Half Year 2026 Facilities By ADF PLC Earnings Call

September 17, 2026

Speaker #2: Good morning, and welcome to the Facilities By ADF PLC half-year results and presentation. Throughout the recorded presentation, investors will be in listen-only mode.

Operator: Good morning, and welcome to the Facilities by ADF PLC half year results investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged, and they can be submitted at any time using the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. Before we begin, I would like to submit the following poll, and I would now like to hand you over to CEO Nicola Pearcey. Good morning to you.

Speaker #2: Questions are encouraged, and they can be submitted at any time using the Q&A tab situated in the right-hand corner of your screen. Simply type in your questions and press send.

Speaker #2: Before we begin, I would like to submit the following poll, and I would now like to hand you over to CEO Nicola Pearcey. Good morning to you.

Speaker #3: Good morning, everyone, and thank you for joining us as we share our first half 2026 results and outlook for Facilities by ADF. I'll start by sharing the highlights for the half.

Nicola Pearcey: Good morning, everyone, and thank you for joining us as we share our H1 2026 results and outlook for Facilities by ADF. I will start by sharing the highlights for the half. Will Worsdell, our CFO, will then take you through the financials in detail, and I will then close with our strategic priorities and outlook. Moving to the next slide, please. I am really proud of the fact that Facilities by ADF continues to demonstrate best-in-class physical production facilities and services across the film and television industry, including expert on-location hire from Location One and portable roadway solutions from Autotrak across the UK.

Speaker #3: We'll work through our CFO, who will then take you through the financials in detail, and I'll then close with our strategic priorities and outlook. Moving to the next slide, please.

Speaker #3: I'm really proud of the fact that Facilities by ADF continues to demonstrate best-in-class physical production facilities and services across the film and television industry.

Speaker #3: Including expert on-location hire from Location One, and portable roadway solutions from AutoTrack across the UK. We are trusted by global content studios, production companies, and independent producers alike.

Nicola Pearcey: We are trusted by global content studios, production companies, and independent producers alike, having delivered services for major productions across the half, including Slow Horses for Apple, The Gentlemen for Netflix, Rivals for Disney+, and the upcoming Clayface feature film for DC Studios, in addition to many more independent productions. That trust extends right across the industry, including household names Sky, Netflix, and BBC, through to Disney, Apple, Amazon, MGM, Channel 4, Paramount+, Warner Bros., A24, Universal, and many, many more. At ADF, we operate a modern premium fleet of around 730 vehicles, makeup, costume, and artist trailers, production offices, and technical vehicles, with regional expertise spanning the whole of the UK. We think of ourselves as a studio on wheels, providing the services necessary to support quality productions wherever they need to be.

Speaker #3: Having delivered services for major productions across the half, including Slow Horses for Apple, The Gentlemen for Netflix, Rivals for Disney+, and the upcoming Clayface feature film for DC Studios, in addition to many more independent productions.

Speaker #3: That trust extends right across the industry, including household names—Sky, Netflix, and BBC—through to Disney, Apple, Amazon MGM, Channel 5, F4, Paramount Plus, Warner Brothers, A24, Universal, and many, many more.

Speaker #3: At ADF, we operate a modern, premium fleet of around 730 vehicles, made up of costume and artist trailers, production offices, and technical vehicles.

Speaker #3: With regional expertise spanning the whole of the UK, we think of ourselves as a studio on wheels, providing the services necessary to support quality production wherever they need to be.

Speaker #3: Our Net Promoter Score of 89 reinforces our customer-facing operational excellence—genuinely world-class—and it's that level of satisfaction that drives repeat business across our client portfolio.

Nicola Pearcey: Our Net Promoter Score of 89 reinforces our customer-facing operational excellence, genuinely world-class. It's that level of satisfaction that drives the repeat business across our client portfolio. It reflects the scale, quality, and compliance we bring to every production we work on. Our people are at the core of everything we do, and we're extremely lucky to have such a dedicated and passionate team across the whole of the business. Our ambition remains to be a one-stop shop across our family of companies, Facilities by ADF, Location One, and Autotrak, simplifying the production process and creating efficiencies for our clients. That gives us a strong basis for growth. We've built a modern premium fleet to meet our strategic needs, and our focus now is on capitalizing on that service excellence and industry expertise across the group.

Speaker #3: It reflects the scale, quality, and compliance we bring to every production we work on. Our people are at the core of everything we do, and we're extremely lucky to have such a dedicated and passionate team across the whole of the business.

Speaker #3: Our ambition remains to be a one-stop shop across our family of companies—ADF, Location One, and AutoTrack—simplifying the production process and creating efficiencies for our clients.

Speaker #3: That gives us a strong basis for growth. We've built a modern, premium fleet to meet our strategic needs, and our focus now is on capitalizing on that service excellence and industry expertise across the group.

Speaker #3: Increasing utilization to improve ROC and free cash flow, and continuing to build the unique integrated offering that positions us so well for the next phase of growth.

Nicola Pearcey: Increasing utilization to improve ROCE and free cash flow, and continuing to build the unique integrated offering that positions us so well for the next phase of growth. With that context set, let me turn to how we performed across the half. Next slide. It is key to acknowledge the market backdrop for the H1 of the year because it's important context for the numbers that follow. UK film and high-end TV production spend fell 15.6% year on year over the period, according to the latest British Film Institute data, which was published in August. Against that backdrop, our revenue came in at GBP 16.6 million, down 4.6%. While revenue is lower year on year, we have been resilient against the wider market contraction. Facilities by ADF itself was down 13.4%, which reflects its concentration in HETV.

Speaker #3: With that context set, let me turn to how we performed across the half. Next slide. It is key to acknowledge the market backdrop for the first half of the year, because it's important context for the numbers that follow.

Speaker #3: UK film and high-end TV production spend fell 15.6% year-on-year over the period, according to the latest BFI data, which was published in August. Against that backdrop, our revenue came in at £16.6 million, down 4.6%.

Speaker #3: So while revenue is lower year-on-year, we have been resilient against the wider market contraction. ADF itself was down 13.4%, which reflects its concentration in high-end TV.

Speaker #3: That part of the market felt this contraction most acutely, with a decline of 20.6%—again, according to BFI. What I'm genuinely encouraged by is that Location One and AutoTrack both grew through the half, up 6.7% and 13.7%, respectively.

Nicola Pearcey: That part of the market felt this contraction most acutely with a decline of 20.6%, again, according to British Film Institute. What I'm genuinely encouraged by is that Location One and Autotrak both grew through the half, up 6.7% and 13.7% respectively. That's real validation of the extended breadth of clients we've been building across the group. Turning to operational and strategic progress, we've identified our group strategic priorities and have already begun implementing them. We've enhanced our group sales team, which is already driving cross-selling, and we're continuously sharpening our commercial discipline. We've introduced our deluxe trailer proposition to meet the needs of our expanding client base. We reinvigorated our marketing strategy to extend our impact in the market, including having reshaped delivering one cohesive solution to market where it can really positively impact our clients. We've activated sponsorships and social media campaigns amongst many other key activations.

