Q2 2026 The Pebble Group PLC Earnings Call

September 8, 2026

Speaker #1: These brands in the world who choose to use Brandition and stay with us for a long time, and that sort of $0.1 billion comes on a global basis through there.

Chris Lee: Biggest brands in the world who choose to use Brand Addition and stay with us for a long time, and that sort of GBP 0.1 billion comes on a global basis through there. Facilisgroup is a technology business plus other things which we will talk about, and Brand Addition is selling product into some of the best-known brands in the world, and that is the lens that we have into a wider industry. You will make your own mind up what the sort of investment case opportunity is, but we think, one, we got two really leading businesses in the industry. Both have opportunity to grow. Both are really focused on long-term relationships, whether that is suppliers, its employees, it is our partners or customers, making sure that what we do for them, they come back in a return of return.

Speaker #1: So, the Silis Group is a technology business and, plus other things, which we'll talk about. And Brandition is selling products for some of the best brands in the world, and that's the lens that we have into the wider industry.

Speaker #1: So you'll make your own mind up about what sort of investment case or opportunities there are, but we think: what have we got? Two really leading businesses in the industry. Both have opportunities to grow. Both are really focused on long-term relationships—whether that's suppliers, employees, our partners, or customers—making sure that what we do for them may come back and return a benefit to us. Then we look to grow that by being part of a large industry and having a market share opportunity to grow into as well.

Chris Lee: We look to grow that by being part of a large industry and having a market share opportunity to grow into as well. Both are highly cash generative, and we have managed to turn that cash into sort of reinvestment into the business to try and grow, but also into capital returns for shareholders as well. Hopefully we will prove those four things as we go through the presentation today. In terms of what I highlight, this is about H1 in 2026. If I start on the right-hand side, Brand Addition is a great business. Again, every one of its clients you will know, and you can see that sort of NPS score of 60 is showing how well-valued the service is that that business offers. We are attracting more as well, and hence we are growing. The retention rates are really important to us.

Speaker #1: And both are highly cash-generative, and we've managed to turn that cash into reinvestments into the business to try and grow, but also into capital returns for shareholders as well.

Speaker #1: So hopefully we'll prove those four things as we go through the presentation today. In terms of what I highlight, this is about H1 in 2026.

Speaker #1: If I start on the right-hand side, Brandition is a great business. Again, every one of its clients, you'll know, and you can see that sort of NPS score of 60 is showing how well valued the services that business offers.

Speaker #1: We are attracting more as well, and hence we're growing. And the retention rates are really important to us. So over the long term, these clients spend with us and repeatable revenues are supposed to occur in revenues, is how we call them.

Chris Lee: Over the long term, these clients spend with us on repeatable revenues as opposed to recurring revenues, is how we call them. The business has grown by 4%, got good margins and control of its business, both on overhead and a margin basis, and is highly cash generative. That cash that comes off allows us to invest into the wider business or give returns to shareholders as well. Very solid performance from Brand Addition and in growth, which is great. Come to Facilisgroup, again, talk about those long-term relationships. The NPS with our partners is very high, and that is an important thing in terms of our long-term retention, which is very important to us.

Speaker #1: So the business has grown by 4%, has good margins, and control of its business, both on an overhead and margin basis. It's highly cash-generative, so that cash that comes off allows us to invest into the wider business or give returns to shareholders as well.

Speaker #1: So, very solid performance from Brandition and in growth, which is great. We've come to the Silis Group. Again, talk about those long-term relationships. The NPS with our partners is very high, and that's an important thing in terms of our long-term retention, which is very important to us.

Speaker #1: That middle sector there, we've kind of grown by the number of partners we've been looking to grow, and the number of partners has actually been similar with growth this year to the prior year, but what's very different is the quality and the size of those partners.

Chris Lee: That middle sector there, we have kind of grown by the number of partners we have been looking to grow, and the number of partners has been actually similar that we have grown this year to the prior year. But what is very different is the quality and the size of those partners. They are delivering 50% more in ARR terms than the previous year. Although the number of partners is similar, something we really want to pull out is the quality and the size of the partners that we are bringing in now, because the quality of the product, because the quality of the team, we are actually bringing in bigger partners. On the same number or a similar number, we have actually got 50% more in value of the ARR of those partners. Again, retention rates are extremely high. It is a very sticky product.

Speaker #1: So, they're delivering 50% more in ARR terms than the previous year. Although the number of partners is similar, something we really want to highlight is the quality and size of the partners that we're bringing in now, because of the quality of the product and the quality of the team.

Speaker #1: We're actually bringing in bigger partners, and so on the same number, or a similar number, we've actually got 50% more in value of the ARR from those partners.

Speaker #1: And again, the retention rates are extremely high. It's a very sticky product; but not only the sort of technology itself, we actually then wrap around a buying group, or a kind of market network, and then a community with events—bringing in engagement. Not just sort of selling technology, but bringing engagement to those businesses.

Chris Lee: Not only the technology itself, but actually then we wrap around a buying group or a kind of market network, and then a community with events and bringing in engagement. Not just selling technology, but bringing engagement to those businesses. That is why we have that really high retention. What is really important, we have invested to grow, and now it is really nice to see some historic growth in there at 7%. By increasing the size of our existing partners and them growing with us, new partners coming in, and we made a price change as well, which goes on from 1 July. Our look forward ARR of those tech spend has gone up to 12%, which is showing some nice growth for the H2. We put some new agreements on pricing in.

Speaker #1: And that's why we have that really high retention. So what's really important is we've kind of invested to grow, and now it's really nice to see some historic growth in there, that 7%.

Speaker #1: We've been increasing the size of our existing partners and then growing with us, new partners coming in, and we made a price change as well, which goes on from the 1st of July. How I look forward, ARR of those tech spend has gone up to 12%, which is kind of showing some nice growth for the second half.

Speaker #1: And we put some new agreements on pricing in, and so we had a roll-in 12-month contracts previously, but actually now we offered our partners an extended contract. And so, when AI is all going around then, people are worried about, is our software mission critical?

Chris Lee: We had a roll in 12-month contracts previously, but actually now we offered our partners an extended contract. When AI is all going around, then people are worried about is our software mission critical? Our partners have voted with their feet. Now we have from a rolling four months visibility of revenues, we have now 22 as of 1 July. Real, we have increased actual revenues. Our look forward revenues are growing even further, and we have a great sort of, the recurring revenues have much more visibility. I think we have really strengthened that in the last six months. What that allows us to do is to grow our Pebble Group through both Brand Addition and Facilisgroup and better returns to shareholders again.

Speaker #1: Will our partners have voted with their feet? And now, we have from a roll in four months, visibility of revenues—we have now 22 as of the 1st of July.

Speaker #1: So, in real terms, we've increased actual revenues, our outlook for revenues is growing even further, and we've got a great sort of— the recurring revenues have much more visibility.

Speaker #1: So I think we've really strengthened that in the last six months. And what that's allowed us to do is to grow our Pebble Group through both Brand Addition and the Sourcing Group, and make some returns to shareholders again.

Speaker #1: So I think, all in all, pretty sensible performance, but we're kind of interested in your questions and thoughts on how we've done. And I'll just clarify some numbers.

