Serko Ltd

Good day and welcome to the Circle FY26 full-year results announcement. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Darren Grafton, CEO. Please go ahead.

Good morning, everyone, and thanks for joining our investor briefing for FY26 financial results. I'm Darren Grafton, CEO of Circle. and I'm joined by our CFO, Shane Sampson, and our COO, Matthew Geary. Let's begin on slide four. This morning I'll take you through our performance and highlights for the year. Shane will cover the financial results in detail, and Matt will update you on our strategic progress. I'll then return to cover our FY27 outlook before the Q&A. Unless otherwise stated, all comparisons are to the FY25 and dollar references are to the New Zealand dollar. FY26 was a strong year for Serco, demonstrating both the quality of our business and our ability to execute. We delivered total income at the top end of our narrowed guidance range and materially grew our EBITDA fee. Booking.com for Business continues to deliver strong growth and we remain the market leader in Australasia. We are also leveraging our IP and experience to drive rapid progress. Serco AI is now in a closed beta in the US with the first users onboarded. Finally, Discipline Cost Management continues to support efficient growth with total spend at near parity to total income. while preserving a well-capitalized balance sheet. We enter FY27 with strong momentum and a disciplined focus on execution. I'm now turning to slide five. Total income grew 34% to $120.9 million, driven by strong momentum in Booking.com for Business and the first full year of the Get There revenue. which added $16.1 million. Total spend was at 102% of total income, with guidance reflecting disciplined cost management as we invest or grow. Operating expenses increased 23% against total income growth of 34%, demonstrating the operating leverage in our model. EBITDA fee reached $6.5 million, up 137%, Net loss after tax narrowed by $4.2 million, largely due to the non-cash accounting impairment in the prior year relating to our acquisition of the Get There business. Free cash flow was negative $4.4 million as we increased the investment to support our strategic initiatives. We remain well capitalised with $54.1 million in cash and no debt. Turning to slide six. where we look at our total income growth in more detail. You can see the breakdown of total income with and without GetThere. Income from the pre-acquisition business increased 22%, from the $85.7 to $104.8 million, driven by Booking.com for Business. In total, online bookings increased 41%, from $6.4 to $9 million. This scale strengthens our market position and informs smarter product decisions. Turning to slide 7, where we take a closer look at Booking.com for Business. Completed room nights grew 31% to 4.3 million, driven by strong active customer growth of 36% to 301,000. We added approximately 79,000 active customers over the year, reflecting the continued strength of our customer acquisition strategy and the appeal of the product in the SME market. Average revenue per completed room night was down 4% to €9.25, and in line with broader market pricing trends and the impact of commissions hearing as the volume scaled. Looking at the chart, our strong three-year growth trajectory gives us confidence in the long-term potential of the partnership. I'm now on slide eight. In Australasia, we continue to see growth across customers and bookings. Travel revenue was up 6%, while online bookings and ARPB both rose 1%. This travel revenue growth was largely driven by one-off services work for specific partners, so we don't expect that growth rate to repeat. NDC continues to gain real traction in this market. Very few providers globally can offer full integration across both Sabre and Amadeus. We are one of them, and our early investment has strengthened our market-leading position in this region. Turning to slide 9. Get There has established Zirco in the US in a way that would likely have taken years to build organically. Given us direct customer relationships, transaction data at scale, and greater visibility in one of the world's largest business travel markets. This US foundation is now supporting two significant initiatives, which Matt will take you through in more detail. The first being Serco AI, and the second targeting defying US corporate segments through the Booking.com for Business. Both initiatives remain early stage, but the early signals we are seeing reinforce our confidence in the opportunity ahead. Thank you, and I'll now hand to Shane.

