加载中...
共找到 18,116 条相关资讯
Malcolm Dorson, Global X senior emerging markets portfolio manager and SVP head of active investment team, and Cinthia Murphy, VettaFi director of research, join CNBC's Dom Chu on 'ETF Edge' to discuss how investors are assessing the Iran War's impact on their portfolio, bright spots in emerging markets and if the international outperformance can continue to rack up gains despite the risks.
"The market simply didn't mind," Cramer said on "Mad Money," after the S&P 500 closed slightly higher on the first day since the U.S. and Israel attacked Iran over the weekend. U.S. energy independence has changed how investors react to geopolitical shocks, Cramer said.
The Nasdaq finishes in positive territory in Monday's stock market as investors shrug off the U.S.-Iran war.
@MarketRebellion's Marc LoPresti says today's focus will be set fully on the evolving war in the Middle East. As crude oil spikes and volatility ramps, he says clarity on next steps in the conflict will be essential to calming markets.
Ernest Hoffman is a Crypto and Market Reporter for Kitco News. He has over 15 years of experience as a writer, editor, broadcaster and producer for media, educational and cultural organizations.
You may have opportunities to optimize for short-term volatility, financial planners told MarketWatch.
I sense high levels of frustration in tech. Fundamentals are mostly intact, and most tech companies are guiding above expectations.
Westwood CIO Adrian Helfert says there are good opportunities in energy sector stocks, especially because they didn't rise as much as would have been expected today given the rise in oil prices.
The bond market is flashing a warning signal called a “bull flattener,” which is in fact bullish for bondholders, but not for nearly anyone else. The current bull flattener regime favors duration and signals a risk-off environment.
There is an old saying in markets: Buy when the bullets (or bombs or missiles) fly.
Evercore ISI's Julian Emanuel joins 'Closing Bell Overtime' to talk the day's market action.
The U.S. attack on Iran won't boost U.S. inflation or harm the economy in a major way, analysts say, unless in the unlikely case that the conflict drags on for months and sharply raises the price of oil.
If you've been following the market over the last few months, you know it's become bifurcated into winners and losers, and the losers are feeling serious pain.
JPMorgan Chase CEO Jamie Dimon on Monday warned that inflation could be shaping up to be a “skunk in a party” following the US-Israeli air strikes on Iran over the weekend.
Earnings season “ended” with a disappointing reaction to the much-anticipated Nvidia earnings. The market's reaction to Nvidia's earnings, and the less-covered economic news, gave the savvy investor information that clarifies the market narrative and helps anticipate the direction of the next market trend.
Kalshi's rules exclude death as a factor in resolving event contracts, meaning more than $50 million worth of trades were halted after the Iranian leader was killed over the weekend.
Operator: Good afternoon. Welcome to Gaia's Fourth Quarter 2025 Earnings Conference Call. [Operator Instructions] Joining us today from Gaia are Jirka Rysavy, Chairman; Kiersten Medvedich, CEO; and Ned Preston, CFO. [Operator Instructions]. Before we begin, Gaia's management team would like to remind everyone that management's prepared remarks contain forward-looking statements, and management may make additional forward-looking statements in response to your questions, including, but not limited to, statements of expectations, future events or future financial performance. These statements do not guarantee future performance, and therefore, undue reliance should not be placed upon them. Although we believe these expectations are reasonable, Gaia management undertakes no obligation to revise any statements to reflect changes that occur after this call. Actual events or results could differ materially. These statements are based on current expectations of the company's management and involve inherent risks and uncertainties, including those identified in the Risk Factors section of Gaia's latest annual report on Form 10-K filed with the SEC. All non-GAAP financial measures referenced in today's call are reconciled in the company's earnings press release to the most directly comparable GAAP measure. This call also contains time-sensitive information that is accurate only as of the time and date of this broadcast, March 2, 2026. Finally, I would like to remind everyone that this conference call is being webcast, and a recording will be made available for replay on Gaia's Investor Relations website at ir.gaia.com. At this time, I'd like to turn the call over to Gaia's Chairman, Jirka Rysavy. Please go ahead. Jirka Rysavy: Good afternoon, everyone. Our first quarter was a good one. Our revenue increased to $25.5 million with a gross margin of 87.6%, which was above 87.1% average for the year. Free cash flow increased $1.1 million to $1.7 million, and our member count reached first time over 900,000. Revenue for the year grew 11% to $99 million, driven by increased member count and higher ARPU. Gross margin for the year improved 100 basis points to 87.1% from 86.1%. Our gross profit per employee increased to $827,000 from $730,000 during last year. Our free cash flow grew $2.2 million to $4.9 million. Our cash position end of the year improved to $13.5 million from $5.9 million a year ago. And Kiersten will now speak about business. Kiersten Medvedich: Thank you, Jirka. Good afternoon, everyone. The past quarter marked an important milestone in Gaia's evolution as we continue building on our strong SVOD foundation while advancing toward a more integrated AI platform. We delivered a strong fourth quarter, growing revenue to $25.5 million and exiting the year at an annualized run rate of approximately $100 million. Subscriber growth for the quarter remained solid, adding 20,000 members. For the year, we generated approximately $5 million in free cash flow and operating efficiency continued to improve with gross profit per employee increasing to $825,000, up from $730,000 last year. With disciplined management of operating expenses, we see a clear path to profitability in 2026. Now before moving forward, I would like to briefly address a leadership update. In January, James Colquhoun's contract reached its conclusion, and we have transitioned his responsibilities to our new Chief Operating Officer, Yonathan Nuta. Yon previously spent over 5 years in executive leadership roles at Gaia from 2016 to 2021 before rejoining the company. He also served as Chief Product Officer at Babylon and Fabric bringing additional operational and product leadership experience to Gaia. With the leadership transition complete, we are focused on execution and building momentum across the business. Moving forward, our direct channel remains central to our progress. Approximately 2/3 of our direct members have been with Gaia for more than 1 year, and that percentage continues to increase. That level of loyalty speaks to the strength of our community and supports long-term lifetime value expansion. With continued investment in AI and community, the direct platform delivers a differentiated experience, driving double retention and approximately double the revenue per member compared to third-party distribution. This directly shapes our distribution strategy. Third-party platforms simply do not support the AI and community capabilities that defined the next phase of Gaia. And as a result, we are intentionally concentrating our capital and innovation focus on our direct platform. Subscriber growth remains important. However, as this strategy progresses, beginning this quarter, we will no longer report total subscriber count as a primary metric. As our business matures, we believe revenue growth, free cash flow, lifetime value and earnings provide a clear reflection of the health of our model consistent with broader SVOD industry trends. Importantly, this strategic focus is translating into financial performance, and we expect to achieve profitability in the fourth quarter this year. With high gross margins and continued operating discipline, incremental revenue is increasingly flowing through to the bottom line, positioning Gaia for sustained profitability and long-term value creation. This year, we will continue to integrate AI across the business. AI is now embedded across major functions from our code base to content production and creative workflows, improving speed, scalability and efficiency. This is reflected in our continued improvement in gross profit per employee. Late last year, we launched a beta version of our AI Guide to direct members, generating more than 2 million prompts in its first 60 days. Early engagement data showed deeper session activity and increased repeat usage following interaction with the feature. Although still early, these trends reinforce our view that combining purpose-built AI with our predominantly exclusive content library enhances the direct member experience. Now as rollout expands, we are extending AI-driven capabilities, including personalized onboarding, intelligent recommendations, enhanced search and contextual guidance, further strengthening the engagement and long-term value member. Given the strength of our direct member relationships and engagement trends, we are implementing a price increase that begins this quarter and will roll out progressively throughout the year. We are approaching this thoughtfully and churn patterns are tracking favorably relative to the prior price increase. In closing, 2026 represents an important year for Gaia. We're entering it from a position of financial strength, strong performance and a clear commitment to our members. We are staying focused on the steady progress as we build a stronger company for the long term. Now over to Ned for the financial details. Ned Preston: Thank you, Kiersten. Revenues for the fourth quarter 2025 increased to $25.5 million from $25.1 million (sic) [ $24.1 million ] in the fourth quarter of 2024, primarily driven by growth of our member base and increasing ARPU. Gross profit in the fourth quarter increased to $22.3 million from $21.3 million in the fourth quarter of 2024. Gross margin was 87.6% for the fourth quarter. Net loss improved to negative $0.5 million or negative $0.02 per share as compared to a net loss of negative $0.8 million or negative $0.03 per share in the year ago quarter. Operating cash flow was $1.8 million for the fourth quarter with free cash flow improving $1.1 million from a year ago quarter to $1.7 million, representing the eighth consecutive quarter of positive free cash flow. Shifting to the 2025 full year financial results. Revenue for the year was $99.0 million as compared to $89.3 million in 2024, representing 11% growth on a year-over-year basis. Gross profit increased to $86.2 million from $76.9 million in 2024. Gross margin increased to 87.1% from 86.1% -- we expect gross margin to remain at this level for fiscal year 2026. Loss for the year was negative $4.5 million or negative $0.18 per share as compared to a loss of $5.2 million or negative $0.22 per share for 2024, with increased marketing spend and amortization and an operating cash flow of $5.7 million. For the year, free cash flow improved by $2.2 million to $4.9 million from $2.7 million in the prior year, further reflecting ongoing operational discipline. Our cash balance increased to $13.5 million as of December 31, 2025, up from $5.9 million a year ago with a fully available $10 million line of credit. The company's financial position continues to strengthen with double-digit revenue growth, improving margins and a growing cash balance through accelerating cash flow generation. We have all of this with 0 debt outside our mortgage on our campus, which we finalized a new 5-year extension in December. In summary, Gaia has a strengthening balance sheet. We continue to manage costs carefully and maintain healthy margins while investing in the strategic areas that will create long-term value for our shareholders. That completes my summary. I'd now like to turn the call back over to Jirka for his closing comments. Jirka Rysavy: For a summary, in this year, we expect similar annual revenue growth rate as we just had with continuing growth of ARPU and focus on direct member, increasing gross profit per employee and continued generation of positive cash flow. This concludes our remarks. So I would like to open the call for questions. Operator, please? Operator: [Operator Instructions] Our first question comes from Ryan Meyers with Lake Street Capital. Ryan Meyers: Kiersten, congrats on the great quarter and being able to deliver on both the ARPU and the member growth. So just thinking about the member growth that you have seen, can you just speak to the willingness of your customers and their ability to continue to pay these higher prices as you guys enact the price increases as you did in the fourth quarter? And then how you're thinking about that in Q4 -- or sorry, in 2026? Kiersten Medvedich: Sure. Well, our member growth in Q4 was driven by strong execution and typical seasonal strength within our core SVOD business. And as far as our price increase, we are delivering more value to our members between rolling out our AI Guide and a very strong content slate and our AI personalization. So as the price increase, we already rolled it out this quarter, and we're already seeing lower churn as compared to last year or the previous price increase. Ryan Meyers: Got it. And then -- as we think about 2026 and some of the initiatives that you guys do have, Igniton is obviously one of those, how should we think about potentially the ability to monetize that? And then just how you're thinking about that double-digit growth in 2026, maybe the balance across ARPU, and I know you're not going to be giving the member growth or the member number anymore, but just kind of unpack that double-digit growth rate for us in 2026 and what we should be watching for? Ned Preston: Yes. Ryan, it's Ned. So for 2026, our growth will really be coming mostly from our core business. So in regards to the price increase, our shift to more of a direct member base as well as just general momentum that we have. That will be the driver, and we'll be watching ARPU quite closely. We will, on top of that, have some of these new business initiatives. You just mentioned Igniton, but we have some others that will add, and we've given some numbers in the past. But really at this point, on a nearly $100 million revenue business, those are not material yet. The majority of our growth will come from our core business. Jirka Rysavy: On the question about Igniton, Igniton did $3.2 million in 2025. And we really introduced the Igniton products in the second part of the year. Otherwise, it was helped by