Chris Lee: I think all in all, pretty sensible performance, but we are interested in your questions and thoughts on how we have done. Onto Claire for some numbers.

Speaker #2: Thank you. So, we're just pulling out here the highlights of the first half of '26 on the financial highlights, which we'll go into a little bit more detail as we move through the presentation.

Claire Thomson: Thank you. We are just pulling out here the highlights of the H1 2026, our financial highlights, which we will go into a little bit more detail as we move through the presentation. Again, just re-emphasizing what Chris has said, our revenue is growing. We have grown revenue in both businesses. We have done that on margins that are consistent with our long-term, sustainable average. Sitting below that is controlling our costs, which just means that revenue growth has translated through to growth in EBITDA. The other point being right at the far right-hand side of that slide is the cash generative nature or the highly cash generative nature of both of our businesses continues, and that has enabled us to make significant shareholder returns, both through the dividends that we have paid and the share buyback that we have executed. Thank you.

Speaker #2: Again, just re-emphasizing what Chris has said, our revenue is growing. So, we've grown revenue in both businesses, and we've done that on margins that are consistent with our long-term sustainable average.

Speaker #2: And, you know, kind of sitting below that is controlling our costs, which just means that that revenue growth has translated through to growth in EBITDA.

Speaker #2: And then the other point, being the right-hand side of that slide, is the cash-generative nature—or the highly cash-generative nature—of both of our businesses continues, and that's enabled us to make significant shareholder returns, both through the dividends that we've paid and the share buyback that we've executed.

Speaker #2: Thank you.

Speaker #1: No problem.

Speaker #2: This is just a reminder on this slide of the different financial dynamics of the businesses within our group, because they are quite different. So, on the left-hand side, you can see the revenue that we've generated, and Brandition.

Chris Lee: No.

Claire Thomson: This just as a reminder on this slide of the different financial dynamics of the businesses within our group, as they are quite different. On the left-hand side, you can see the revenue that we've generated, and Brand Addition being the business that sells product, is the lion's share of our revenue. That's by far and away the most significant proportion of revenue. But as you move down the P&L and across to the right-hand side of the slide, you can see that those amazing margins that we generate at Facilisgroup and from the SaaS revenue that we're invoicing there means that the profitability of the group splits roughly evenly between the two businesses. So there's the group P&L. I think we've said it like four times now, but our revenue's grown. It's grown in both businesses.

Speaker #2: Being the business that sells products is the lion's share of our revenue, so that's by far and away the most significant proportion of revenue.

Speaker #2: But as you move down the P&L and across to the right-hand side of the slide, you can see that those amazing margins that we generate in the Silis Group, and from the SaaS revenue that we're invoicing there, mean that the profitability of the group splits roughly evenly between the two businesses.

Speaker #1: So there's the group P&L.

Speaker #2: Yeah, so I think we've said it like four times now, but our revenue has grown. It's grown in both businesses, in Tegid and in Silis.

Speaker #2: On the back of our existing partners growing, and therefore our revenues growing with them, and then the investment that we've made over recent years into new partner acquisition, that's now translating through to invoice sales, and you can see that in the P&L.

Claire Thomson: Facilisgroup, that's on the back of our existing partners growing, and therefore our revenue's growing with them. Then the investment that we've made over recent years into new partner acquisition, that's now translating through to invoice sales, and you can see that in the P&L. In Brand Addition, it's a combination of those long-term relationships and growth with our existing customers, combined with, again, some new wins from 2025 that impact our revenue in 2026. Again, that's done on stable gross margins and well-controlled overheads that mean that that EBITDA number is moving forward in line with our profitability. Below EBITDA, we've got our D&A charges increasing, and that's just the historic investment that we've made in technology products at Facilisgroup coming through the P&L.

Speaker #2: In Brandition, it's a combination of, you know, those long-term relationships and growth of our existing customers, combined with, again, some new wins from 2025 that impact our revenue in 2026.

Speaker #2: And again, that's done on stable gross margins and well-controlled overheads, which mean that that EBITDA number is moving forward in line with our profitability. Then, below EBITDA, we've got our D&A charges increasing, and that's just the historic investment that we've made in technology products of the Silis Group coming through the P&L. Then the charge for share-based payments, which is the LTIPs that were implemented last year both for the execs and the senior teams at Brandition and the Silis.

Claire Thomson: Then there's the charge for share-based payments, which is the LTIPs that were implemented last year, both for the execs and the senior teams at Brand Addition and Facilisgroup. Balance sheet, it's really straightforward. When you look at the balance sheet, you think Brand Addition, there is no working capital in Facilisgroup, so the working capital of the group belongs to Brand Addition, and so belongs to those kind of really high profile international clients that everybody, every single one you would be aware of. So it's a good quality balance sheet. Stock that we hold is underwritten by our clients, and therefore, in the event of a brand change or changing contracts, then we receive cash for that stock. Then receivables and payables, they follow the volumes through the P&L, and it's a really well-trodden path.

Speaker #2: Alan Sheath, really straightforward, and certainly when you look at the balance sheet, you think Brandition—there is no working capital in the Silis, or the working capital of the group belongs to Brandition, and so belongs to those kind of really high-profile international clients that everybody, you know, every single one you would be aware of.

Speaker #2: So it's a good quality balance sheet. You know, the stock that we hold is underwritten by our clients, and therefore, in the event of a brand change or a change in contract, we receive cash for that stock.

Speaker #2: And then receivables and payables, they follow the volume through the P&L, and it's a really well-trodden path that, as was obviously pointed out there, translates into cash that's enabling us to give those great returns to shareholders.

Claire Thomson: Obviously, what I was just pointing out there translates into cash that's enabling us to give those great returns to shareholders. Not much to say on the cash flows. Pretty clean. We have a well-trodden path in terms of our net working capital cycle, and we're following that this year. The outflow on working capital is again relating to Brand Addition where we peaked during Q3, and then that comes back as we move through the end of Q3 into Q4. CapEx is following with the signals that we gave at a reduced level versus where we've been historically. It's largely investment in our products at Facilisgroup, which is enabling us to drive new partner engagement and retention and all those good things. Then sitting below all the operating cash flows, the dividends that we've paid and the share buybacks that we've completed.

Speaker #2: Not much to say on the cash flows—pretty clean. So, we have a well-trodden path in terms of our working capital cycle, and we're following that this year.

Speaker #2: So, the outflow on working capital is, again, in relation to Brandition, where we've peaked during Q3, and then that comes back as we move through the end of Q3 into Q4.

Speaker #2: Capex is following the signals that we gave. As our reduced level versus where we've been historically, we've largely invested in our products with Silis, which is enabling us to drive new partner engagement, retention, and all those good things.

Speaker #2: And then sitting below the operating cash flow is the dividends that we've paid and the share buybacks that we've completed. And on this slide, we're signaling, you know, kind of where our priorities are in terms of capital allocation.

Claire Thomson: On this slide, we're signaling kind of where our priorities are in terms of capital allocation. We have over the past 18, 24 months invested in growing our sales line at Facilisgroup, and now it's nice to sit here today and say that that's coming through, and you can see that in our numbers. We've continued to pay dividends to our shareholders at a sensible level. It's kind of consistent, again, with what we've signaled, and we've made capital returns in this dawn of either the tender offer, which was last year, or the share buybacks that we've done in the H1 of this year. Then again, we leave that point 4 on the end, just signaling that we are always open to other opportunities and exploring is there anything else we can do with our cash. Highly cash generative.