Speaker #3: That's real validation of the extended breadth of clients we've been building across the group. Turning to operational and strategic progress, we've identified our group strategic priorities and have already begun implementing them.

Speaker #3: We've enhanced our group sales team, which has already driven cross-selling, and we're continuously sharpening our commercial discipline. We've introduced our deluxe trailer proposition to meet the needs of our expanding client base.

Nicola Pearcey: We've introduced our deluxe trailer proposition to meet the needs of our expanding client base. We reinvigorated our marketing strategy to extend our impact in the market, including having reshaped delivering one cohesive solution to market where it can really positively impact our clients. We've activated sponsorships and social media campaigns amongst many other key activations.

Speaker #3: And we've reinvigorated our marketing strategy to extend our impact in the market, including having reshaped to deliver one cohesive solution to market where it can really positively impact our clients.

Speaker #3: We've activated sponsorships and social media campaigns, among many other key activations. It's a delight to see that our net promoter score held at 89.

Nicola Pearcey: It's a delight to see that our Net Promoter Score held at 89. Well, actually, in fact, up 2 points year on year. In a half where the market contracted around us, holding and improving that score really reiterates that customer excellence remains a genuine differentiator for our business. Looking ahead, we've already commenced further group efficiencies in H2 FY26, and we expect these to deliver material cost savings in the medium term. We've mapped out a medium-term strategic plan for the business, and encouragingly, our FY27 order book and pipeline is already up 4.5% year on year. That's early evidence that our reinvigorated commercial disciplines, coupled with improving open pipeline are the backdrop. I'll hand over to Will to take you through the financial detail.

Speaker #3: Well, actually, in fact, up 2 points year-on-year. In a half where the market contracted around us, holding and improving that score really reiterates that customer excellence remains a genuine differentiator for our business.

Speaker #3: Looking ahead, we've already commenced further group efficiencies in H2, F4/26, and we expect these to deliver material cost savings in the medium term.

Speaker #3: We've mapped out a medium-term strategic plan for the business, and encouragingly, our FY27 order book and pipeline is already up 4.5% year-on-year. That's early evidence that our reinvigorated commercial discipline, coupled with improving open pipeline, is the backdrop.

Speaker #3: I'll hand over to Will to take you through the financial details.

Speaker #2: Okay, thank you, Nick. Good morning, everybody. So, turning firstly to the key financial metrics for the half. Starting with group revenue, this was £16.6 million, down 4.6% against £17.4 million in 2025.

William Worsdell: Okay. Thank you, Nic. Good morning, everybody. Turning firstly to the key financial metrics for the half. Starting with group revenue, this was GBP 16.6 million, down 4.6% against GBP 17.4 million in 2025. As you heard earlier, that compares to a UK film and HETV production market that contracted by 15.6% over the same period. Adjusted EBITDA was GBP 1.7 million against GBP 2.2 million a year ago. That decline reflects operating deleverage, and by that I mean lower revenue moving through a largely fixed cost base. That is an area that we are addressing directly through a cost efficiency program that is expected to deliver material cost savings in 2027. Loss before tax was GBP 3.3 million compared with GBP 2 million in H125. I will bridge that movement in more detail on the next slide, but the two main drivers are the reduction in EBITDA previously mentioned and a revised depreciation policy.

Will Worsdell: Okay. Thank you, Nic. Good morning, everybody. Turning firstly to the key financial metrics for the half. Starting with group revenue, this was GBP 16.6 million, down 4.6% against GBP 17.4 million in 2025. As you heard earlier, that compares to a UK film and HETV production market that contracted by 15.6% over the same period. Adjusted EBITDA was GBP 1.7 million against GBP 2.2 million a year ago. That decline reflects operating deleverage, and by that I mean lower revenue moving through a largely fixed cost base.

Speaker #2: As you heard earlier, that compares to a UK film and HETV production market that contracted by 15.6% over the same period. Adjusted EBITDA was £1.7 million, against £2.2 million a year ago.

Speaker #2: That decline reflects operating deleverage. By that, I mean lower revenue moving through a largely fixed cost base. That's an area we're addressing directly through a cost efficiency program that is expected to deliver material cost savings in 2027.

Will Worsdell: That is an area that we are addressing directly through a cost efficiency program that is expected to deliver material cost savings in 2027. Loss before tax was GBP 3.3 million compared with GBP 2 million in H125. I will bridge that movement in more detail on the next slide, but the two main drivers are the reduction in EBITDA previously mentioned and a revised depreciation policy.

Speaker #2: Last profit before tax was £3.3 million, compared with £2 million in H1 2025. I'll bridge that movement in more detail on the next slide, but the two main drivers are the reduction in EBITDA previously mentioned and a revised depreciation policy.

Speaker #2: Net debt was £14.5 million, up from £13.2 million a year earlier. Again, I'll take you through the components shortly. Leverage reduced to 1.7 times, down from 2 times in 2025.

William Worsdell: Net debt was GBP 14.5 million, up from GBP 13.2 million a year earlier. Again, I will take you through the components shortly. Leverage reduced to 1.7x, down from 2x in 2025. Operating cash flow was GBP 1.3 million, lower than last year, but in line with lower profitability. Utilization, excluding vehicles off the road, was 61%, up from 51% in 2025. For total assets was 38%, down from 42% in H125. The vehicle off-road program, and by this I mean taking underutilized vehicles off the road and placing them on SORN, commenced in May 2025 and is generating savings in the region of GBP 400,000 a year. The ex-vehicle off-road utilization metric is a key KPI for us, as it tells us what utilization would be if the fleet was right sized.

Will Worsdell: Net debt was GBP 14.5 million, up from GBP 13.2 million a year earlier. Again, I will take you through the components shortly. Leverage reduced to 1.7x, down from 2x in 2025. Operating cash flow was GBP 1.3 million, lower than last year, but in line with lower profitability. Utilization, excluding vehicles off the road, was 61%, up from 51% in 2025. For total assets was 38%, down from 42% in H125. The vehicle off-road program, and by this I mean taking underutilized vehicles off the road and placing them on SORN, commenced in May 2025 and is generating savings in the region of GBP 400,000 a year. The ex-vehicle off-road utilization metric is a key KPI for us, as it tells us what utilization would be if the fleet was right sized.

Speaker #2: Operating cash flow was £1.3 million, lower than last year, but in line with lower profitability. Utilization, excluding vehicles off the road, was 61%, up from 51% in 2025.

Speaker #2: And for total assets, it was 38%, down from 42% in H1 25. The vehicle off-road program—and by this I mean taking underutilized vehicles off the road and placing them on SORN—commenced in May 2025 and is generating savings in the region of £400,000 a year.

Speaker #2: The ex-vehicle off-road utilization metric is a key KPI for us, as it tells us what utilization would be if the fleet was right-sized. And finally, return on capital employed improved to 4.5%, up 150 basis points year-on-year, as the fleet base continues to unwind.