Photonics. So it will grow. I don't want to speak how fast, but it's definitely -- will probably grow faster than the core business. And I think it was all the questions. Operator: The next question comes from the line of George Kelly with ROTH Capital Partners. George Kelly: First, just wanted to make sure I didn't miss something. Did you reiterate the guidance for double-digit revenue growth in 2026? Ned Preston: Yes. George, it's Ned. Yes, that's correct. We are reiterating the numbers that you have for 2026. No changes there. Jirka Rysavy: What I said in the call will be roughly same as this year. George Kelly: And then how much pricing are you taking? Ned Preston: So we're between 14% and 17% price increases. And again, that's to all new customers and to all existing customers in opt-out countries, similar to what we did in October of '24. George Kelly: Okay. And then a couple of other questions for me. AI licensing, I was wondering if you could give any detail just on the status, if that's still something you're contemplating? And if so, what's the expected timing and materiality of any of those potential AI licensing deals? Ned Preston: Yes. So that really didn't factor in, in Q4. We're really still at the beginning stages of our AI and content licensing efforts. We're still going down that path, and we anticipate maybe a small pickup. But again, these are onetime nonrecurring revenue streams. And anything that would hit here in 2026 would really drive a little bit of upside. The numbers that we've reiterated to you are really our core business, and we're not reliant on those really nonmaterial numbers from licensing. So nothing yet. It's not something that we're going to stop pursuing, but it's not something that we're dependent on either. George Kelly: Okay. Okay. And then last one for me is just about community. I was wondering if you could go to the mailback -- can you hear me... Kiersten Medvedich: Can you repeat that question? George Kelly: Yes. Sorry about that. So community. Can you give more detail just about the sort of timing of different community initiatives and what you're most excited about, I guess, with respect to the community offering in 2026? Kiersten Medvedich: Okay. So for community, we remain on track to launch the community experience later this year, and I will be very, very excited to talk about it when we're closer to launch. But right now, we're still building it. Jirka Rysavy: It's kind of closer to -- that means we might do the different tests, but actual launching is closer to the end of the year. George Kelly: Yes. Operator: The next question comes from James Sidoti with Sidoti & Company. James Sidoti: Can you give us a sense on what percentage of your 900,000 subscribers are third-party subscribers and what the plan is to convert those subscribers to direct subscribers? Ned Preston: Yes. Jim, it's Ned. So really, we have shared that in the past. I think we've, in the past, talked about trying to limit that to 20% from a number of third-party members as well as revenue attribution. So we'll work towards kind of bringing that down a couple of percentage points to Kiersten's earlier points around kind of a focus on first party. So for 2025, it was around that 20% level, and we'll take it from there going forward. James Sidoti: Okay. And do you have specific things you can do to convert those that 20% to direct members? And can you give us a sense on how that -- how you can accomplish that? Jirka Rysavy: We're not going to planning to per se actively convert a lot. We'll convert some percentage. But I think it's a valid channel. We just need to focus on marketing on our direct channel. Kiersten Medvedich: Yes. And we'll be coming out with really strong brand campaigns this year so to let the broader audience know what the value prop is for coming to Gaia as a direct member. James Sidoti: And it sounds like you expect to continue to be free cash flow positive. Any plans for that cash? Are there acquisition targets out there? Do you plan to share buyback? Can you share what your plans are for that? Ned Preston: Yes. So Jim, just to be clear, our plan is to continue to be free cash flow positive. We've been free cash flow positive the last 8 quarters. But what Kiersten shared earlier is for us to be P&L positive by Q4 of this year and really not to comment on any of those other specifics. We have a strong business model with our SVOD business. We are rolling out some of these new strategic initiatives, but not really ready to comment on any sort of acquisition or other elements at this time. Operator: At this time, this concludes our question-and-answer session. I'd now like to turn the call back over to Mr. Rysavy for his closing remarks. Jirka Rysavy: Well, thank you, everyone, for joining, and we look forward to speaking with you when we report the first quarter results in early May. Thank you. Operator: Thank you for joining us today for Gaia's Fourth Quarter 2025 Earnings Conference Call. You may now disconnect.
Operator: Good day, and thank you for standing by. Welcome to Monadelphous 2026 Half Year Results Presentation. [Operator Instructions] Please be advised that today's conference is being recorded. I'd now like to hand the conference over to Kristy Glasgow, Company Secretary. Please go ahead. Kristy Glasgow: Hello, and welcome to the Monadelphous 2026 Half Year Results Investor and Analyst Briefing. I'd like to begin by acknowledging the traditional owners of the lands on which we are joining you from today in Boorloo, Perth, the Whadjuk people of the Noongar nation and the traditional owners of country and her respects to elders, past, present and emerging and extend that respect to all aboriginal and Torres Strait Islander people. Presenting from Perth are Monadelphous' Managing Director, Zoran Bebic; and Chief Financial Officer, Phil Trueman, who are joined in the room by our Chair, Rob Velletri. Throughout this presentation, the speakers will guide you on when to click through to the next slide. The structure of this morning's presentation will be similar to previous results presentations with some further detail provided as appendices. Copies of today's presentation and associated materials are available on our website at monadelphous.com.au. I will now hand over to our first presenter today, Zoran Bebic, who will start on Slide 2. Zoran Bebic: Thanks, Kristy, and welcome to our 2026 half year results briefing. Today, Phil and I will present our financial and operational performance for the 6 months ended 31 December 2025, as well as our outlook. We will then answer any questions you may have. I'll begin with our group performance and highlights on Slide 3. Monadelphous has had a fantastic start to FY '26, achieving a record revenue of $1.53 billion for the half year, which is a 46% increase on the prior corresponding period. We experienced strong operating conditions across all sectors with activity levels supported by the record level of work secured during the previous financial year. Our Engineering & Construction division delivered revenue of $677.8 million, up around 67% on the prior year, supported by service expansion and growing capability in end-to-end delivery, particularly from Melchor and Inteforge. Zenviron, our renewable energy business, also saw increased levels of project activity from larger wind and battery energy storage projects. Our Maintenance and Industrial Services division reported a record half year revenue result of $852 million, up 32% on the same time last year, reflecting an increase in energy sector activity and sustained strong demand in iron ore. Earnings before interest, tax, depreciation and amortization was $116.2 million, an increase of 46% on the prior year, delivering an EBITDA margin of 7.59%. Strong operational performance resulted in net profit after tax increasing 53% on the prior year to $64.9 million, delivering earnings per share of $0.652. The Board declared a fully franked interim dividend of $0.49 per share. We ended the half year with a cash balance of $322 million and a very strong cash flow from operations of $171 million, resulting in a cash flow conversion rate of 186%. Phil will talk about this more later. We continue to progress our markets and growth strategy. In late 2025, we acquired Perth-based Kerman Contracting, a design and construct business specializing in nonprocess infrastructure, with a long-established reputation for the successful delivery of site infrastructure and accommodation, bulk storage and materials handling facilities across a range of sectors. We also acquired Australian Power Industry Partners, APIP, a high-voltage electrical contractor based in Brisbane. APIP is a specialist provider of end-to-end high-voltage solutions, including design management, procurement, construction and renewals of power transmission, distribution and substation infrastructure. We also completed the acquisition of Perth-based high-voltage business, High Energy Service, further strengthening our electrical capability. These acquisitions support the broadening of our delivery capability and open new markets for us. Moving now to Slide 4. Monadelphous has secured a healthy $1.4 billion in new contracts and contract extensions since the beginning of the 2026 financial year. Strong demand for construction and maintenance services from Western Australia's iron ore sector continued, and we were awarded more than $1 billion of contracts with blue-chip customers. This comprised several major construction contracts, including a multidisciplinary contract for BHP’s Jimblebar Train Loadout replacement project with earthworks and civils to be delivered by Melchor and fabrication and procurement provided by Inteforge. We also secured a $175 million contract with BHP associated with the car dumper project at Finucane Island in Port Hedland as well as an integrated multidisciplinary contract with Rio valued at around $250 million associated with the Brockman Syncline 1 iron ore deposit development. We're awarded a 5-year maintenance services contract with Rio Tinto totaling approximately $300 million to continue providing fixed plant and shutdown services across Rio's Pilbara iron ore operations. We also secured a 3-year extension to our maintenance master services agreement across BHP's Pilbara operations and were appointed to the BHP WAIO Site Engineering Panel for another 2 years. In the energy sector, we expanded our customer base with the award of a 4-year contract with BW Offshore to provide maintenance services at the BW Opal FPSO facility, approximately 300 kilometers north, northwest of Darwin. We also secured a contract for the hookup and commissioning of Shell's Crux platform off the coast of WA, which forms part of the long-term backfill to Shell's Prelude facility. Zenviron was awarded a contract with Flow Power for the delivery of the Bennetts Creek Battery Energy Storage System in the Latrobe Valley, Victoria, which includes a balance of plant design, construction, installation and commissioning. Over the next few slides, we will cover the key areas of focus under our sustainability framework being people, safety and well-being, diversity and inclusion, community and environment. Moving now to Slide 5, People. Our total workforce at 31 December 2025, including subcontractors, was around 8,400, reflecting sustained high levels of activity across the business. We remain focused on investing in the development of our people and saw around 150 emerging leaders participating in our suite of leadership and mentoring programs and approximately 340 graduates, apprentices and trainees participating in our early career programs. Our registered training organization engaged with over 5,000 trades personnel with more than 6,500 training interactions during the period, comprising high-risk work license accreditation and verification of competency. We also continue to offer services such as skin checks and resources to support our employees' physical, mental and emotional well-being. Let's now look at Safety and Wellbeing on Slide 6. Our high potential incident frequency rate returned to historically low levels and the 12-month injury frequency rate at the end of December was 4.34 incidents, a slight improvement to that of 30 June 2025. In line with our guiding principle, the safe way is the only way, we continue to implement targeted campaigns to drive improved safety performance. Our ongoing fatal risk awareness program is focused on active hazard monitoring and verification of controls during high-risk tasks. As a part of this, we reviewed our forklift operations and implemented a range of improvements aimed at preventing loss of control of loads and making pedestrian interactions with mobile plant safer. We also reviewed the effectiveness and efficiency of high-risk work competency assessments and continue to use drone technology to eliminate the need for people to enter confined spaces. We again achieved recognition for our commitment to safety, wellbeing and innovation with awards and nominations from various industry bodies, including ARIA, the Crane Industry Council of Australia, Workplace Health and Safety Foundation and Demos. Moving now to Diversity and Inclusion, Community and Environment on Slide 7. We maintained our focus on leaving a positive legacy in our local communities, strengthening diversity and inclusion across our workplaces and progressing towards our goal of Net Zero. We continue to support employment pathways and development opportunities for indigenous Australians through traineeships, apprenticeships and the Indigenous Pathways program in partnership with Rio Tinto. Pleasingly, our Aboriginal and Torres Strait Islander workforce participation rate of 3.3% continues to exceed our target. We progressed renewing our next stretch reconciliation action plan, continuing to focus on indigenous employment, training and development and supporting indigenous businesses. Our spend with indigenous businesses continues to grow, more than doubling that compared to the same period last year to around $20 million. We continue to promote development opportunities for women across the business, and our efforts were recognized externally with a number of our people honored at industry awards, including at the BHP Women in Resources National Awards and the Gladstone Engineering Alliance Awards. Our community grants program expanded to include Gladstone in Queensland, Roxby Downs in South Australia and Kalgoorlie, Newman and Port Hedland in WA, with 8 regions now participating in the program. We also launched our inaugural Local Legends campaign to showcase our people making exceptional contributions to the community. To minimize the impact of our operations on the environment, we continued transitioning our facilities to renewable power with the installation of the sold system at our workshop facility in Darwin and expanded the rollout of our electric