Speaker #2: So, we have, you know, over the past 18 to 24 months, invested in growing our sales line at the Silius Group, and we've kind of, you know, we've now—it's nice to sit here today and see that that's coming through, and you can see that in our numbers.

Speaker #2: We've continued to pay dividends to our shareholders at a sensible level, you know, kind of consistent again with what we've signaled, and we've made capital returns in the form of either a tender offer, which was last year, or share buybacks that we've done in the first half of this year.

Speaker #2: And then again, you know, we kind of leave that 0.4 on the end, just signaling that we are always open to, you know, other opportunities and exploring, you know, is there anything else we can do with our cash—highly cash-generative?

Speaker #2: We do generate a lot of cash, and if there's something else that will contribute to growing shareholder value, then we're very open to exploring that.

Claire Thomson: We do generate a lot of cash. If there's something else that will contribute to growing shareholder value, then we are very open to exploring that.

Speaker #1: Okay, thanks, Claire. So I'll dive into the Sourcing Group, and then Claire will take you through Brand Edition. That's Matthew Cromwell there—he's our Chief Product Officer.

Chris Lee: Okay, thanks, Claire. I'll dive into Facilisgroup, and then Claire will take you through Brand Addition. That's Matthew Crowle there. He's our Chief Product Officer. He joined us a couple of years ago, and we've been on a journey at Facilis over the last 2 years, which was building a better team that then translates into better technology and engagement with our existing partners, and now moving into the growth phase. That's sort of if you've been on the journey with us over that time, hopefully you recognize sort of what I described there. Matt Crowle that he goes by, he's done a great job for us. Big smile in space. That's great.

Speaker #1: He joined us a couple of years ago, and we've been on a journey at The Silis over the last two years, which was building a better team, but then translates into better technology and engagement with our existing partners, and now moving into the growth phase.

Speaker #1: And that's sort of—if you've been on the journey with us over that time, hopefully you recognize what I described there. But Matt Cromwell, who goes by that name, is doing a great job for us.

Speaker #1: Big smile on his face—that's great.

Speaker #2: Thank you.

Speaker #1: So that's all really good. So, the Silis Group, it's such technology, most definitely, and that's where it starts. So we sell that technology to sort of mini versions of Brandition.

Claire Thomson: Thank you.

Matthew Crowle: Thank you.

Chris Lee: So that's all worked really good. Facilisgroup, it's technology most definitely, and that's where it starts. We sell our technology to mini versions of Brand Addition. So promotion product distributors that are on average between $2 and $20 million in their own revenues, they use Facilisgroup technology to make sure their order workflow is clean, efficient, and visible to them as business owners. And so that's invasive. If you start with us, and they get that technology, they pay us a fee on a monthly basis for that, and those recurring revenues are extremely valuable.

Speaker #1: So, promotional products distributors that are on average between $2 million and $20 million in their own revenues use the Silis Group technology to make sure their order workflow is clean, efficient, and visible to them as business owners.

Speaker #1: And so that's who they start with us. They get that technology, and they pay us a fee on a monthly basis for that. Those recurring revenues are extremely valuable.

Speaker #1: But what we do with that scale, which is $1.6 million now, is go through there and use that scale with some of the best suppliers in the North American market to help those suppliers meet and market very efficiently to that really important group of their customers and ours, who are using the technology.

Chris Lee: But what we do with that scale, which is GBP 1.6 million now is going through there, we use that scale with some of the best suppliers in the North American market to help those suppliers meet and market very efficiently to that really important group of their customers and ours who are using the technology. So we create a buying group or market network with that scale that puts together. Then we bring together ourselves, those distributors or partners, and the suppliers to really support each other, and it really is a unique win-win-win situation that the more goes through the technology, then that's better for us. And so that's growing our number of partners. But the more the partner puts through the technology and the more they use the buying group, then they'll get a rebate which could more than pay for the technology sometimes.

Speaker #1: So, we create a buying group or a market network with that scale, that brings everyone together. And then we bring together ourselves, those distributors, partners, and the suppliers to really support each other. It really is a unique win-win-win situation. The more that goes through the technology, the better for us, and so that's growing the number of partners.

Speaker #1: But the more the partner puts through the technology, and the more they use the buying group, then they'll get a rebate, which could more than pay for the technology sometimes. And obviously, the more volume goes through the supplier, the better for them.

Speaker #1: So, as an excellent real community that gets created from this, it starts with the technology, which creates scale, and we use that scale to create a buying network and a community that really does support everybody.

Chris Lee: And obviously, the more volume goes through the supplier, the better for them. So it's an excellent, a real community that gets created from this. It starts with the technology, which creates a scale, and we use that scale to create a buying network and a community that really does support everybody. And on the right-hand side, we had an event in Chicago in July, I want to say. And we had like 600 people there from Facilisgroup, the supplier network, and the partner community. And it really is technology plus in what we can actually do, and that's why those partners grow, that's why they stay with us, because it's great technology, but then we give them more than that in order to support the growth of their businesses. Here's some nice statistics on here.

Speaker #1: And on the right-hand side, we have an event in Chicago in July, I want to say, and we had like 600 people there from the Silis Group, the supplier network, and the partner community. And it really is technology plus in what we can actually do, and that's why those partners grow, that's why they stay with us—because it's great technology, but then we kind of give them more than that in order to support the growth of their businesses.

Speaker #1: Here are some nice statistics. You can see at the bottom that the partner numbers are growing, GMV—the amount going through the technology—is increasing, and the amount spent with those preferred suppliers is as well.

Chris Lee: You can see just at the bottom, the partner numbers are growing, the GMV, the amount going through the technology is growing, and the amount spent with those preferred suppliers as well. And that's on top of good EBITDA returns and good retention numbers. The bit that we need to do better at, and that's been recognized for the last couple of years, is that top left-hand side. And this, we believe, is a very valuable business if we can grow it. And, as I say, the journey we've been on the last two years is less focused on its growth but more focused on some of the fundamentals of the right team, the right technology, engagement with the existing partner base. But now we're returning to growth. So we've spent some money in 2024 and 2025, and that's beginning to come through now.

Speaker #1: And that's on top of good EBITDA returns and good retention numbers. The bit that, kind of, you know, we need to do better at—and that's been recognized over the last couple of years—is that top left-hand side.

Speaker #1: And this, we believe, is very valuable business if we can grow it. And I’d say the journey we’ve been on the last two years has been less focused on its growth, but more focused on some of the fundamentals: the team, the right technology, engagement with the existing partner base. But now, we’re returning to growth.

Speaker #1: So we've spent some money in 2024 and 2025, and that's beginning to come through now. It's really nice to see growth in our historic revenue numbers, as well as just signaling what's ahead.