William Worsdell: Finally, return on capital employed improved to 4.5%, up 150 basis points year on year as the fleet base continues to unwind. Next slide, please. Now looking at the P&L in more detail, starting with revenue by business. Facilities by ADF generated GBP 9.3 million, down 13.9%. This is the part of the group most directly exposed to UK film and HETV production spend, which itself fell by 15.6% as we have already covered. So Facilities by ADF's performance was slightly ahead of that market contraction. By contrast, our two other businesses both grew. Location One up 6.7%, and Autotrak up 13.7% year on year, validating the group's strategy to build revenue streams less correlated to film and HETV production volumes. Gross margin was 29%, down from 33%, which reflects the operational gearing in the business, a largely fixed cost base absorbing those lower volumes.

Will Worsdell: Finally, return on capital employed improved to 4.5%, up 150 basis points year on year as the fleet base continues to unwind. Next slide, please. Now looking at the P&L in more detail, starting with revenue by business. Facilities by ADF generated GBP 9.3 million, down 13.9%. This is the part of the group most directly exposed to UK film and HETV production spend, which itself fell by 15.6% as we have already covered. So Facilities by ADF's performance was slightly ahead of that market contraction.

Speaker #2: Next slide, please. So now looking at the P&L in more detail, starting with revenue by business. ADF generated £9.3 million, down 13.9%. This is the part of the group most directly exposed to UK film and HETV production spend, which itself fell by 15.6%, as we've already covered.

Speaker #2: So, ADF's performance was slightly ahead of that market contraction. By contrast, our two other businesses both grew: Location One was up 6.7%, and AutoTrack was up 13.7% year-on-year, validating the group strategy to build revenue streams less correlated to film and HGTV production volumes.

Will Worsdell: By contrast, our two other businesses both grew. Location One up 6.7%, and Autotrak up 13.7% year on year, validating the group's strategy to build revenue streams less correlated to film and HETV production volumes. Gross margin was 29%, down from 33%, which reflects the operational gearing in the business, a largely fixed cost base absorbing those lower volumes.

Speaker #2: Gross margin reflects the operational gearing in the business—a largely fixed cost base absorbing those lower volumes. As mentioned, we have further cost actions underway in the second half of '26, specifically to address this, and these are expected to deliver material cost savings over the medium term.

William Worsdell: As mentioned, we have further cost actions underway in H2 2026, specifically to address this, and these are expected to deliver material cost savings over the medium term. Admin expenses reduced to GBP 3.1 million from GBP 3.6 million, down 13.9%, reflecting both strong cost control and the benefits of restructuring carried out in H2 2025. That brings adjusted EBITDA to GBP 1.7 million against GBP 2.2 million a year earlier. Below the line depreciation increased to GBP 3.7 million from GBP 3.2 million, up 15.6%, after we shortened the useful economic lives on certain fleet assets to smooth out P&L volatility from disposals. That has already been validated by a small profit on disposals in H1 of this year. Finance expenses reduced to GBP 0.7 million from GBP 1 million as our higher purchase liabilities continue to mature and roll off.

Will Worsdell: As mentioned, we have further cost actions underway in H2 2026, specifically to address this, and these are expected to deliver material cost savings over the medium term. Admin expenses reduced to GBP 3.1 million from GBP 3.6 million, down 13.9%, reflecting both strong cost control and the benefits of restructuring carried out in H2 2025. That brings adjusted EBITDA to GBP 1.7 million against GBP 2.2 million a year earlier. Below the line depreciation increased to GBP 3.7 million from GBP 3.2 million, up 15.6%, after we shortened the useful economic lives on certain fleet assets to smooth out P&L volatility from disposals. That has already been validated by a small profit on disposals in H1 of this year. Finance expenses reduced to GBP 0.7 million from GBP 1 million as our higher purchase liabilities continue to mature and roll off.

Speaker #2: Admin expenses reduced to £3.1 million from £3.6 million, down 13.9%, reflecting both strong cost control and the benefit of restructuring carried out in the second half of 2025.

Speaker #2: That brings adjusted EBITDA to £1.7 million, against £2.2 million a year earlier. Below the line, depreciation increased to £3.7 million from £3.2 million, up 15.6%, after we shortened the useful economic lives on certain fleet assets to smooth out P&L volatility from disposals.

Speaker #2: And that's already been validated by a small profit on disposals in the first half of this year. Finance expenses reduced to £0.7 million from £1 million, as our hire purchase liabilities continue to mature and roll off.

Speaker #2: So, net of exceptional items, that gives a loss before tax of £3.3 million, against £2 million in H1 2025. And, finally, just to point out that the group currently has a seasonal pattern that is more heavily weighted to H2.

William Worsdell: Net of exceptional items, that gives a loss before tax of GBP 3.3 million against GBP 2 million in H1 2025. Finally, just to point out that the group currently has a seasonal pattern that is more heavily weighted to H2. H2 2025 alone delivered GBP 23.9 million of revenue and GBP 7 million of adjusted EBITDA, materially stronger than H1. We do also expect an H2 weighting this year. Next slide, please. Moving on to cash flow now. Net cash from operating activities was GBP 1.2 million against GBP 4.8 million in H1 2025. That prior year figure was flattered by a large positive working capital movement of GBP 2.7 million, which did not repeat this year. Working capital was broadly neutral. Stripping that out, cash generated was GBP 1.3 million against GBP 2.1 million a year ago, which by and large tracks the reduction in EBITDA.

Will Worsdell: Net of exceptional items, that gives a loss before tax of GBP 3.3 million against GBP 2 million in H1 2025. Finally, just to point out that the group currently has a seasonal pattern that is more heavily weighted to H2. H2 2025 alone delivered GBP 23.9 million of revenue and GBP 7 million of adjusted EBITDA, materially stronger than H1. We do also expect an H2 weighting this year. Next slide, please. Moving on to cash flow now. Net cash from operating activities was GBP 1.2 million against GBP 4.8 million in H1 2025.

Speaker #2: So H2 2025 alone delivered £23.9 million of revenue and £7 million of adjusted EBITDA, materially stronger than H1. And we do also expect an H2 weighting this year.

Speaker #2: Next slide, please. So, moving on to cash flow now—net cash from operating activities was £1.2 million, against £4.8 million in H1 '25. But that prior year figure was flattered by a large positive working capital movement of £2.7 million, which didn't repeat this year.

Will Worsdell: That prior year figure was flattered by a large positive working capital movement of GBP 2.7 million, which did not repeat this year. Working capital was broadly neutral. Stripping that out, cash generated was GBP 1.3 million against GBP 2.1 million a year ago, which by and large tracks the reduction in EBITDA.

Speaker #2: Working capital was broadly neutral. So, stripping that out, cash generated was £1.3 million, against £2.1 million a year ago, which by and large tracks the reduction in EBITDA.

Speaker #2: It's worth also putting that in the seasonal context. So, 75% of pre-working capital operating cash last year was generated in H2, and we expect a similar weighting again this year.