and hybrid vehicles. Turning now to our Engineering Construction divisional highlights on Slide 8. Our Engineering Construction division reported revenue of $677.8 million for the 6 months, an increase of 67% on the prior corresponding period. The result was driven by strong demand for construction services across all sectors, particularly iron ore and energy with a greater contribution from vertically integrated projects. The division has secured approximately $770 million of new work since 1 July 2025. We successfully completed BHP's Car Dumper 3 renewal project in Port Hedland and Orebody 32 in Newman as well as services at Rio Tinto's Western Range project in Paraburdoo. We also secured an electrical and instrumentation package at Rio Tinto's Parker Point near Dampier. Work progressed on a multidisciplinary contract at BHP's Prominent Hill copper expansion project in South Australia. We also completed work at Talison Lithium's Greenbushes site in the southwest of WA. Melchor continued structural concrete works at Perdaman's urea plant located near Dampier, with Alevro providing heavy haulage services to the project. Melchor also progressed work on the Geraldton Port maximization project in WA for Midwest Ports Authority. In the energy sector, we progressed construction works on modifications to the existing Woodside-operated Pluto LNG Train 1 facility near Karratha, with Alevro also providing specialist haulage and lifting services to other Woodside-operated facilities in the region. We also continued the installation and modification of essential electrical power and control infrastructure at Chevron Australia's Jansz-Io compression project. Inteforge continues to support Iluka's Eneabba Rare earths refinery project with the supply and fabrication of structural steel work and pipe racks and secured a 2-year extension to its agreement with Origin for the supply of modularized equipment for APLNG in Queensland. In the renewable energy sector, Zenviron progressed the balance of plant works for the Warren Battery Energy Storage System, or BESS, for EnergyAustralia in the Latrobe Valley, Victoria, as well as balance of plant works at CS Energy's Lotus Creek wind farm in Central Queensland. Work also progressed with the construction of Fortescue's North Star Junction Best supporting Fortescue's commitment to decarbonizing its Pilbara operations. Looking now at our Maintenance and Industrial Services division on Slide 9. Our Maintenance and Industrial Services division reported revenue of $852 million for the half year, up 32% as we saw strong demand continue for services, particularly in the energy and iron ore sectors. Since the beginning of the financial year, the division has secured approximately $640 million in new contracts and contract extensions. A significant volume of work was delivered for our energy customers, including shutdown and other major works for INPEX with over 1,000 people mobilized across offshore and onshore facilities over the period. We continue to provide ongoing maintenance and turnaround services for Woodside's onshore and offshore gas production facilities in WA's Northwest. This included preparations for shutdown activity and planning work associated with the hookup and commissioning of Woodside's floating production unit in the Scarborough gas field. We continue to deliver maintenance and minor construction services for Shell at the Prelude FLNG facility and at QGC's Curtis Island LNG operations in Gladstone, Queensland. As previously mentioned, we expanded our customer base in the energy sector by securing a 4-year contract with BW Offshore. WA's iron ore sector continued to drive strong demand, and we provided fixed plant maintenance services and sustaining capital projects to Rio Tinto, fixed plant services to Fortescue and general maintenance services to BHP. For Rio Tinto, we secured a 12-month extension to provide marine infrastructure maintenance and minor projects at Rio's Cape Lambert and Dampier ports. We're also awarded a contract for modifications to the existing process plant at Rio Tinto's Hope Downs 2 project. In addition, we continue to deliver fabrication supply, installation and commissioning services at the Tom Price mine as well as nonprocess infrastructure services at Brockman 4. Under our BHP WAIO asset projects framework agreement, we secured works at Berth C and D at the Finucane Island port facilities in Port Hedland. In South Australia, we continued at BHP's Olympic Dam mine site in Roxby Downs as well as South32's Worsley Alumina Refinery operations in WA. For Newmont's gold operations, we secured a 5-year extension to our existing contract delivering general maintenance services in Boddington WA and Tanami Northern Territory and provided sustaining capital projects and maintenance at Lihir Island in Papua New Guinea. Also in PNG, we continued work for Santos in the Southern Highlands region, where we secured the contract for the demolition of the Hegigio Pipeline Bridge. We'll now move to Slide 10, and I'll hand over to Phil, who will provide you more detail on our financial performance. Philip Trueman: Thank you, Zoran, and good morning, everyone. So this slide, Slide 10, compares our financial performance for the half year ended 31 December 2025 to that of the previous corresponding period. And as you can see, it's been a very strong 6 months from a financial perspective. Revenue from contracts with customers is $1.53 billion, which is up around 46% from last year. And earnings before interest, tax, depreciation and amortization was $116.2 million, an increase of 46% on the prior corresponding period and results in an EBITDA margin of 7.59%. And as Zoran mentioned, our strong operational performance delivered net profit after tax of almost $65 million, up 52.6% on last year, resulting in earnings per share of $0.652. And the Board declared an interim dividend of $0.49 per share fully franked with the Monadelphous dividend reinvestment plan to apply to the interim dividend. We ended the half year with a very strong cash balance of $322 million, which was boosted by a number of material advances received during the period. The cash balance included about $20 million from the acquisition of Kerman Contracting, which was owed to the vendors under the terms of the acquisition. Increased activity levels within the business in the months leading up to 30 June 2025, so the end of the last financial year, resulted in a significant increase in receivables at that date. The collection of these debtors balances during the 6 months contributed to a very strong cash flow from operations of $171 million. And as a result, our cash flow conversion rate for the half year was a very pleasing 186%. And our strong balance sheet remains a key enabler of our markets and growth strategy and supports us in building a more diverse and resilient business. So I'll now hand you back to Zoran, who will provide you with an overview of the outlook for our company. Zoran Bebic: Thanks, Phil. Slide 11 shows relevant current and forecast Australian market conditions for our business. Pleasingly, as you can see, the sectors in which we operate continue to provide a positive outlook for both capital investment and operating expenditure over the next few years. Turning to Slide 12, Energy Transition. Australia is undergoing a major energy transition moving towards a decarbonized economy. At the same time, demand for energy is growing rapidly, partly impacted by the rise of artificial intelligence and the expansion of data centers. This represents a long-term opportunity that will play out over decades to come and which will require a significant level of investment. Monadelphous is well positioned to play a key role in this transition by leveraging our core and acquired capabilities and further developing new services across the sectors shown on the slide. Our recent acquisition of APIP expands our capability and supports our positioning in the HP transmission and distribution sector. You'll hear more about progress, outlook or the progress/outlook column on the next slide. We see this as the early phase of what is expected to be a strong long-term pipeline of opportunities. Moving now to the outlook on Slide 13. Long-term demand in the resources and energy sectors is expected to remain strong, supported by an improved global economic growth outlook, albeit against the backdrop of trade tariffs, geopolitical tensions and ongoing conflicts. High production levels across most commodities continue to drive demand for sustaining capital works and maintenance services. Iron ore prices remain firm, supporting current production rates and underpinning ongoing investment in both new projects and existing operations across Western Australia's iron ore sector with a continued focus on productivity to maintain competitiveness. The outlook for energy transition metals continues to strengthen with battery metal prices recovering. Over the medium to long term, development in the mining and mineral processing sector, particularly for copper, other base metals and critical minerals is expected to accelerate to meet growing demand, driving significant investment. The energy sector continues to offer substantial opportunities, supported by gas construction projects and sustained demand for maintenance services. We remain well positioned to support customers across the full asset life cycle, including late-life operations and decommissioning. Australia's Net Zero emissions objective continues to drive long-term investment in energy generation, storage and transmission infrastructure despite some constraints arising from planning approvals and network access. Monadelphous is well positioned to capitalize on the energy transition opportunities by leveraging our broad service capability and expanding our high-voltage service offering, while Zenviron is well placed to secure further wind farm and [indiscernible] projects. We will continue to support the resources and energy sectors decarbonization projects programs, working collaboratively with customers and third-party energy providers to deliver a growing pipeline of opportunities. Pleasingly, our committed pipeline remains strong with more than $1.4 billion in new contracts secured since the beginning of the financial year. Following record first half revenue, full year revenue for FY '26 is currently forecast to be approximately 30% higher than the prior year, with first half operating margins maintained. We remain committed to delivering quality earnings through a selective approach to new work, collaborative customer relationships, high standards of execution and a disciplined approach to the allocation of risk. Supported by a strong balance sheet, we will continue to build and leverage our enhanced delivery capability while maintaining the flexibility to pursue strategic opportunities that support long-term sustainable growth. In closing, I'd like to thank the entire Monadelphous team for their dedication and commitment, which are fundamental to our continued growth and success. I also extend my gratitude to our customers, shareholders and many other stakeholders for their ongoing trust and support. Thank you. I'll now hand over to the operator for any questions. Operator: [Operator Instructions] We will now take our first question from the line of William Park from Citi. William Park: Perhaps the first question I had was just around how you're thinking about balancing Monadelphous' pursuit of revenue and earnings growth beyond FY '26 and balancing that out with sort of [indiscernible] and productivity management? Just noted that your workforce have sort of stepped down in the last 6 months or so. But are you confident that there's sufficient headroom in your current workforce to perhaps deliver on another, I guess, strong growth into FY '27? Zoran Bebic: Yes. I think that's a fair point, Will. I guess the way we're thinking about it is with the top line or the revenue guidance we provided 30% growth on the previous financial year. And if you look at the growth profile over the last 2 years, it will be in excess of 50%. So I think that will prove challenging to deliver growth next year. I think recognizing also that in the maintenance revenue result was a very strong result and there is a component of work in there that's in the sustaining capital category that won't replicate in following periods. And in the EC numbers, very strong result. That will be more a function of timing of project awards and the timing of customer commitments to projects going forward. So I guess that's a challenge we've got to balance all of that. But certainly, we're seeing -- I mean, if you think about it another way, the way I think about it, 50% growth over the last 2 years, that's essentially 4 or 5 years' worth of growth in a 2-year period. William Park: And then one last -- my second question is around the -- how you're thinking about the margin profile beyond this year? I appreciate that you're expecting sort of that 7.6% margin to continue through to second half. But are you expecting that to be sustainable as you move beyond FY '26? I appreciate that a lot of this has to do with the business mix, but just wondering whether that 7.6% is sustainable going forward? Zoran Bebic: Well, we're going to work as hard as we can to try and deliver on that. A couple of further comments. I mean, we've seen a significant volume and clearly, volumes helped with the amortization of some of our fixed semi-fixed costs. But the other point I'd make, which I said last year as well and probably supports this trend that we've seen in terms of margin enhancement or improvement over the last couple of years, we've got through this 6-month period. And aside from levels of activity being strong, our operational performance has been exceptional across the business. And that clearly supports a position on margin. William Park: So in comparison to prior periods, has there been improvement in productivity or less of a cost pressure than what you've seen in the past? Because I might be reading too much into it, but just looking at your outlook slide, there's not a single point expressing sort of headwinds or any headwinds for that matter. Just wondering if you're seeing higher productivity now versus 6 to 12 months ago or less of a cost pressure? Zoran Bebic: I think it's a combination of factors. I don't think it's -- I don't think I could attribute a significant component of the margin uplift to one element. And if I was to, I'd go back to the point that I made just a little earlier around our performance in terms of execution of work has been not just strong but consistent across the business, and that's always a significant driver of margin outcomes. Operator: We will now take our next question from Jakob Cakarnis from Jarden Australia. Jakob Cakarnis: Congrats on a strong result. Can I just still stay on Will's focus on the EBITDA