Chris Lee: It is really nice to see growth in our historic revenue numbers as well as just signaling what is ahead. We do believe we have got 7% growth this year or this H1. We are looking to take that into double digit in the H2 and then really move on from there into 2027. Hopefully, we have got a valuable business which is going to reflect all the hard work that has gone into that in the last couple of years. Taking you on that journey, this is a slide we shared with you 6 months ago. Why do we want to grow? Because we think there is a huge LTV opportunity versus the CAC. Why does that LTV opportunity exist?

Speaker #1: And we do believe. We've got 7% growth this year, or this first half, looking to take that into double digits in the second half, and then kind of really sort of move on from there into 2027.

Speaker #1: And, you know, hopefully we've got a valuable business, which is going to reflect all the hard work that's gone into that in the last couple of years.

Speaker #1: So, taking on that journey, this is a slide we shared with you six months ago. So, why do we want to grow? Because we think there's a huge lifetime value opportunity versus the cost of customer acquisition.

Speaker #1: And why does that lifetime value opportunity exist? Well, we have this dual income from technology from the partners, but also the more that goes through those preferred suppliers, we get a rebate back from them as well, which really gives us a super double income opportunity.

Chris Lee: Well, we have this dual income from technology from the partners, but also the more goes through those preferred suppliers, we get a rebate back from them as well, which really gives us a super double income opportunity. In fact, if we help our partners grow, they pay us more through the technology, so that helps us grow as well. Very high retention rates, and we are attracting larger partners as well. On top of that, we have got really strong margins. The sum of all those things say we have got very good LTV, and on the back of that, we are willing to sacrifice some of our margins, some of our profits to grow into that and get revenue growth back into the business. Again, this is what we shared with you last time.

Speaker #1: If we help our partners grow, they pay us more through the technology, so that helps us grow as well. We have very high retention rates, and we're attracting larger partners as well.

Speaker #1: And on top of that, we've got really strong margins. So, the sum of all those things is that we've got very good lifetime value, and on the back of that, we're willing to sacrifice some of our margins—some of our profits—to grow into that and get revenue growth back into the business.

Speaker #1: So again, this is what we shared with you last time. We think, on an incremental basis, it was a 7-to-1 in terms of lifetime value to cost of customer acquisition at full year 2025.

Chris Lee: We think on an incremental basis, it was a 7 to 1 in terms of LTV to CAC at full year 2025. Behind that statistic, in 2025, we added an incremental $1 million. It is going to be around $3 million into sales and marketing in 2026, which is mainly people and the quality of the people in the sales and marketing team that actually goes into growing that revenue, hence giving us a really good LTV. That is what we signaled last year, or 6 months ago when we spoke with you. This is what is beginning to come through. Think about that LTV. Where are we getting to? The existing partners have grown, which in turn increased our income. We are attracting larger partners.

Speaker #1: And so behind that statistic, in 2025, we added an increment of $1 million. It's going to be around $3 million in sales and marketing in 2026, which is mainly people and the quality of the people and the sales and marketing team that actually goes into growing that revenue, and hence giving us a really good lifetime value.

Speaker #1: So, if that's what we signaled last year, and/or six months ago when we spoke with you, this is what's beginning to come through.

Speaker #1: So, think about that lifetime value. Well, where are we getting to? The existing partners have grown, which in turn increased our income. We're attracting a larger partner.

Speaker #1: We have the same number of partners who have joined us, but it's a 50% increase in ARR, so that's helping us move forward. And we've put a new pricing structure in place, which did two things.

Chris Lee: Think that the same number of partners have joined us, but it is a 50% increase in ARR, so that is helping us move forward. We have put a new pricing structure in place, which did two things. It increased pricing, but also it offered partners an ability to fix their price based upon a length of contract. It was from a, they could stay at 4 months, or they could go as long as 3 years. What the sum of those three things have done in terms of moving our pricing forward is as of 1 July, we had a 12% increase in the look for technology fees than we had on 31 December 2025. A really nice increase.

Speaker #1: It increased pricing, but also it offered partners an ability to fix their price based upon a length of contract. And so it was from a, they could stay at 4 months, or they could go as long as 3 years, and what they've done in terms of moving our pricing forward, is since the 1st of July, we had a 12% increase in the Look for Technology fees, than we had on the 31st of December, 2025.

Speaker #1: So, a really nice increase. We've got 7% as our historic revenue, 12% is on this side of our income—it's where we're signaling for the rest of this year—and then hopefully that all rolls up again and gets us some nice growth in 2027.

Chris Lee: We have got 7% as a historic revenue, 12% is on this side of our income is where we are signaling for the rest of this year. Hopefully that kind of all rolls up again and gets us some nice growth in 2027. That is sort of the visibility. Our retention levels have always been very good, but then when you come back and look at it, actually it is on a four-month rolling contract. As future-proofing the business, we wanted to do that from our team, from our technology, from our engagement. Then we turn to our pricing. It felt as though to give a better visibility of recurring revenues would be a good thing.

Speaker #1: And that's sort of the visibility. So our retention levels have also been very good, but then when you come back and look at it, actually, it's on a four-month rolling contract.

Speaker #1: So, as future-proofing the business, we wanted to do that from our team, from our technology, from our engagement, and then we turned to our pricing.

Speaker #1: And it felt as though, to give better visibility of the recurring revenues, it would be a good thing. And so, when we went through this price neck, we increased pricing for all of our partners and gave them an option to reduce the size of that increase by taking a longer-term contract.

Chris Lee: When we went through this price neck, we increased pricing for all of our partners and gave them an option to reduce the size of that increase by taking a longer-term contract. I think we were not sure exactly how that was going to be received, but we were confident in our position with them to believe it was the right thing to do to future-proof not only our team, our technology, our engagement, but now our financials. That led us to offering the longer term contracts, and nearly 70% of those took contracts on greater than 18 months. This leads us to say, on 1 July, we have 22 months of visibility of revenues, whereas before that date, you could only say four months.

Speaker #1: And, you know, I don't think we were sure exactly how that was going to be received, but we're confident in our position with them to believe it's the right thing to do to future-proof not only our team and our technology, our engagement, but now our financials.

Speaker #1: And that led us to offering the longer-term contracts, and nearly 70% of those took contracts of greater than 18 months, which leads us to say, as of the 1st of July, we have 22 months of visibility on revenues, whereas before that date, we could only say 4 months.

Speaker #1: So I think that really shows our partners have voted with their wallets and their feet in terms of how important our technology is to them when we're in this place of kind of AI disruption, etc.

Chris Lee: I think that really shows our partners have voted with their wallets and their feet in terms of how important our technology is to them when we are in this place of AI disruption, et cetera. Summarizing where we are, we wanted to concentrate on engagement, our technology, and revenue growth. Where we got to so far, I think in terms of engagement, our NPS scores speak for themselves. The committed revenues and the retention rates are really good statistics. On the right-hand side, we have moved to historic revenue growth. We have got a nice look forward ARR, and committed revenue visibility is really strong. We are able to do numbers 1 and 3 because we have got the team right, and we have got the technology right.

Speaker #1: So, summarizing where we are: we wanted to construct an engagement—our technology and revenue growth. And so, where we’ve got to so far, I think, in terms of engagement, our NPS scores speak for themselves.

Speaker #1: The committed revenues and the retention rates are really good statistics, and on the right-hand side, we've moved to historic revenue growth. We've got a nice look forward: ARR and committed revenue visibility is really strong.