William Worsdell: It is worth also putting that in a seasonal context. 75% of pre-working capital operating cash last year was generated in H2, and we expect a similar weighting again this year. On investing activities, capital expenditure was GBP 0.5 million, sharply down from GBP 2.3 million in H1 2025, with the largest single item being investment in our new executive single artist trailer. We also paid GBP 0.8 million of deferred consideration in respect of the Autotrak acquisition, and there are two further annual earn-out payments still to come. Financing cash flows I think we will cover when we talk about the RCF on the balance sheet slide. Taken together, closing cash was GBP 1.9 million. We go into the second half with a clear, well-understood seasonal cash profile and a disciplined approach to both capital expenditure and financing. Next slide, please. Finally, moving on to the balance sheet.

Will Worsdell: It is worth also putting that in a seasonal context. 75% of pre-working capital operating cash last year was generated in H2, and we expect a similar weighting again this year. On investing activities, capital expenditure was GBP 0.5 million, sharply down from GBP 2.3 million in H1 2025, with the largest single item being investment in our new executive single artist trailer. We also paid GBP 0.8 million of deferred consideration in respect of the Autotrak acquisition, and there are two further annual earn-out payments still to come.

Speaker #2: On investing activities, capital expenditure was £0.5 million, sharply down from £2.3 million in H1 2025, with the largest single item being investment in our new executive single artist trailer.

Speaker #2: We also pay £0.8 million of deferred consideration in respect of the AutoTrack acquisition, and there are two further annual earn-out payments still to come.

Speaker #2: Financing cash flows—I think we'll cover when we talk about the RCF on the balance sheet slide. So, taken together, closing cash was £1.9 million.

Will Worsdell: Financing cash flows I think we will cover when we talk about the RCF on the balance sheet slide. Taken together, closing cash was GBP 1.9 million. We go into the second half with a clear, well-understood seasonal cash profile and a disciplined approach to both capital expenditure and financing. Next slide, please. Finally, moving on to the balance sheet.

Speaker #2: We're going into the second half with a clear, well-understood seasonal cash profile, and a disciplined approach to both capital expenditure and financing. Next slide, please.

Speaker #2: So finally, moving on to the balance sheet. I think the key story behind the balance sheet—and the one that matters most for returns—is the continued unwind of the fleet, which splits between right-of-use assets when financed, and PPE when owned outright.

William Worsdell: I think the key story behind the balance sheet, and the one that matters the most for returns, is the continued unwind of the fleet, which splits between right-of-use assets when financed and PPE when owned outright. Right of use assets reduced to GBP 28 million from GBP 29.9 million, and lease and hire purchase liabilities reduced to GBP 15.8 million from GBP 16.9 million. Much of this fleet was built up during the post-pandemic growth phase and is now largely in place. Its continued amortization is a direct contributor to the improvements in ROCE, which stood at 4.5% at half year, up from 3% a year earlier. Elsewhere on the balance sheet, borrowings were GBP 3.6 million compared with nil at the December year-end. That comprises a GBP 3 million drawdown on the group's RCF and GBP 0.6 million of asset refinancing.

Will Worsdell: I think the key story behind the balance sheet, and the one that matters the most for returns, is the continued unwind of the fleet, which splits between right-of-use assets when financed and PPE when owned outright. Right of use assets reduced to GBP 28 million from GBP 29.9 million, and lease and hire purchase liabilities reduced to GBP 15.8 million from GBP 16.9 million. Much of this fleet was built up during the post-pandemic growth phase and is now largely in place. Its continued amortization is a direct contributor to the improvements in ROCE, which stood at 4.5% at half year, up from 3% a year earlier. Elsewhere on the balance sheet, borrowings were GBP 3.6 million compared with nil at the December year-end. That comprises a GBP 3 million drawdown on the group's RCF and GBP 0.6 million of asset refinancing.

Speaker #2: Right-of-use assets reduced to £28 million from £29.9 million, and lease and hire purchase liabilities reduced to £15.8 million from £16.9 million. Much of this fleet was built up during the post-pandemic growth phase and is now largely in place.

Speaker #2: It's continued amortization as a direct contributor to the improvement in ROCE, which stood at 4.5% at the half-year, up from 3% a year earlier.

Speaker #2: Elsewhere on the balance sheet, borrowings were £3.6 million, compared with nil at the December year-end. That comprises a £3 million drawdown on the Group’s RCF, and £0.6 million of asset refinancing. The drawdown was to fund both contingent consideration payables for AutoTrack, as well as working capital requirements.

William Worsdell: The drawdown was both to fund contingent consideration payables, Autotrak, as well as working capital requirements. As mentioned previously, we are agreed with a largely fixed cost base but seasonal revenue patterns, typically generating a working capital requirement in H1 and an unwind in H2. Net debt was GBP 14.5 million, up from GBP 12.3 million at 31 December. That is made up of GBP 12.7 million in hire purchase liabilities that sit within lease. In summary, the fleet unwind remains a key driver of capital efficiency, with ROCE up 150 basis points to 4.5% year on year. The rise in net debt reflects our normal seasonal working capital pattern and the Autotrak earn-out payments, and we expect the usual H2 unwind.

Will Worsdell: The drawdown was both to fund contingent consideration payables, Autotrak, as well as working capital requirements. As mentioned previously, we are agreed with a largely fixed cost base but seasonal revenue patterns, typically generating a working capital requirement in H1 and an unwind in H2. Net debt was GBP 14.5 million, up from GBP 12.3 million at 31 December. That is made up of GBP 12.7 million in hire purchase liabilities that sit within lease. In summary, the fleet unwind remains a key driver of capital efficiency, with ROCE up 150 basis points to 4.5% year on year. The rise in net debt reflects our normal seasonal working capital pattern and the Autotrak earn-out payments, and we expect the usual H2 unwind.

Speaker #2: As mentioned previously, we are a group with a largely fixed cost base, but seasonal revenue patterns typically generate a working capital requirement in H1 and an unwind in H2.

Speaker #2: Net debt was £14.5 million, up from £12.3 million at 31st December. That's made up of £12.7 million of hire purchase liabilities that sit within lease liabilities.

Speaker #2: So, in summary, the fleet unwind remains a key driver of capital efficiency, with ROCE up 150 basis points to 4.5% year-on-year. The rise in net debt reflects our normal seasonal working capital pattern and the AutoTrack earn-out payment, and we expect the usual H2 unwind.

Speaker #2: And capital discipline and continued deleveraging remain central priorities as the fleet matures. I think that links directly to the group's broader strategic priorities, which Nick will take you through now.

William Worsdell: Capital discipline and continued deleveraging remain central priorities as the fleet matures. I think that links directly to the group's broader strategic priorities, which Nic will take you through now.

Will Worsdell: Capital discipline and continued deleveraging remain central priorities as the fleet matures. I think that links directly to the group's broader strategic priorities, which Nic will take you through now.

