 million shares through the share buyback programme. As we look ahead to FY27, infill M&A will be relatively modest as we integrate Marlowe and realise the synergies. The dividend is likely to be at the lower end of our 30% to 40% payout range, and we'll continue to purchase shares for all employee share schemes. Finally, we'll continue to return excess cash to shareholders through share buybacks, announcing today our intention to purchase £100 million of shares in FY27. So in summary, we've had a positive year in FY26, with good momentum heading into the final year of our three-year plan. Revenue growth has been significantly better than our high single-digit guidance, and margins have improved despite the investments we've made and the headwinds from inflation, national insurance, and the completion of the surge work. We made a positive step forward in EPS despite higher interest costs, generated good free cash flow, and ROIC's fallen below 20%, but only temporarily. As we look ahead to FY27, we remain confident of achieving our headline financial targets. In terms of the detail, we expect finance costs will be higher as our leverage increases, our tax rate will remain at around 25% and Roit will increase back towards our target of 20%. And on that note, I'll hand back to Phil.

Thank you, Simon, and thank you for a good story of our progress. It's a good job. And as Simon said, I think we're confident in achieving our FY27 target. So where do we go from here? And why did I say in my introduction introductory remarks as i believe we are laying the foundations for value creation for fy28 and beyond well let me explain a little bit more about that and firstly just a reminder of our current strategic plan i'll do this quite quickly you've seen this all but our strategic plan was built around the three pillars of growth in facilities management, on the bottom there, growth from our core led by key account growth. In facilities transformation, the middle, projects-led growth, upgrading and decarbonising the built environment. And lastly, on the top, in facilities compliance, M&A expansion into regulation-led services following the acquisition of Marlowe. Our vision was the future of high-performing And together, these pillars created a differentiated end-to-end proposition to meet our customers' evolving needs whilst moving the group into higher growth, higher margin adjacencies. Revenue growth was at the very heart of our strategy. And on the left, we set a target of 1.2 billion of revenue growth over the three-year plan, half of which would come from the core, 200 million would come from projects growth, and 400 from M&A. So I'm pleased to see that after only two years of the three-year plan, as I'll show, we've already delivered that growth ambition. Now, you've heard me say before that our strategy was underpinned by favorable macro trends, and not surprisingly, these macro trends have endured. Increasing reliance on the private sector to tackle crime, rising public sector investments across defense, healthcare, justice, and immigration, the decarbonization and modernisation of the built environment, upgrades in power and grid infrastructure, data centre investments and increasing regulation around fire building, safety and environmental compliance alongside significant investments in UK water. So in short, we continue to operate in markets where our demand for services is structural, long-term and continues to grow. Our bidding pipeline bears this out, a 34% year on year increase to a record £31.7 billion. That's double where we stood at the beginning of our strategy. You've heard me talk before about the improving quality of our pipeline with more bids both meeting client pre-qualification and being submitted through for evaluation. But the mix of our pipeline has also changed. 6.8 billion of the pipeline relates to opportunities in facilities transformation in projects, where we've seen a tenfold increase in three years, as we are added to more of our clients' capital frameworks. And we now include, for the first time, our facilities compliance pipeline at 800 million. And like facilities transformation, I'd expect this to grow significantly as well as we establish our compliance credentials and qualify onto more client frameworks. The bidding pipeline, of course, then feeds through into a growing order book, reflecting our win rates of over 30% and retention rates back above 80%. We ended the year with a record 16.3 of order book. That's a three-year CAGR of 19% per annum. Facilities transformation order books are now an impressive, in the order book, are now an impressive 2.8 billion. And again, we include our fledgling facilities compliance order book of 500 million. This will only grow as we build out our total fire and security and total managed water offer. The final point to add on order book and mix is that due to their shorter duration, the vast majority of facilities transformation and facilities compliance held in the order book produces revenue much more quickly within two to three years. The same mixed point is relevant in margins where facilities compliance attracts the highest margins with facilities transformation with slightly lower margins but still higher than our core facilities management. These are all however before corporate overheads and shared services which now in aggregate absorb about 280 basis points of margin from the gross margin in the contract. Although that ratio of overheads to revenue is falling, it's why independent of our trading margins, we focus so much on our overhead costs. And as you can see on the right, we delivered another £25 million of savings through margin enhancements in FY26. On top of that, we've made a good start on the Marlowe integration, delivering £7 million of synergies in FY26, which was ahead of our expectations. We moved Marlow's alarm receiving centre, their ARC, from Warrington into MIT's ARC in Craighaven, Northern Ireland. We've exited 15 Marlow properties. We've streamlined back office operations and have already started migrating Marlow onto our cyber secure systems. These initial savings have given us good momentum into FY27. where further work streams including the