Full Year 2026 Beacon Lighting Group Ltd Earnings Call

August 27, 2026

Operator 2: Thank you for standing by, and welcome to the Beacon Lighting FY 2026 financial results presentation. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to the Beacon Lighting Executive Chairman, Ian Robinson. Please go ahead, Ian.

Operator: Thank you for standing by, and welcome to the Beacon Lighting FY 2026 financial results presentation. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to the Beacon Lighting Executive Chairman, Ian Robinson. Please go ahead, Ian.

Speaker #1: If you wish to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. I would now like to hand the conference over to the Beacon Lighting Executive Chairman, Ian Robinson. Please go ahead, Ian.

Speaker #2: Thank you. Good morning, and thank you for joining us for the Beacon Lighting full-year 2026 results presentation. My name is Ian Robinson, Executive Chairman of Beacon Lighting, and I'm joined today by our Chief Executive Officer, Glen Robinson, and our Chief Financial Officer, David Spears.

Ian Robinson: Thank you. Good morning, and thank you for joining us for the Beacon Lighting full year FY 2026 results presentation. My name is Ian Robinson, Executive Chairman of Beacon Lighting, and I am joined today by our Chief Executive Officer, Glen Robinson, and our Chief Financial Officer, David Speirs. FY 2026 was another year of solid progress for Beacon Lighting as we continue to execute against our 2030 strategy. With our ambition to be evenly split between trade and retail and a leading provider of lighting, ceiling fans, and electrical accessories for the Australian home, with sales firmly on track. Trade delivered another strong year, reflecting the strength of our customer partnership and value proposition. While complementary businesses made a positive contribution to the group's earnings. In retail, conditions were mixed across the year.

Speaker #2: Financial year 2026 was another year of solid progress for Beacon Lighting. As we continue to execute against our 2030 strategy, with our ambition to be evenly split between trade and retail, and to be a leading provider of lighting, selling fans and electrical accessories for the Australian home, with sales firmly on track.

Speaker #2: Trade delivered another strong year, reflecting the strength of our customer partnerships and value proposition. While complementary businesses made a positive contribution to the group's earnings, conditions in retail were mixed across the year.

Speaker #2: We saw some softening in consumer sentiment in the first half, driven by shifts in interest rate expectations, which led to more cautious spending and some trading down within categories.

Ian Robinson: We saw some softening in consumer sentiment in the H1, driven by shifts in interest rate expectations, which led to more cautious spending and some trading down within categories. Trading conditions improved through the H2, with comparative sales strengthening to a 7.1% increase in the Q4. These results are underpinned by the dedication of our team and the continued support of our customers and trade partners. Turning to today's agenda, Glenn will begin with an overview of our operating performance, followed by David, who will take us through the financial results in detail. Glenn then will turn to the outline of our growth priorities and the outlook for FY 2027 before we open for questions. With that, I am going to hand over to Glenn to take you through the results.

Ian Robinson: We saw some softening in consumer sentiment in the H1, driven by shifts in interest rate expectations, which led to more cautious spending and some trading down within categories. Trading conditions improved through the H2, with comparative sales strengthening to a 7.1% increase in the Q4. These results are underpinned by the dedication of our team and the continued support of our customers and trade partners. Turning to today's agenda, Glen will begin with an overview of our operating performance, followed by David, who will take us through the financial results in detail. Glen then will turn to the outline of our growth priorities and the outlook for FY 2027 before we open for questions. With that, I am going to hand over to Glen to take you through the results.

Speaker #2: Trading conditions improved through the second half, with comparative sales strengthening to a 7.1% increase in the fourth quarter. These results are underpinned by the dedication of our team and the continued support of our customers and trade partners.

Speaker #2: Turning to today's agenda, Glen will begin with an overview of our operating performance, followed by David, who will take us through the financial results in detail.

Speaker #2: Glen will then turn to the outline of our growth priorities and the outlook for financial year 2027, before we open for questions. With that, I hand over to Glen to take you through the results.

Speaker #3: Thank you, Ian, and good morning, everyone. Thank you for your interest in the Beacon Lighting Group. We are proud of what we've been able to build throughout the FY2026 year, with our valued team members, our retail customers, and our trade partners.

Glen Robinson: Thank you, Ian, and good morning, everyone. Thank you for your interest in the Beacon Lighting Group. We are proud of what we've been able to build throughout the FY 2026 year with our valued team members, our retail customers, and our trade partners. As always, the full presentation that I'll run through is available on the ASX and our corporate website. Turning to page 4, which sets out our statutory result for the full year FY 2026. At a statutory level, sales increased by 3.4% to a record AUD 340 million, with gross profit up 2.7% to AUD 233.3 million. Gross margin was 68.6%, down slightly from 69.1% last year. Operating expenses increased by 4.7% to AUD 149.7 million, representing 44% of sales. This resulted in EBITDA of AUD 87 million, broadly flat on the prior year.

Glen Robinson: Thank you, Ian, and good morning, everyone. Thank you for your interest in the Beacon Lighting Group. We are proud of what we've been able to build throughout the FY 2026 year with our valued team members, our retail customers, and our trade partners. As always, the full presentation that I'll run through is available on the ASX and our corporate website. Turning to page four, which sets out our statutory result for the full year FY 2026. At a statutory level, sales increased by 3.4% to a record AUD 340 million, with gross profit up 2.7% to AUD 233.3 million. Gross margin was 68.6%, down slightly from 69.1% last year. Operating expenses increased by 4.7% to AUD 149.7 million, representing 44% of sales. This resulted in EBITDA of AUD 87 million, broadly flat on the prior year.

Speaker #3: As always, the full presentation that I'll run through is available on the ASX and our corporate website. Turning to page 4, which sets out our statutory result for the full year FY2026.

Speaker #3: At a statutory level, sales increased by 3.4% to a record $340 million, with gross profit up 2.7% to $233.3 million. Gross margin was 68.6%, down slightly from 69.1% last year.

Speaker #3: Operating expenses increased by 4.7% to $149.7 million, representing 44% of sales. This resulted in EBITDA of $87 million, broadly flat on the prior year.

Speaker #3: Statutory net profit after tax for the year was $27 million, down 8.1% against the prior year. The statutory result includes a number of non-recurring items—in this case, restructuring costs related to Beacon trade rebate, the closure of the installation department, redundancies made in Beacon Lighting America, and the Group's support center.

Glen Robinson: Statutory net profit after tax for the year was AUD 27 million, down 8.1% against the prior year. The statutory result includes a number of non-reoccurring items, in this case, restructuring costs related to Beacon Trade Rebate, the closure of the installation department, redundancies made in Beacon Lighting America, and the group support center. To provide a clearer view of the underlying trading performance, we've adjusted for these items in the underlying result shown on page 5, which is the basis for our discussion today. On an underlying basis, sales increased by 3.5% to AUD 340.3 million. Gross profit rose to AUD 233.6 million, with a gross profit margin of 68.6%, reflecting the growing contribution from trade sales and increased penetration into new core trade categories, particularly in the second half.

Speaker #3: To provide a clearer view of the underlying trading performance, we’ve adjusted for these items in the underlying result shown on page 5, which is the basis for our discussion today.

Speaker #3: On an underlying basis, sales increased by 3.5% to $340.3 million. Gross profit rose to $233.6 million, with a gross profit margin of 68.6%. This reflects the growing contribution from trade sales and increased penetration into new core trade categories, particularly in the second half.

Speaker #3: Despite this shift in sales mix, our vertically integrated supply chain and continued introduction of new product lines supported a strong margin outcome. Other income increased by 20.5% to $3.4 million, reflecting an improved return from the large-format property fund investment and continued interest income on our Group's cash balance.

Glen Robinson: Despite this shift in sales mix, our vertically integrated supply chain and continued introduction of new product lines supported a strong margin outcome. Other income increased by 20.5% to AUD 3.4 million, reflecting an improved return from the Large Format Property Fund investment and continued interest income on our group's cash balance. Operating expenses increased 3.9%, representing 43.6% of sales. As a result, underlying EBITDA increased 1.6% to AUD 88.5 million with an EBITDA margin of 26%. Underlying net profit after tax was AUD 28.1 million, down 4.5% on the prior year. Moving to page 6, I'll step through the key operational highlights for the year. We continue to invest in our store network, opening a new store in Auburn and purchasing the St Kilda franchise store into company ownership.

Glen Robinson: Despite this shift in sales mix, our vertically integrated supply chain and continued introduction of new product lines supported a strong margin outcome. Other income increased by 20.5% to AUD 3.4 million, reflecting an improved return from the Large Format Property Fund investment and continued interest income on our group's cash balance. Operating expenses increased 3.9%, representing 43.6% of sales. As a result, underlying EBITDA increased 1.6% to AUD 88.5 million with an EBITDA margin of 26%. Underlying net profit after tax was AUD 28.1 million, down 4.5% on the prior year. Moving to page six, I'll step through the key operational highlights for the year. We continue to invest in our store network, opening a new store in Auburn and purchasing the St Kilda franchise store into company ownership.

Speaker #3: Operating expenses increased 3.9%, representing 43.6% of sales. As a result, underlying EBITDA increased 1.6% to $88.5 million, with an EBITDA margin of 26%.

Speaker #3: Underlying net profit after tax was $28.1 million, down 4.5% on the prior year. Moving to page 6, I'll step through the key operational highlights for the year.

Speaker #3: We continue to invest in our store network, opening a new store in Auburn and purchasing the Sincuta franchise store into company ownership. Along with the new store in Millers Junction, we also relocated and expanded the Geelong store into a flagship for the market, which now also includes a 300-square-meter trade-specific showroom, and we expanded our McGrath Hill store in New South Wales.