Speaker #1: But we're able to do numbers 1 and 3 because we've got the team right, we've got the technology right. And so every quarter we send out new releases, which is extremely well communicated, and really well received by our partner group and attracts new partners as well.

Chris Lee: Every quarter we send out new releases, which is extremely well communicated and really well received by our partner group and attracting new partners as well. We are concentrating then on integrations and using our data assets to take that further again. So 1 and 3 are possible because we are getting 2 right. I think all the hard work that we have put into the last couple of years has come through in historic numbers, and we do not want to take that for granted, but we push on and show you, an investor, the outside world, the quality of this business through its financials now, as well as just talking about what it can do. So proud of where we got to, but there is a lot to do ahead of us as well. Talk about Brand Addition, Claire.

Speaker #1: We are concentrating, then, on integrations and using our data assets to take that further again. So 1 and 3 are possible because we're getting 2 right, and I think all the hard work that we've put in over the last couple of years has come through in the historic numbers.

Speaker #1: We don't want to take that for granted. We want to push ourselves and show, you know, you as an investor, the outside world, the quality of this business through its financials now, as well as just talking about what it can do.

Speaker #1: So proud of where we've gotten to, but there's a lot to do ahead of us as well. Let's talk about brand division.

Speaker #2: Thank you.

Speaker #3: Yeah, yeah. Yeah. So, brand division—when you think about brand division, think of some of the largest known brands in the world who have a need to use promotional.

Claire Thomson: Yeah. Brand Addition, when you think about Brand Addition, think some of the largest known brands in the world who have a need to use promotional merchandise to connection with their stakeholders, be that their employees, their customers, their suppliers. Brand Addition, TransUnion is loud and proud in that space, in the promotional products sector, working overtime with some of the best-known brands in the world with a real consistency of our repeatability of revenue. We are just showing on the right-hand side there some of the cool products that we do and that we kind of engage with our customers on.

Speaker #3: Nice. Connection with their stakeholders, be that their employees, their customers, their suppliers. And so brand division, you know, kind of stands loud and proud in that space, in the promotional products sector, working, you know, working overtime, with some of the best known brands in the world, with a real kind of consistency or repeatability of revenue.

Speaker #3: They're just showing on the right-hand side; they're some of the cool products that we do and that we kind of engage with our customers on. But if you want to make a connection using products, but you want to do that in a way that reflects a commitment to ESG and enables kind of the large international brands to stand behind their ESG commitments, and can also meet your timetables and the quality of product that you demand, then they're the people that choose Brand Addition.

Claire Thomson: But if you want to make a connection using products, that you want to do that in a way that reflects a commitment to ESG and enables the large international brands to stand behind their ESG commitments, and can also meet the timetables and the quality of product that you demand, then they are the people that choose Brand Addition. Another page of stats here showing performance over the last few years and then highlights we were in H1. But that nice amount of revenue growth, it is nice that it is the first time for a couple of years that we have been able to say we have grown in H1, doing that on a consistent margin that we believe is aligned with where we signal we will be over the long term. Again, translating through to a growth in EBITDA on that volume.

Speaker #3: Another page of stats here, you know, showing performance over the last few years and then highlighting where we were in the first half. But that, you know, nice amount of revenue growth.

Speaker #3: It's nice that it's the first time in a couple of years that we've been able to say, you know, we've grown in the first half, doing that with a consistent margin.

Speaker #3: That, we believe, is aligned with where we signal we will be over the long term. And again, this translates through to growth in EBITDA on that volume.

Speaker #3: And then we're just showing there, in those bottom two pie charts, there's a really nice diversification of revenue brand division—be that by sector or by geography—that, you know, gives the business a little bit of insulation again.

Claire Thomson: Then we are just showing there in those bottom two pie charts, there is a really nice diversification of revenue from Brand Addition, be that by sector or by geography, that gives the business a lot of insulation. Again, if one sector were to go down, then we have got a nice spread there. Bridging H1 for you here, but the messages are we have had a 4% increase in sales, which is a combination of great client retention, some growth in our underlying clients, and then us being able to layer on top of that the impact of some new business wins from 2025 that will kind of come through in 2026. We hope to move that forward again in H2. Our margins are consistent. That disciplined cost control means that we have been able to move that EBITDA number forward.

Speaker #3: You know, it is kind of one sector where, to go down, we’ve got a nice spread there, bridging the first half for you here. But, you know, the messages are—we’ve had an...

Speaker #3: You know, kind of a 4% increase in sales, which is a combination of great client retention, some growth in our underlying clients, and then us being able to layer on top of that the impact of some new business wins for 2025 that we've seen come through in '26.

Speaker #3: We hope to kind of move that forward again in the second half. You know, our margins are consistent, and their disciplined cost control means that we've been able to move that EBITDA number forward.

Speaker #3: And we've said today that we expect to be in line with guidance for the full year, and here we're just trying to give you a sense of why we feel able to make that statement.

Claire Thomson: We said today that we expect to be in line with guidance for the full year, and here we are just trying to give you a sense of why we feel able to make that statement. You can see that second dark blue chart is telling us, as of yesterday, our orders either invoiced or received to be invoiced for the year were GBP 85.6 million. That tells us, so we have got order intake that we need to receive to get us to where we think for the year-end.

Speaker #3: And so you can see that second dark blue chart is telling us, as of yesterday, our orders, either invoiced or to be invoiced for the year, were $85.6 million.

Speaker #3: And so that tells us, you know, so we've got order intake that we need to receive to get to where we think for the year-end, but looking at where we are, which is 5% ahead of where we were, this time last year, and then looking at the activity and both in terms of what we're doing now with our clients, but what we know in terms of that with the top out of repeatability with brand division and what we'd expect to come through, that gives us some comfort that we'll get to the, you know, to the number that's out there.

Claire Thomson: Looking at where we are, which is 5% ahead of where we were this time last year, then looking at the activity both in terms of what we are doing now with our clients, what we know in terms of that, we talk about the repeatability of Brand Addition and what we would expect to come through, that gives us some comfort that we will get to the number that is out there for Brand Addition for the end of the year. Again, combining that with some good margin, discipline margin and cost control, we feel comfortable making that statement that we will be in line with for the full year. This slide is not really about the last six months.

Speaker #3: Brand division for the end of the year. And then, again, combining that, some good margins. You know, disciplined margin and control, and feel comfortable making that statement that we'll be in line with.

Speaker #3: So, for the full year—and this one is not really about the last six months—it's kind of about just taking a step back and trying to re-emphasize, you know, how we're still proud of Brand Division, the quality of business that it is.

Claire Thomson: It is kind of about just taking a step back and trying to reemphasize why we are so proud of Brand Addition and the quality of business that it is. We have got those amazing. Also a lot has happened in the last seven years, which I suppose we have tried to put into four points from the bottom. In all of that noise and everything else that has been going on, Brand Addition has continued to perform, have relationships over the long term with, again, some of the best-known brands in the world that choose to work with us and choose to continue to work with us. It has got a great business model that is highly disciplined, and that means that we generate a lot of cash, and that cash has enabled us to make the choices that we have made in terms of investment in facilities and also in returns to shareholders.