margins, please? It seems like there's a little bit of a change to how you guide us. I think this is the first time that I can remember that you've given us explicit EBITDA margin guidance. What's giving you the confidence at the moment to provide that, please, Zoran? Is it a matter of the work that you can see in front of you immediately? And then, I guess, to dovetail into your answer just before the productivity is still washing through the business? Zoran Bebic: Yes. I think it's a function of -- I mean, we talked about in the outlook statement, the record level of work that we secured last financial year. So going into FY '26, we weren't just in a strong position, but we have a little more clarity. And as work is progressing, we've got -- so we've got greater visibility than we've had. So we've got a high level of confidence in marking a position around expectations around margin. Jakob Cakarnis: Understood. And then just one for Phil, if I could, please. Just on the CapEx intensity, obviously, it's been bouncing around a little bit with some of the capital works that you guys have been doing from year-to-year. I note that the first half, you were around $23 million of CapEx versus $14 million for the full year of '25. How do we think about that one moving forward, please, Phil? Are we just investing for the growth that you see in the business at the moment? Or is there any fundamental step change there, please? Philip Trueman: No, there's no fundamental step change at all. I mean, I think you have to look at it over a longer period of time, Jakob, rather than just a 6-month period. I actually think it was a bit higher than the number that you quoted there, it's probably about 35% or something. But if you the 30% growth on last year takes you to just short of $3 billion, I would expect our CapEx would be around that long-term 2% of revenue where it has been over many, many, many years. So it takes you to 60, 65. So sort of take the first half and double it. I wouldn't expect it to be any different from where it has been on the long-term running rate. Jakob Cakarnis: And then I guess, accompanying that, are we expecting a few extra million of depreciation in the second half just as that capital investment washes through, please? Philip Trueman: I think comparing between the halves, there was probably a 5% or 6% increase in depreciation, and I would expect that number to be similar for the full year as well. Operator: We will now take our next question from Branko Skocic from E&P. Branko Skocic: Congratulations on a really strong result. Obviously, iron ore sustainment work remains a key focus for the business and listening to the majors, it does sound like there's still got a lot of work to come, thinking projects like Ministers North, the multiyear Car Dumper Renewal at Port Hedland and so forth. So just keen to understand, I guess, if you think we could sustain current iron ore revenue run rate for, I guess, a 3- to 5-year period. Zoran Bebic: Yes. I think you did a good job of articulating the opportunities. I think thematically, yes, I think we'll continue to see a program of larger sustaining capital projects in the portfolios of the majors as well as a couple of greenfields projects in the sustaining capital space, port upgrades, you talked about car dumpers, balance machines, mines, more dewatering programs and initiatives. And then if you're talking about specific mine developments in the Rio. With Rio, it probably looks like Rhode Valley, Gudai-Darri, Rhodes Ridge a little further out. And with BHP, you touched on Ministers North opportunity are probably the key opportunities. But it does look like -- at this stage, it looks like a pretty strong portfolio of opportunities. Branko Skocic: No, that makes sense. And I guess the second question, just on the topic of labor, I'd just be interested in any areas that you're seeing specific tightness at the moment, obviously, noting that the broader commodity complex has rebounded over the past 6 to 12 months as well. I think there’ is something I want to order. Philip Trueman: You’ve raised that there, Branko. Do you want to ask that one again? Branko Skocic: Yes, sorry about that. Just on the topic of labor, I'd be interested in any areas that you're seeing specific tightness, just noting, I guess, the broader rebound in the commodity complex. Zoran Bebic: I think the labor market is still pretty tight. The way I'd frame it is we've seen a slight moderation, but it's still generally tight. The depth of the labor pool, whilst there might be a few more people in the market, the depth of labor pool and the quality hasn't necessarily improved materially. And there are certainly still quite a number of classifications and disciplines that are really, really tight. For example, electrical trades continue to be very tight, but they're not an exception. Operator: We will now take our next question from Nicholas Rawlinson from Morgans. Nicholas Rawlinson: Congrats on the result. Just a couple from me. How should we think about the profile of maintenance revenue in the first half into the second half? Like usually, there's a skew to the first half, but it sounds like you had a few one-off jobs. So just wondering how that will impact the profile? Zoran Bebic: I think the profile for the second half won't necessarily -- I mean, it won't be dissimilar in the sense that some of this one-off nonrepeatable work will continue for part of the period and turnaround activity looks pretty reasonable in the second half. So the thematic for me is more around FY '27 in terms of a step down of revenue for maintenance. Nicholas Rawlinson: Okay. That's helpful. And just on awards, like it sort of feels like you've gone through quite a heavy recontracting cycle in maintenance, and you've also won a lot of work in E&C. The book-to-burn is still above 1. What does the award environment look like going forward over, say, the next 6 to 12 months? Zoran Bebic: Well, I think in the -- certainly in the shorter term, I'd expect to see some more contract updates in terms of announcements in the maintenance space as well as the awards in or construction-related awards as well. It's probably a more steady flow of awards than you saw in that. You saw in the lead up to that Christmas and early New Year period, we had a significant level of contract awards. I think it was $850 million of contract awards in a 3-week period. You won't see that again, but it will be more consistent, steady. Operator: We will now take our next question from John Purtell from Macquarie. John Purtell: Well done on the result. I have a couple of questions. Maybe just a follow-on from Nick's question there. I mean just in terms of the bidding pipeline, any sector shifts to call out? Energy transition sort of again features prominently in the presentation there. So we're seeing a bit of a migration maybe into that area and maybe away from that traditional iron ore, oil and gas area? Zoran Bebic: I think the opportunities are strong in that market, but you need to appreciate that we're building in our capability and our service offering in that market. So it will take some time to build the revenue profile for us to build a significant revenue profile in that market. John Purtell: And an add on to that, I mean, Zoran, in the past, you've talked around some element of project delays, and that's always inherent, but you're seeing sort of clients more readily move forward with projects now than, say, 6 to 12 months ago? Zoran Bebic: I think if I went back 6 months ago, there was certainly a burst of activity in terms of project approvals and proceeding. It will be a timing issue. It's still taking time. And I'd probably make the comment that it feels -- as a general observation, it's early, but it does feel like a few of these opportunities are drifting a little. John Purtell: And just the last question, if I may. Just a question on margins. I know a couple of questions have been asked on this already, but I suppose the broad question is, do you still see an opportunity to improve margins in the medium to longer term? Obviously, there's a few moving parts within that, but how do you see that profile? Zoran Bebic: Yes. So the question was asked earlier around factors contributing to margin and I responded with we've got a little more visibility at the moment. There's some economies of scale. There's the mix of business in terms of the EC revenue growth. And we've certainly had -- and I've said this twice already, we've certainly had really pleasingly consistent and strong performance execution delivery across the business. So I mean, absolutely, we've got aspirations I'd like to grow the margins, but we've got to work hard to maintain the margin we delivered in the half year. Operator: [Operator Instructions] We will now take our next question from the line of Daniel Kang from CLSA. Daniel Kang: Zoran, you mentioned earlier that we've probably seen 50% of growth in the past -- that's worth about 4 to 5 years in the past 2 years. Just trying to reconcile that comment with what you've got on Slide 11, which looks like industry charts out to 2030 look pretty steady to growth. Should we sort of take that as your revenue side of things looking quite stable over the next few years? Zoran Bebic: I mean that's -- I mean, we're projecting -- we're trying to project out a long way. I think the reality is that, that slide in terms of the outlook suggests that levels of activity across the different market sectors to look pretty strong, but a small increase in CapEx and spend. And the point that you made at the start of this, we've seen a tremendous amount of growth over the last 2-year period. We've got to make sure that we can stabilize the business and continue to build off that and ensure we're not putting too much stress into the business. Daniel Kang: Yes, makes sense. And can you talk a little bit about your recent acquisitions, how they've performed, how they've integrated into the core business? And looking forward, any potential gaps in your portfolio at the moment that you'd be looking at in terms of M&A? Zoran Bebic: Yes. So if you look at the high Energy service business, it's been within the Mono business for a 6-month period. The integration is at the back end. It's tracking consistent with what we expected or the acquisition business case. In relation to APIP and Kerman, essentially, they're businesses that we've only acquired and completed in the last couple of months. So we're working through a process to integrate them and to start understanding how we can leverage the capability that those businesses have. So their contribution has been very modest in the last couple of months. In terms of the other part of your question, I think there are some areas more broadly we're looking at, but I talked about the energy transition market and the size of the opportunities there. And we're slowly building capability and services in that market. So I think there are potentially some opportunities in that market going forward in terms of potential acquisition opportunities. Daniel Kang: Just last one maybe for Phil. Phil, in terms of cash flow conversion, obviously, very strong in the period. Is there an element of seasonality? What's the sort of normalized level that we should be looking at? Philip Trueman: No, there's no seasonality in it. I mean if you look over a long period of time and average it out, we have 100% cash flow conversion rate, but it can swing quite a lot between halves. If you take this last half that we're reporting on now, I think the conversion rate was 186%. If you took the calendar year of 2025, the conversion rate is about 112%, I think it was. It really just depends on your level of advances that you may be able to negotiate on jobs, how and when they unwind, how you close jobs out. And then quite honestly, the biggest factor, and it is the most simple factor is how your customers pay you around the reporting period end. If you get a big bill that is paid on the 30th of June as opposed to the 1st of July, it can make a big difference to the cash flow conversion rates in those periods. So there is very little seasonality in it at all. And the conversion rate always ends up being around that 100%, which is exactly where we want it to be. Zoran Bebic: One of the great things about being in contracting, you've got to allocate a lot of effort to manage it and very hard to forecast. Operator: We will now take our next question from Nathan Reilly from UBS. Nathan Reilly: James, can you just help me explain what happened with the headcount, just the reduction in staff numbers you saw over the last 6 months? I appreciate it's a point in time on both staff points, but just what's going on there? Zoran Bebic: Yes, there are probably 2 elements to it, Nathan. One is, I don't like to use the term seasonality, but there is an element of that in terms of a component of the workforce is casual, the Christmas and New Year period, they're not necessarily paid. So your numbers look a little wider. So it makes more sense to compare December periods to December periods. But having said that, in the last couple of months in the lead up to December, we did have a couple of projects that are coming to the back end. So numbers were coming off on a couple of significant projects. Nathan Reilly: Got you. Okay. So I presume they ramped up again if we're looking at today's number. William Park: Probably holding at similar levels, maybe up a little. Nathan Reilly: Okay. Final question, just is there something we need to sort of consider in relation to maintenance margins? And I know you don't disclose those margins. But I'm just curious to get a sense on what's happening maybe under the bet in terms of the mix within your maintenance revenues at this point in the cycle. Are you taking -- is there something going on there in terms of the way you price risk? Or is there a shift there just in terms of the nature of some of the maintenance projects, smaller sustaining capital projects that you... Zoran Bebic: Yes, I think that's an important point. When we talk about maintenance business and we talk about maintenance work, there's a spectrum there in terms of types of jobs ranging from pure maintenance through to smaller sustaining capital projects and some of those will be fixed price projects. So you've got a real mix within the maintenance business as well. And depending upon what the profile of that looks like has a little bit of an influence on the margin outcome. Operator: I'm showing no further questions. Thank you all very much for your questions. I'll now turn the conference back to Kristy Glasgow for closing remarks. Kristy Glasgow: Thank you all for your participation today. That now concludes our briefing. Zoran Bebic: Thanks everyone. Operator: Thank you for your participation today's conference. This does conclude the program. You may now disconnect your lines.