Speaker #1: Thank you, Will. Okay, so moving on to strategic priorities. We're really pleased to have mapped out our medium-term strategic plan for growth. Our strategic pillars are built around four priorities.

Nicola Pearcey: Thank you, Will. Okay, so moving on to strategic priorities. We are really pleased to have mapped out our medium-term strategic plan for growth. Our strategic pillars are built around four priorities. We have operational efficiencies, national to regional operation model, diversification, and customer retention. Regarding operational efficiencies, we are already activating savings through restructuring and more active fleet management. We have identified further efficiencies across the group, pointing to material cost savings that we touched on a moment ago for H2 and the future. Our commercial team is increasingly driving group sales and marketing as an integrated proposition, which is already having a positive effect. Regarding national to regional, since introducing this strategy, we have instigated efficiencies in combining hubs between our companies, where we were historically more siloed. We are further optimizing regionality to satisfy market needs.

Speaker #1: We have operational efficiencies, a national-to-regional operating model, diversification, and customer retention. Regarding operational efficiencies, we are already activating savings through restructuring and more active fleet management.

Speaker #1: And we've identified further efficiencies across the group, pointing to material cost savings that we touched upon a moment ago for the second half of the year, and the future.

Speaker #1: Our commercial team is increasingly driving group sales and marketing as an integrated proposition, which is already having a positive effect. Regarding national to regional, since introducing this strategy, we have instigated efficiencies in combining hubs between our companies, where we were historically more siloed.

Speaker #1: And we're further optimizing regionality to satisfy market needs. In addition to this, we are building out AutoTrack specifically, investing in capacity ahead of peak demand, and extending our regional coverage.

Nicola Pearcey: In addition to this, we are building out Autotrak specifically, investing in capacity ahead of peak demand and extending our regional coverage because it is already delivering strong returns, and we want to build on that. Diversification is a real opportunity for us. Film and events remain a major growth area for our company in particular, as we previously highlighted, and we are well placed to extend our business here. Group cross-selling, as previously mentioned, is already having a positive impact. Finally, at our core is customer retention. We focus on sustainability and accessibility today. However, at our core is our excellence in customer satisfaction, and that is something we must uphold to maintain our partnerships. Sustainability and accessibility continue to really matter, both for us and our clients. We have an industry-leading reputation for sustainable innovation.

Speaker #1: Because it's already delivering strong returns, and we want to build on that. Diversification is a real opportunity for us. Film and events remain a major growth area for our company, in particular, as we have previously highlighted. We're well placed to extend our business here.

Speaker #1: And group cross-selling, as previously mentioned, is already having a positive impact. And finally, as our core is customer retention, we've focused on sustainability and accessibility today.

Speaker #1: However, at our core is our excellence in customer satisfaction, and that is something we must uphold to maintain our partnerships. Sustainability and accessibility continue to really matter, both for us and our clients.

Speaker #1: We have an industry-leading reputation for sustainable innovation. Our operations increasingly make significant carbon reduction a standard part of how production works with us. And we've materially reduced our carbon footprint in recent years.

Nicola Pearcey: Our operations increasingly make significant carbon reduction a standard part of how productions work with us, and we have materially reduced our carbon footprint in recent years. We are also increasing accessibility across our fleet to make sure we are meeting the needs of all cast and crew. Together, these four pillars give you a top-line indication of our medium-term plan for growth. With our strategic priorities set out, let me turn to outlook. Next slide. Our H1 performance was lower than anticipated. The current shape of the Q4 pipeline means full-year results are expected to be below market expectations. However, we are optimistic about FY27. Our order book and weighted pipeline as at 7 September are up 4.5% year on year. Something else that is worth noting is that the UK theatrical box office is also up 11% in H1.

Speaker #1: We're also increasing accessibility across our fleet to make sure we're meeting the needs of all cast and crew. Together, these four pillars give you a top-line indication of our medium-term plan for growth.

Speaker #1: With our strategic priorities set out, let me turn to outlook. Next slide. Our first half performance was lower than anticipated. The current shape of the Q4 pipeline means full-year results are expected to be below market expectations.

Speaker #1: However, we are optimistic about FY27. Our order book and weighted pipeline, as at the 7th of September, are at a 4.5% year-on-year. Something else that's worth noting is that the UK theatrical box office is also up 11% in the first half of the year.

Speaker #1: We believe that will really help create renewed positive sentiment in the market for feature film production. We've already commenced further cost-saving efficiencies in the second half.

Nicola Pearcey: We believe that will really help create renewed positive sentiment in the market for feature film production. We have already commenced further cost-saving efficiencies in the H2, which we anticipate will have further material impact. Our enhanced group commercial team continues to drive cross-selling and will improve our combined pipeline. With our medium-term strategic plan now mapped out, our four pillars are expected to drive increased utilization, leading to stronger ROCE and free cash flow generation across the group. In conclusion, I am confident that Facilities by ADF is very well-positioned with a resilient H1 behind us, a clear strategic plan in place, and a business that continues to be trusted by the very best in the UK and film television industry. Thank you for your time. At this point, we will pause to take any questions.

Speaker #1: Which we anticipate will have further material impact. Our enhanced group commercial team continues to drive cross-selling, and we’ll improve our combined pipeline. With our medium-term strategic plan now mapped out, our four pillars are expected to drive increased utilization, leading to stronger ROCE and free cash flow generation across the group.

Speaker #1: In conclusion, I'm confident that Facilities by ADF is very well positioned. With the resilient first half behind us, a clear strategic plan in place, and a business that continues to be trusted by the very best in the UK and film and television industry.

Speaker #1: Thank you for your time. At this point, we will pause to take any questions.

Speaker #2: That's great. Thank you very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions using the Q&A tab situated at the top right corner of your screen.

Operator: That is great. Thank you very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions using the Q&A tab situated on the top right corner of your screen. While the company takes a few moments to review those questions submitted today, I would like to remind you the recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via our investor dashboard. Nicola, William, if I may, I will move us straight onto the Q&A session. The first question here reads as follows: Can you comment on the current competitive pricing environment, and how is this affecting margins?

Speaker #2: I'll give the company a few moments to review the questions submitted today. I would like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via our investor dashboard.

Speaker #2: I'm Nicola William. If I may, I'll move us straight on to the Q&A session. The first question here reads as follows: Can you comment on the current competitive pricing environment and how this is affecting margins?

Speaker #1: Yes, of course. Yes, the market is price competitive—there's no doubt about that. And certainly, it becomes more so in a contracted market, as we have experienced.

Nicola Pearcey: Yes, of course. Yes, the market is price-competitive. There is no doubt about that. Certainly, it becomes weighted in a contracted market as we have experienced. I think with that in mind, the positive open pipeline and improved order book and weighted pipeline for next year suggests that the market will be busier, which then should have an impact. We should also be mindful that budgets have absolutely been squeezed. There are always requests and questions for how everyone can be more efficient in the geopolitical climate in which we are operating. Therefore, we have to be considerate of that and just work out how to best manage that alongside everyone else operating in the industry.