optimisation of field forces, deployment onto a single workflow platform, continued property exits and further HR and finance savings are expected. Although it's too early to adjust guidance at this time, it's no doubt we've made a fast start and we expect to exit FY27 at the full run rate of synergies that we've previously guided. So when I look at our margin mix, our order book, our fast-growing pipeline on top of our macro trends, this is why I say we're laying the foundations for the next phase of growth in FY 20 or 28 and beyond. Foundations built around capturing share of wallet within our existing facilities management, client base, turbocharging projects in facilities transformation, growth in facilities compliance, and finally, accelerating technology and AI to unlock further margin expansion. So a couple of thoughts to leave you with on each foundation. Share of wallet, as you know, is about doing more for those clients with the deepest pockets and our deepest relationships. We have a world-class net promoter score of plus 64 points, double the FM industry. Yet with only 40% of our top clients contracting on an integrated FM basis, we know there's significantly more to do. And we've undertaken detailed reach out and research and analysis of our 50 largest strategic account spend and we've now identified around 1.5 billion share of wallet opportunities from security and hygiene through to engineering, maintenance, capital projects and now of course facilities compliance that we can deliver. How are we unlocking the share of wallet opportunity? Firstly, through a much deeper sector-led approach, demonstrating our expertise and tailoring complete solutions across the built environment in sectors that are different. Healthcare, transport, retail, financial services, critical national environments, they've all got particular requirements. Our corporate website, therefore, Mighty.com, is dialing up on this sector experience, and we've built an in-house LLM to assist lead generation in just navigating the complexity of Mighty offer. We're investing in our people, redesigning incentives for our strategic client directors and sales teams, and enhancing training. Thirdly, by delivering our own AI-driven insights from our CRM touchpoints, giving us a better understanding of how we meet our clients' needs. Transport for London, TFL, on the day of a tube strike is a good example where we provide hard services maintenance in the past, specialist security services, drones and technology around detection of graffiti, for example. And now we've just mobilized 2,200 colleagues on a £100 million per annum hygiene project. and waste management contract over the next five years. And this is the same success we've replicated with retail clients, pharmaceutical clients, and e-commerce clients. And on the upper right, you'll see already we've exceeded our growth ambition. We targeted 600 million in over the three-year plan, and we're above that target after only two years. Turbocharging projects and facilities transformation is another strategic foundation. Project revenue has doubled to 1.4 billion since we unveiled our new strategic plan back in 2023. And our ambition is to build to a 2 billion plus business over the next few years, underpinned by those macro trends we touched on earlier. Leveraging One Mighty to unlock cross-sell opportunities Around 80% of our project work is delivered to our existing FM customers, continuing to invest in capability through infill M&A, in fire and security, water engineering, and refrigeration, for example, while scaling up our consulting model, leveraging our deep knowledge of our clients' estates. and strengthening our capabilities through apprenticeships, graduate engineering programs, and again, rebranding our website under the High-Performing Projects strat line. I've mentioned the £45 billion investment going into data centres many times, as has the government. And so in the middle, look at the revenue growth in JCA Engineering, our data centre principal contractor, together with GBE Converge, which delivers sophisticated fire and security systems to data centres in the UK and other fast-growing European locations. Combined, we expect data centre revenue to grow from less than £200 million in FY25 to over 500 million over the next few years as we deepen our relationship with hyperscalers such as Google and Microsoft, and with developers such as KO Data, Arc, and Equinix. And on the right, you'll see some of our major projects in hospitals, at carports, And that's without mentioning the UK's largest battery energy storage project we're working on, or the UK's largest roof-mounted solar project, or the UK's largest heat extraction project from Effluent that we've completed already. That's turbocharging projects, and our reputation and our confidence is growing. And again, on the upper right, we've already significantly exceeded our three-year target in just two years. The last growth strategic foundation is facilities compliance, and I've split that into total water and total fire and security. Starting with total water, total managed water is a 6.7 billion addressable market for MITEI, targeted both on our customers' requirements with water, as well as those of the water utilities themselves, and we separate those two. Together, though, there's potential to build a £1 billion business in the medium term. Testing, inspection, certification, hygiene and treatment, retail metering and billing, where one of only 19 licensed water retailers here in the UK, and water engineering and wastewater management to commercial customers, as well as the mechanical electrical module services we're already offering to water utilities. We now manage the full cycle of water for our clients where growth has been driven by the increasing need to reduce usage and improve levels of cleanliness for discharge. Again, we have a new website showcasing our capabilities. Here we're using the refreshed Marlowe Environmental Services brand, not Mighty. New propositions, new go-to-market tools, improved data on client water usage and targeted sales campaigns. And we're hosting a two-day event next month, the future of facilities compliance and