Operator: Good morning, ladies and gentlemen, and welcome to Galp's Fourth Quarter and Full Year 2025 Results Presentation. I will now pass the floor to Joao Goncalves Pereira, Head of Investor Relations. Joao Pereira: Good morning, everyone, and welcome to Galp's Fourth Quarter and Full Year 2025 Q&A session. In the room with me, I have both our co-CEOs, Maria Joao Carioca and Joao Marques da Silva as well as the full executive team. But before passing the mic for some quick opening remarks, let me start with our usual disclaimer. During today's session, we will be making forward-looking statements that are based on our current estimates. Actual results could differ due to the factors outlined in our cautionary statement within the published materials. With this, Joao, would you like to say a few words? Joao Diogo da Silva: Thank you. Thank you, Joao, and good morning, everyone. Let me start by acknowledging the rapidly evolving and deeply concerning conflict in the Middle East, which is increasing geopolitical risk across the globe. The escalation, including strikes on critical infrastructure and threats to vital shipping routes has materially increased uncertainty in global energy markets and the broader macro environment, reinforcing the need for resilience and discipline. Despite this increased volatility and looking back at 2025, it was a remarkable year for Galp, marked by consistent strong operational performance and disciplined project execution. Allow me to highlight a couple of key points. Starting with Brazil, where production reached in average 111,000 barrels per day, above 2024 levels with high fleet availabilities and strong resiliency of our main reservoirs. On top of that, Bacalhau reached first oil and is showing high productivities as we ramp up the unit throughout the year. In Sines, our low-carbon projects are advancing as planned, and we expect to start commissioning the plants by the end of the year. Midstream and commercial had very supportive strong performances in 2025, resulting in a robust group operational cash flow of EUR 2.2 billion higher year-on-year, even under a more depressed macro scenario and allowing Galp to maintain a strong financial position. Finally, we've communicated meaningful portfolio evolutions, reinforcing Galp investment case. Earlier this year, we've announced our intentions to merge our downstream activities with Moeve. We see this as an opportunity to unlock greater scale, resilience and returns in mature and transforming industries, while sharpening Galp's focus and free cash profile. We are working towards the final agreement by mid-2026. Maria Joao, I'll pass it to you. Maria Joao Carioca: Thank you, Joao. Good morning, everyone. Let me just add a few initial remarks on Galp's short-term outlook. Even as the current geopolitical situation evolves and admittedly continues to generate tension and uncertainty certainly for energy markets worldwide. Galp's operations are very much Atlantic centered, and we have been monitoring these developments and already taking action to reroute our equity oil shipments. So therefore, we're not really facing any material direct impact at this point. Nonetheless, and Joao well put it, volatility uncertainty are notably high. And as such, it will be fundamental to sustain our clear focus on operational performance and disciplined financial management. So now looking at Galp's case and also in light of the significant portfolio evolutions that Joao just discussed, which we expect to unfold during the year, we are limiting our guidance only to 2026, and we'll be looking to better update the market on new strategic guidelines once we have more visibility. Overall, we continue to see a strong operational momentum going forward, and our guidance is very much reflective of that. Driven by Bacalhau ramp-up, production is expected to increase at least 15% to a range of 125,000 to 130,000 barrels. Together with sustained industrial and midstream EBITDA contribution of above EUR 700 million and a still strong commercial of above EUR 350 million, we aim to deliver above EUR 2.6 billion EBITDA and an OCF of over EUR 2.0 billion. Now keep in mind that this is, of course, assuming a much weaker macro deck year-on-year. We're assuming Brent at $60 and a dollar-to-year exchange rate of 1.18. If we were to assume 2025 macro, OCF would actually be expected to surpass EUR 2.6 billion, clearly reflective of our portfolio growth. Organic CapEx is expected at around EUR 1 billion with Bacalhau CapEx ramping down, but including activities from Namibia. More precisely, we're expecting one well in 2026 and the possible FID of Venus around midyear. We have strong alignment with Total on the next steps for Mopane and the upcoming exploration appraisal campaign is key to unlock further potential in the Southeast region and ideally to better converge on the development concept for the asset. Finally, we are maintaining our distribution guidelines intact for 2026. So on top of the EUR 0.64 dividend per share that we will be submitting to the AGM in May, we will launch tomorrow a EUR 250 million share buyback to be executed throughout the year. This is sustained year-on-year even under a clearly more challenging macro context that we have been planning for. Operator, we may now take questions. Thank you. Operator: [Operator Instructions] We will now go to the first question, and the question comes from the line of Matt Smith from Bank of America. Matthew Smith: And the first one would be around the potential Mopane development. I mean Total talked to some quite impressive numbers in terms of production rates, recovery rates for potential FPSO there. I guess my specific question was, would it be right to presume that, that would be a development which extracts from both the Northwest and Southeast regions? Or is this potentially just focused on one of those regions, please? That would be the first. And then the second was following up on comments that were in your video transcript talking about adding further depth to the upstream funnel. Just wondered if I could dig into those comments a bit more. Does that expand beyond Namibia, I suppose Mopane and Venus are already in the upstream funnel. Any further color you could give there would be interesting. Maria Joao Carioca: Thank you, Matt. So on the comments on Namibia, I think we've been very clear and try to guide on where we see Namibia standing and the work that remains to be done. So Total's comments are very much aligned with our expectations. I believe you have registered 800 about 1.1 million barrels. So that is what we are looking to now go in and narrow. Now we did see first the Northwest and then we spoke about the more Southeast regions of Mopane as 2 potential regions. The work we have now to be done is very much in trying to narrow down what could be a concept and get full alignment on what can be the wells' locations, the drilling plan, the full complex. So it's still too soon to discuss the development concept. We understand that Total is very much aligned with us and has a vision for the region, which is a very positive one. they've actually put out there the number that we are aligned with, which is approximately 200,000 barrels FPSO, which is a sizable one. But it's clearly something to be developed on how to best articulate these regions and how to best make sure that the development concept is the one that is most value accretive for the region. No specific guidance any further than this at this stage. On the upstream funnel, so indeed -- and again, I think we've been talking very much about there is indeed some CapEx cushion in our numbers. We've always guided for net CapEx precisely because over the past few years, we have been using our CapEx flexibility as a way to manage the portfolio and as a way to make sure that our financial discipline is put in place and that we drive value out of that. On upstream, we are indeed looking to -- it is our growth engine. We are indeed looking to -- even though we now have a much clearer line of sight into growth going forward, we are obviously very focused on maintaining that line of sight into growth and into maintaining that ability of upstream to deliver steady growth at an adequately derisked profile. We are very much aware of our core preferences. So we remain Atlantic Basin. We remain focused in circumstances where we can have a presence with a partner that provides us a solid back into whichever geography we're in. We have had very good experiences with deepwater. So again, the notion is looking into those preferences of ours, but acknowledging that the funnel of available opportunities are out there is always going to have limited options. We will, of course, continue to add to our profile. I'll remind you that we've just added Venus to the profile. That will be a natural follow-up to our Bacalhau. It will also then be in tandem and in sequence with Mopane final delivery. So it's this smooth growth curve that we're looking for and looking for opportunities and that we hope we will be able to bring to the funnel. Matthew Smith: So if I could just follow up on that. Is there a preference to add into the funnel through the drill bit or inorganically? Maria Joao Carioca: I'll just retain the notion of managing the funnel with flexibility, but a very clear idea of the type of assets we would like to deliver or to have options on and certainly, a very clear focus on a growth profile that remains highly visible and very, very transparent. So we would like assets that fit into the portfolio in a way that speaks to the current investment case. Operator: Your next question today comes from the line of Alejandro Vigil from Santander. Alejandro Vigil: Congratulations for the results. One first question will be about the capital intensity of Galp. I know it's difficult, many moving parts, the Moeve transaction. But if this EUR 1 billion of organic CapEx guidance you provided for '26 could be a good reference for future level of CapEx intensity. That will be the first one. And the second one is about the Moeve transaction. Probably you have advanced in terms of discussions with regulators. And just if you can see any obstacles for the transaction or you see a potentially smooth combination of both companies? Maria Joao Carioca: Alejandro, let me start with a bit on CapEx intensity, and then I'll ask Joao to comment on Moeve. So we are guiding for organic CapEx at EUR 1 billion. I think that's what we were alluding to, and that is very much in line with our run rate and what we already saw in 2025. So this, of course, speaks to our continued upstream focus. So upstream continues to be approximately over 40% of where we see our organic CapEx spend. I've already commented to some extent on what we're seeing our net CapEx, and that is, of course, a maintained guidance with a little bit of cushion for flexibility and a bit of headroom. So other than that, it's a very familiar move. So we continue to have relatively light maintenance CapEx. Upstream is still delivering within the framework that this light CapEx provides us. So it's still operating at very low operating costs and with breakevens that in this current circumstances are particularly beneficial. So we're talking about approximately $20 upstream breakevens. So all in all, it's very much focused on light maintenance, both in upstream and also, of course, there's a few remaining elements in downstream, but fundamentally keeping flexibility and making sure that the bulk of our CapEx still addresses growth opportunities. Joao Diogo da Silva: Alejandro, thanks for the question. So it's -- well, it's an ongoing process. We didn't reach yet the authorization moment. So we are expecting to have a final agreement mid-2026. Both parties agreed on preliminary deal guidelines, and we are still discussing further in-depth details and structure. So for now, no authorization process has started, and we are expecting authorizations from the standard authorities. For instance, foreign investment and competition approvals should be required, but not at this stage, only later on. Thank you. Operator: Our next question today comes from the line of Josh Stone from UBS. Joshua Eliot Stone: A question on the renewables business, the guide you've given is quite like cautious, the capacity