Glen Robinson: Along with a new store in Millers Junction, we also relocated and expanded the Geelong store into a flagship for the market, which now also includes a 300 square meter trade specific showroom, and we expanded our McGraths Hill store in New South Wales, whilst closing our Springvale store here in Victoria. Together, these initiatives reflect both the network expansion and store optimization aligned to our 2030 store strategy. Company store comparative sales increased 1.8% for the full year, with the standout being a 7.1% comparative sales increase in the Q4, driven by trade growth, promotional execution, traffic growth, and category growth. Beacon Trade remained a key highlight for the year. Trade sales through our stores increased by 14.5%, and total trade sales now represent 43.3% of relevant sales, up from 40% last year, keeping us firmly on track for our target of 50% of relevant sales by 2028.

Glen Robinson: Along with a new store in Millers Junction, we also relocated and expanded the Geelong store into a flagship for the market, which now also includes a 300sq m trade specific showroom, and we expanded our McGraths Hill store in New South Wales, whilst closing our Springvale store here in Victoria. Together, these initiatives reflect both the network expansion and store optimization aligned to our 2030 store strategy. Company store comparative sales increased 1.8% for the full year, with the standout being a 7.1% comparative sales increase in the Q4, driven by trade growth, promotional execution, traffic growth, and category growth. Beacon Trade remained a key highlight for the year. Trade sales through our stores increased by 14.5%, and total trade sales now represent 43.3% of relevant sales, up from 40% last year, keeping us firmly on track for our target of 50% of relevant sales by 2028.

Speaker #3: ...whilst closing our Springvale store here in Victoria. Together, these initiatives reflect both the network expansion and store optimization, aligned to our 2030 store strategy.

Speaker #3: Company store comparative sales increased 1.8% for the full year, with the standout being a 7.1% comparative sales increase in the fourth quarter, driven by trade growth, promotional execution, traffic growth, and category growth.

Speaker #3: Beacon Trade remained a key highlight for the year. Trade sales through our stores increased by 14.5%, and total trade sales now represent 43.3% of relevant sales, up from 40% last year, keeping us firmly on track for our target of 50% of relevant sales by 2028.

Speaker #3: Innovation continues to be a core differentiator for Beacon. During the year, we designed and developed 692 new products, reinforcing the strength of our vertically integrated pipeline across lighting, ceiling fans, and electrical accessories.

Glen Robinson: Innovation continues to be a core differentiator for Beacon. During the year, we designed and developed 692 new products, reinforcing the strength of our vertically integrated pipeline across lighting, ceiling fans, and electrical accessories. Expertise is critical in our category, and with 347 lighting designers across our store networks, we are well-placed to provide expert customer advice for both retail and trade customers. With that, I will now hand you over to David to take you through financials in a little more detail.

Speaker #3: Expertise is critical in our category, and with 347 lighting designers across our store networks, we are well placed to provide expert customer advice for both retail and trade customers.

Speaker #3: With that, I'll now hand you over to David to take you through the financials in a little more detail.

Speaker #2: Thank you, Glen. I'm now going to move to sales on page 8. The Beacon Lighting Group had an underlying sales increase of 3.5% to $340.3 million.

David Speirs: Thank you, Glenn. I am now going to move to sales on page 8. The Beacon Lighting Group had an underlying sales increase of 3.5% to AUD 340.3 million. Company store sales increased by 1.8%. The highlight result for the year was a comparative store sales increase of 7.1% for Q4 FY 2026. The best performed states from a comparative sales perspective were Queensland, Tasmania, and Western Australia. Beacon Lighting has continued to partner with our trade customers throughout FY 2026. Trade sales through stores, which include both direct trade sales and referral sales, have increased by 14.5%, with a stronger momentum in H2 compared to H1. Total trade sales as a percentage of total relevant sales, which includes sales from stores, Commercial, Masson For Light, and Custom Lighting, has increased to 43.3%.

David Speirs: Thank you, Glen. I am now going to move to sales on page 8. The Beacon Lighting Group had an underlying sales increase of 3.5% to AUD 340.3 million. Company store sales increased by 1.8%. The highlight result for the year was a comparative store sales increase of 7.1% for Q4 FY 2026. The best performed states from a comparative sales perspective were Queensland, Tasmania, and Western Australia. Beacon Lighting has continued to partner with our trade customers throughout FY 2026. Trade sales through stores, which include both direct trade sales and referral sales, have increased by 14.5%, with a stronger momentum in H2 compared to H1. Total trade sales as a percentage of total relevant sales, which includes sales from stores, Commercial, Masson For Light, and Custom Lighting, has increased to 43.3%.

Speaker #2: Company store sales increased by 1.8%. The highlight result for the year was the comparative store sales increase of 7.1% for Q4 of financial year '26.

Speaker #2: The best-performing states from a comparative sales perspective were Queensland, Tasmania, and Western Australia. Beacon Lighting has continued to partner with our trade customers throughout financial year 2026.

Speaker #2: Trade sales through stores, which include both direct trade sales and referral sales, have increased by 14.5%, with stronger momentum in H2 compared to H1.

Speaker #2: Total trade sales as a percentage of total relevant sales—which include sales from stores, commercial, mass, infra light, and custom lighting—has increased to 43.3%.

Speaker #2: Beacon Lighting remains on track to achieve our goal of total trade sales being 50% of total relevant sales by 2028. It's important to recognize that Beacon Lighting stores, Beacon Commercial Connected Light Solution, and custom lighting all had sales increases in financial year '26.

David Speirs: Beacon Lighting remains on track to achieve our goal of total trade sales being 50% of total relevant sales by 2028. It is important to recognize that Beacon Lighting stores, Beacon Commercial, Connected Light Solutions, and Custom Lighting all had sales increases in FY 2026. Gross profit on page 9. Beacon Lighting achieved an underlying gross profit dollar result of AUD 233.6 million or 68.6% of sales. The change in the sales mix towards trade is reflected in strong sales increases in product categories like cables and switches. This change in the mix towards trade is beginning to be reflected in the gross profit margin with a small decline in FY 2026. Despite the change in the mix, it is important to note that the vertically integrated supply chain has continued to support the gross profit margin.

Speaker #2: Gross profit on page 9. Beacon Lighting achieved an underlying gross profit dollar result of $233.6 million, or 68.6% of sales. The change in the sales mix towards trade is reflected in strong sales increases in product categories like cables and switches.

Speaker #2: This change in the mix towards trade is beginning to be reflected in the gross profit margin, with a small decline in financial year 2026.

Speaker #2: Despite the change in the mix, it is important to note that the vertically integrated supply chain has continued to support the gross profit margin.

Speaker #2: Beacon Lighting continues to design and develop new products in Australia, which will continue to be well received by our retail and trade customers, and support our overall margins as a result.

David Speirs: Beacon Lighting continues to design and develop new products in Australia, which will continue to be well-received by our retail and trade customers and support our overall margin as a result. Other income and operating expenses on page 10. Beacon Lighting achieved a significant 20.5% increase in other income. Other income will increasingly become more important to Beacon Lighting as the group can expect to receive an improved return from the Large Format Property Fund in the future. Inflation is being reflected in some expense items for the Beacon Lighting Group. However, with a continued focus on the management of operating expenses, underlying expenses increased by 3.9% to AUD 148.5 million or 43.6% of sales. Of all the operating expenses, the management of the marketing expense was a highlight with an increase of 1.5% to AUD 16.4 million.

Speaker #2: Other income and operating expenses on page 10. Beacon Lighting achieved a significant 20.5% increase in other income. Other income will increasingly become more important to Beacon Lighting as the group can expect to receive an improved return from the large-format property fund in the future.

Speaker #2: Inflation is being reflected in some expense items for the Beacon Lighting Group. However, with the continued focus on the management of operating expenses, underlying expenses increased by 3.9% to $148.5 million, or 43.6% of sales.

Speaker #2: Of all the operating expenses, the management of the marketing expense was a highlight, with an increase of 1.5% to $16.4 million. With the opening of new stores, new leases, and options exercised, depreciation increased by 8.3%, and finance cost increased by 6.8%.

David Speirs: With the opening of new stores, new leases and options exercised, the depreciation increased by 8.3% and finance costs increased by 6.8%. On page 11, Beacon Lighting has continued to maintain a strong cash position with a net operating cash flow of AUD 60.8 million. Using this strong cash position, Beacon Lighting has been able to reinvest in the future of the business with CapEx of AUD 12.2 million. Major CapEx projects of the year included the opening of new stores, store relocation refurbishments, the re-platforming of the group's websites, product development, and various productivity projects. With the suspension of the dividend reinvestment program, dividends to shareholders paid have increased to AUD 16.3 million in FY 2026. Balance sheet on page 12. Inclusive of the AUD 10 million term deposit, which is presented as other financial assets, Beacon Lighting has a cash balance of AUD 54.2 million at the end of June 2026.

Speaker #2: Cash flow on page 11. Beacon Lighting has continued to maintain a strong cash position, with net operating cash flow of $60.8 million.

Speaker #2: Using this strong cash position, Beacon Lighting has been able to reinvest in the future of the business with capex of $12.2 million. Major capex projects for the year included the opening of new stores, store relocation, refurbishments, the replatforming of the group's websites, product development, and various productivity projects.

Speaker #2: With the suspension of the dividend reinvestment program, dividends to shareholders paid have increased to $16.3 million in financial year 2026. Balance sheet on page 12.

Speaker #2: Inclusive of the $10 million term deposit, which is presented as other financial assets, Beacon Lighting has a cash balance of $54.2 million at the end of June 2026.

David Speirs: Inclusive of the AUD 10 million term deposit, which is presented as other financial assets, Beacon Lighting has a cash balance of AUD 54.2 million at the end of June 2026.

Speaker #2: With an inventory investment of $101 million, Beacon Lighting has been able to maintain a good in-stock position and strong service levels to our customers throughout the year.