Speaker #3: So we've got those. Even so, it happened in the last seven years, which I suppose we've tried to put into four points on the bottom. But in all of that noise, and everything else that's been going on, brand division has continued to perform—our relationships over the long term with, you know, again, two of the best-known brands in the world that choose to work with us and choose to continue to work with us.

Speaker #3: We've got a great business model that's highly disciplined, and that means we generate a lot of cash. That cash has enabled us to make the choices we've made in terms of investment in facilities and also in returns to shareholders.

Speaker #3: So, you know, it's just a business that's highly resilient, well managed and controlled, and something that we're really proud of in terms of our Brand division.

Claire Thomson: It is a business that is highly resilient, well managed, and controlled, and something that we are really proud of in terms of Brand Addition has stood tall. Just rounding off on the H1 and the progress that we have made. Retention and long-term relationships we talk about a lot. We have continued to maintain our high retention rates. The Brand Addition NPS score at 60, which is telling us that our clients are happy with what we do, and we do not take for granted, and we work really hard at, but we are really proud of that number. We are extending. We are a contracts business, and so there are always contracts up for tender, but we signal in here that where that has happened, then we have retained those clients.

Speaker #3: Stood tall. Just rounding off on the first half and, you know, the progress that we've made. So retention and long-term relationships—we talk about that a lot.

Speaker #3: And, you know, we've continued to maintain our high retention rates. Brand division NPS scores are 60, which is telling us that our clients, you know, are happy with what we do.

Speaker #3: And, you know, we don't take for granted that we work really hard at, but we're really proud of that number. And then we are extending our—you know, we're a contract business, and so there are always contracts open for tender. But, you know, we signal in here that where that has happened, then we have retained those clients.

Speaker #3: We are, you know, continuing to win new business, and we've got some, we've won 4 new clients this year. Again, which are, you know, very much in the brand edition typical mix, and we're excited to be working with them as we move forward.

Claire Thomson: We are continuing to win new business, and we have won four new clients this year, again, which are very much in the Brand Addition typical mix, and we are excited to work with them as we move forward. Pipeline continues, and the feedback that we are increasingly receiving is that our reputation around the quality of what we do and how we go about things, also the creativity and what we are really enabled to, what using that creativity brings to the table is what really gets those opportunities across the line. I have said it a hundred times, but kind of wrap that around a well-disciplined financial model, and we kind of feel good about where we have got to for the H1, even excited about the H2.

Speaker #3: The pipeline continues, and the feedback that we are increasingly receiving is that our reputation around the quality of what we do, and how we go about things, as well as our creativity and how we're enabled to use that creativity, is strong.

Speaker #3: To the table is what really gets those opportunities across the line. And then, you know, I've said it a hundred times, but, you know, wrap that around a well-disciplined financial model and, you know, we feel good about where we've gotten to for the first half and excited about the second.

Speaker #1: Thanks, Colin. So, I’ll briefly do an ESG there as Kirsten, who does a great job of supporting and managing our ESG across the group and spends a lot of time at Brand Addition because most of our CO2 footprint comes from Brand Addition and those Scope 3 emissions.

Chris Lee: Thanks, Claire. Kirsten, who does a great job of supporting and managing our ESG across the group, spends a lot of time at Brand Addition because most of our CO2 footprint comes from Brand Addition and those Scope 3 emissions. We continue to get our arms around that and try to measure it better and more accurately as part of our ESG initiatives. We are not doing it because we are a listed business and ESG was fashionable, a bit less so now. We do it because it is the right thing to do as an organization for our clients. It is what we want to do as an organization, as a business.

Speaker #1: And we continue to get our arms around that and try and measure it better and more accurately, as part of our ESG initiatives. But we're not doing it because we're a listed business and ESG was fashionable—a bit less so now.

Speaker #1: We're doing it because it's the right thing to do as an organization for our clients. It's what we want to do as an organization, as a business.

Speaker #1: And so we set our priorities and concentrate on them, as opposed to trying to sort of be blown by the winds of fashion and where it is in terms of external perception.

Chris Lee: We set our priorities and concentrate on them as opposed to try and be blown by the winds of fashion and wherever it is in terms of external perception. We are doing the right things around our suppliers, our team, our communities, and want to be a good business for all of those stakeholders. We put all that together and we do an annual report as The Pebble Group, and then that translates into Brand Addition does one as well on it, which is most relevant to them and is very useful for when we are on either a client pitch or for our existing clients that actually work on there.

Speaker #1: So we're doing the right things around our suppliers, our team, our communities, and want to be, you know, a good business to, you know, for all of those stakeholders.

Speaker #1: We put all that together in—we do an annual report as The Pebble Group, and then that translates into Brand Edition, which does one as well, on it, which is most relevant to them and is very useful for when we're on either a client pitch or for our existing clients that actually work on that.

Speaker #1: So if you go onto our Pebble Group or the Brand Edition website, you'll be able to see detailed reports analyzing exactly what we do, the accreditations that we have, and why we're actually doing those things.

Chris Lee: If you go onto either The Pebble Group or the Brand Addition website, you will be able to see detailed reports analyzing exactly what we do and the accreditations that we have and why we actually do those things. It is an important piece for us to do because we wish to do it, and it is supporting our clients and our team and our suppliers in getting those things right. Just finally, hopefully we are pulling all these points together. What we have done with Facilisgroup has been a 2-year journey that now we want to turn into growth and get some value and excitement into that business after working really hard on it. So historic growth in the H1 of 2026.

Speaker #1: But it is an important piece for us to do because we wish to do it, and it's sort of supporting our clients, our team, and our suppliers in getting those things right.

Speaker #1: And then sort of just finally kind of, you know, hopefully we're kind of pulling all these points together. What we've done with Facilities Group is been a 2-year journey that now we want to turn into growth and kind of get some sort of value and excitement into that business after working really hard on it.

Speaker #1: So, historic growth in the first half of 2026, visibility of recurring revenues, the size of recurring revenues is developing—we want to actually evolve further.

Speaker #1: Brand edition is growth and great cash generator. We've returned some money to our shareholders. And so we expect to be online in line with full year 26, but also kind of we're, you know, we're not immune to understanding there's more value in there we believe there's more value in the 2 businesses than there is the whole at the moment.

Chris Lee: Visibility of recurring revenues and size of recurring revenues is developing, and we want to evolve further. Brand Addition is growth and great cash generator. We have returned some money to our shareholders, and we expect to be online in line with full year 2026. Also, we are not immune to understanding there is more value in there. We believe there is more value in the two businesses than there is as a whole at the moment. So always looking at ways in which we can lock that value for shareholders. We will continue to do that on an active basis. We are in a sensible spot and looking forward to the rest of the year and 2027 as well. After this, there is a bit of appendix in there that shows some detailed P&Ls and a bit of other information.

Speaker #1: So, always looking at ways in which we would want that value for shareholders and, you know, we'll continue to do that on an active basis.

Speaker #1: So we're in a sensible spot and, you know, looking forward to the rest of the year in '27 as well. And then kind of after this, there's a bit of an appendix in there that shows the detailed P&Ls and a bit of other information, but we'll stop there and.

Speaker #1: And I'll stop sharing the slides now, and I'm really happy to take any questions that you have. Just give me a second so I can unshare.