buildup perhaps happening a bit slower than you might have first expected. You've been quite creative or you're looking like quite creative on the downstream business by merging assets and taking them off the balance sheet. So might you consider something similar for your renewables business? Does it still make sense for these assets to be fully consolidated? So that's the first one. Second one, on the Moeve merger, and I appreciate some insight on the timing. How soon after finalizing an agreement could a deal be completed, do you think? Joao Diogo da Silva: So on the renewables guidance, as we've been telling you guys, renewables keeps us in a position that will allow us to have the optionality. And in terms of strategic positioning, it's -- we like those assets and decarbonization angle that they allow us. So today, as per today, of course, we are looking into the market. We are active and open to partnerships and portfolio optimization. But still, we are very much focused also on optimizing our portfolio. So we are looking into the hybridization and storage projects. We're aiming to reduce risk and increase the return from our assets. So that's where we stand today. On the consolidation, can you repeat your question because I understood it was on the Moeve side. We -- can you repeat that one? Joshua Eliot Stone: Just if the renewables business should still be fully consolidated, if actually there could be an opportunity to maybe partially sell it or take it and treat it more like an associate business if that might make more sense? I'm just curious as your thoughts there. Joao Diogo da Silva: So we will be continuing to assess if we should be the only and only owners of the assets, but no more considerations at this point. Thank you. Operator: Your next question comes from the line of Guilherme Levy from Morgan Stanley. Guilherme Levy: The first one, just going back to the Moeve discussions. Could you perhaps just provide us with some color around synergies, even if from a qualitative macro standpoint without providing numbers, that would be great. And then secondly, going back to exploration, Shell earlier this year drilled an unsuccessful well in Sao Tome. And I was keen to pick your brain in terms of the structures that you are planning to target in the well that is scheduled to be drilled next year there. Joao Diogo da Silva: Thank you, Guilherme. Allow me just to go back to Josh because I thought I skipped one. Josh was asking about the final decision, it should be mid-2026. That's when we are expecting to reach a final agreement. On your question, Guilherme, and namely on the synergy side. So clearly, that's a point that we need to focus to unlock. We see our assets, both Galp and Moeve together as very complementary. If we look at on the logistics, supply chains, overall, the assets that we are combining on the industrial side, we see a lot of efficiencies and complementary on those. Also on the retail side, of course, we are building a larger scale retail network. And by doing that, we will be benefiting from both strong brands on both territories, and that for sure will allow us to increase the value that we can extract from the assets. We will have, for sure, higher trading firepower. We will have, for sure, turnaround efficiencies. So altogether, we should be ready to materialize on the first year of closing. And if you look at overall studies, you should see that at least 10% combined synergies should be a target for the deal. Thank you. Maria Joao Carioca: Let me address the Sao Tome question. So Guilherme, we are indeed looking at what's happening in the basin. As you know, it's indeed a very, very young basin. We are taking in some of the information that we're sharing with the other operators and you mentioned Shell. But we are incorporating all of that into our models and into our thinking about a lot. We have in mind a well for 2027, but that is the topic in our time line. So if you recall back when drilled Falcao was a well that confirmed the existence of a petroleum system. So now it is particularly relevant that we take on the next steps to make sure that the information we gather adds and gives consistency to that petroleum system as we see it. But for now, what we're looking at is a well in 2027, and that gives us some time to incorporate the information we're gathering from other players in the basin. Operator: Your next question today comes from the line of Matt Lofting from JPMorgan. Matthew Lofting: I'll ask 2. Just on Namibia, if you zoom out a bit relative to earlier comments, there's probably a sense that Galp's new partner in the country and the industry as a whole is sort of gaining greater confidence in the basin and the confidence of positively trending above the ground as well as what you're seeing below the ground. I just wonder how Galp sort of sees that in terms of next steps and moving forward, not sort of 2026 solely, but beyond that as well on a medium-term basis? And then secondly, I just wanted to ask you about Brazil and life after Bacalhau to a certain extent, sort of seems like that asset is ramping up very well. How do you see sort of next steps in Brazil on a medium-term basis for Galp when you think about things like enhancing recovery factors and future exploration opportunities in the presold? Maria Joao Carioca: Thank you, Matt. So let me start with Namibia. So indeed, I think we've been consistently vocal about the fact that this is an asset that we'd like. We retained 40% precisely because we wanted to make sure that we got a solution for the asset that enabled a development at pace that spoke to what we saw in the asset. It required significant derisking as we were addressing it back in '24, '25. But the perspective was always one of derisking and finding a way forward. So I think that's what we certainly got with the partnership with Total. We commented on the fact that the partner we were looking for would precisely be a partner with an aligned vision on the asset, the expertise, the experience in Total's case, the presence in the basin to complement the information. So it is now particularly rewarding to start seeing some of the appraisals to come along the same lines as we had foreseen them, and we were putting them to consideration by potential partners. So moving forward, yes, we're clearly very much focused on next steps. So we are expecting completion of the deal with Total by midyear. Of course, if there's any advancement to that, we will be delivering on that. And I think the conversations with local authorities have continued, have been -- there's progress being made. I think interests are very well aligned, and this is very, very relevant. So I think towards that good pace of completion, there's also the element that the preemption rights that were the normal ones within the existing assets. Those were not exercised. So the deadline is over, and that's one of the elements that is -- if you like, there's a tick box or a box that's been ticked, and we can move forward on that aspect. Other than that, you know that the terms of the deal included additional E&A, and this is very much to address the point that I spoke of earlier to make sure that the development concept is matured and is the one that best addresses the specific characteristics of the asset. So it's a 3-well campaign, as you well know. And we are expecting to have the first well of that campaign by the second half of 2026. It's ongoing work. We're assessing currently rig opportunities, and we're also linking this back to one of the elements of the deal that we found we had a particularly good fit with our portfolio, the Venus asset. So there as well, progress is being made. The FEED works have been finalized. We're expecting FID. So I think all in all, what we're seeing is that Namibia is indeed a rather promising basin. I think we're now in a good spot to work together with Namibian authorities and with our partner to push and to drive that growth forward. Short-term next steps are very clear. We're working on completion, but we're also already moving ahead with making sure that we can engage in an E&A and that we drive that at a pace as we would like to. So rather good feeling both in terms of the ability to move forward and also the ability to do so in a way that is collaborative with local authorities and that grants us the conditions and the best possible approach towards the asset. On Bacalhau, and I think it's -- these 2 are actually a segue, a natural segue. Our experience in Brazil has also been one of being together with partners that can push forward the development of relevant assets. So Bacalhau is the latest of that string of assets that we've had access to and that we've been working together with the respective operators to push forward. A lot of the work we're doing in Brazil other than the ramping up of Bacalhau has indeed to do with making sure that we sustain what we consider to be reference practices in terms of being able to continue to deliver and continue to sustain production in those assets. So I think the hallmark of that type of work right now is the 2P Myvalor set of initiatives. It's approximately -- I believe it's in the neighborhood of 40 initiatives. And I think those have been pushing our assets to continue to deliver at what have been already performances that are very solid in the market in terms of Sundown's performances. We're working very closely with Petrobras. This is all about making sure that value is delivered in those fields. The fields themselves continue to demonstrate amazing resilience and amazing ability to sustain solid output. So it's all about making sure that asset integrity, that maintenance schedules that this set of initiatives is put together to sustain this growth, not just in the very short term, but also well into the near-term production and elongate our plateaus in these assets. Brazil also has additional resources. You've heard us talk about the Pulatos. This is a very different stage basin. This is one still to be derisked. But again, it speaks to our upstream portfolio having a sequence of assets in different stages of derisking and in different stages of maturity, but one where we continue to elongate the time line to deliver steady production and to continue to develop the growth element of our portfolio. Operator: [Operator Instructions] And our next question today comes from the line of Nash Cui from Barclays. Naisheng Cui: Can I ask 2 questions, please, on downstream. The first one is on refining margin. I wonder if you can give a bit of color on the short-term refining margin, please? And what is your quarter-to-date and spot refining margin, if you don't mind disclosing. And the second question is more on your low carbon portfolio. You are spending 35% of your CapEx on low carbon projects. I wonder, given some of the recent debate on carbon on ETS and some of your peers have cut their low carbon ambition. Does that change any of your kind of medium- to long-term view on low carbon and some of the assumptions there? Joao Diogo da Silva: So on your first question on refining margins, what we can tell you is that currently, we are trading on the double-digit mark. So that's where we are at this point, very focused on efficiency and asset reliability, overcoming a couple of weeks harsh in terms of weather conditions. So that's where we are focusing ourselves. On the CapEx spending, so that's your second question. We are clearly focused on delivering the 2 main projects in Sines. We should be ending 2026 with the commissioning. So both on the green hydrogen project, 100 megawatts. Basically, we have all the stacks inside at this point, very committed to deliver, but also on the HVO, around 60% to 65% of the CapEx is already committed, and it fits really well within our portfolio. So we are not expecting any further decisions. We spend around 35% of our CapEx in low-carbon projects. And let me add that on the longer term, we need to -- when we will be able to close if we close the transaction with Moeve, of course, we need to see it as a whole asset base together the 3 refineries with the petrochemicals, with the green molecules. That's where we need to be looking at after mid-2026. Operator: Your next question comes from the line of Mark Wilson from Jefferies. Mark Wilson: I'd like to ask