David Speirs: With an inventory investment of AUD 101 million, Beacon Lighting has been able to maintain a good in-stock position and strong service levels to our customers throughout the year. With the acquisition of two new development projects in Coffs Harbour in New South Wales and Noosa in Queensland, Beacon Lighting has increased the investment in associates, which is the Large Format Property Fund, to AUD 29.5 million. Right-of-use assets and lease liabilities have increased with the opening of new stores, exercising options, and the signing of new property leases. Beacon Lighting has continued to maintain a strong net cash position, and net assets have increased to AUD 192.4 million. Dividends on page 13. It is important to note the Beacon Lighting dividend reinvestment plan remains suspended. Reflecting upon the FY 2026 result, the directors have declared a fully franked dividend of AUD 0.034 per share for H2 FY 2026.

Speaker #2: With the acquisition of two new development projects in Coffs Harbour in New South Wales, and Nusa in Queensland, Beacon Lighting has increased the investment in associates, which is the large-format property fund, to $29.5 million.

Speaker #2: Right-of-use assets and lease liabilities have increased with the opening of new stores, exercising options, and the signing of new property leases. Beacon Lighting has continued to maintain a strong net cash position, and net assets have increased to $192.4 million.

Speaker #2: Dividends on page 13. It's important to note the Beacon Lighting dividend reinvestment plan remains suspended. Reflecting upon the financial year 2026 result, the directors have declared a fully franked dividend of 3.4 cents per share for H2 financial year 2026.

Speaker #2: This means the directors declared a fully franked dividend of 7.5 cents per share for the financial year '26. The directors will continue to target an annual dividend payout ratio of 50 to 60 percent of net profit after tax.

David Speirs: This means the directors declared a fully franked dividend of AUD 0.075 per share for FY 2026. The directors will continue to target an annual dividend payout ratio of 50% to 60% of net profit after tax. The dividend payout ratio for FY 2026 has exceeded this target with a payout of 63.7% of net profit after tax. Thank you. I will now pass you back to Glenn.

Speaker #2: The dividend payout ratio for the financial year '26 has exceeded this target, with a payout of 63.7% of net profit after tax. Thank you, and I will now pass you back to Glenn.

Speaker #1: Thanks, David. Let's move on to the strategic pillars of growth, starting on page 14. Many of you will be familiar with our four strategic pillars.

Glen Robinson: Thanks, David. Let us move on to the strategic pillars of growth, starting on page 14. Many of you will be familiar with our four strategic pillars. These have remained consistent for many years as we focus on the long-term growth across stores, trade, e-commerce, and complementary businesses. Page 15 outlines our vision for the Beacon Store network through to 2030. Our ambition is to evolve from being a lighting retailer to becoming Australia's leading provider of quality lighting, ceiling fans, and electrical accessories for both homeowners and trade professionals. The strategy brings retail and trade together in a way that is natural and mutually reinforcing. For homeowners, Beacon is the destination for inspiration, expertise, and design guidance. For trade professionals, Beacon is a trusted partner, recognizing their influence, rewarding loyalty, and supporting the growth of their business by referring Beacon customers to use our preferred trade partners.

Speaker #1: These have remained consistent for many years, as we focus on long-term growth across stores, trade, e-commerce, and complementary businesses. Page 15 outlines our vision for the Beacon store network through to 2030.

Speaker #1: Our ambition is to evolve from being a lighting retailer to becoming Australia's leading provider of quality lighting, ceiling fans, and electrical accessories for both homeowners and trade professionals.

Speaker #1: The strategy brings retail and trade together in a way that is natural and mutually reinforcing. For homeowners, Beacon is the destination for inspiration, expertise, and design guidance.

Speaker #1: For trade professionals, Beacon is a trusted partner—recognizing their influence, rewarding loyalty, and supporting the growth of their business by referring Beacon customers to use our preferred trade partners.

Speaker #1: At the intersection of these two customer groups sits Beacon—becoming the homeowner's first choice and the electrician's most valuable partnership. The partner that can bring both the trade and the homeowner together to complete the job.

Glen Robinson: At the intersection of these two customer groups sits Beacon, becoming the homeowner's first choice and the electrician's most valuable partnership. The partner that can bring both the trade and the homeowner together to complete the job. Turning to page 16, an update on our store growth pillar. It has been a transformative year for the store network with greater role clarity, alignment across the teams, value and promotional activity, and expansion into key product categories, which showed in the strong positive comparative performance in Q4 of the year. We finished FY 2026 with 130 stores, comprising 120 company-owned stores and one franchise store. We opened new stores in Auburn, Millers Junction, purchased the St Kilda franchise store, relocated Geelong, and expanded the McGraths Hill store. Our product and service offer remains central to the strategy.

Speaker #1: Turning to page 16, an update on our store growth pillar. It's been a transformative year for the store network, with greater role clarity, alignment across the teams, value and promotional activity, and expansion into key product categories, which showed in the strong positive comparative performance in Q4 of the year.

Speaker #1: We've finished FY 2026 with 130 stores, comprising 129 company-owned stores and one franchise store. We opened new stores in Auburn and Millers Junction, and purchased the St.

Speaker #1: The Kilda franchise store was relocated to Geelong, and we expanded the McGrath Hill store. Our product and service offer remains central to the strategy, with 692 new products designed and developed during the year to support our core range of more than 3,500 products.

Glen Robinson: With 692 new products designed and developed during the year to support our core range of more than 3,500 products. Our accredited lighting designers, design consultants grew to 347 associates with our 59 design studios across the stores, completing more than 4,360 lighting design consultations across the network. Finally, updated store network research confirms the opportunity to grow to around 217 stores nationally, providing a clear and disciplined runway to support our long-term growth ambitions. Page 17 highlights the continued progress in trade and its critical role in our long-term strategy. Again, consistency was the key message for the teams this year. Working with our large number of trade customers, finding solutions, and expanding into lower penetrated categories positions us well to grow once again in the trade channel.

Speaker #1: Our accredited lighting designers and design consultants grew to 347 associates, with our 59 design studios across the stores completing more than 4,360 lighting design consultations across the network.

Speaker #1: Finally, updated store network research confirms the opportunity to grow to around 217 stores nationally, providing a clear and disciplined runway to support our long-term growth ambitions.

Speaker #1: Page 17 highlights the continued progress in trade and its critical role in our long-term strategy. Again, consistency was the key message for the teams this year.

Speaker #1: Working with our large number of trade customers, finding solutions, and expanding into lower penetrated categories positions us well to grow once again in the trade channel.

Speaker #1: Beacon Trade members continue to benefit from a 2% Beacon Cash Rebate, trade-essential pricing, plus special pricing across the entire range, monthly trade perks, and branded workwear in collaboration with Nina and Pasadena, the fashion brand.

Glen Robinson: Beacon Trade members continue to benefit from a 2% Beacon cash rebate, trade essential pricing, plus special pricing across the entire range. Monthly trade perks and branded workwear in collaboration with Naenaa and Pasadena Fashion Brand. Total trade sales have now reached AUD 139.5 million for the year, with trade sales through our stores increasing by 14.5%. Total trade sales now represent 43.3% of relevant sales, and we remain firmly on track to achieve our goal of 50% of relevant sales by 2028. E-commerce continues to grow as an important channel, with customers increasingly researching our products online before visiting our stores to seek expert advice and confidently finalizing their choice. E-commerce sales represent 13.1% of total store sales. Trade remains a key driver online, with online trade sales up 16.5% and online visitation up 20.2%.

Speaker #1: Total trade sales have now reached $139.5 million for the year, with trade sales through our stores increasing by 14.5%. Total trade sales now represent 43.3% of relevant sales, and we remain firmly on track to achieve our goal of 50% of relevant sales by 2028.

Speaker #1: E-commerce continues to grow as an important channel, with customers increasingly researching our products online before visiting our stores. They also seek expert advice and confidently finalise their choice. E-commerce sales represent 13.1% of total store sales.

Speaker #1: Trade remains a key driver online, with online trade sales up 16.5% and online visitation up 20.2%. Online trade sales now account for 14.9% of direct trade sales, reflecting the increased digital adoption of our trade customer base during the year.

Glen Robinson: Online trade sales now account for 14.9% of direct trade sales, reflecting the increased digital adoption of our trade customer base. During the year, the team have worked tirelessly to build all new websites for the group on a new platform. This investment will strengthen our position as the leading lighting, ceiling fan, and electrical accessories online seller for homeowners and trade professionals in the years ahead. Turning to page 19. Our complementary businesses delivered a mixed but overall positive contribution during the year. Beacon International had a year of restructuring and consolidation. While sales declined modestly, improved margin and disciplined cost management delivered a significant improvement in profit. Hong Kong remained the financial cornerstone of the business. Europe delivered improved sales, margin, and profitability. In the United States, restructuring established a leaner cost base and a stronger platform for future growth.

Speaker #1: The team have worked tirelessly to build all-new websites for the group on a new platform. This investment will strengthen our position as the leading lighting, ceiling fan, and electrical accessories online seller for homeowners and trade professionals.

Speaker #1: In the years ahead . Turning to page 19 , our complementary businesses delivered a mixed . But overall positive contribution during the year Beacon international had a year of restructuring and consolidation , while sales declined modestly improved margin and disciplined cost management delivered a significant improvement in profit .

Speaker #1: Hong Kong remained the financial cornerstone of the business Europe delivered improved sales margin and profitability , and in the United States , restructuring established a leaner cost base and a stronger platform for future growth Connected light Solutions was a particular highlight , with sales up over 50% for the year and the business secured a significant state based contract to replace existing street lights with new energy efficient LED infrastructure spanning several years Commercial and custom lighting also recorded sales growth for the year , while Mason light and light source solutions in New Zealand were softer We also continue to benefit from the 50% interest in the large format property Fund , which owns nine retail properties , including acquisitions in Coffs Harbour and Noosa The portfolio comprises of five fully tenanted properties , one partially tenanted property and three development projects .