Thanks, Darren. Turning to slide 11, FY26 delivered strong total income growth and disciplined spend. This saw EBITDAFI increase 137% to $6.5 million. This increased operating leverage from our existing businesses funded increased platform investment. While total income increased 34%, total spend increased by $30.3 million or 33% to $122.9 million. This primarily reflects a full year of get-there costs adding $20.8 million and increased platform investment of $13.3 million. Partially offsetting the increased investment, we continue to deliver increased operational leverage in Azeno and Booking.com for business operations, with reductions in direct costs of $1.7 million despite volume growth, and reductions in other operating expenses of $3 million. The net loss after tax decreased to $17.7 million, an improvement of $4.2 million, and I will talk to the drivers on the next slide. increased by $2.5 million to $4.4 million, reflecting the stronger EBITDA fee being more than offset by realized FX losses, lower interest income, and increased capitalization of internally generated software. We also made net payments of $2.8 million in relation to the get-there acquisition, reflecting the final payment partially offset by a working capital adjustment. We have excluded this from our free cash flow calculation, consistent with our approach and criteria. I'm now on slide 12. A net loss after tax improved by $0.4 million more than EBITDAFI. A very small difference, but the underlying story is a bit more complicated. The bottom part of slide 12 shows the reconciling items between EBITDAFI and the net loss. The key drivers of the movement were net finance income was $2.4 million lower, reflecting lower cash balances as a result of the Getner acquisition, lower ended interest rates and new leases. and foreign exchange losses increased by $3 million. These negatives were offset by asset impairments and disposals, which were $3.2 million lower than the prior period, and lower amortisation and depreciation of $1.9 million. In relation to the foreign exchange losses, the $3.8 million loss on forward exchange contracts in FY26 was due to the significant appreciation of the Euro and Australian dollars against the New Zealand dollar. Historically, we did not designate these as hedges for accounting purposes, even though they did act as economic hedges in substance. Any gains or losses on the foreign exchange contracts were recognised from the profit and loss, while the revenue was accounted for at the actual rates applying at the time the revenue was earned. To reduce volatility in reported revenue going forward, we have designated a significant portion of our FY27 Euro contracts as accounting hedges, which includes selling 32 million Euro across FY27 at an average rate of 1.977 New Zealand Dollars per Euro. As reported at the half year, we incurred a $2 million non-cash accounting loss on the sale of our Interflex business in September 2025. The disposal made a small positive contribution to profitability in the second half and is expected to generate ongoing financial and strategic benefits. Those of you who attended our Invest Today on 10 March will recognise slide 13. The slide shows the mix of our product and technology spend in the first quarter of FY26 and our expected mix in the first quarter of FY27. As you will see, we are roughly doubling the level of platform investment with a much more modest increase in overall spend as we continue to reduce spend on our managed travel products. As noted in November, we undertook an optimisation programme in the second half of FY26. which, while largely neutral in FY26 due to timing and severance payments, will materially reduce future spend on our Xeno product. We expect to continue to drive further efficiencies in our existing products on an ongoing basis. In this context, I note that platform investment refers to the ongoing process of moving components of Booking.com for Business onto our new platform and building new Booking.com for Business capabilities within that platform, together with our investment and building the Circo.ai experience that launched last week. The spend includes our pre-existing teams working on Booking.com for Business, and the additional staff added in both our India hub and in the US to help accelerate our transition to the new technology. Slide 14 shows our income and spend trajectory over a five-year period, during which we have grown income by 5.4 times, while spend has only increased by just under one times. Across the period FY23 to FY25, We grew income by 78% while holding spend flat, excluding the Get There acquisition, showing the strong unit economics in the business and our resulting ability to generate operating leverage. In FY26, spend grew by 33% while income grew by 34% as we increased platform investment and incorporated a full year of Get There results. Our track record of investing and growth, then delivering operating leverage, gives us confidence as we invest in the platform with the key difference to earlier years being that the investment is now substantially funded for operating cash flows of the business rather than shareholder funds. Moving to slide 15. The partnership renewal was structured to mutually incentivise and benefit both parties to grow Booking.com for business. The structure included retention of the 50% commission rate until Serco was earning strong returns on its earlier investment. Once those returns were achieved, we moved to lower commission tiers for incremental volume, which provides a stronger commercial incentive for Booking.com to drive further volume growth. The success of both parties in growing Booking.com for business means we have moved into the first of the lower commission tiers during several months in FY26, with our blended commission rate falling from 50% to 48.7%. The lower blended commission rate explains why our average revenue per completed room night sold by 3% more than the average commission per completed room note. As we continue to grow volumes strongly, we will see the blended commission rate decline, but we remain confident that each incremental transaction will continue to drive incremental profit contribution, reflecting the very low incremental cost per transaction. For the avoidance of doubt, I note that the potential future volumes on this slide are aligned to our April 2024 communication with the tiering structure, rather than a projection of FY27 and FY28 volumes. Finally, looking at slide 16, Zerco's balance sheet remains strong with cash and short-term deposits of $54.1 million in no debt. A strong balance sheet provides us with resilience and optionality as we pursue the opportunities in front of us. Thank you, and I'll now hand over to Matt.