Speaker #1: I think, with that in mind, the positive open pipeline and improved order book, along with a weighted pipeline for next year, suggest that the market will be busier.

Speaker #1: Which, then, should have an impact. But we should also be mindful that budgets have absolutely been squeezed. There are always requests and questions about how everyone can be more efficient in the geopolitical climate in which we're operating.

Speaker #1: And therefore, we have to be considerate of that and just work out how to best manage that alongside everyone else operating in the industry.

Speaker #2: Thank you, Nicola. And the next question is on debt. Can you provide an update on net debt and your expectations for debt reduction over the medium term as free cash flows normalize?

Operator: Thank you, Nicola. The next question is on debt. Can you provide an update on net debt and your expectations for debt reduction over the medium term as free cash flows normalize?

Speaker #3: Yeah, I think that's probably one for me.

William Worsdell: Yeah, I think that is probably one for me.

Will Worsdell: Yeah, I think that is probably one for me.

Speaker #1: Yes.

Operator: Yeah.

Speaker #3: As covered in the presentation, we are a seasonal business with a largely fixed cost base. Based on our typical seasonality, we usually see an increase in net debt in the first half of the year and a decrease in H2, as operating cash flows increase.

William Worsdell: So as covered in the presentation, we are a seasonal business with a largely fixed cost base. Based on current seasonality, we usually see an increase in net debt in the H1 of the year and a decrease in H2 as operating cash flows increase. We are currently forecasting a decrease in net debt to third. Looking more forward, in 2027, we are forecasting higher levels of operating cash flow as a result of our strategic priorities, none of which are particularly capital intensive. Therefore, net debt forecasts drop further at the end of next year to GBP 11.9 million. I think probably the final comment here is that the board takes a disciplined approach to leverage, and bringing net debt down further remains a priority for us over the medium term.

Will Worsdell: So as covered in the presentation, we are a seasonal business with a largely fixed cost base. Based on current seasonality, we usually see an increase in net debt in the H1 of the year and a decrease in H2 as operating cash flows increase. We are currently forecasting a decrease in net debt to third. Looking more forward, in 2027, we are forecasting higher levels of operating cash flow as a result of our strategic priorities, none of which are particularly capital intensive. Therefore, net debt forecasts drop further at the end of next year to GBP 11.9 million. I think probably the final comment here is that the board takes a disciplined approach to leverage, and bringing net debt down further remains a priority for us over the medium term.

Speaker #3: So we're currently forecasting a decrease in net debt. Looking further ahead to 2027, we're forecasting higher levels of operating cash flow as a result of our strategic priorities.

Speaker #3: None of which are particularly capital intensive. Therefore, net debt is forecast to drop further at the end of next year to £11.9 million. I think probably the final comment here is that the Board takes a disciplined approach to leverage, and bringing net debt down further remains a priority for us over the medium term.

Speaker #1: Yeah.

Operator: Yeah. Thank you, William. Moving on. What is management's current appetite for targeting overseas expansion or capturing a higher share of internationally mobile productions?

Speaker #2: Thank you, William. Moving on—what is management's current appetite for targeting overseas expansion, or capturing a higher share of internationally mobile production?

Speaker #1: Good question. We're very aware that production can be international in scope. I've worked on many of those myself. We already work with production companies whose films will be set in multiple territories.

Nicola Pearcey: Good question. We are very aware that productions can be international in scope. I have worked on many of those myself. We already work with production companies whose films will be set in multiple territories, and as part of that, we would offer our services to those productions as applicable. We are currently on a production right now in another territory, for example. Productions may, of course, often elect to use a local player if it is more efficient to do so. Or we will partner with them to provide those services required, which we are certainly keen to do. It is something that is on our radar.

Speaker #1: And as part of that, we offer our services to those productions as applicable. We're currently on a production right now in another territory, for example.

Speaker #1: Productions may, of course, choose to elect to use a local player if it is more efficient to do so. Or, we will partner with them to provide those services required, which we are certainly keen to do.

Speaker #1: So, it's something that's on our radar.

Speaker #2: Thank you. Another investor asks here: following the integration of Auto Track and Location One, what does the M&A pipeline look like, and what is the acquisition criteria?

Operator: Thank you. Another investor asks here: Following the integration of Autotrak and Location One, what does the M&A pipeline look like, and what is the acquisition criteria?

Speaker #3: Can you spell that? Yeah.

William Worsdell: Can I answer that?

Will Worsdell: Can I answer that?

Speaker #1: Yeah. Thank you well.

Nicola Pearcey: Yeah.

William Worsdell: Yeah.

Will Worsdell: Yeah.

Nicola Pearcey: Thank you, Will.

Speaker #3: I think, firstly, we'll always keep an eye out for value-accretive opportunities. But I think we're mindful of how we finance them, and we don't want to put the balance sheet under any pressure to chase acquisitions.

William Worsdell: I think firstly, we will always keep an eye out for value accretive opportunities. But I think we are mindful of how we finance them, and we do not want to put the balance sheet under any pressure to chase acquisitions. I think near term, our priority is really the strategic pillars that Nic talked about and strengthening the core group. As that starts to bear fruit and we are generating higher levels of free cash flow, I think that is what gives us more scope to look at bigger, more material add-ons down the line.

Will Worsdell: I think firstly, we will always keep an eye out for value accretive opportunities. But I think we are mindful of how we finance them, and we do not want to put the balance sheet under any pressure to chase acquisitions. I think near term, our priority is really the strategic pillars that Nic talked about and strengthening the core group. As that starts to bear fruit and we are generating higher levels of free cash flow, I think that is what gives us more scope to look at bigger, more material add-ons down the line.

Speaker #3: I think near term, our priority is really the strategic pillars that Nick talked about and strengthening the core group. As that starts to bear fruit and we're generating higher levels of free cash flow, I think that's what gives us more scope to look at bigger, more material add-ons down the line.

Speaker #2: Thank you. The next question we've got here is: You previously talked about optimizing the fleet. If assets are underutilized, are you looking to dispose of more?

Operator: Thank you. The next question we have here is: You previously talked about optimizing the fleet. If assets are underutilized, are you looking to dispose of more?

Speaker #3: Yeah.

Speaker #1: Can I cover that?

Nicola Pearcey: Do you want to cover that?

Speaker #3: Yeah, I can do. So, when the wider market contracts, like we saw in H1, demand for disposals naturally softens. People just aren't buying as much.

William Worsdell: Well, I can do. When the wider market contracts like we saw in H1, demand for disposals naturally softens. People just are not buying as much. I think we would expect that to turn around as we move into 2027, and we are already seeing the early signs of a stronger market next year. That said, we did sell a number of assets in the H1, and we made a small profit on those disposals, as I covered. I think going forward, there is a balance to strike between right-sizing for an optimal fleet, and also making sure we have got what we need to actually deliver on the business over the next few years.