water. And over 200 of our clients are attending. And we're already seeing some early success, such as the £128 million contract award at the Atomic Weapons Establishment at Aldermaston to deliver water network management services and projects over the next 10 years. There, we're looking after 12,000 assets across the AWE's complex high-security estate, including boreholes, treatment plants, pumping stations, and a network of reservoirs. The scale of this award is a significant step up compared to Marlowe's typical contract size, and this is the direction of travel as we cross-sell to our large FM clients and access further public sector water frameworks such as that with the MOD. So as I've said before, water is the new energy, and we believe water will be a major strategic foundation for our growth over the forthcoming years. Same with facilities compliance, as I said, the other major opportunities in total fire and security. Here the combination of Marlowe and MITEI has already created the leading provider in a 5 billion UK market with a full range of capabilities as shown on the left. Active fire systems, passive security systems, monitoring. As I've said, demand is driven by the macro trends of building safety regulations, increased risk awareness, and the need for clients to manage their own compliance duties in a more structured way. Growth is focused on a clear go-to-market proposition, again with new branding. We've built a new sector-based sales team and with a new sales pricing approach as well, where we've been testing the elasticity of pricing with our clients. Thirdly, by self-delivery, bringing work in-house that's currently subcontracted. Scottish Power on the right is a great example of our joined-up approach involving now MITEI, Marlow Capabilities and RH Irvine on three of Scottish Power's National Infrastructure Programme frameworks. With critical national infrastructure, a core sector expertise of ours, we expect again this pipeline to grow. Now together, We haven't yet made our three-year target, but with a year to go of Marlow and the growth trajectory we see, we do expect to do so. Now, our final strategic foundation is not necessarily targeted on growth, but it's targeted specifically on margin expansion. And it's centered around technology acceleration, and in particular, AI. Now, we launched the Mightyverse at the Capital Markets event. You remember, that's the thing in the middle. We talked about upgrading our core systems, rolling out customer-facing apps and bots, and deriving more insights from our intelligent customers. solutions data lake, and today actually over 140 of our clients are accessing the data lake. However, at that time, what we did not foresee back in 2023 was the fundamental impact of AI. So what is new to our thinking is how we leverage AI across MITEI, unleashing the power of Copilot, where we now have over 3,000 licenses, and of Claude from Anthropic, where 200 licenses are being deployed. In fact, I've got one of them. So see how we get on. And that's why we've launched what we call Project Prio. process reimagining and optimization, building an agentic orchestration layer to manage agents. We already have the agents. We want to manage them, optimize the workflow, automate customer interfaces, Building agents that can sense what needs to be done, decide how it should execute it, and then act. I won't bore you with MCP or RAG or A2A, but if you want to ask me later, I'll tell you what we're up to. But we believe in a business like ours with 84,000 colleagues, AI could be a real game changer of how we deliver value to our clients. We've stood up a full team of 70 professionals. So this is the largest mobilization of a change program we've ever run, including McKinsey quantum black experts, AI software engineers, near form, and mighty specialists. PREO is our commitment to maintain our leadership in managing complex estates through a scalable agentic AI platform to upgrade the effectiveness of the built environment. And that fulfills our vision of the future of high performing places. We're focusing on eight high-impact domains, and together they represent more than 75% of our cost base, of our £5 billion cost base, combining agentic orchestration with human in the loop, as shown there. Now, it's early days in pre-owned. We're not making any forecasts at this time, but we do expect this project to have a long-lasting impact on our cost structure, our margin, and the value we share with our clients. We expect to deliver minimal savings in FY27 as we start to mobilize, but more will come in FY28 and beyond. Inevitably, there's an upfront cost of this type of program. We estimate 20 to 25 million pounds this year, and we flag this as an incremental cost to our other items in FY27. So as I said, we're laying the strategic foundations for value creation in FY28 and beyond. So summing up. FY26 has been a good year of strategic progress with double-digit growth in revenue, continued margin progression, record order book, cash generation. You can see our summary here and good progress in Marlowe. This momentum, though, will continue in FY27. That's what gives us our confidence in delivering our existing three-year plan, but more importantly, we're laying the strategic foundations for the next phase of our strategy and beyond, which sort of brings me to today, because today is my 10th mighty prelims presentation. I didn't realize you could have so much fun over 10 years. And as you know, it was always my intention to retire at the end of our facilities transformation three-year plan. And we explained that to shareholders a couple of years ago. It's not new news. With the share price of around 90p at the capital markets event, when we launched our facilities transformation vision, our shares were almost double. Our strategic investments have been successful and returns to shareholders have been strong. So as we transition to a new CEO, I certainly believe that the foundations for FY28 and beyond are being laid. So with that, let's open it up to questions and answers. I'm sure we have some mics around. I'm sure it's down. We have some mics. We'll start. Alex. Sorry, Alex. I haven't got my glasses on.