Thanks Shane, and good morning everyone. Today I want to briefly recap our strategic focus, including its context. and update you on the progress we've made on our strategic initiatives so far this year. Let's start on slide 18. As shared at our invest today, we predict profound change in the way that people experience business travel and how travelers behave. There are early visible signs of this predicted change in customers' expectations and in travel tooling and supply. At the center of this shift is travelers moving from manually booking trips to AI agents acting on behalf based on the traveller's behaviours and preferences learned over time. In this new world, trust becomes the primary differentiator. Travellers need confidence in the results they receive and companies need assurance that those results remain within the travel policy and deliver real value. Circa's advantages to deliver in this new world are difficult to replicate. We have tribal data at scale, a connected supply ecosystem, an embedded technology system, and years of policy and compliance intelligence. So in reality, we've been building towards this future for several years. At Investor Day, we focused on the three strategic growth initiatives shown on this slide to deliver sustainable growth in the coming years in pursuit of our 250 million FY30 aspirations. The first strategic initiative is Circo AI, our new multi-agentic AI solution, which we are very excited to have launched in closed beta. The second is scaling Booking.com for Business, which remains our most important revenue driver for future growth. The third is bringing incremental demand to Booking.com for Business, delivering value by targeting specialist US corporates that regularly move people at scale and whose needs neatly fit with the features offered in Booking.com for Business. Moving to slide 19 and our first strategic initiative, Circle AI. At Investor Day, we outlined the upcoming launch milestones, and we are delivering on those. As I mentioned earlier, we've been laying the foundations for an AI solution such as Circle AI for several years. In the last six months, we have made rapid progress, and last week we released Circle AI in closed data to US users, with the first users onboarded. Initial user feedback is highly encouraging. Now, we are continuously iterating the product based on our user feedback to launch the product to an expanded user base as part of the open beta later this year. When it comes to the user experience in Circle AI, our focus is on simplicity and ease of use. However, developing a simple and easy-to-use product is vastly complex. The current functioning product includes the careful coordination and orchestration of numerous AI agents that carry out tasks in parallel, interactions with third-party suppliers, and it delivers a seamless conversational experience to users despite hundreds of actions taking place behind the scenes. We are really excited about the developments of this product and proud of the progress our teams have made with Serco AI. On slide 20, I'll take you through the successful progress we've made in our second strategic initiative, Booking.com for Business. In the past year, we have delivered numerous initiatives with positive outcomes. We set some of the highlights out on the left-hand side of slide 20. For example, customers told us that they wanted an improved mobile experience, so we delivered one. In fact, this enhanced experience resulted in conversion rates 1.4 times higher than before implementing the new mobile experience. This work has delivered a better experience for customers, which in turn drives value for Serco and our Booking.com partnership. We've also significantly improved how we support our customers using AI. In fact, we now see that 30% of support queries are resolved autonomously with no human intervention required. This creates a rapid, easy solution for customers while driving efficiency for Serco. Now, in the current financial year, we're in execution mode. We continue to drive improvements across acquisition, activation, and retention of our customers. We're working closely with Booking.com to identify business booker customers and bring them onto the business platform, which helps drive significant customer acquisition. Similarly, we're making it easier for customers to see all their bookings in one place. Customers will be able to seamlessly navigate between bookings that are made on Booking.com for Business and those they've made on the core Booking.com product, which in turn should drive product stickiness. On slide 21, I show progress on our third strategic initiative. We are pursuing U.S. organizations who regularly move large volumes of people at scale, but who do not need the complexity of large enterprise travel tools. We are targeting and onboarding these customers onto Booking.com for Business, which has the features and supply perfectly suited to their needs. We're making solid progress in generating and validating qualified sales leads. To do so, we've brought on new sales leaders from travel brands like Airbnb who have experience in attracting U.S. organizations like these. And we've onboarded additional sales staff to bolster these efforts. Our focus is on learning as we bring these initial customers on board. The next stage will be increasing usage into meaningful volumes before onboarding additional customers to drive volume at scale. Thank you all for listening. I look forward to keeping you updated on our progress as we achieve our milestones. I now hand back to Darren for the FY27 outlook.

Thanks, Matt. Business travel demand in our key markets remains resilient despite the ongoing geopolitical uncertainty and macroeconomic challenges. Serco has made a strong start to FY27, with booking volumes slightly ahead of our growth expectations. Serco expects total income for FY27 in the range of $128 to $134 million. The range is primarily driven by the timing of booking volumes from the strategic initiative targeting defined U.S. corporates. Serco expects total spend in the range of $132 to $140 million. Guidance is subject to the uncertainty and volatility in the economic and geopolitical conditions, including the impact of the conflict in the Middle East on business travel demand. We have provided additional context for our guidance in the appendix. And we're now happy to take your questions.