my first question on Mopane and PEL83. Excellent to see the FPSO development scenario there. I was just wondering, your slides show the potential field extension ending at the southern limit of the license. So my question is that the drilling in the Southeast obviously looks to confirm or even add to volumes. But is there a secondary reason for drilling down there to appraise in case there's a unitization discussion needed with the licenses to the South. So that would be my first question. And the second one then, your outlook on refining based on a $5.5 margin, you just spoke to double digits. Could I ask on your view to the impact of the current conflict specific to Galp's refining outlook? Maria Joao Carioca: Thank you, Mark. So you're well ahead into eventual unitization issues. We do not see those at this moment as being sufficiently -- as being relevant or being a topic. Our concern right now is very much about making sure that we got a development concept that best encompasses the characteristics that we see in the assets. So you saw us looking first into the Northwest, and we got into the Southeast, and we saw really good characteristics there. And I think overall, it's an oilier setup and everything else, permeabilities, porosities, pressures, all of those made us look further into the Southeast region. But I would remind you that we had -- we drilled one well there, right? So it's really small data sets to really drive forward a concept definition, and that's very much what we're looking into. And at this stage, that is clearly the drive, and we don't really see an issue with a Rhino, Azule block being a topic for unitization at this stage. Joao Diogo da Silva: And Mark, on your second question, indeed, the double digits I've just made reference, that's a short-term today impact from a number of events. We see ourselves as prudent and plans, and we need to look to what can be a medium and long-term scenario. That's why we will be sticking to the $5 to $6 refining margin. That's where we believe the market will be, and that's our guidance. Operator: Your next question today comes from the line of Ignacio Domenech from JB Capital. Ignacio Doménech: The first one is on the EUR 155 million tax refund in Spain that the Spanish court recently ruled in favor on Galp side. Just wanted to understand when and how are you planning to account this refund. This is entirely for Galp or if there is any part that should be served with consumers? And then on the -- my second question is on the LNG trading outlook. I just wanted to understand your view for 2026, you're expecting a bit more challenging conditions. And if I may related with the LNG trading and the arbitration with Venture Global, if you have any visibility of the time line and if the recent result with one of your peers in Iberia changes your view on the potential outcome? Joao Diogo da Silva: So on your first question about [Foreign Language], you know that's, I would say, a special hydrocarbon tax supply in Spain from May 2013 to December 2014. And as you know, it was applied, I would say, unevenly across different regions and autonomous regions. The court decision that you are mentioning should lead Galp to collect these reimbursements and -- well, together with the interest, but still too early to guide you on the exact amount. We surely need to understand the timings, the notional considering the accrued interest, but also the methods to be reimbursed. These taxes for sure, they were paid at the same time. So nothing was provisioned. But indeed, we need to take our time to better understand this decision. On the -- on your second question on the LNG outlook in 2026, we are very much focused on the delivery cargoes from the Venture contract. So everything has been accomplished since the first cargoes delivered. For this year 2026, we are expecting to get full volumes, which means 15 terawatts, about 15 cargoes. And the only thing we can tell you is that we are assuming and expecting narrower gas price spreads. So that's the -- that's the guidance that we should be giving you at this point. We will be very actively on the risk management side, and that's what I can say by today. We will not comment on the legal courts or decisions or other companies that are having the same as well, at least cases with Venture Global. Thank you. Operator: Our next question today comes from the line of Fernando Abril-Martorell from Alantra. Fernando Abril-Martorell: A couple of questions, please. First, there is a slight improvement in the EBITDA to operating cash flow conversion. I understand partly driven by a more advantageous tax profile of Bacalhau. So could you clarify how long this more efficient tax structure is expected to last? And additionally, how do you plan to manage the 10% withholding tax on dividends in Brazil? It seems to have a limited impact on your guidance. And second on Moeve more strategically, if this transaction proceeds, you would effectively sell control of your industrial business and also controlling retail. So could you elaborate on a little bit on the strategic rationale behind this shift, I would say. And more broadly, would also selling control of renewables be a potential option over time for you? Maria Joao Carioca: Thank you, Fernando. The taxation circumstances overall for Galp, and then I'll go into your question on the withholding tax in Brazil. So overall, we did see our cash taxes in '25 and our expectation for '26 is also a more beneficial one. I think this is the combined effect of a number of aspects. You touched upon one which is obviously, a core one, which is the fact that Bacalhau is -- first oil has occurred. So the taxation will be adjusted accordingly. We are still ramping up. But in any case, that gives us already some room to reap the fiscal benefits that are within the Brazilian law, and we will be accounting for those correspondingly. So if you combine that, and I'd say that, that is a dominating factor. If you combine that with our macro deck on exchange rates and if you take into consideration the relative weight of upstream, I think that gives you the full picture on what we're expecting in terms of cash taxes for 2026. The withholding tax for '26 in particular, we don't expect distributions to be significant. We had a good view, a good vision of the expected development of this tax. We'll see whether it is sustained and how the Brazilian authorities look through it. But for 2026, we were able to somehow anticipate in as much as possible what we could see in terms of impact and the minorities that we are expecting to -- the payment to minorities we're expecting in '26 is a relatively small one, I'd say, in the circa EUR 50 million. So with very limited impact in terms of our overall figures. Joao Diogo da Silva: Fernando, about your second question on Moeve. So the governance is still -- is part of the negotiation process ongoing, as I told you, and we will be resuming by mid-2026. As you've mentioned, we are expecting -- well, we are expecting to have 2 independent companies in the retailco with call control, as you mentioned, but also in industrial with a significant minority stake. Of course, these 2 companies were -- well, at least thought as something that would strengthen our resilience in a precious sector with 2 completely different pure plays in each of the companies and fully funded and tailored capital allocation. So that's how we see it. It's still early to have final decision, and that's where we stand. On your question on renewables, as I've mentioned earlier in the call, we see renewables as an important part of our portfolio. For sure, we will be challenging ourselves if we are the best owners of these assets all the time, and we will not exclude opportunities to enhance this portfolio, making it more lean for a future movement. But that's something that we should be considering all the time. So naturally, we can consider partnerships in renewables as well, but no decisions have been taken at this point. Operator: We will now take our final question for today. And the final question comes from the line of Biraj Borkhataria from RBC. Biraj Borkhataria: Two, please. The first one is on Mozambique. There's a comment in your slides around not including that payment in your net CapEx guidance. And I know there's a dispute around capital gains tax there. So could you just help me understand the steps to resolve that issue as well as the timing around that? And then the second question is on the inorganic activity that you've budgeted around EUR 0.5 billion for inorganics. Based on your comments from the previous questions, it sounds like you're more focused on upstream deals. If I look at your portfolio, you're basically all oil projects at the moment and you've sold the LNG one. So is it safe to assume that you're focused on oil only? Or would you seek to diversify into gas? Maria Joao Carioca: Thank you. So let me start with Mozambique. And if I understood correctly, but let me know if I didn't get it right. So you're going into the capital gains taxes as an update on where we stand with that conversation with Mozambican authorities. So it is an ongoing conversation. We are still very confident about the way we address the issue and that our claims will, in the end, be understood by local authorities. So all legal internal and both internal and external assessments continue to confirm that understanding. So in that sense, we see that this is a tax contingency that we don't consider necessary as all assessments continue to confirm our view. Now having said that, we're going to continue to engage with the government of Mozambique. We understand they have questions. We are addressing them. As you well know, there are steps that have been taken towards arbitration precisely to support this stage of sharing information and building a mutual understanding, and we hope that this will be resolved satisfactorily. I'll remind you that we remain in Mozambique. This is a geography that we've been present for decades, a geography that even though the gas project could not meet our requirements within the portfolio. still has a downstream presence that we would, of course, like to continue to see operate successfully. So on Mozambique, I would say that, that is the circumstances other than the fact that on the remaining part of that sale, so Area 4, the onshore component, we did not indeed include that in our CapEx guidance. For prudency, what we're hearing from the operator is still positioning towards making this happen towards the end of 2026. So Exxon continues to position that as their expectation. Still -- and given the relative size of our portfolio for prudency's sake, we did not consider that cash inflow. So if it does come, it will be an upside. And I guess that follows through. It's quite a segue into the second part of your question, right? So in terms of our inorganic CapEx, in the guidance that we've put out there, there is indeed -- I mean, if you just run the math quickly, that does give us kind of a EUR 500 million buffer, so to say, is -- and the way I stick our preference is fundamentally, we're trying to make sure that our portfolio stays as clear as possible towards our investment case. So right now, should there be available upstream assets, that would be our preference. And right now, our upstream portfolio is very much focused on oil. So gas is not an area where we are actively looking into opportunities. It's not -- I think you framed it as a preference. It's not in our preference at all right now. We will look should there anything particular come in the funnel, but it's not where we're directing our teams to, and it's not where we see our portfolio heading at this stage. So fundamentally, that's, I guess, what we would see in terms of direction in terms of inorganic CapEx. Should there be any other opportunities, we will always look at them with the same type of discipline and respect for what we've been trying to deliver in terms of the hurdle rates we consider and the ability to actually deliver value that we've seen in the past. But right now, where we see that being more consistent with our investment case is indeed in oil upstream. Operator: This concludes the Q&A for today and today's conference call. Thank you for participating. You may now disconnect.