Glen Robinson: Connected Light Solutions was a particular highlight, with sales up over 50% for the year, and the business secured a significant state-based contract to replace existing streetlights with new energy-efficient LED infrastructure spanning several years. Commercial and Custom Lighting also recorded sales growth for the year, while Masson For Light and Light Source Solutions in New Zealand were softer. We also continue to benefit from the 50% interest in the Large Format Property Fund, which owns nine retail properties, including recent acquisitions in Coffs Harbour and Noosa. The portfolio comprises five fully tenanted properties, one partially tenanted property, and three development projects. The highlight for the year was the completion of the Auburn development, which now includes a new Beacon Lighting store, our New South Wales commercial office, and also a state office. Together, these businesses continue to diversify the earnings and broaden the group's growth platform.

Speaker #1: The highlight for the year was the completion of the Auburn development , which now includes a new beacon lighting store . Our New South Wales commercial office and also our state office Together , these businesses continue to diversify at the earnings and broaden the group's growth platform Briefly on page 20 , we remain committed to our sustainability goals across people , product and planet For our team , safety .

Glen Robinson: Briefly on page 20, we remain committed to our sustainability goals across people, product, and planet. For our team, safety, respect, and wellbeing is at the center of everything we do at Beacon, creating a safe and supportive work environment, one with career advancement opportunities. On product, our LED globe range has now replaced fluorescent, incandescent, and halogen globes as standard, cutting energy use by up to 80% with a lifespan up to six times longer. With ceiling fans, including the super energy efficient direct current ceiling fans, being a great alternative to energy-intensive air conditioning systems. On planet, we now have 72 solar systems operating across the group sites, continuing to reduce our reliance on grid-sourced electricity, along with huge advancements in our product packaging, eliminating polystyrene and most plastics from our products. Moving to page 22, our outlook for the FY 2027 year.

Speaker #1: Respect and wellbeing is at the centre of everything we do at beacon . Creating a safe and supportive work environment . One with a career advancement , opportunities on product .

Speaker #1: Our LED globe range has now replaced fluorescent, incandescent, and halogen globes as standard, cutting energy use by up to 80%, with a lifespan up to six times longer.

Speaker #1: With ceiling fans , including the super energy efficient direct current ceiling fans being a great alternative to energy intensive air conditioning systems . On planet , we now have 72 solar systems operating across the group's sites , continuing to reduce our reliance on grid sourced electricity along with huge advancements in our product packaging , eliminating polystyrene and most plastics from our products Moving to page 22 .

Speaker #1: Our outlook for the FY2027 year: Our focus across the business remains on delivering the projects, capability, and range to successfully meet our 2030 vision for the stores.

Glen Robinson: Our focus across the business remains on delivering the projects, capability, and range to successfully meet our 2030 vision for the stores. Positive momentum in company store sales from Q4 FY 2026 has continued into the first eight weeks of FY 2027. Beacon Trade offering continues to be increasingly supported by our trade customers underpinning store sales. We have a strong store opening pipeline during the year. We will plan to open new stores in Caloundra, which we have actually just opened, Inglevale, Rockingham, Everton Park, and Warringah, along with refurbishments at Gepps Cross and Osborne Park, and an expansion at Castle Hill and a relocation of the Hervey Bay store. We will continue category expansion and market share growth for key trade product ranges. Connected Light Solutions will continue rolling out new energy-efficient LED streetlights under the state-based contract they secured last year.

Speaker #1: Positive momentum in company store sales from Q4 of FY2026 has continued into the first eight weeks of FY2027. The Beacon Trade Offering continues to be increasingly supported by our trade customers.

Speaker #1: Underpinning store sales, we have a strong store opening pipeline during the year. We plan to open new stores in Caloundra, which we've actually just opened.

Speaker #1: Angle Vale, Rockingham, Everton Park, and Mornington, along with refurbishments at Jeff's Cross and Osborne Park, and an expansion at Castle Hill and relocation of the Hervey Bay store.

Speaker #1: We'll continue Category expansion and market share growth for key trade , product ranges . Connected Light Solutions will continue rolling out new energy efficient LED street lights under the state based contract .

Speaker #1: They secured last year In the first half of FY 2027 , we will launch our new retail and trade websites on the new platform , further improving the customer experience with the foundational work completed during FY 2026 , including identifying new Beacon Lighting store locations , securing a major street lighting tender , advancing our 2030 initiatives , and developing new websites together with our continued focus on customer obsession and category expansion , we are well positioned to realise the benefits of these investments in FY 2027 and beyond .

Glen Robinson: In the H1 of FY 2027, we will launch our new retail and trade websites on the new platform, further improving the customer experience. With the foundational work completed during FY 2026, including identifying new Beacon Lighting store locations, securing a major street lighting tender, advancing our 2030 initiatives, and developing new websites, together with our continued focus on customer obsession and category expansion, we are well-positioned to realize the benefits of these investments in FY 2027 and beyond. Thank you for your time. I will now hand you back to Ian Robinson to take any questions.

Speaker #1: Thank you for your time. I'll now hand you back to Ian Robinson to take any questions.

Speaker #2: Thank you, Glenn and David, for your presentations. We're now open for questions.

Ian Robinson: Thank you, Glenn and David, for your presentations. We are now open for questions.

Ian Robinson: Thank you, Glen and David, for your presentations. We are now open for questions.

Speaker #3: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced.

Operator 2: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. The first question today comes from Forrest Salekian with Barrenjoey. Please go ahead.

Operator: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. The first question today comes from Forrest Salekian with Barrenjoey. Please go ahead.

Speaker #3: If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. The first question today comes from Forrest Sahakian with Barrenjoey. Please go ahead.

Speaker #4: Hi. Good morning, guys, and well done on the result. Just on a like-for-like basis, it looks like the strengthening in momentum was on the back of trade improving.

Forres Salekian: Good morning, guys, and well done on the result. Just on like for likes, it looks like the strengthening in momentum was on the back of trade improving. Can you just give us an update on how the momentum in retail has evolved, maybe over Q4 and into the new year? What happened in Q4 to get comps accelerating so hard?

Speaker #4: Can you just give us an update on how the momentum in retail has evolved, maybe over Q4 and into the new year?

Speaker #4: And I guess, like, what happened in Q4 to get comps accelerating so hard?

Speaker #1: Yeah . Thanks , Forrest , and good question . So you're right , trade has definitely improved throughout the second half and particularly into Q4 .

Glen Robinson: Well, thanks, Forrest, and good question. You are right. Trade has definitely improved throughout the second half, and particularly into Q4. A lot of that was through success of some of the new products that were brought to market, things like some of the switch ranges. We are getting better penetration in categories that we have had previously low market share in, things like cable. That has continued to go particularly well for us. You did also mention retail, and I think that is what was pleasing to see, that retail wasn't the drag that it has been in the last couple of years in some of the states. We have definitely seen some improved activity across retail, and I think we can put that down to a few different things.

Glen Robinson: Well, thanks, Forrest, and good question. You are right. Trade has definitely improved throughout the H2, and particularly into Q4. A lot of that was through success of some of the new products that were brought to market, things like some of the switch ranges. We are getting better penetration in categories that we have had previously low market share in, things like cable. That has continued to go particularly well for us. You did also mention retail, and I think that is what was pleasing to see, that retail wasn't the drag that it has been in the last couple of years in some of the states. We have definitely seen some improved activity across retail, and I think we can put that down to a few different things.

Speaker #1: A lot of that was through the success of some of the new products that were brought to market. Things like some of the switch ranges—we're getting better penetration in categories where we have previously had low market share, in things like cable.

Speaker #1: So that's continued to go particularly well for us. But you did also mention retail, and I think that's what was pleasing: to see that retail wasn't the drag that it has been in the last couple of years in some of the states.

Speaker #1: So we've definitely seen some improved activity across retail . And I think we've put that down to a few different things Obviously , the economic situation across Australia and the global , you know , political issues overseas play heavily on consumer confidence .

Glen Robinson: Obviously, the economic situation across Australia and the global political issues overseas play heavily on consumer confidence. You would probably expect that to be a negative for retail, and we certainly would have expected that as well. I think what we started to see was maybe more people staying at home, potentially investing in their primary place of residence, so investing in their home, and doing renovation activity there. At the same time, we really did have a strong focus on promotional execution across stores, so making sure that marketing is aligned to value and promotion. That does not necessarily mean heavier discounting, but really just very clear on our promotional execution. I think that helped with the retail spending.

Speaker #1: And you would probably expect that to be a negative for retail . And we certainly would have expected that as well . But I think what we started to see was maybe , you know , more people staying at home , potentially investing in their primary place of residence .

Speaker #1: So, investing in their home and doing renovation activity there at the same time, we really did have a strong focus on promotional execution across stores.

Speaker #1: So making sure the marketing is aligned to value and promotion, that doesn't necessarily mean heavier discounting, but really just being very clear on our promotional execution.

Speaker #1: So I think that helped with the retail spending. It helped consumers see that there was great value across Beacon Lighting Group. So that, looking at doing some renovation or updates, we were a great alternative to others that might be out there.

Glen Robinson: It helped consumers see that there was great value across Beacon Lighting, so that when they are looking at doing some renovation or updates, we were a great alternative to others that might be out there. It was across the board, across categories, new category expansion, and trade sales growth.

Speaker #1: So it was across the board, across categories, new category expansion, and trade sales growth.

Speaker #2: And operation performance was certainly improved in the stores.

Ian Robinson: Operation performance was certainly improved in the

Ian Robinson: Operation performance was certainly improved in the stores.

Glen Robinson: Yeah

Ian Robinson: in the stores.

Speaker #1: Yeah, that's right. Yeah.