Yeah, Alex here from Berenberg. Just a quick one on the projects business and kind of the target of the $2 billion revenue now. And you spoke about the data center market and You talk about the size and maybe the risk profile of some of those projects coming in and are you kind of comfortable with that risk profile? And second one, I understand AI and tech investment, you've kind of made that strategic investment over the past few years. Is it fair to say that maybe you're ahead of the curve or competition in that regard in terms of you're not a standing start and potential to kind of accelerate further?

Okay, I mean, Simon, we've talked often in our presentation, and you'll tell me the number, but the average job size in projects is about, it keeps going up, about 275, something like that? That's right, yeah. 275 pounds. So we look at the aggregate of 1.4 billion, but it's made up of smaller projects, the average duration of which is about three months. But we do have some big ones. And I'll turn over maybe to Mark, who just came back from Derriford last night from Plymouth, to talk about some of our bigger projects and how we're managing, Mark. And then I'll pick up the AI question, if that's OK with you. Just come to the camera, Mark. Come to the front.

I'll jump to the front. That's the easiest way. It's a good question with regard to the size and the scale of the projects. If you look at, as Phil said, the average project value is around about 275,000 today. 14% of our project's revenue is over £2 million projects. And those are principally in the data centre space, where we're seeing huge growth and huge opportunity, and also in grid connection work and power on grid opportunities. Often, some of these large data centers are broken down into multiple phases. And each phase has its own contracting mechanisms and pricing mechanisms. So we feel very good with the relationships we have, firstly, with the clients that we work with, secondly, with our contractual and pricing mechanisms, and thirdly, with the supply chain that supports us with the deployment and the delivery of those projects. But we are very robust in terms of pricing margin expectation, but also contractual risk.

to ensure that you know we don't we we stay within our tolerances as an organization okay just just to add um one more point to what mark said and and what phil said and and i think we've given you this stat before but about 80 of the projects that we perform are for our existing customers and that's an important point because it means we know the customer and we know that the site we know the site typically that we're working on and that therefore brings the risk profile down. And when Mark and Phil talk about the data centre projects that we're doing, often those data centre projects are bid on a bilateral basis with the customer, i.e. they're not competitive bids. We're working with the customer through each of the phases that Mark just referenced, building out the cost and then building out the delivery plan without another party over sort of to the side competitively bidding against us.

And then just picking up that AI point, and CJ, I might bring you in a little bit later as well. But the investment that's gone in before, if you like, was predated AI. And that's the point we're trying to make. So yes, we've invested in IBM Maximo. We've got the most modern instance, Maximo 9.1, that's got AI embedded in it. We've got Coupa. That was a big upgrade for procurement. That's driven a lot of the savings and all that point about preferred supplier lists. Our procurement team negotiate top rates with preferred suppliers. And then the old days, people went off and bought from a local supplier. So if you take the higher what have you, we would have had 15 different companies doing that, and then we consolidated to one. So we've seen preferred supplier uptake usage go up. And AI is embedded in that. You've heard us talk about all the AI we put in success factors, and then all the bots. We've talked about that before, and the interfaces and the apps. And so we've got all that, and we've got the data late. And I think we've talked before. I mean, our data late is 0.75 of a petabyte. You don't know what that means any more than me, but it's 21 million upright filing cabinets. And every day, we add another 100 filing cabinets. That's the scale of data. We'll never have the ability to really process that quantum of data. in real time. And I think that's where AI comes into it. And CJ, I mean, anything to add? I think I'm quite excited about Anthropic. I know a lot of people use Copilot with the whole operation with McKinsey now. I mean, what's different this time to what we've done before?

A couple of things when you think about AI at scale. You have to have the basic layers in place, which is your infrastructure. So we have got everything on cloud, so we have the elasticity. You need to have your application readiness, your core system readiness, and then you have got your data readiness. So we have got our data lakes from last eight years. So these are the building blocks. And in the capital market day, we launched a mighty digital platform. So what we are doing is we are leveraging the agent declare on top of it. That's what makes our journey much more easier into the AI. Now, a couple of things, some of the dates which I want to remind, like January 2024, we launched our AI ethics board. Peter Dickinson chairs that, so we have got a good governance around it. We launched our AI mighty strategy in January 2025. So we are pretty much in an execution phase. And with PRIO, which Catherine is leading, we will be doing the change management and at scale.

rag mcp all that a2a very happy to go into the layers of ai if you are interested in but i'll keep it up but all that was new that's new we didn't have that before we didn't have bots that could talk so that's a2a agent to agent and rag is the retrieval augmentation. What does the G stand for?

Generation.

JOHN BARNESON- Generation. And MCP is the model protocol that allows all this stuff to connect. We didn't have any of that. Now, whether we're ahead or behind, we're certainly not behind. But we cannot be complacent. And our biggest competitor we always think of is CBRE. So whilst we don't see them as much in the UK, certainly in public sector, What we watch is what they do in the United States. And if you follow, they've just signed a deal with Meta, for example, to do massive data center rollout. We bought JCA, which is a data center principal engineer. They bought a data center company, but it was like 10 times bigger. We bought a company that did grid connections. They bought one 10 times bigger in the US. We bought engineering business. They bought Pierce, $2 billion, 10 times bigger than anything we're spending. And they've actually, I mentioned McKinsey, but they've just hired the head of AI from McKinsey in the US to join CBRE. So we cannot afford not to be doing this if we want to compete. But I think it goes to the other point as well. And we've talked about this before in the haves and the have-nots. Consolidation is the name of the game, because how much is our IT bill, CJ, now, if you added up everything? It's $100 million. It's $100 million. There aren't many companies that can spend $100 million. But we could spend $100 million. It might only be $103, and we could do it over double the size of the data. And that's the leverage of investment. And that's why I do think consolidation is a potential. That was a long question, but an interesting one. Well, who have we got? Sam, maybe? Maybe a lady at the front. Let's do Sam at the front. Goldman Sachs.