Will Worsdell: Well, I can do. When the wider market contracts like we saw in H1, demand for disposals naturally softens. People just are not buying as much. I think we would expect that to turn around as we move into 2027, and we are already seeing the early signs of a stronger market next year. That said, we did sell a number of assets in the H1, and we made a small profit on those disposals, as I covered. I think going forward, there is a balance to strike between right-sizing for an optimal fleet, and also making sure we have got what we need to actually deliver on the business over the next few years.

Speaker #3: I think we'd expect that to turn around as we move into 2027, and we're already seeing the early signs of a stronger market next year.

Speaker #3: That said, we did sell a number of assets in the first half, and we made a small profit on those disposals, as I covered.

Speaker #3: I think going forward, there's a balance to strike between rightsizing for an optimal fleet and also making sure we've got what we need to actually deliver on the business over the next few years.

Speaker #1: Yeah.

Operator: Yeah. Thank you, William. Someone here has asked: "You have said the business is well-positioned and that the actions being taken are already bearing fruit. What measurable KPIs should shareholders use to judge the next 12 months?

Speaker #2: Thank you, William. Someone here has asked: you've said the business is well positioned, and that the actions being taken are already bearing fruit. What measurable KPIs should shareholders use to judge the next 12 months?

Speaker #1: Yes, we have said the business is well positioned. I think, as set out in the presentation, really, our revenue, utilization, adjusted EBITDA, ROCE, and cash flow generation will act as our core KPIs.

Nicola Pearcey: Yes. We have said the business is well-positioned. I think I've set out in the presentation really, our revenue utilization, adjusted EBITDA, ROCE, and cash flow generation will act as our core KPIs to judge over that period of the next 12 months. These, of course, will be impacted by our behaviors within the business, which we know now are, or will be, defined by our medium-term strategic plan and the strategic pillars that sit within that.

Speaker #1: To judge over that period, over the next 12 months, these, of course, will be impacted by our behaviors within the business, which we now know are or will be defined by our medium-term strategic plan and the strategic pillars that sit within that.

Speaker #2: Thank you. Following on from this, can you discuss the current market backdrop and the strength of the pipeline? What are the biggest factors supporting investment in film production?

Operator: Thank you. Following from this, "Can you talk about the current market backdrop and the strength of the pipeline? What are the biggest factors supporting investment in film production? What challenges remain for the industry, and how are these affecting pipeline activity?" Couple of questions there.

Speaker #2: What challenges remain for the industry, and how would these affect pipeline activity? Couple of questions there.

Speaker #1: Yeah, okay. Let's break that down slightly, then. So, in terms of the current market backdrop, obviously we've talked about what's happened in the market in the first part of the year.

Nicola Pearcey: Yeah. Okay. Let's break that down slightly then. In terms of the current market backdrop, obviously we've talked about what's happened in the market at the first start of the year. Yes, there has been decline in production spend across film and television. I think something that I touched upon in the presentation is really worth highlighting here, which is the box office as well. The box office being up 11% in the period is a really strong message for the industry. This will give, in my opinion, studios, streamers, and independent producers alike, a real boost in perceived value of feature film production. I can say that with a level of comfort, especially given obviously Will having been with his historical role and with mine prior also. That gives great impetus. Of course, box office levels can be skewed by a tent pole title, those event films.

Speaker #1: Yes, there has been a decline in production spend across film and television. I think something that I touched upon in the presentation is really worth highlighting here, which is the box office as well.

Speaker #1: The box office being up 11% in the period is a really strong message for the industry. This will give, in my opinion, studios, streamers, and independent producers alike a real boost in the perceived value of feature film production.

Nicola Pearcey: This will give, in my opinion, studios, streamers, and independent producers alike, a real boost in perceived value of feature film production. I can say that with a level of comfort, especially given obviously Will having been with his historical role and with mine prior also. That gives great impetus. Of course, box office levels can be skewed by a tent pole title, those event films.

Speaker #1: And I can say that with a level of comfort, especially given, obviously, Will having been his historical role and with my prior impetus. Of course, box office levels can be skewed by temporal titles.

Speaker #1: Those event films. But fundamentally, what this has demonstrated is that audiences are keen to go to the cinemas. That's a massive factor when you're considering where you're going to invest your priority spend for production, and so to have hit those numbers in the UK is really, really valuable.

Nicola Pearcey: But fundamentally, what this has demonstrated is that audiences are keen to go to the cinemas. That's a massive factor when you're considering where you're going to invest your priority spend for production. To have hit those numbers in the UK is really, really valuable. Yeah, production spend is down disappointingly. However, when we look, as we mentioned, at our pipeline, that continues to improve. I think also, that visibility that we have of production for next year across both film and television is far stronger year-on-year. We mentioned that the order book and pipeline is up 4.5%. Quickly touch upon, I think tax credit. We probably touched upon that briefly last time as well in questions. Improved tax credits in other territories will certainly have an impact. We've a responsibility as a country to stay on top of that.

Speaker #1: Yeah, production spend is down, disappointingly. However, when we look, as we mentioned, at our pipeline, that continues to improve, and I think also that the visibility we have of production for next year, across both film and television, is far stronger year on year.

Speaker #1: We mentioned that the order booking pipeline is up 4.5%. Quickly touch upon, I think, tax credits. We've probably touched upon that briefly last time as well when questioned.

Speaker #1: Improved tax credits in other territories will certainly have an impact, so we have a responsibility as a country to stay on top of that.

Speaker #1: Thankfully, we have a really strong group of bodies in the UK and leading figureheads who are constantly building on that message. It's really important for any leaders of any entities within the industry to be driving that as well—whether it's the studios, the infrastructure studios, the studio studios, streamers, or ourselves.

Nicola Pearcey: Thankfully, we have a really strong group of bodies in the UK and leading figureheads who are constantly building on that message. It is really important for any leaders of any entities within the industry to be driving that as well, whether it is the studios, the infrastructure studios, the studio studios, streamers, ourselves. It is reiterating and double-downing on that. Our talent and crews are second to none. The infrastructure is incredible in the UK, amongst many other factors that makes the UK shine.

Speaker #1: It's reiterating and doubling down on that. Look, our talent and crews are second to none. The infrastructure is incredible in the UK, among many other factors that make the UK shine.

Speaker #2: Thank you very much. Do you expect the U.S. tax incentives to negatively impact the U.K. film and TV market?

Operator: Thank you very much. Do you expect the US tax incentives to negatively impact the UK film and TV market?

Speaker #1: I thought that might come up. I think, per what I've just mentioned, any tax credit change will create noise. It could encounter sway in productions.

Nicola Pearcey: I thought that might come up. I think per what I have just mentioned, any tax credit change will create noise. It could and can sway productions. There is no denying. There is always a desire to benefit from tax incentives if that is what is going to help get a production financed. Thankfully, we have strong incentives in the UK already, coupled with a desire for people to work here, be based here, let alone the backdrop of the country itself, because there is a certain look and feel that are required for certain productions as well. So I think it is, as I mentioned, continuing to build on our story and making sure that we remain as attractive as possible. I think also that looking back at what I mentioned in terms of infrastructure studios, so there is the likes of your Longcross, Warner Bros. Shepperton, all of those types of studios, Warner Bros. Leavesden.