Glen Robinson: Yeah, that is right. Yeah.

Speaker #4: That's super helpful . And then I guess just maybe as you think about the next 12 months on , like for likes , how are you thinking about that as housing turnover starts to slow just on the back of higher interest rates and changes to housing policies after the budget , it looks like comps get a bit easier to cycle through the first half as well .

Forres Salekian: That is super helpful. I guess as you think about the next 12 months on like-for-likes, how are you thinking about that as housing turnover starts to slow, just on the back of higher interest rates and changes to housing policies after the budget? It looks like comps get a bit easier to cycle through the H1 as well. Just wondering, against this backdrop, do you think you will be able to hold the current run rate or should it soften from here?

Speaker #4: So just wondering, like against this backdrop, do you think you'll be able to hold the current run rate, or should it soften from here?

Speaker #1: Yeah. Look, I think we've got some really exciting opportunities ahead of us. We've just completed conferences across all our states with all our store managers.

Glen Robinson: Well, I think we have got some really exciting opportunities ahead of us. We have just completed conferences across all our states with all our store managers, and I think the alignment across the business is a lot stronger than it is probably ever been. There is some real genuine excitement out there about what we can control, rather than focusing too much on the externals. Things like promotional tie-up, box stacks, value pricing, and category expansion are really the areas that we are mostly focused on, and that is what I believe will put us in a good position to be able to continue to grow the business throughout the year.

Speaker #1: And I think the alignment across the business is a lot stronger than it's probably ever been. And there's some real, genuine excitement out there about what we can control.

Speaker #1: Rather than focusing too much on the externals . So things like promotional tie up , bulk stacks , value pricing and category expansion are really the areas that we're mostly focused on .

Speaker #1: And that's what I believe will put us in a good position to be able to continue to grow the business throughout the year.

Speaker #4: Got it. And then, if I could just squeeze in one more—it looks like the marketing, as a percent of sales, came down to about 4.5% of sales in the second half.

Forres Salekian: Got it. If I could just squeeze in one more. It looks like the marketing as a percent of sales came down to about 4.5% of sales in the H2, and the AUD dollar amount invested went backwards year-on-year. Just wondering how you are able to balance this while growing top line and how you are thinking about marketing investment over FY 2027.

Speaker #4: And dollar amount invested went backwards year on year. So just wondering, like, how you're able to balance this while growing top line, and how you're thinking about marketing investment over FY27?

Speaker #1: Yeah, I think total investment in marketing spend still went up. But as a percentage of sales, it did come back a bit.

Glen Robinson: Yeah. Look, I think total investment in marketing spend still went up, but as a percentage of sales it did come back a bit. I think that's the beauty of our brand, is that we've been consistently spending over 5% of sales for near on 60 years. Next year it'll be our 60th year in the market, and we've got a very strong brand awareness across the Australian market. Therefore, we don't need to do as much heavy lifting to build awareness as what some other brands out there need to do. We can concentrate a bit more deeper on the consideration phase of purchasing rather than the awareness phase.

Speaker #1: I think that's the beauty of our brand, is that we've been consistently spending over 5% of sales for, you know, nearly 60 years.

Speaker #1: Next year will be our 60th year in the market . And we've got a very strong brand awareness across the Australian market . And therefore , we don't need to do as much heavy lifting to build awareness as what some other brands out there need to do , so we can concentrate a bit more deeper on the on the consideration phase of purchasing , rather than the awareness phase .

Speaker #1: And I think that's where we can get some particularly good value from our marketing to drive store traffic, which is what we were able to do in the second half.

Glen Robinson: I think that's where we can get some particularly good value from our marketing to drive store traffic, which is what we were able to do in the second half, despite not spending a huge amount on marketing. It's still a big investment for the business. We still absolutely believe in the benefits of marketing in driving sales. I don't think we need to. We've got to spend cautiously because costs across the business and costs across Australia are challenging to keep under control. Where we can save some and still achieve good sales growth, we should be looking at that.

Glen Robinson: I think that's where we can get some particularly good value from our marketing to drive store traffic, which is what we were able to do in the H2, despite not spending a huge amount on marketing. It's still a big investment for the business. We still absolutely believe in the benefits of marketing in driving sales. I don't think we need to. We've got to spend cautiously because costs across the business and costs across Australia are challenging to keep under control. Where we can save some and still achieve good sales growth, we should be looking at that.

Speaker #1: Despite not spending a huge amount on marketing , it's still a big investment for the business . We're still absolutely believe in the benefits of marketing and driving sales , but I don't think we need to , yeah , we've got to spend cautiously because costs across the business and costs across Australia are challenging to , you know , to keep under control .

Speaker #1: And where we can save some and still achieve good sales growth, we should be looking at that.

Speaker #4: That's excellent. Thanks, guys.

Forres Salekian: That's excellent. Thanks, guys.

Speaker #1: Cheers . Thanks , Boris

Glen Robinson: Cheers. Thanks, Forrest.

Speaker #3: The next question comes from Liu Ahmadi with Bell Potter Securities. Please go ahead.

Operator 2: The next question comes from Leo Armati with Bell Potter Securities. Please go ahead.

Operator: The next question comes from Leo Armati with Bell Potter Securities. Please go ahead.

Speaker #5: Yeah . Good morning Ian Glenn and David . Congrats on a great result . Look , just first from me on trade sales .

Leo Armati: Yeah. Good morning Ian, Glenn, and David. Congrats on a great result. Look, just first from me on trade sales, obviously now increasing towards that 50% target, around 43%. I am just wondering what the cadence is to sort of close that remaining 7% into 2028. Is it a similar growth that we have seen from 40% to 43% this year?

Leo Armati: Yeah. Good morning Ian, Glen, and David. Congrats on a great result. Look, just first from me on trade sales, obviously now increasing towards that 50% target, around 43%. I am just wondering what the cadence is to sort of close that remaining 7% into 2028. Is it a similar growth that we have seen from 40% to 43% this year?

Speaker #5: Obviously, we're now increasing towards that 50% target—currently around 43%. I'm just wondering what the cadence is to close that remaining 7% by 2028.

Speaker #5: Is it a similar growth to what we've seen, from 40% to 43% this year?

Speaker #6: I think that's what we've been consistently getting, is a similar growth over the recent years, and we've been able to achieve that.

Glen Robinson: I think that is what we have been consistently getting, is a similar growth over the recent years. We have been able to achieve that. We have got some leading stores and we have also got some stores that have really got some runway to make up. That is where we think we will continue to have a similar cadence in trade sales growth going forward.

David Speirs: I think that is what we have been consistently getting, is a similar growth over the recent years. We have been able to achieve that. We have got some leading stores and we have also got some stores that have really got some runway to make up. That is where we think we will continue to have a similar cadence in trade sales growth going forward.

Speaker #6: We've got some leading stores and we're also got some stores that are , you know , have really got some runway to to make up .

Speaker #6: And that's where we think we'll continue to have a similar cadence in trade sales growth going forward.

Speaker #5: Yeah , great . Thanks , David . And then just on gross margin , obviously , that's declining . Just given that trade mix , should we just expect , I suppose , going forward more margin dilution or does the sort of vertical , I guess , supply chain that you guys have sort of offset that as you scale a bit more ?

Leo Armati: Yeah, great. Thanks, David. Just on gross margin, obviously that is declining just given that trade mix. Should we just expect, I suppose, going forward, more margin dilution? Or does the vertical, I guess, supply chain that you guys have sort of offset that as you scale a bit more?

Speaker #1: Yeah , I think there's there's a lot of moving parts to the gross profit margin at the moment . I think , you know , as you continue to sell more and more cable and switches , that's going to put a bit more pressure on the gross profit margin .

Glen Robinson: Yeah. I think there is a lot of moving parts to the gross profit margin at the moment. I think as you continue to sell more and more cable and switches, that is going to put a bit more pressure on your gross profit margin. We have probably still got some USD currency improvements, or the AUD against the US improvements to be realized over the next 6 months or so that will help a little bit. But some of that will be also offset by rising costs coming out of our factories. As I said, there is a lot of moving parts. We will be doing what we can to try to manage the gross profit margin around where we probably finished this year.

Speaker #1: We've probably still got some U.S. dollar currency improvements, or the Aussie dollar against the U.S. improvements, to be realized over the next sort of six months or so.

Speaker #1: So that will help a little bit, but some of that will also be offset by rising costs coming out of our factories.

Speaker #1: So as I said , there's a lot of moving parts . We will be doing . You know , what we can to try to manage the gross profit margin around where we probably finished this year

Speaker #5: Yeah , great . Thanks , Glenn . And then just on that state contract , I know it's sort of at the end of the of the result , but I'm just wondering if you could sort of size that revenue contribution or margin profile from that contract , because you noted when you were speaking that it is quite a significant .

Leo Armati: Yeah, great. Thanks, Glenn. Just on that state contract, I know it is at the end of the result, but I am just wondering if you could size that revenue contribution or margin profile from that contract, because you noted when you were speaking that it is quite significant.

Leo Armati: Yeah, great. Thanks, Glen. Just on that state contract, I know it is at the end of the result, but I am just wondering if you could size that revenue contribution or margin profile from that contract, because you noted when you were speaking that it is quite significant.

Speaker #1: Yeah , we we won't go into the details for commercial reasons . Obviously , about margin and size of it , but , you know , we'll look forward to giving you an update once we get through the half results .

Glen Robinson: Yeah. We will not go into the details for commercial reasons, obviously, about margin and size of it. But we look forward to giving you an update once we get through the half results and hopefully be able to put a bit more color on that. We have only just started supplying into that contract, so to be really clear on the margins is a little bit challenging for us at the moment until we see how they play out. But we will definitely try to give some more information at the half result. But it is a contractual arrangement, so it is definitely not going to be anywhere near the margins that the group gets, but it will all be incremental sales and margins that the business has not had before.