Hi, good morning. Suhasini from Goldman Sachs. A couple from me, please. It's interesting to see the state of the pipeline, including Marlowe, facilities compliance, etc. Can you maybe talk about potential for revenue synergies beyond FY27? I know that initially you had talked about potential for dis-synergies as well, but it felt like the momentum was building, so any color there that would be helpful. Thank you. And then I think if you think about the expectations for growth for FY27, given the state of the order book in business services versus technical services, one is up, one is down, does that kind of signal the way the growth should evolve in those two divisions as well? Thank you.

OK. So the first question was about Marlowe synergies. And I might bring Christian in a little bit on fire and security in a second. But there were some dis-synergies originally, because I mentioned CBRA. The minute we buy Marlowe, they cancel all the work. But I'd ask whether they're acting in the client's interest, but that's a different point. So there are a few dis-synergies to begin with, but they've already been more than overtaken by the new work that we're starting to win. And if I stay on water, then I'll turn to Christian, because Christian runs the fire and security side of it. But on the water side, I mentioned we've got atomic weapons. So we've done quite a number of... swimming pool upgrades. I'm not talking about the Goldman Sachs partners, but I'm talking about in schools and hospitals are big things, swimming pools now. And so there's big upgrades going on there. We've got some work going on with heat extraction, the heat pump, and water treatment. So the size, we didn't put it in because it was almost too big to be true. So Kate made me take it out. But the size of the leads now are 100 times bigger than they used to be at Marlow. So we don't need as many. We need to be focused. And that's where the sales team are focusing. We've got a new team. And so we're very optimistic about growth. I mean, Christian, on the fire and security side, we've got some good wins, Virgin O2, AS Watson. What else has been going on?

So I mean, the pipeline, to your point earlier, I mean, it has significantly increased in the last year six to nine months since we took over the acquisition of Marlowe. And we've got a really nice mix of business as well. So we have a mix of projects and also some nice new recurring revenue contracts that are coming through. And we're seeing, because of the enhanced capability that we have across the two businesses combined, that the self-delivery capability, as Phil mentioned earlier, is much greater. So we're able to take on multi-disciplined opportunities across our existing customer base. So the pipeline's growing. There are some key sectors that we're aligned to, which Phil mentioned earlier. And we're seeing some good growth in both of those areas.

And you're up on plan from where you are.

And we are up on plan, which is always a good place to be, right? So yeah, we are.

So then the order book, and I might bring Sam in a little bit on BS and TS because, thanks, Christian. I know you wanted to carry on, but.

Come on.

Because there was a moment in time, and we haven't internally, we talk in tech services about building back better. And that sort of implies that we've not been happy with where we were in tech services. And part of the change there has been changes in management. And we've appointed Sam and asked him to speak a little bit. But TS last year had a really poor year on sales. And that's why it's gone down. And that's why the order book has gone down. Because we hit 15% of the target, something like that. This year, we're already starting to get ahead. And I'll get Sam to talk about that. So it's not a function. It's a management function, that. It's not an intrinsic business function. And BS will continue to grow. It's just that TS this year will grow. So Sam, come on up. Sam joined us in December from Costain. He used to work at British Aerospace and Babcock, so comes from an engineering legacy.

Okay, thank you very much. So, great question. And, of course, we see opportunities for growth within technical services. We see that willingness to pay, but at the heart of that is an ability to be able to deliver engineering excellence. So we talked a bit about the features that will help us towards that. So the tools and the systems that we've got in place, there's been significant investment over the past number of years. And when they come together with AI, that creates a really firm base for our services. That's really important and a key driver of how we're moving the business forward. What we've also done is to refocus the business along customer-facing lines. Because actually, whilst we're providing technical services and integrated facilities management across MIT, actually our customers are very different. And many of our critical environments customers have similar characteristics. So if you're working in pharma or Heathrow Airport or BA systems, the consequences of not having your facilities at their best are significant, and so we're bringing in a team that has the experience and capability in those sectors, and we've recently made some appointments around that. And so building that team, investing in the systems capability, and putting engineering really at the heart of that is key to the future. So focus on delivering reliable, assured, best-in-class performance, investing in the systems, and then focusing on those customers where we're able to bring the breadth of mighty capability. So we work with a number of customers today who take our full suite of services and projects from our gazelle businesses. Those are great customers for us, and we're targeting our growth on that.

And wins so far this year? We've had a few good ones, haven't we?

Yeah, absolutely. So we were able to re-secure our contract with GSK. We have been pursuing a number of different opportunities.

There's been some... AstraZeneca was a win.

Yeah, so AstraZeneca was an important one for us. Again, at the heart of our critical environments, when we serve our pharma customers, in the case of GSK, for example, delivering 250 million drugs globally from their facility at Barnard Castle. So... really focusing on those customers who have absolutely critical requirements because once they're happy with the service, it can create a long-term relationship that we can invest in. So that will be the focus for us.