Chris Lee: But we'll stop there and stop sharing the slides and really happy to take any questions that you guys have. Just give me a second. So I can unshare. Can I help something? Where are they? Oh, yeah. Oh, yeah. Got you. Thank you. So, very happy to. I've got a hand up there, and I will do my best to unmute who we've got. Is it Joe? Right. It's got to be Joe. Where's Joe? There. Right. Unmute him.

Chris Lee: But we'll stop there and stop sharing the slides and really happy to take any questions that you guys have. Just give me a second. So I can unshare. Can I help something?

Speaker #1: Oh, sorry. No, you've got it. Thank you. I'm very happy to say I've got a hand up there, and I will do my best to unmute if we've got— is it Joe?

Claire Thomson: Where are they?

Chris Lee: Oh, yeah. Oh, yeah. Got you. Thank you. So, very happy to. I've got a hand up there, and I will do my best to unmute who we've got. Is it Joe? Right. It's got to be Joe. Where's Joe? There. Right. Unmute him.

Speaker #1: Right. Joe, where's Joe? There. Right. Muting.

Speaker #3: Thank you. I think you can.

Speaker #1: Yeah. Hi, Joe. I think I've unmuted you, so if you unmute yourself, we should be able to take a question.

Speaker #2: Excellent. Good morning, Chris and Claire. How wonderful to be able to just meet people. Three questions, if I may. Firstly, a general one about AI.

Claire Thomson: I think you can.

Chris Lee: Yeah. Hi, Joe. I think, I've unmuted you, so if you unmute yourself, we should be able to take a question.

[Analyst]: Excellent. Good morning, Chris and Claire. How wonderful to be able to meet people. Three questions, if I may. Firstly, a general one about AI, and how you kind of see that across your businesses and the opportunity there, and also potentially the threat. Secondly, at Facilisgroup, can you tell us a little bit about how the technology's evolving and how that's impacting the revenue per customer? And thirdly, on that LTV to CAC, you've helpfully kind of given us an indication of what your returns are there. Could you tell us how you expect that investment to evolve beyond FY26?

[Analyst 1]: Excellent. Good morning, Chris and Claire. How wonderful to be able to meet people. Three questions, if I may. Firstly, a general one about AI, and how you kind of see that across your businesses and the opportunity there, and also potentially the threat. Secondly, at Facilisgroup, can you tell us a little bit about how the technology's evolving and how that's impacting the revenue per customer? And thirdly, on that LTV to CAC, you've helpfully kind of given us an indication of what your returns are there. Could you tell us how you expect that investment to evolve beyond FY26?

Speaker #2: And how you kind of see that across your businesses and the opportunity there, and also potentially the threat. Secondly, at Facilities Group, can you tell us a little bit about how the technology is evolving and how that's impacting the revenue per customer?

Speaker #2: And thirdly, on the LTV to CAC, you've hopefully kind of given us an indication of what your returns are there. Could you tell us how you expect that investment to evolve beyond FY26?

Speaker #1: Yeah. So as the use of AI and, you know, I think it is a big question mark, isn't it, when people are putting a SaaS product out there—can our clients, partners, customers replicate that?

Chris Lee: Yeah. As the use of AI, I think it is a big question mark, isn't it, with people putting a SaaS product out there, can our clients, partners, customers replicate that? I think the answer, they've definitely said no. I think they said what we deliver to them is of value because for an increased price, they take a longer-term contract. I think that's a very strong position that we're in. Using it in terms of making us get better and those opportunities, we definitely have probably 50% of our team are focused on developing the technology. That might be in product, it might be in engineering, it might be in marketing, but they're focused on moving that technology forward.

Speaker #1: And I think the answer, you know, they definitely said no. So I think they said what we deliver to them is our value, because for an increased price, they take a longer-term contract.

Speaker #1: So I think that's a very strong position that we're in. And so, using it in terms of making us get better in those opportunities, we definitely have probably 50% of our team focused on developing the technology.

Speaker #1: So that might be in product, it might be in engineering, it might be in marketing, but they're focused on kind of moving that technology forward.

Speaker #1: And we're using AI like a lot of technology companies just to do that much more efficiently. And for the human beings to concentrate on the really interesting stuff as opposed to the day-to-day coding stuff.

Chris Lee: We're using AI like a lot of technology companies just to do that much more efficiently and for the human beings to concentrate on the really interesting stuff as opposed to the day-to-day coding stuff. We're using AI in a really good way there. On a wider basis, our teams are using it a lot in terms of help desks, in terms of getting back to partners. It is bringing some efficiency into there, and certainly in the speed of development of technology, it's helping us. I think the other place that we're going to really take advantage over the next 6 to 12 months is that data, those data assets that we have. 1.6 billion going through in sales means something like 3 billion in quotes.

Speaker #1: So we're using AI in a really good way there. And then on a wider basis, our teams are using it a lot in terms of help desks, in terms of getting back to partners, and so it is bringing some efficiency into that.

Speaker #1: And certainly, in the speed of development of the technology, it's helping us. I think the other place that we go into really take advantage of over the next sort of 6 to 12 months, is those data assets that we have.

Speaker #1: So $1.6 billion going through in sales means something like $3 billion in quotes, and then we see kind of the logo and what sector that's going to, by what salesperson, from what SKUs, with our suppliers.

Speaker #1: We have this incredible volume of data that we've been unpicking and putting into some nice, neat formats that our partners and our suppliers—and we—can use, which is unique in the industry.

Chris Lee: We see kind of the logo and what sector that's going to, by what salesperson, from what SKUs with our suppliers. We have this incredible volume of data that we've been unpicking and putting into some nice neat formats. That our partners and our suppliers and we can use, which is unique in the industry. Nobody else has that sort of level of data and can share that with partners and with suppliers in order to drive insights and hopefully income as well for us. We see it as a sort of, I think, responsible excitement in terms of using it. We'll never take anything for granted, but I think we are in a strong position in terms of using AI positively or seeing it less as a threat.

Speaker #1: Nobody else has that sort of level of data, and can share that with partners and with suppliers in order to, you know, drive insights and, hopefully, income as well for us.

Speaker #1: So we see it as, you know, sort of, I think, responsible excitement in terms of using it. And, you know, we'll never take anything for granted, but I think we are in a strong position in terms of using AI positively, or seeing it less as a threat.

Speaker #1: And the revenue per customer—I think you asked about that as well. That does come down to the way the technology has evolved. We were really keen, if our target market is a $2 million to $20 million distributor, as those $20 million ones grow—because they are successful and very good organizations—when they get past $20 million, they need integrations with other best-in-class technologies; they need better data.

Chris Lee: The revenue per customer, I think you asked about as well, and that does come down to the way the technology's evolved, that we were really keen if our target market is a 2 to 20 million distributor, as those 20 million ones grow because they are successful and very good organizations, when they get past 20 million, they need integrations with other best-in-class technologies. They need better data. We wanted to make sure that they could continue their journey with us beyond 20 million. A lot of our time and effort has been on ensuring we can be with them over the longer term. What that's done is not only support retention at the high end of our existing partners, but it's brought better quality partners in as well.