Speaker #1: And hopefully be able to put a bit more color on that . We we've only just started supplying into that contract . So to be really clear on the margins , is , you know , a little bit challenging for us at the moment until we see how they play out .

Speaker #1: So, but we'll definitely try to give some more information at the half result.

Speaker #6: But it is a contractual arrangement, so it's definitely not going to be anywhere near the margins that the group gets. But it will all be incremental sales and margins that the business hasn't had before.

Speaker #5: Right . Thanks .

Leo Armati: Great. Thanks. Sorry.

Speaker #6: And it will be transformational for connected lighting solutions. It will make that business totally different to what it is today.

Glen Robinson: It will be transformational for Connected Light Solutions. It will make that business totally different to what it is today.

Speaker #5: Yeah . Great . Okay . No thank you guys . That's all from me .

Leo Armati: Yeah, great. Okay. No, thank you, guys. That is all from me.

Speaker #1: Thanks , Leo

Glen Robinson: Thanks, Leo.

Speaker #3: The next question comes from Sam Teeger with Citi. Please go ahead.

Operator 2: The next question comes from Sam Teeger with Citi. Please go ahead.

Operator: The next question comes from Sam Teeger with Citi. Please go ahead.

Speaker #7: Hi , Ian . Glenn . David . David , 23 years at one company is a great achievement . And all the best for the future .

Sam Teeger: Hi, Ian, Glenn, and David. David, 23 years at one company is a great achievement, and all the best for the future.

Sam Teeger: Hi, Ian, Glen, and David. David, 23 years at one company is a great achievement, and all the best for the future.

Speaker #6: Thank you . Sam .

Glen Robinson: Thank you, Sam.

Speaker #7: I'm just wondering, if trade reaches 50% of sales by 2028, should investors expect structurally lower margins than the business has generated historically?

Sam Teeger: I am just wondering, if trade reaches 50% of sales by 2028, should investors expect structurally lower margins than the business has generated historically?

Speaker #1: I think the vast majority of the trade sales are going through the store network. Sam, we would expect the store network to be more efficient in the way that we transfer.

Glen Robinson: I think because the vast majority of the trade sales are going through the store network, Sam, we would expect the store network to be more efficient in the way that we transfer sales into profitability across the network. When we first used to size up a potential opportunity of a store, we would look at it and go, "Oh, we might be able to get to AUD 1.2 million, AUD 1.4 million in sales for a new store." Now, obviously, having the trade base in there, it helps build the volume that is going through that business, which helps improve the returns out of that store a lot quicker, but also for the long term, it makes them a lot more profitable as well. That is the way we look at it.

Speaker #1: Sales into profitability across the network . You know , when we when we first used to sort of size up a potential opportunity of a store , you know , we'd sort of look at it and go , oh , yeah , we might be able to get to 1.2 , $1.4 million in sales for a new store .

Speaker #1: Now , obviously , having the trade base in there , it helps build the volume that's going through that business , which helps the improve the returns out of that store a lot quicker , but also for the long term .

Speaker #1: It makes them a lot more profitable as well . So that's the way we look at it . You know , all the additional GP dollars that flow through helped cover those fixed costs associated with that store , and therefore it should be a a big benefit to the profitability of each one of the stores that we operate .

Glen Robinson: All the additional GP dollars that flow through help cover those fixed costs associated with that store, therefore, it should be a big benefit to the profitability of each one of the stores that we operate.

Speaker #7: Okay, great. And can you talk about third quarter versus fourth quarter EBIT margins? Just given how strong those fourth quarter comps were.

Sam Teeger: Okay, great. Can you talk about Q3 versus Q4 EBIT margins, just given how strong those Q4 comps were?

Glen Robinson: We haven't gone into the details on that, Sam. You can imagine with comps at 7.1% driving the top line and holding up your margin and your costs are relatively fixed through the business, that obviously that plays out positively for us.

Speaker #1: We haven't gone into the details on that . Sam , but , you know , you can imagine with comps at 7.1% driving the top line and holding up your margin and your costs are relatively fixed through the business , that obviously that plays out positively for us .

Speaker #7: All right . Sure . And then for the past several years , beacon has been very successful growing its freight business , its online sales , commercial lighting , property .

Sam Teeger: All right, sure. For the past several years, Beacon has been very successful growing its trade business, its online sales, commercial lighting, property, yet group earnings have remained pretty consistent. What's the missing piece that needs to occur here before investors see a lot of these strategic successes translate into substantially higher EPS growth?

Speaker #7: Yet group earnings have remained pretty consistent. What's the missing piece that needs to occur here before investors see a lot of these strategic successes translate into sustainably higher EPS growth?

Speaker #1: Yeah , I think we've we've been in the backdrop that the retail discretionary spend has been relatively soft . Sam . So , you know , we've been supplementing overall group sales with trade growth , but that's been dragged back by the retail sales .

Glen Robinson: Yeah. I think we've been in the backdrop that the retail discretionary spend has been relatively soft, Sam. So we've been supplementing overall group sales with trade growth, but that's been dragged back by the retail sales. For us to be able to get both going through, which is what we've started to see more of in Q4, that's where I think you start to see the benefit of the strategy, and that will hopefully play out throughout the FY 2027 year, where you get retail either being flat or slightly positive and you continue trade growth, driving additional GP dollars through these relatively fixed costs. The last few years have been quite significant from an inflation point of view.

Speaker #1: And, you know, for us to be able to get both going through, which is what we started to see more of in the fourth quarter.

Speaker #1: That's where I think you start to see the benefit of the strategy and play in that . You know , will hopefully play out throughout the FY 27 year where you get retail either being flat or slightly positive , and you continue to trade growth , driving additional GP dollars through these relatively fixed costs .

Speaker #1: And , you know , the last few years have been , you know , quite significant from a inflation point of view . So if we can start to get some more reasonable inflation sort of indicators coming through , driving the retail sales to a positive or flat or positive position , plus trade growth , driving GP , then it should be a good outcome for the profitability of the group .

Glen Robinson: If we can start to get some more reasonable inflation indicators coming through, driving the retail sales to a flat or positive position, plus trade growth driving GP, then it should be a good outcome for the profitability of the group.

Speaker #7: Excellent . Thank you .

Sam Teeger: Excellent. Thank you.

Speaker #1: Thanks , Sam

Glen Robinson: Thanks, Sam.

Speaker #3: The next question comes from Benjamin Gilbert with Jarden. Please go ahead.

Operator 2: The next question comes from Ben Gilbert with Jarden. Please go ahead.

Operator: The next question comes from Ben Gilbert with Jarden. Please go ahead.

Speaker #8: Morning, team. Just the first one, just on these connected lighting solutions and the opportunity there. Like, appreciate we're not going to go into the details around the contract, but is this sort of the—you sort of talked as a bit of a game changer for that part of the business?

Ben Gilbert: Morning, team. Just the first one, just on this Connected Light Solutions and the opportunity there. I appreciate we are not going to go into the details around the contract. But you talked as a bit of a game changer for that part of the business. One, is this going to fall into Trade? And secondly, how many of these sorts of opportunities are there now you can lean into and go after? I am just trying to understand

Benjamin Gilbert: Morning, team. Just the first one, just on this Connected Light Solutions and the opportunity there. I appreciate we are not going to go into the details around the contract. But you talked as a bit of a game changer for that part of the business. One, is this going to fall into Trade? And secondly, how many of these sorts of opportunities are there now you can lean into and go after? I am just trying to understand the potential materiality of this part of the business.

Speaker #8: One is just going to fall into trade. And secondly, how many of these sorts of opportunities are there now that you can lean into and go after?

Speaker #8: Like, I'm just trying to understand the sort of potential materiality of this part of the business.

Glen Robinson: Yeah

Ben Gilbert: the potential materiality of this part of the business.

Speaker #1: Yeah. So the CLS business doesn't fall into Trade. We have that as a separate business, so it's not part of that.

Glen Robinson: Well, the CLS business does not fall into Trade. We have that as a separate business, so it is not part of that 43.3% of sales.

Speaker #1: 43.3% of sales. But it does obviously fall into all the other GP lines and sales lines and all the rest. It's a significant contract in that it's replacing a lot of street lighting across the state.

Ben Gilbert: Yeah.

Benjamin Gilbert: Yeah.

Glen Robinson: But it does obviously fall into all the other GP lines and sales lines and all the rest. It is a significant contract in that it is replacing a lot of street lighting State. So you can imagine that is obviously quite a reasonable size tender and it goes for 5 or 6 years, so it is extended into a number of years. The benefit of picking up one of these is that other states see you as a player in that area. And there are really probably 3 or 4 major streetlight providers across Australia, and we have typically been the third or fourth placed from those providers. And for us to be able to get a major contract like this really puts you up in that greater consideration for when others are looking to the other states are looking to upgrade their streetlights as well. So it is a great one to get.

Speaker #1: So you can imagine, that's obviously quite a reasonably sized tender, and it goes for, you know, five or six years. So it's extended into a number of years.

Speaker #1: The benefit of picking up one of these is that other states see you as a player in that area. And there are really probably three or four major street light providers across Australia.

Speaker #1: And we've typically been the third or fourth placed from those providers . And for us to be able to get a major contract like this really puts you up in those in that greater consideration for when others are looking to other states looking to upgrade their street lights as well .

Speaker #1: So it's a great one to get there . Not easy to get , and we've been working at these for , you know , over five years .

Glen Robinson: So it is a great one to get.

Glen Robinson: They are not easy to get, and we have been working at these for over 5 years. But there are still a lot of streetlights that need to be updated across Australia into LED technology. So we hope by having this one, it starts to build a bit more confidence across other councils and DNSPs to consider the CLS business and particularly the GE brand, which is what we represent for the street lighting area, as an alternative to others that are out there.