A.S. Watson was another one. And I think maybe there's a point there I made about that share of wallet because it looks like a big number. But let's just take retail. We're very big in retail in security. As we know, we've got Sainsbury's Marks & Spencers, Co-op Aldi Little Boots. We've got a lot. But what we haven't had is the capability to deliver hard services, in particular to retail, which is all about refrigeration. And so that's why we bought Forest. Forest is a refrigeration service provider. And so that's an example of the share of wallets maybe always been there, but we haven't always had the wherewithal to go after it. And now we can. Sorry, I interrupted you.

No, no, no, I hadn't started. I was just going to make two points to build on what Phil and Sam have been saying in response to the question. The first one is, as I said in my presentation, FM went backwards a little bit in TS, but we've got good momentum in FT in TS, so that grew 14% in FY26, so we've got some good momentum there, particularly in defence and in healthcare. And then... Half of our pipeline sits in technical services. So whilst we didn't convert those opportunities as well as we'd like to have done in FY26, we've still got a great pipeline that's sat there of opportunities for FY27 and beyond. And a lot of that pipeline will come to bid and be decided in the next 18 months.

We've got a new sales director. We've got a new finance director. We've got a new HR director. We've got a new head of critical environments. We've got a new head of healthcare. I might have missed somebody, but... There's been quite a lot of change. Next question. Sam?

Sorry. Hi, Sam from Stiefel. Two questions from me, please. Firstly, just going back to that capturing the share of wallet opportunity, can you just give a sense of how you've changed the incentives to get the sales team to sell all the new services you have? And then secondly, on the projects business, obviously pretty significant growth since the CME. Can you give us a sense of how the margin profiles changed since then? And does bigger projects necessarily mean better margins or any sense of that would be great?

So what was that last question again? So the first one was around margin, sales, commissions, and incentives. Kevin, I might get you to have a go at that one. And then the CMA, what's the connection with the CMA?

So the project's business has grown quite rapidly since the CMA. Just the sense of how the margins trended since then. And does bigger projects necessarily mean better margins?

Yeah. I'll let go of that. Did you want to jump in?

Yeah, I can do that.

So I think it's fair to say, I'll do that once Kevin's thinking about sales incentives. He is the master of the commissions. But the CMA... The margin, so we've had the growth. We're not arguing about that, are we? We've had the growth. The margins on capital projects should be higher generally than FM. But if we get a hit, it always knocks it back. And it's not because we always get a hit, but we've had a hit in telecoms when we signed up business. We bought a business called ESM, which did grid connections, and another one where a big order book, when then we're left having to deliver it, and it's not quite worked out. So it doesn't mean we're selling bad business, but it means the buyer we've taken on bad business. So I think we're getting the margins up where we want it to be. But it's certainly not where we would overall. But if you look at GBE, you look at JCA, they're making good margins. But you just need one or two claims, and it knocks the margin back. And most of those are historical claims.

Yeah, all I'd say to build on that, I agree with all of that, is the margins are better in projects than they are in FM by a percentage point or so, as we've kind of discussed in this forum before. But as Phil says, we like them to be higher and they're certainly moving in the right direction. The only other thing I'd say is just to directly answer your question about larger projects is that typically we see our larger projects actually deliver good margins. And so, for example, if I take our two largest projects that we've recently completed in the last 12 months, so we're talking about projects of a tens of millions size, they're in double-digit margins.

Kevin, tell us about Sales Commission. Do you want to come to the front? Yes.

It's quite a simple and subtle change, really. So historically, sales teams have been incentivized to sell in their business or their service line. Just historically, that's the way it's always been done. We made a very subtle change to reward sales incentives around whether you sell in a sector, in a service line. And that just unlocked a lot of cross-sell between the different teams. Structurally as well, we've changed in the past two years. So again, historically, sales teams reported into the business unit managing directors. When I took the role a couple of years ago, we centralised all our sales function. So it was a mindset change as much as incentives. And also SCD incentives, so making their bonus plan more aligned to growth and operational delivery have been the things which have unlocked it.

And the last one just to say about that is we used to have a marketing team that reported to me. It was probably my fault. And we were good at what I call big M marketing, the swirl and all that sort of stuff. But the little m marketing is the support that the marketing team do for specific bids or sector development. And all that work that's going into the website now is done by what I call little m marketing. And marketing now reports to Kevin. You have a degree in marketing, Kevin. And actually, the sales and marketing team both working for you has made a big, big improvement in delivery. Was there questions? James? Was it James? No, not James. What's the end? Yeah. Not James. What's it called? Next to Chris. Next to Chris. Sorry. Tell me.

Thanks. That's quite the intro there. James from Deutsche News. Two questions, please. Firstly, how...

How do you think your position... You got me wrong. I thought I got your name wrong, James.

No, you got the name right. Firstly, how do you think you're positioned and what do you see as potential risks should there be a change in Prime Minister in the UK? Secondly, can you give us a little bit more colour on that technical services contract that lost £10 million in FY26? What happened and why you're confident that that shouldn't repeat in the future?