Thank you. And if you would like to ask a question, please signal by pressing star 1 on your telephone keypad. If you're using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, we do ask if you would like to ask a question, press star 1 on your telephone keypad. And we'll pause for just a moment to allow everyone an opportunity to signal for questions. We'll now go to your first question, coming from the line of Joshua Dale with Craig's Investment Partners.

Morning, Darren, Shane, Matt. First question, in addition to your $250 million revenue target by FY30, you also had a $100 million free cash flow target. You've signaled cash burn of $5 million. for FY27, if we look at your guidance midpoints. But then, you know, to hit $100 million free cash flow in three years' time, there's some quite significant operating leverage implied for FY28 to 30. Is that correct, and is that what's being targeted?

Hi, Josh. It's Shane. I'll cover that. I think the first point I'd make is that In terms of cash flow for FY27, there are some non-cash items within total spend, particularly the share-based compensation. So if you like, at the midpoint, we would probably have positive free cash flow. I think the key point, though, in the question about leverage, from our perspective, we've absolutely shown that our business generates strong leverage as we grow revenue to date. We think that will continue, so if we hit $250 million, the business would be generating significant cash flow. However, what we... are also doing and it's certainly our focus for FY27 is our focus is on what's going to generate the best outcome for the best value for the company and for its investors and our view for FY27 that key focus is delivering the strategy that Matt's just talked to and so if you like that's our key focus versus an arbitrary focus on generating a positive free cash flow. Looking at FY30 as an example, if we were $250 million is a stepping stone to where we think this business could go, not the end objective. If we were seeing, for example, great L2B to cap ratio, then it would... not be a good decision for us to decide to try and drive more free cash flow and turn down the opportunity to grow value in the business even more so from our point of view yes absolutely we expect the business will be able to generate significant operating leverage the big open question is what's the rate of growth we're at in FY30 and what are the best opportunities to grow shareholder value at that point

Okay, that's helpful. And if I look at your FY27 guidance again, you know, it's a $10 million revenue increase on FY26, most of which comes from booking for business. You know, I suppose if we look forward and assume booking for business can do that level of growth again, maybe $10 million a year, our TFY30, it does imply actually quite material contributions from Serfo.ai, and I suppose the B4B partner channel. You know, I appreciate it's a very early stage, but I just wanted to gauge your comfort with that $250 million target as we edge toward it.

Yes, that remains our aspiration. We think the market opportunity is more than big enough to deliver that. So as you say, early days we've just got the Theta AI product into beta. We've just started the process with the US defined segment, but when we look at both those markets, we believe we have got the ability to win in those markets and that the markets are more than big enough to support the $250 million market. Aspiration also notes that in terms of booking, there's also significant potential for further growth within that business. So from our point of view, we've got multiple paths to get to the $250 million aspiration.

Okay, thanks. Just last question from me on the B4B partner channel. You talked to an initial customer group. Can you just go into some detail as to, I suppose, what that is? what you're testing, is it an actual customer, you know, just a bit more detail on that?

Yeah, sure. Hi Josh, this is Matt speaking. We've brought on our sales team, was the first step in the process, so we've hired a few people there in our sales team that specialise and have experience with dealing with these types of US organisations. We're filling that pipeline of really exciting leads of people who are looking to come onto the platform. I guess to answer your question directly about what it looks like from here through the sales cycle is it will look slightly different than say something that you see on booking.com for business as a sales cycle and slightly different than what you would see in our traditional TMC business. So what we're expecting to see here is we will bring on these organisations, we'll go through a testing phase with them, ensuring that they are comfortable with the supply and pricing and functionality of the product, and then we'll expect scale-up in volumes over time as we bring them on. Now, as I said earlier, what our plan is is to start with a few of these folks. We've got a pretty solid pipeline, but we're going to choose a few of them, we're going to bring them on, and then once we're very confident with that sales pipeline and the appropriateness of the product, then we'll be scaling that up.

Okay, that's helpful. So, sorry, just to clarify, there is an initial customer group that I guess has been signed up for this testing at the moment, or is that still to come?

Yeah, we're in conversations with them at the moment. We're talking to a number of different potential clients at the moment, yes.

Okay, thanks, Matt. Thanks, Shane and Darren. Thank you.