Speaker #1: But there are still a lot of street lights that need to be updated across Australia to LED technology. So we hope by having this one, it starts to build a bit more confidence across other councils.

Speaker #1: And NSPs to consider the CLS business, and particularly the GE brand, which is what we represent for the street lighting area.

Speaker #1: As an alternative to others that are out there.

Speaker #8: So it's not a council , it's not a countless specific council . It's a full state . That's right . Contract . Yeah .

Ben Gilbert: So it is not a specific council, it is a full state.

Benjamin Gilbert: So it is not a specific council, it is a full state.

Glen Robinson: That is right.

Ben Gilbert: contract.

Benjamin Gilbert: Contract.

Glen Robinson: Yeah.

Speaker #8: And so does this. Then open up. I'm just going to go off and change things like defence or other private side of things, that there are larger scale contracts. Or are you playing in that space?

Ben Gilbert: Does this then open up, I do not know, I am just going to go off substantially, things like defense or other private side of things that there are larger scale contracts, or are you playing in that space but

Benjamin Gilbert: Does this then open up, I do not know, I am just going to go off substantially, things like defense or other private side of things that there are larger scale contracts, or are you playing in that space but

Speaker #8: But

Speaker #2: Look

Glen Robinson: Well, anywhere where there is these particular type of lights. So we call them VCAT and PCAT lights, and also large area lighting. We can definitely participate in any of those tenders.

Speaker #1: ...anywhere where there's these particular types of lights. So, we call them VCAT and CAT lights, and also large area lighting.

Speaker #1: We can definitely participate in any of those tenders.

Speaker #8: Thanks. I know there's been a few questions on the top of the cracker number you've had for Q4 and continued into Q1, and Bunnings have sort of talked up the start to '27 today as well.

Ben Gilbert: Thanks. I know there has been a few questions on the comp, there is obviously a cracker number you have had for Q4 and continued into Q1. Bunnings have talked up the start to 2027 today as well. I am just trying to understand within that number, how trade is obviously performing very strongly and you are taking share, but how much also is price and how much is NPD? Because it seems, I do not want to put words in your mouth, but it seems like you have got a bit of confidence around being able to maintain some decent momentum through 2027, notwithstanding all the negativity we are hearing out there on housing, et cetera, post the budget.

Benjamin Gilbert: Thanks. I know there has been a few questions on the comp, there is obviously a cracker number you have had for Q4 and continued into Q1. Bunnings have talked up the start to 2027 today as well. I am just trying to understand within that number, how trade is obviously performing very strongly and you are taking share, but how much also is price and how much is NPD? Because it seems, I do not want to put words in your mouth, but it seems like you have got a bit of confidence around being able to maintain some decent momentum through 2027, notwithstanding all the negativity we are hearing out there on housing, et cetera, post the budget.

Speaker #8: I'm just trying to understand within that number how, like, trades are obviously performing very strongly, and you're taking share. But how much also is price, and how much is NPD?

Speaker #8: Because it seems I don't want to put words in your mouth , but it seems like you've got a bit of confidence from being able to maintain some decent momentum through 27 , notwithstanding all the negativity we're hearing out there in housing , etc.

Speaker #8: post the budget .

Speaker #1: Yeah , I think the confidence that you might be hearing is that , you know , coming out of the conferences that we've just had across our stores , the alignment and the execution is better than I've seen for a long time .

Glen Robinson: Yeah. I think the confidence that you might be hearing is that, coming out of the conferences that we have just had across our stores, the alignment and the execution is better than I have seen for a long time. Our Net Promoter Score that we just had done in July was the highest I have ever seen. So the engagement is really high at Beacon Lighting. Our Google ranking is, so our Google reviews of our stores is at 4.9 stars out of five. There is a lot of indicators to suggest that the team are really on board and executing well, and that is really encouraging. So it makes things a lot easier to execute on when we come up with new initiatives around trade or retail promotions. The team are fully backing it.

Speaker #1: Our net promoter score that we just had done in July was the highest I've ever seen . So the engagement is really high at beacon , our Google ranking is so our Google reviews of our stores is at 4.9 stars out of five .

Speaker #1: You know, there are a lot of indicators to suggest that the team are really on board and executing well, and that's really encouraging.

Speaker #1: So it makes things a lot easier to execute on when we come up with new initiatives around trade or retail promotions. The team are fully backing it.

Speaker #1: So I think that puts us in a more confident position than what we have been in the past. Just that alignment, and then you back that up again with some stronger trade sales.

Glen Robinson: I think that puts us in a more confident position than what we have been in the past, just that alignment. Then you back that up against some stronger trade sales. The new product definitely always helps. We obviously had a lot of new product come to market throughout the year, and that will continue on in the year ahead.

Speaker #1: The new product definitely always helps. And we have, we obviously had a lot of new products come to market throughout the year.

Speaker #1: And that will continue on in the year ahead . But also , you know , we've got a real focus around category expansion in 3 or 4 very specific categories , which the store teams are very aligned on with in those 3 or 4 categories .

Ben Gilbert: Okay

Glen Robinson: We've got a real focus around category expansion in three or four very specific categories, which the store teams are very aligned on. In those three or four categories, we've got a really low market share, and we've explained that during our conferences and where the opportunity is to grow in that market share. If we keep a focus on category expansion, growing market share in those three or four categories, along with promotional execution across the business and offering great value to our customers, then that's our main focus and I think that will put us in a good position.

Speaker #1: We've got a really low market share, and we've explained that during our conferences, and where the opportunity is to grow in that market share.

Speaker #1: And , you know , if we keep a focus on category expansion , growing market share in those 3 or 4 categories , along with promotional execution across the business and offering great value to our customers , then , you know , that's what that's our main focus .

Speaker #1: And I think that will put us in a good position.

Speaker #8: So, the replacement NPD and the new category expansion across these three is going to be the bigger driver. And, I suppose, sort of the new home side of things.

Ben Gilbert: The replacement NPD and the new category expansion across these three is going to be the bigger driver. I suppose sort of the new home side of things, if I've seen mortgage applications down 20-odd percent or whatever it is, it's obviously it's a focus and a concern, but you still see an opportunity to grow notwithstanding some pretty significant headwinds in housing near term.

Benjamin Gilbert: The replacement NPD and the new category expansion across these three is going to be the bigger driver. I suppose sort of the new home side of things, if I've seen mortgage applications down 20-odd percent or whatever it is, it's obviously it's a focus and a concern, but you still see an opportunity to grow notwithstanding some pretty significant headwinds in housing near term.

Speaker #8: We've seen mortgage applications down 20%, or whatever it is. Obviously, it's a focus and a concern, but you still see an opportunity to grow, notwithstanding some pretty significant headwinds in housing in the near term.

Speaker #1: Yeah . You're you're absolutely right . There are definitely some headwinds there . I think , though , for people that , you know , a lot of our customers are second home owners and beyond that , and they're looking to invest in their home , their primary place of residence .

Glen Robinson: Yeah, you're absolutely right. There are definitely some headwinds there. I think though for people that a lot of our customers are second homeowners and beyond that, and they're looking to invest in their home, their primary place of residence, and that's not a bad investment at the moment considering other investments out there. We're making sure that when we're introducing new products, that they are exciting, but they also represent good value talking to those customers that want to invest in their home.

Speaker #1: And that's , you know , not a bad investment at the moment , considering other investments out there . So yeah , we're making sure that when we're introducing new products , that they are exciting , but they also represent good value talking to those customers that want to invest in their home .

Speaker #8: Fantastic. Appreciate it. Thanks.

Ben Gilbert: Fantastic. Appreciate it. Thanks.

Benjamin Gilbert: Fantastic. Appreciate it. Thanks.

Speaker #1: Thanks , Ben

Glen Robinson: Thanks, Ben.

Operator 2: The next question comes from Emily Porter with Morgans. Please go ahead.

Operator: The next question comes from Emily Porter with Morgans. Please go ahead.

Speaker #3: The next question comes from Emily Porter with Morgans. Please go ahead.

Speaker #9: Hey, guys, and congratulations on the result. I think you guys – yeah, you pointed out, and it's probably been the same story over the last little while.

Emily Porter: Hey, guys, and congratulations on the result. I think you guys pointed out, and it has probably been the same story over the last little while, just the strength in Queensland and WA, and I think you mentioned Tasmania as well. I guess, just interested in how you are seeing New South Wales and Victoria. Are there any green shoots coming through?

Speaker #9: Just the strength in Queensland and WA, and I think you mentioned Tasmania as well. I guess I'm just interested in how you're seeing New South Wales and Victoria.

Speaker #9: Like, are there any sort of green shoots coming through?

Speaker #1: Yeah , definitely . I think what we're you what we're seeing in Victoria while the macro may not seem all that different when you you're out there and you're walking the streets , I think our execution is a lot better .

Glen Robinson: Yeah, definitely. I think what we are seeing in Victoria, while the macro may not seem all that different, when you are out there and you are walking the streets, I think our execution is a lot better, and I think that is indicated through a few numbers that we have got in the business. Victoria is our strongest trade business out of all the other states. I think our stores have had to go to trade because their retail discretionary spend has been soft for a number of years. So they are really focusing on what they can control, and that is focusing in on their trade sales better. The momentum in that continues to build. So we are not seeing Victoria and New South Wales being where they were even, say six or nine months ago, 12 months ago. So we are definitely seeing some improvement or some good improvement across those states as well.

Speaker #1: And I think that's indicated through a few numbers that we've got in the business. Victoria is our strongest trade business out of all the other states.

Speaker #1: I think they have. Our stores have had to go to trade because their retail discretionary spend has been soft for a number of years.

Speaker #1: So they've really focused in on what they can control . And that's focusing on in on their trade sales better . And the momentum in that continues to build .

Speaker #1: So we're not seeing Victoria and New South Wales being where they were, even say, six or nine months ago, or 12 months ago.