I think this is my sixth or seventh prime minister so far in 10 years, so we're all sort of used to that in a way. So that comes with the territory. I think behind your question is maybe a shift to the left. Maybe it's that part of it. I think if you look at the burden on national insurance, there's always the law of unintended consequences. You've seen the impact across the country of lower employment in 18 to 23 year olds, for example. So I suspect we're not gonna see anything like that again. I think there's a view that business has shouldered quite a lot of the burden there. When it comes to awarding of contracts, and I'm not going to name them, but we do spend time with civil servants in departments. And the last thing they want is to take people into the system that they've got to manage and then pay a government pension scheme to, because as you know, that's a DB scheme still, and become experts in suddenly become experts in engineering and security, which is what we do. So we're not seeing any. any sort of change to that. And at the same time, those strategic investments in defense and health care and crime and what have you, that still features any political color is going to have to continue to invest behind. So I don't see changes on that. Let me deal with the tech services. That was a government department one. I know the bid well. I think I may have told you. It was one of our biggest bids, one of our biggest contracts. out of which projects was over 80 million a year. And the FM was more than 80. So it gives you an idea of the scale. Knowing that we make money in projects, we were bidding on the FM. And the bid was cleverly priced at a minimum floor. So if you went below, you had to bid at the floor. And we bid at the floor. And actually, the winning bid bid at the floor. So it wasn't about price. We were below the floor, and it was a question of what do you do with that excess, and where do you reinvest the floor, if you follow that. And we actually put more into pay, because we'd seen a contract churning people on minimum wage and we wanted to invest more in our people. The winning bid put more into social value and local outreach. And the difference between the prices, the scoring, I mean, I read it and some were excellent and some were outstanding. By the time I read it, I had no idea what was outstanding, what was excellent, because they were both really good. It wasn't about price. It was the tiniest margin. Now, I'm slightly giving away the game. Shortly after we lost that contract, we were awarded a big security contract with the same department. And you could argue, that they weren't ever, and this is the post-Carillion world of putting all eggs in one basket. So the question is, and we never know, were there influences to not award mighty both? And I'll never know that. But what I do know, because I went through it, it was a good bid. And it was very close. Now, the financial impact was quite significant, because it was an inter-serve contract that was coming off a 10-year bid. And we always tell you, we worked the margins up. And even we, if we'd won it, we'd have had a hit, because we were dropping margins. Because we dropped below the minimum. We were dropping margins. So that would have happened win or lose. But then we lost the project follow through. And we were doing a lot of project work at good margin. We were doing a lot of EV charging and solar and whatever else. So there aren't, funnily enough, we always do a deep dive on losses and lessons learned. There are many lessons learned on that, ironically. We have a good relationship with the client. And we did a good bid. We couldn't have bid it lower.

So, James, I think there are a couple of elements to your question. There's that central government contract that I referenced in my presentation that's a year-on-year headwind because we lost it halfway through the year. Were you also asking about the contract in TS that had the loss, that had the £10 million loss? Yeah, so that's a telecoms contract. It's the same contract that we referenced at the half-year. So I referenced the loss on it at the half year. The loss has got a little bit bigger. As I said in my presentation, that contract is now completed. So it completed in May. So we're not going to have the same problem again in FY27. It's in a sector, as I said, that we're exiting. It's a unique contract in the way it's structured in the terms. And essentially... Essentially, it was bid on a highly competitive basis. The legacy order book that we had against that contract wasn't deliverable for the cost base and the rates that were previously in there, and therefore we've been... So it was a 5 plus 2, and it had deflators in it. Yeah.

And we don't do that anymore. No, we don't. We did, and it was on my watch. We bid it. We wanted to get into... tell telco and it led it led into why we ended up doing telco maintenance. And then from there into ADB acquired design and build mobile phones. It's not been our best moment, but it had it had a deflator and we made money to begin with. And eventually, every year, the labor rate's going up. Steel's going up. Hard to get telco engineers. And we're getting paid less every year. And the last two years, it was painful. And then there was a backlog that essentially they sent us the bill to fix. And so that's why we're out of it.

Yeah. But I'll reiterate the point I said at the start of that, which is that we don't have another contract like that in our portfolio.

Chris, you had one. We don't want to keep you any longer than Chris here.

Good morning, Chris Bambury. A couple of questions. The renewal rate rebounded to 84%, so that's closer to the 90% longer term average. Do you think you can get back towards that average? And if so, what do you need to do? Secondly, you're now eight months into Marlowe. It's just kind of big picture. What have been the pleasant and less so pleasant surprises against your original expectations and perceptions of the business? Thank you.