Speaker #1: And we wanted to make sure that they could continue their journey with us beyond 20 million. So, a lot of our time and effort has been on ensuring we can be with them over the longer term.

Speaker #1: And what that's done is not only support retention at the high end of our existing partners, but it's bringing better quality partners in as well.

Speaker #1: So better technology brings larger new partners, but that’s been sold by a better team in terms of the organization and the quality of the team who are actually selling the product.

Chris Lee: Better technology brings larger new partners, but that's been sold by a better team in terms of the organization and the quality of the team who are actually selling the product. A number of things has led us to get a 50% increase in the average size of the business we're attracting this year versus last. I think that's it.

Speaker #1: So, a number of things has led us to, you know, get a 50% increase in the average size of the business we're attracting this year versus last.

Speaker #1: I think that was it.

Speaker #3: That's great.

Speaker #1: Oh, LTV to CAC. Yeah. So we're investing that, and that was a 7-to-1 on a kind of incremental basis last year. Guess what, that's coming down because we're spending more, but we want, you know, we want to find the low point of that.

Claire Thomson: LTV to CAC.

Chris Lee: Oh, LTV to CAC. Yeah. We're investing that, and that was a 7 to 1 on a kind of incremental basis last year. Guess what? That's coming down because we're spending more. We want to find the low point of that. That is coming down, and we'll share what that statistic is when we've done a full year's worth of investment and understanding of what that pulls out. But that 7 to 1 ratio is deliberately coming down as we spend more, but we still think there's a lot of playing into the model.

Speaker #1: So that is coming down. And we'll share what that statistic is when we've done a full year's worth of investment and understanding of what that pulls out.

Speaker #1: But that 7-to-1 ratio is deliberately coming down as we spend more. But we certainly think there's a lot of play in it at the moment.

Speaker #2: Great. Thank you very much.

Speaker #1: Drew: There we go. Andrew, you're unmuted now. Andrew: Yeah, I think so.

[Analyst]: Great. Thank you very much.

[Analyst 1]: Great. Thank you very much.

Speaker #2: Thank you very much. Just a quick question on your focus on EBITDA. You talked a bit about your CAPEX trajectory. The effect of the amortized R&D going through the P&L will make your adjusted EBIT margins a little less attractive than your adjusted EBITDA margins.

Chris Lee: Andrew West. There we go. Andrew, you are unmuted now, Andrew. I think so.

Andrew West: Thank you very much. Just quick questions on, you focused on EBITDAR, and you talked a bit about your CAC trajectory. The effect of the amortized R&D going through the P&L will make your adjusted EBIT margins a little less attractive than your adjusted EBITDAR margins. Can you just talk through what your CAC expectations are and then the effects that you will have on your adjusted EBIT margin and what your target margin would be once that CAC is settled?

[Analyst 2]: Thank you very much. Just quick questions on, you focused on EBITDAR, and you talked a bit about your CAC trajectory. The effect of the amortized R&D going through the P&L will make your adjusted EBIT margins a little less attractive than your adjusted EBITDAR margins. Can you just talk through what your CAC expectations are and then the effects that you will have on your adjusted EBIT margin and what your target margin would be once that CAC is settled?

Speaker #2: Can you just talk through what your CapEx expectations are, and then the effects that will have on your adjusted EBIT margin, and what your target margin will be once that CapEx is settled?

Speaker #3: Yeah. So CAPEX, if you think about so I need to think about it in two different sort of separate in two different businesses. So brand edition is always round about 2 to 2 and a half million, I think that's a, you know, we've signaled that that's a sensible number for you to be thinking of if you're kind of modeling brand edition.

Claire Thomson: Yeah. CAC, you need to think about it separately for the two different businesses. Brand Addition is always around about GBP 2 to 2.5 million. I think that we have signaled that that is a sensible number for you to be thinking of if you are modeling Brand Addition. Facilisgroup, we think of our CAC investment at Facilisgroup to be around about 20% of revenue. As revenue grows, then that increases as a dollar number. I think we will probably end up being somewhere slightly lower than that. From a modeling perspective, I would say stick with that number. Then, yeah, obviously the investment, it has to come through the P&L through our amortization.

Speaker #3: And then facilities, which. Said, think of our CAPEX investment of facilities to be around about 20% of revenue. And so I think that will probably, you know, so obviously as revenue grows, then that increases as a dollar number.

Speaker #3: So I think we'll probably end up being somewhere slightly lower than that, but in terms of—from a modeling perspective—I'd say stick with that number.

Speaker #3: And then, yeah, you know, obviously the investment has to come through the P&L to amortization, and so we've seen an increase last year, an increase this year from what we had historically. We had, in '23 and '24, some quite significant investment in facilities—it was around about 30% of revenue.

Claire Thomson: We have seen an increase last year, an increase this year from the historic. We had historically, in 2023 and 2024, we had some quite significant investment into Facilisgroup that was around about 30% of revenue. As those products are brought to market, then that obviously comes through in our amortization. I would expect that that charge will go up again as we move through 2027, and then it will start to kind of equal out and be in line with CAC equals depreciation or amortization, sorry.

Speaker #3: So that’s come as those products are brought to market, and then obviously it comes through in our amortization. So I would expect that that charge will go up again when we move through '27.

Speaker #3: And then it'll start to kind of equal out and be in line, you know—CAPEX equals depreciation or amortization, sorry.

Speaker #2: Sure. And so, when you target—I can't remember which side was 10% EBITDA margin—what would be the equivalent adjusted EBITDA, adjusted EBIT margin in the long run that you think should be an equilibrium?

Andrew West: Sure. When you target, I cannot remember which side was 10% EBITDAR margin, what would be the equivalent adjusted EBIT margin in the long run that you think should be an equilibrium?

[Analyst 2]: Sure. When you target, I cannot remember which side was 10% EBITDAR margin, what would be the equivalent adjusted EBIT margin in the long run that you think should be an equilibrium?

Speaker #3: So, it's a 10% EBITDA margin on Brand Edition.

Speaker #2: Sure.

Speaker #3: And we point to 10% of the combined operating profit margin for the whole group.

Claire Thomson: 10% is the EBITDAR margin on Brand Addition.

Andrew West: Sure.

[Analyst 2]: Sure.

Claire Thomson: We point to 10% for the combined operating profit margin for the whole group.

Speaker #2: Sorry, could you repeat that last part again?

Speaker #3: Yes. So, we are targeting a 10% operating profit margin for the whole group as our goal.

Speaker #2: Okay. Great stuff. Thank you very much.

Andrew West: Sorry, could you say that last bit again?

[Analyst 2]: Sorry, could you say that last bit again?

Claire Thomson: Yeah. We are saying 10% operating profit margin for the whole group is our kind of long term.

Speaker #1: So I don't think there's any more hands. Last sort of go for more hands—no? So thank you very much for your interest. We're easy to find if there are any follow-up questions.

Andrew West: Okay. Great stuff. Okay. Thank you very much.

[Analyst 2]: Okay. Great stuff. Okay. Thank you very much.

Chris Lee: I do not think there is any more hands unless Joe for more hands. No. Thank you very much for your interest. We are easy to find if there is any follow-up questions. But yeah, thank you, and we will see you soon. Thank you very much.

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