Speaker #1: So, definitely seen some improvement, or some good improvement, across those states as well.

Glen Robinson: So we are definitely seeing some improvement or some good improvement across those states as well.

Speaker #9: Okay . That's great . And maybe just on cost , like pretty well managed during the year . And I think , yeah , you talked a bit about the marketing spend , maybe just how you sort of thinking about cost inflation into next year .

Emily Porter: Okay, that is great. Maybe just on cost, pretty well managed during the year, and I think you talked a bit about the marketing spend. Maybe just how you are thinking about cost inflation into next year, how you expect it to grow and strategies to manage it.

Speaker #9: Yeah. How you kind of expect it to grow, and I guess strategies to manage it.

Speaker #1: Yeah. Well, we've done a number of restructuring processes throughout this year, which will set us up well for the year ahead.

Glen Robinson: Well, we have done a number of restructuring processes throughout this year, which will set us up well for the year ahead. But cost is something you need to always keep a close eye on. I think freight will continue to be a major item for the business. Consumers want their product quick, and when you are in that area, freight does cost a lot of money across the group. So we will have a big focus across all the different expense lines. But yeah, we have got to keep things as tight as we can. Hopefully when we are driving stronger gross profit dollars and stronger sales, the expenses will start to get a little more leverage out of the expenses.

Speaker #1: But it costs something you need to always keep a close eye on . I think freight will continue to be a . Major item for the business Consumers want their product quick and when you you're in that area , freight does cost a lot of money across the group .

Speaker #1: So we'll have a big focus across all the different expense lines . But yeah , we've got to , you know , keep things as tight as we can , you know , hopefully when we're driving stronger , gross profit dollars and stronger sales , the expenses will start to get a little bit more leverage out of the expenses .

Speaker #6: We've still got some challenges with government , government charges , rates and taxes continue to be a challenge . You know , worker's comp continues to be a challenge .

Ian Robinson: We have still got some challenges with government charges. Rates and taxes continue to be a challenge. Workers' comp continues to be a challenge. But we have had some success in appealing some of our, for example, land tax assessments and rolling them back. So we will continue to focus on those in detail and seeing what we can do to improve the situation.

Speaker #6: But , you know , we have had some success in in appealing some of our for example , land tax assessments and , and , you know , and rolling them back .

Speaker #6: So we'll continue to focus on those in detail, and see what we can do to improve the situation.

Emily Porter: That's great, guys. Thanks. That's all from me.

Speaker #9: That's great, guys. Thanks. That's all from me.

Speaker #1: Thanks , Emily

Glen Robinson: Thanks, Emily.

Speaker #3: The next question comes from James Casey with Ord Minnett. Please go ahead.

Operator 2: The next question comes from James Casey with Ord Minnett. Please go ahead.

Operator: The next question comes from James Casey with Ord Minnett. Please go ahead.

Speaker #10: Hi . Good morning gentlemen I said a question with regards to kind of the commercial segment or the volume builders just what you're seeing in terms of forward orders .

James Casey: Good morning, gentlemen. I just had a question with regards to the commercial segment or the volume builders, just what you're seeing in terms of forward orders there.

Speaker #10: There .

Speaker #1: Yeah . So in the commercial volume , residential area , our pipeline is still very strong . In fact , yeah . We've finished out the year with a very good pipeline of sales .

Glen Robinson: Yeah. In the commercial volume residential area, our pipeline is still very strong. In fact, we finished out the year with a very good pipeline of sales. We are hearing from some of our volume residential builders that sales have been a little bit more challenging since the budget announcement. How long that pipeline stays up at the higher levels that it is at the moment is still a little bit to be seen as we get through a few more months. But right at the moment, the pipeline's healthy.

Speaker #1: We are hearing from some of our volume residential builders that sales have been a little bit more challenging since the budget announcement. So, how long that pipeline stays up at the high levels that it is at the moment is still a little bit to be seen as we get through a few more months.

Speaker #1: But right at the moment, the pipeline is healthy.

Speaker #10: Okay . And a good pipeline of new stores . What's the what's the timing on new stores ? How many of those will land in the first half ?

James Casey: Okay. A good pipeline of new stores. What's the timing on those new stores? How many of those will land in the H1?

Speaker #1: Yeah. So we're fortunate enough to pick up a couple of the Barbeques Galore stores, so out of their unfortunate circumstances.

Glen Robinson: Yeah. We were fortunate enough to pick up a couple of the Barbeques Galore stores. So out of their unfortunate circumstances, we've been able to grab a couple there. So that's Rockingham and Everton Park, and they will be turned over pretty quickly for us because they're all set to go. Then we just opened Caloundra up in Queensland. So you'll have three in the H1, and the other couple will fall into the next half.

Speaker #1: We've been able to grab a couple there. So that's Rockingham and Everton Park. And they will be turned over pretty quickly for us because they're all set to go.

Speaker #1: And we just opened Caloundra up in Queensland. So you'll have three in the first half, and the other couple will fall into the next half.

Speaker #10: Okay, thanks very much.

James Casey: Okay. Thanks very much.

Speaker #1: Thanks , James

Glen Robinson: Thanks, James.

Speaker #3: As a reminder, if you would like to ask a question, please press star then one to join the question queue. The next question comes from Sam Tiger with Citi.

Operator 2: As a reminder, if you would like to ask a question, please press star then one to join the question queue. The next question comes from Sam Teeger with Citi. Please go ahead.

Operator: As a reminder, if you would like to ask a question, please press star then one to join the question queue. The next question comes from Sam Teeger with Citi. Please go ahead.

Speaker #3: Please go ahead .

Speaker #7: Hi guys. Just a follow-up on the property. If the property assets were independently valued today, would their market value be materially different from their carrying value?

Sam Teeger: Hi, guys. Just to follow up on the property. If the property assets were independently valued today, would their market value be different materially to their carrying value?

Speaker #6: Yeah . Sam . We have a cycle of of reviewing about one third of them every every year . Or alternatively , where there's a significant event , for example , such as the opening of the Auburn , the Auburn property .

Ian Robinson: Well, Sam, we have a cycle of revaluing about one-third of them every year, or alternatively, where there is a significant event, for example, such as the opening of the Auburn property. So we would expect they would generally increase. Obviously, the rents increase each year. Yes, but that would be the.

Speaker #6: So we would expect they would generally increase , obviously , the rents increase each year . Yes . But that would be the .

Speaker #1: The current valuations are relatively—yeah.

Glen Robinson: But the current valuations are relatively.

Glen Robinson: But the current valuations are relatively representative.

Ian Robinson: Yeah

Speaker #6: Representative certainly had three revalued in this cycle of three of three of nine. Nine, three of nine.

Glen Robinson: representative.

Ian Robinson: Certainly had three revalued in this cycle, three of nine.

Glen Robinson: Nine.

Ian Robinson: Yeah, three of nine.

Speaker #7: Okay . And just wondering , given the strong growth we're seeing in property earnings , can you share what are your long term objectives around retail property ownership .

Sam Teeger: Okay. Just wondering, given the strong growth we are seeing in property earnings, can you share what are your long-term objectives around retail property ownership?

Speaker #1: Yeah, I think, you know, where we've got sites for Beacon Lighting and we can own those sites, I think it's a good position to be able to put the business in. We know that we generally don't move our stores very often.

Glen Robinson: Yeah, I think where we've got sites for Beacon Lighting and we can own those sites, I think it's a good position to be able to put the business in. We know that we generally don't move our stores very often. So rather than paying a landlord for the next 20 or 30 years, we can be paying off that asset and enjoying that for the business and the group. So the returns out of those nine sites will continue to improve as we get them optimized. I think it's a good strategy to have whilst also being mindful that we won't be throwing huge amounts of money behind it.

Speaker #1: So, you know, rather than paying a landlord for the next 20 or 30 years, we can be paying off that asset.

Speaker #1: And , and enjoying that for the business and the group . So , you know , the returns out of those nine sites will continue to improve as we get them optimised .

Speaker #1: And I think it's a good strategy to have, whilst also being mindful that we won't be throwing huge amounts of money behind it.

Speaker #2: Yeah , we like the stability of being in a site for a while and sometimes the the landlord will take advantage of you if they know that you're a long term tenant and they won't negotiate quite as strongly as you would like them to be .

Ian Robinson: Yeah. We like the stability of being in a site for a while, and sometimes the landlord will take advantage of you if they know that you're a long-term tenant, and they won't negotiate quite as strongly as you would like them to be. Then the other part, Sam, is a lot of the very successful retailers have a property side. It's not the dominant side, of course, but it is part of the war chest you need to have.

Speaker #2: And then the other part , Sam , is , you know , a lot of the very successful retailers have a property side .

Speaker #2: It's not the dominant side , of course , but it is is part of the the war chest . You need to have .

Speaker #7: Okay . Thank you .

Sam Teeger: Okay. Thank you.

Speaker #11: Thanks

Ian Robinson: Thanks.

Speaker #3: There are no further questions at this time. I'll hand the call back to Mr. Robinson for closing remarks.

Operator 2: There are no further questions at this time, and I'll hand the call back to Mr. Robinson for closing remarks.

Operator: There are no further questions at this time, and I'll hand the call back to Mr. Robinson for closing remarks.

Speaker #2: Thank you . Ladies and gentlemen , for your interest in beacon lighting . And we look forward to the next half . And talking to you again .

Ian Robinson: Thank you, ladies and gentlemen, for your interest in Beacon Lighting, and we look forward to the next half and talking to you again. Bye.

Speaker #2: Bye .

Speaker #1: Thank you

Glen Robinson: Thank you.

Operator 2: That does conclude our conference for today. Thank you for participating. You may now disconnect.

Operator: That does conclude our conference for today. Thank you for participating. You may now disconnect.