Again, if you would like to ask a question, it would be star 1 on your telephone keypad. We'll now go to your next question, coming from the line of Guy Hooper with Jarden.

Yeah, good morning, team. If I could just start on the FY27 guidance range and the comments around that range being driven by the timing of booking volumes related to identified US segments. Can you give us a bit of colour around what sort of, you know, is it just the top end that's subject to that and, you know, what sort of contributions you're actually expecting to potentially get in this year? What are the risks around that top end?

Hi, Guy. So, yeah, I think the first point would be that, and there is a lot reported to that being the primary driver, assuming that the market, the way it is, is we've got a pretty clear track of where our A&Z and US businesses are going to go. We've got, in booking, we've got a clear rate of growth there that we've demonstrated we can achieve, and this year we have taken out one of the potential volatility items, which is the FX rate, so that hedging has locked in the favourable FX rates. movement secured in the last year. So really for us then the number one thing that stands out as a potential variant is really the US targeted segments and so they're contributing a meaningful portion of both the low and upper end of the range. The reason for that is we're at that early stage and I think we had our first sales person only join us in March so we're very early in the process. We expect to see a rapid ramp across the year but even moving For example, if we achieved our plan but it was a month late, that would move the meaningful amount of revenue into FY28, given the lag between signing, volumes coming through, and then because it comes through booking for business, effectively then there's a lag until the booking's complete and turned to revenue. So that's really the big driver for us is the exact timing and rate of acquisition of customers in that first year where we're kicking off can move around a bit.

Yeah, okay. Can you give us any detail around, you know, what the customer acquisition might look like in this space and, you know, the expected paybacks? You know, the idea of hiding out a sales team?

So I think the, you know, to some degree from the range, you can get what sort of the high might be and the lows, assuming a really small number. In terms of the payback, it's pretty high, but one of the things we focused on with this product is, We're targeting people who we believe the current product works for, so we're not having to make product technology investment. As you would have seen, our general gross margins and that sort of booking for business is well above 90%. And so the payback on a salesperson is extremely strong. So really the focus is just how fast can we grow that revenue, the RIs, will be extremely strong and you're just about a given.

Yeah and I think probably the other point Shane is that they're it's their longer stay so they're not like shorter stay sort of accommodation they're targeting more the longer stay type bookings.

Yeah great thanks for the cover on that maybe just one last one on on B2B and what you've seen over the last 12 months, the lower activity per active customer, is that an underlying sort of market trend or is there anything different occurring in perhaps the cohorts that have come on board?

So I don't think we see a lot of difference in the cohorts in terms of timing. There is a little bit in terms of the mix of where the customers have come from. However, I think We have seen the activity levels recover a bit in the second half of FY26, and we're seeing that into the beginning of FY27 back towards where they were in FY25. So that hypothesis we had last time that was quite hard to prove that it was more about economic headwinds is kind of feeling like that probably was the case. But, yeah, both of where we're sitting now, a lot of that has come back.

Great. Thanks, Steve. I'll pause there.

Next question will come from the line of Siraj Ahmad with Citigroup.

Morning, team. Just maybe two questions. This first one maybe for Shane. Can you just give us the building blocks for guidance next year? I got the range is because of defined segment, but just trying to understand. I'm guessing Get There is declining. B4B, is it sort of mid-teens growth? And if you just give us building blocks, that would be really helpful. Thanks.

Yeah, so get there with the climb a little bit, those losses we had in the first half that we talked to previously, so you're more likely to see the second half replicate forward rather than the full year replicate forward. I think Australia will be sort of flattish or possibly fractually down with a slight increase in services revenue this year, and we think that'll drop away again with the underlying travel business moving slightly up, and then to do a quick booking of the The next key piece, we haven't factored anything meaningful into Circle AI yet because we're still seeing that as being about product market fit, but those targeted US segments are really the other key piece of growth other than booking for business continuing to grow volume strongly.

Got it. And second one, just on the defined segment, so Shane, just tariff-wise, so you're saying the range is actually driven by that, right? So it's a six million range in there. So just trying to think about 2017, so let's say you get the top end, you get $6 million or maybe $4 to $6 million of revenue from that in the second half. Is that recurring that this sort of prioritizes into next year in growth? Just trying to understand that, right? If the momentum is actually quite high, does 2028, I guess, have significant contribution in that?