Yeah, and I think I won't bring you in, Kev, but credit to Kevin because, again, I think it's a little bit of the case. And this comes back to some of those losses have been in in engineering facilities in the FM and TS, technical services. And I think the view, if you look back on some of those that we didn't renew, some of the early warning signals around the NPS, the Net Promote Score, the client feedback, the lack of relationships built through the organization might have been an early predictor that there was something we needed to fix. And that's why Sam has made a big difference, because Sam has been much more visible with the clients. And Kevin is collecting all the apps. So we're now tracking the NPS of those renewals coming up and the relationship management points. And we have a whole plan around retention that starts well before we get a bid. And that's where we were metaphorically waking up when we got a bid. Well, if we'd been playing our cards right, we wouldn't have even had a bid. It would have taken it off market. And when we do it well, we do it really well. And it comes back to the quality of the SCDs. And I think of our very largest contract, I won't name it, but we've extended it three times now through great relationship building and great delivery. And that's what we need to do. Marlowe, look, I think on the The accounting side, we've had to make a few provisions that they didn't make. We have a more prudent approach to bad debt. We have The stuff that they used to put below the line. And this is what analysts would have said. We never saw the real clear, clean numbers, which we're now absorbing above the line. So from a get go, we're probably lower than you might have thought. And that goes a little bit to the, you've got to get that in mind when we've delivered 7 million of synergies. when we said we wouldn't deliver anything. So the good side is we've delivered seven million stitches. And we're really getting after it. We've got a really good team. We put in Alvarez and Marcel with a really good team. And we're just blitzing it now. We know exactly how to deliver it. We've got some really good people on the optimization. I mentioned pricing elasticity, procurement, back office. There was a lot of paper. IT, we sent out 2,000 laptops, rebuilt 2,000 laptops because nothing was cyber secure. And we're on top of it. And we get the momentum behind these wins, and we're off to the races. So we're very happy with the acquisition. It's not unusual that there are a few issues to begin with. And then I said we had that cancelling, which we'd anticipated. But to be honest, it was a little bit higher than we anticipated out of the traps.

I'll just very quickly pick up on the pricing point just to say that, as you'd expect, we've got an excellent structure and process around how we price through inflation through to our customers. That process didn't exist in any sort of shape or form like we have it in Marlowe. And so there's... We're coming on a journey from that perspective, and there will be significant improvements going forward from a pricing perspective.

We had all the salespeople in the room and asked them, of what they sold, did they know what the profit was? And none of them did, because they were bonused on volume, not on margin. So in Mighty, you're bonused on margin. Margin sold, and then margin delivered, and there's a phasing, two phasings over a year. And if you're not delivering the margin sold in the actuals, six months on, it gets clawed back. Yes, over here.

Sorry, thanks. It's Nick Ward from Ocean Wall. Could you perhaps just offer a little bit more qualitative commentary around the process reimagining optimization program? Specifically, maybe give us a little bit of a flavor as to where you feel generally processes are today. How much of this is around genuinely taking costs out versus actually improving the quality of what you're delivering for your customers? And also, how much if at all do you think inconsistency of processes is impacting the quality of the data that you're unearthing, and therefore the quality of what you can offer in terms of insights and better ways of working. Thank you.

Yeah. I mean, if you go, if you're there on that one, 28 and 29, as I said, hidden in there, we put this company called ScanAI, which scans all the keystrokes across Mighty. And it's anonymized. So I can tell you that the most frequent keystroke in MITEI is cut and paste. So you're cutting data from one part to another. Another quite frequent one is Amazon, but that's a different question. But what it showed was lots of different ways of doing the same thing. And over time, customer practice, With the best of intentions to try and give a client what it wanted in particular, we've ended up morphing lots of different ways of doing the same thing. So there's a big opportunity to standardize, and that's the real standardizing and simplifying. And it's a bit of both. I mean, as you look on 29, essentially, there's bots alongside everybody here. That's the picture we want to show. Because we don't want to just be a people, but we've always got a human in the loop. It should drive. And if you think about how we run a contract, complex contract, we might have 15, 20 of our people managing all the different touch points down in the organization. And the whole point of the orchestration layer is that they can help to manage that more effectively. And then there's probably 15 or 20 people on the client side overlooking what we're doing. And eventually we would see a world where the bot, the agent at the top, could talk to an interface with a client on their side, an agent on the other side, and maybe take efficiencies out of their own oversight, because they'll just get a bot talking to a bot. And for some clients on a journey who would go, and I won't name those either, but there are two or three clients for us who are really trying to transform their own business model. And if we weren't joining them at the party, if you like, I'm sure they'd be looking at somebody who was. So I think you'll see that momentum building about, from a client point of view, tell me what you're doing to help me manage so I can see whether my places are really high performing. And the only way you can join all that up um will you be the winner in our industry and so i think it's a lot about value but value work value to the client but value then has a has a two-way meaning because on the one hand that sounds like i'm giving back some of my margin and i'm saving but on the other hand the value of what i provide a client may justify a higher margin And that's the bit. We aren't at that point yet. And I think it'll be a bit of both. So I think there'll be... Ask my successor in two years' time how it's going, but I think you'll find it's quite a big deal. Brilliant. Thank you, as always, for your patience. Thank you for your support. And we'll see you in November.