Speaker #1: There's no denying there's always a desire to benefit from tax incentives if that's what's going to help get a production financed. Thankfully, we have strong incentives in the UK already, coupled with a desire for people to work here, be based here, let alone the backdrop of the country itself, because there's a certain look and feel that are required for certain productions as well.

Speaker #1: So, I think it's, as I mentioned, continuing to build on our story and making sure that we remain as attractive as possible.

Nicola Pearcey: So I think it is, as I mentioned, continuing to build on our story and making sure that we remain as attractive as possible. I think also that looking back at what I mentioned in terms of infrastructure studios, so there is the likes of your Longcross, Warner Bros. Shepperton, all of those types of studios, Warner Bros. Leavesden.

Speaker #1: I think also let's looking back at the what I mentioned in terms of infrastructure studios, so the likes of your long cross firewind checked and all of those types of the types of studios Warner Brothers Leeson, with these studios in place, streamers have invested and private investment, big profile investment has been put into these studios.

Nicola Pearcey: With these studios in place, streamers have invested, and private investment, big profile investment, has been put into these studios. The amount that has gone into the mix, when a large chunk of that is streamers, that gives weight that there is no suggestion that there is any turnaround on that and that they are walking away from it. So that gives us, again, that momentum and that positivity around the fact that we fully expect those studios to be optimized to drive the return on investment.

Speaker #1: And the amount that has gone into the mix, when a large chunk of that is streamers, that gives weight that there's no suggestion that there's any turnaround on that, and that they're walking away from it.

Speaker #1: So that gives us, again, that momentum and that positivity around the fact that we fully expect those studios to be optimized to drive the return on investment.

Speaker #2: Thank you, Nicola. And switching gears here on dividends, are you looking to reinstate a dividend?

Operator: Thank you, Nicola. Switching gears, one here on dividends. Are you looking to reinstate a dividend?

Speaker #3: Should I go with that?

William Worsdell: Shall I go with that?

Will Worsdell: Shall I go with that?

Speaker #1: Yeah, please.

Nicola Pearcey: Yeah, please.

Speaker #3: So, I think at the moment, the Board thinks it's more value accretive to shareholders to deploy capital in growing the core business. That's, hopefully, what we've outlined in today's presentation.

William Worsdell: I think at the moment, the board thinks it is more value accretive to shareholders to deploy capital in growing the core business, as hopefully we have outlined in today's presentation. However, it is always something that we will keep under regular review, and we will of course update shareholders should the policy change.

Will Worsdell: I think at the moment, the board thinks it is more value accretive to shareholders to deploy capital in growing the core business, as hopefully we have outlined in today's presentation. However, it is always something that we will keep under regular review, and we will of course update shareholders should the policy change.

Speaker #3: However, it's always something that we'll keep under regular review, and we will, of course, update shareholders should the policy change.

Speaker #2: Thank you. And perhaps one last question here to wrap up the Q&A session. What are the most significant changes you have made since joining, and how have they improved the business?

Operator: Thank you. Perhaps one last question here to wrap up the Q&A session. What are the most significant changes you have made since joining, and how have they improved the business?

Speaker #1: Well, we're certainly a few months further down the line now. Hopefully, today's presentation will have given you a clear indication of what we have already implemented.

Nicola Pearcey: Well, we are certainly a few months more down the line now as well. So hopefully today's presentation will have given you a clear indication of what we have already implemented. The improved integrated commercial team, our strategic pillars have been set out as part of our medium-term plan. So I think perhaps I should reiterate what is important to me as a CEO in terms of what kind of culture I want our teams to operate in and how that will also really help the business grow. From my perspective, building and trusting a strong team from management all the way through to the business will only help steer these combined businesses into the future. That is really, really key. In this role, it is really important for me that we have as much transparency and we are authentic as a business.

Speaker #1: The improved, integrated commercial team—our strategic pillars have been set out as part of our medium-term plan. So, I think perhaps I should reiterate what is important to me.

Speaker #1: As a CEO, in terms of the kind of culture I want our teams to operate in, and how that will also help the business grow, from my perspective, building and trusting a strong team—from management all the way through to the business—will only help steer these combined businesses into the future.

Speaker #1: That's really, really, really key. And in this role, it's really important for me that we have as much transparency as possible and that we are authentic as a business.

Speaker #1: We are confident in what we're delivering, and we're fully compliant. I believe in an open-door policy. I promote feedback, and that, for me, is what will help improve our business.

Nicola Pearcey: We are confident in what we are delivering, and we are fully compliant. I believe in an open door policy. I promote feedback, and that, for me, is what will help improve our business. So constantly improving employee engagement is key. That open door policy will lead to faster problem escalation in my mind, and therefore faster problem-solving. Not to forget ideation, and it is all those things, actually ideation from our employees is there at the forefront of everything we do. That is what is going to help take us to the next level.

Speaker #1: So, constantly improving employee engagement is key. That open-door policy will lead to faster problem escalation, in my mind, and therefore faster problem solving—not to forget ideation, and it's all those things.

Speaker #1: Actually, ideation from our employees is at the forefront of everything we do. That's what's going to help take us to the next level.

Speaker #2: That's great, Nicola. William, thank you for addressing those questions for investors today. Nicola, before I redirect investors to provide you with their feedback—which I know is particularly important to you and the company—could I please just ask you for a few closing comments?

Operator: That is great, Nicola. William, thank you for addressing those questions from investors today. Nicola, before I redirect investors to provide you with their feedback, which I know is particularly important to yourself and the company, could I please just ask you for a few closing comments?

Speaker #1: Oh, yeah, thank you. Thank you for joining. Fundamentally, it's valuable for us to be able to get our message across. We're conscious that the first half of the year, in terms of that production spend, hasn't been what we would have loved it to be, but the company's worked incredibly hard and has proven its discipline and resilience in that, which gives us real confidence as we build out those strategic pillars and our plan moving forward to step ahead.

Nicola Pearcey: Yes. Thank you. Thank you for joining, fundamentally. It is valuable for us to be able to get our message across. Conscious that the H1 of the year is, in terms of that production spend, has not been what we would have loved it to be, but the company has worked incredibly hard and has proven its discipline and resilience in that, which gives us real confidence as we have built out those strategic pillars and our plan moving forward to step ahead. We look forward to updating you at the next set of results. Thanks for your time.

Speaker #1: We'll look forward to updating you at the next set of results. Thank you for your time.

Speaker #2: Fantastic. Thank you once again for updating investors today. Could I please ask investors not to close the session as you now be automatically redirected to provide your feedback, which will help the company.

Operator: Fantastic. Thank you once again for updating investors today. Could I please ask investors now to close this session, as you will now be automatically redirected to provide your feedback which will help the company better-

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