Yeah, so definitely the exit rate. Yeah, so just the way I think about it, those would be customers that would continue to use the product. We would continue to add more product users. So I think that's one of the reasons why we see, even if we're successful this year, there could still be a meaningful range, because if you like, even the midpoint of that range would see a really strong exit rate and a high level of confidence and a good chunk of the FY28 revenue already locked in. So, yeah, As Max said, we've got to get them on board. We'll do some testing with them and then bring them through. So if we're coming out the back end or the top end of that range, the trajectory into FY28 is strong.

Yeah, got it. And just maybe last one. In thinking about total spend in the common and free cash flow into 30, so is this, is the view that this is like the peak here of spend and then it starts coming down from there? Because it does look like you're using external contractors for this build-out, right? So do we assume this is coming down from 28 onwards?

I think the key point where we're kind of keeping our options open around where the 528 spend goes, coming back to circle AIs, filing for the thresholds, then the cost of acquisition, you would be wanting to push that hard. So I think we would expect, and it was indicated probably more into FY, start of FY29, back end of FY28, that the continued progress on the new platform should allow us to start doing some rationalisation in terms of some of our costs of running the old platform. But, yeah, I think that key open thing for FY28 is we'll continue to drive operating leverage out of the existing business, but what's the level of investment to drive the growth?

Superb. Thank you.

Your final question will come from the line of Vignesh Nair with UBS.

Hi, Shannon. Can you hear me?

Yeah, we can now.

Awesome. Two questions. The first one, obviously, Shane, I think you made a point in the presentation to mention that Growth CapEx from here is funded by organic free cash flow from the core. Like, you've got $54 million of cash in a balance sheet, about $4 or $5 million of cash per end this year, still ends up with $50 million at the end of next year, you would have thought. So can you give me your sort of views on how you, you know, and to allocate that spend? So if you're looking at M&A at the moment, sort of any sort of colour on that would be helpful, thanks.

I think at the moment, because our key focus is delivering the strategy that Matt's talked to, so our key focus at the moment is getting Circle AI up and running, getting the targeted US segments up and running and continuing to scale booking.com for business while we retain the customers and the managed travel business ready for when Circle AI can be targeted at them. So potential things like M&A are a key reason for holding that large amount of cash from our perspective. It just gives us optionality. So, for example, if we were seeing great LTV tax coming out in Circle AI, then we've got the ability to invest in it whilst still leaving ourselves plenty of buffer against any sort of surprises along the way. So, from our point of view, the $54 million gives us optionality as we continue to execute on our plans.

Okay, that was a no. And the second question is, around, I suppose it's a reasonably dynamic environment, but just scrutinizing a few of your views in terms of sort of assumptions to the Middle East and implications there. Like, if you dissect the last two and a half months a bit more and look at sort of maybe weekly year-on-year numbers in the ANZ and U.S. business, is there any sign at all of a gradual deterioration over the last, call it 10 weeks? Like, is the last sort of seven days different to, you know, the prior, you know, 28th?

So we have been watching that closely and the answer is no. One of the reasons we go to March and April in the appendix, I think slide 33, was because of Easter seasonality. April was much stronger than the fire year, but a lot of that was seasonality, so that's why we combined the two. But definitely running into the first couple of weeks of May, we've still seen that resilience. wide range of possible outcomes that could occur from here. I think our view is we're not well placed to make calls on that, so we've largely baked into our core guidance that that resilience continues. And there's a little bit of allowance in our forecast for weaker macroeconomic performance in Europe will continue to be a little bit of a headwind for us. but actually the change in European growth is not that dramatic. It was never going to be a fantastic year for growth in Europe. It'll be a little bit weaker. So, yeah, Guy was really assuming that that resilience stays there. And, yeah, as recently as last week, we've checked through those and we're still seeing strong numbers.

Awesome. Thank you, guys.

And it appears there are no additional questions. I'll now turn it back to you for any closing remarks.

The global business travel market is growing, but the more important shift underway is structural. The industry is shifting from search-led travel management to AI-led travel execution. We're already seeing changing traveller expectations and a behavioural shift towards conversational and AI assisted travel experiences. That shift creates an opportunity significantly larger than the traditional travel management software alone. Serco sits at the centre of the travel ecosystem between the traveller, their organisation and global travel supply. We believe that matters more in an AI-driven world, not less. Our AI advantage is built on three things. Millions of real travel transactions, deep policy intelligence, and trusted relationships across the travel ecosystem. As you've heard today, we're already putting these advantages to work. We've entered FY27 with positive momentum, disciplined execution, and an ever-increasing velocity. Thank you for your time today.

This concludes today's call. Thank you for your participation. You may now disconnect.