Frank Van Zanten: Good morning, and thank you for attending Bunzl's 2025 Full Year Results presentation. I appreciate you joining us today. I will start by summarizing our 2025 results and will provide an update on the actions we have taken to improve performance. Following this, Richard Howes, our CFO, will take you through our financial results, capital allocation and outlook for 2026. After that, I will return to discuss how we are positioning the group for an improved performance and continued long-term growth. 2025 was a challenging year. We were impacted by issues related to a significant organizational change in our largest business, which has been amplified by increasing end market weakness. This led to a meaningful drop in the group's adjusted operating profit over the year. We took decisive actions to improve performance and in the second half, delivered a moderated margin decline and a return to underlying revenue growth. While end markets remain uncertain, we are reiterating the 2026 guidance we set out in December and continue to focus on delivering the things we can control. In 2026, we anticipate further underlying revenue growth and expect a more stable adjusted operating profit. We expect this to be a foundation for future organic profit growth. There also continues to be a significant consolidation opportunity within our markets. We are disciplined and with an active pipeline, expect growth from acquisitions to provide strong upside to future profits as it has done historically. I also want to reiterate my confidence in the Bunzl model and its strong fundamentals, such as high cash generation. We operate in attractive end markets, and I remain very confident in the group's medium-term growth opportunity. Revenue grew by 3% at constant exchange rates, driven by acquisitions and slightly positive underlying growth. However, our operating margin was 7.6%, excluding a share-based payment credit that Richard will explain later, down from 8.3% in 2024. Importantly, actions taken during the year supported a moderation of the margin decline in the second half compared with the first half. Adjusted operating profit overall declined by 4% at constant exchange rates. This is in line with the expectations we set out in April 2025 despite some of our key markets becoming more difficult through the year. The group remains highly cash generative, and we delivered GBP 579 million of free cash flow. We also completed a GBP 200 million share buyback in October and ended the year with adjusted net debt-to-EBITDA of around 2x at the lower end of our target leverage range. We remain committed to a progressive dividend policy and have grown the dividend modestly over the year. With the dividend and buyback, we returned almost GBP 450 million to shareholders in the year. After a record 2024 for acquisition spend, we announced 8 acquisitions in 2025. Total acquisition spend was lower this year at GBP 132 million, reflecting the macro environment, although our pipeline has remained active. Return on invested capital over the year was 13%, impacted by our profit decline. Before Richard takes you through the numbers in more detail, I would like to give an update on the areas that have impacted us most this year and a bit of context on the macroeconomic backdrop as well as the actions that we have taken to improve operational performance. Over the year, we have experienced issues related to our largest business, North America distribution, which represents around 30% of group revenue. The business was impacted by its move to a sales and operations model, which separates logistics and supply chain from sales activities. This change, which was largely implemented by the start of 2024, has supported our growth with national accounts, enabled more coordinated process across the business and has allowed us to develop a better own brand offering. However, initially, new processes reduced the agility of our local teams, which impacted business with their customers. We kept the customers but lost some wallet share. In the first half of 2025, markets weakened, which led to volume pressure and increased customer price sensitivity. This amplified our execution issues. Our businesses worldwide have felt the impact of significant global macroeconomic uncertainty and the pressure it has put on business and consumer confidence. Furthermore, we saw supply chain disruption related to tariffs. In the U.S., consumer confidence, which is now at a 14-year low as well as inflationary pressures in certain food products has contributed to reduced footfall in restaurants and convenience stores. Furthermore, the food processor sector continued to experience industry-specific challenges related to supply and demand of cattle. Together, the foodservice redistribution, convenience store and food processing sectors are around for more than 1/3 of our revenue in North America. In Brazil, we've also experienced challenges to fully passing on currency-driven product cost increases alongside weakening industrial demand. We took a series of decisive actions to improve performance, including leadership changes and increased cost management, which took effect from the second quarter. These actions have driven operational improvement. We have reengaged and motivated the team supported by this leadership change and a recent employee survey has confirmed an increase in the engagement of our local sales force compared to 2024. We have improved execution of the new sales and operations model. Pricing and inventory decisions for our local business have moved back to our local teams, which has improved their agility and response times. This is particularly important in the dynamic redistribution market. Furthermore, as a result of separation of our sales function in our new organizational model, we now have a more robust sales pipeline management process, which improves our visibility and accountability of opportunities. Core business basics have been restored with service levels significantly improved and back to our very high standards with better product availability and inventory stabilized. And lastly, we have strengthened our relationship with our preferred branded suppliers and have increased our joint initiatives with them to target specific market opportunities together. Alongside this, we have seen an increase in our own brand penetration over the year with new category launches well received. Overall, these actions have supported us establishing more than $100 million of new business in the fourth quarter, representing both national grocery and foodservice customers. These wins include both new customers and wallet share gains with existing customers. We believe that our business model change has been a strong support to this success. I am encouraged by this performance. While we have seen increased pressure in other North America businesses in the second half, distribution's underlying revenue growth improved, and we saw a moderation in its year-on-year operating margin decline. Looking ahead, our strategy is to build a strong platform to drive long-term profitable growth. We are focused on continued market share gains through both new business wins and increased wallet share of existing customers, ensuring a well-functioning operating model, which allows us to enhance our focus on sales and deliver an optimal service for both larger and local customers, continued complementary own brand growth alongside preferred branded supplier growth and importantly, motivated teams. Turning now to Europe. Across Continental Europe, we have been operating in a challenging environment since the second half of 2024, particularly in France, where deflation, a weak economy and operating cost inflation have put pressure on margins. In response, we took a series of actions focused on both driving business wins and improving operational efficiency. To more effectively manage new business opportunities, we have enhanced our monitoring of major tenders and strengthened cross-country collaboration. We are also now more proactively showcasing our wide range of value-added services with our leading sustainability offering being a great example. As a result, when considering larger relationships that are worth over EUR 100,000 per annum, we won EUR 50 million of new business in the second half of 2025. Own brand continues to be a key tool for us. And in Europe, we saw a further 1% increase in own brand penetration, supported by both acquisitions and organic improvement. We are creating new growth opportunities by launching existing own brand products into new geographies. We are also seeing procurement benefits by consolidating purchases across multiple operating companies. For example, in towel tissue, which is a large own brand category for Bunzl. We also continue to identify operating cost efficiencies with 10 warehouse consolidations and relocations completed in 2025 in Europe. The majority of these have been in France, where we have had a significant project underway in cleaning and hygiene to reduce the number of warehouses from 15 to just 6 to improve efficiency and to enhance product availability and delivery speed for our customers. This program has now largely been implemented, and we expect net benefits in 2026. In addition, a number of labor optimization projects have been launched, which also includes limits on discretionary spending and the implementation of AI tools to improve efficiency. In 2025, we also saw additional businesses onboarded to our preferred demand planning software, which supports improved inventory levels and availability and reduces cost. Overall, these actions have resulted in operating cost inflation being well managed in 2025 and combined with easier comparatives, supported a stabilization of operating margin year-on-year in the second half. Let me also spend a few moments on wider strategic progress across the group. As I've mentioned, it is encouraging that we have returned to underlying revenue growth in the second half, supported by new business wins. We completed 8 acquisitions, including our first entry into the health care sector in Chile and established a physical presence in Slovakia. We continue to deliver operational efficiencies, including better-than-expected synergies from Nisbets' acquisition and multiple warehouse initiatives resulting in 36 consolidations and relocations across the group compared with 19 last year. We further enhanced tools that support customer stickiness and saw own brand penetration increased to 30% and digital order penetration increased to 76%. It is our strategic initiatives alongside our actions in North America and Europe, which provide the foundation for future profit growth. This is enabled by our people who are our greatest asset. During 2025, we maintained our 71% Trust Index score, a measurement achieved as part of the Great Place to Work surveys across all our employees. I would like to thank colleagues across the group for their hard work, resilience and commitment during what has been a difficult year in several of our markets. I will now hand over to Richard to take you through the financial results and outlook in more detail. Richard Howes: Thank you, Frank, and good morning, everyone. As usual, my comments are at constant exchange rates unless otherwise stated. Group revenue increased by 3.0% in 2025. We delivered underlying revenue growth of 0.4%, with broadly stable volumes and selling prices. Underlying revenue growth improved during the year, growing at 0.9% in the second half compared to 0.2% in the first half. This was supported by new business wins in Q4 in North America and underlying growth across all business areas. Acquisitions contributed 3.3% to revenue growth over the year partially offset by a 0.4% impact from the disposal of our R3 safety business in the U.S. Now turning to the income statement. Adjusted operating profit for the year was GBP 910 million, a decline of 4.3% compared to 2024. This included an GBP 8 million share-based payment credit following reversal of prior year charges related to awards made in 2023 and 2024, which have been impacted by the group's performance in 2025. Excluding this credit, adjusted operating profit was around GBP 902 million, and operating margin was 7.6% compared to 8.3% in 2024. Overall, group operating margin was impacted significantly by the margin decline seen in our distribution business in North America due to execution issues in challenging end markets and the resulting customer price pressure. In addition, margin was impacted by market headwinds in other businesses in North America and in Brazil, particularly in the second half of the year. Finally, our cleaning & hygiene business in France, which saw ongoing deflation in the first half of the year, where selling price pressure has followed significant product cost inflation during the pandemic. The operating margin reduction was driven by a decline in underlying gross margin, although gross margin overall was supported by acquisitions and unchanged at 28.8%. An increase in the operating cost to sales ratio from 20.5% to 21.1% is largely driven by acquisitions and reflective of their business models. Excluding acquisitions, the operating cost to sales ratio was broadly stable, supported by cost initiatives as well as the share-based payment credit. Moving down to P&L. Adjusted net finance expense increased by GBP 20 million to GBP 123 million, mainly due to higher average debt. The effective tax rate was 26% compared to 25.5% last year, reflecting the absence of one-off benefits from U.K. group relief and tax provision changes included in 2024. Adjusted earnings per share fell by 5.2% to 179.3p. The higher tax rate and increased interest charge more than offset the benefit of a reduced average share count reflective of the share buybacks in '24 and '25. We saw a moderation of the group's adjusted operating margin decline in the second half, in line with our expectations set out in April 2025. As the chart in the top left shows, our margin was down 0.9 percentage points year-on-year in the first half and was down only 0.4 percentage points in the second half. As outlined in the table, the key drivers of the year-on-year improvement in the second half were the U.K. and Ireland, where margin increased 0.6 percentage points in the second half driven by the good performance of our foodservice businesses supported by strong Nisbets synergies. Continental Europe, where easier comparatives and benefits from actions taken have helped stabilize margins year-on-year in the second half, and a good moderation of the margin decline in North America distribution driven by actions taken despite an increasingly difficult market backdrop. Within North America, progress in H2 was offset by increased weakness in our Mexico processor and convenience store businesses. Our safety, retail and Canadian businesses, however, were less negatively affected. Market softness in Brazil has also impacted margin progress in rest of the world. Turning to inflation dynamics. We continue to see pockets of selling price deflation over the year, particularly in our clean & hygiene businesses in France and the U.K., although there was some moderation during the year. However, towards the end of the year, the group saw slight net price inflation driven by tariff-related price increases in North America. Overall, selling prices were broadly stable for 2025, and we expect this to continue in 2026. The group saw more normal levels of operating cost inflation over 2025. People costs, which account for around 50% of our operating costs and wage inflation was at more typical levels. Fuel and freight accounts were around 15% of our operating costs and were well managed over the year supported by the annualization of contract retendering in North America. Property leases are around 10% of our operating costs with inflation linked to renewals starting to moderate after recent high levels. We have a continued focus on operating cost efficiencies across the group going into 2026 and expect operating cost inflation to remain in line with typical levels. Turning to business area performance. In North America, underlying revenue was broadly stable with the decline at constant exchange rates largely driven by the disposal of R3 Safety. Adjusted operating profit decreased by 11.5% to GBP 441 million, with operating margin at 7.0%, down from 7.9% in the prior year. This was driven by underlying margin decline in our distribution business, and the wider market dynamics, as indicated previously. The decline also strongly impacted the return on average operating capital. The tariff-related selling price inflation seen in our safety businesses in the second half was offset by volume decline resulting from uncertain economic backdrop. Revenue in Continental Europe, however, grew by 2.5%, driven by the benefit of acquisitions with stable underlying revenue growth. Adjusted operating profit decreased by 3.6% to GBP 205 million, with a decline in operating margin from 8.9% to 8.4%. Despite resilient performance in the Netherlands and Spain and the benefit of acquisitions, operating margin was largely impacted by our performance in France. Encouragingly, France delivered a more stable performance in the second half as did Continental Europe overall. Very strong revenue growth in U.K. and Ireland has been driven by our acquisition of Nisbets, which completed in May 2024 and was supported by moderate underlying volume growth. Our cleaning & hygiene and care businesses were impacted by continued deflation, although this was more than offset by a good performance in our existing foodservice businesses which delivered strong results, especially in the second half of the year. The reduction in operating margin was mostly due to the consolidation of Nisbets, which has a seasonally lower margin in the first half of the year. In the second half of the year, operating margin expanded with Nisbets generating strong operating profit growth with greater-than-expected synergies, in addition, benefits from improved stock management were achieved, improving cash generation. Within Rest of the world, Asia Pacific delivered very strong revenue and profit growth supported by both acquisitions and performance of existing businesses, especially in the health care sector. Trading in Brazil has been difficult since the second quarter as we face challenges in passing through currency-related cost increases to customers in a weaker market. Whilst Brazil achieved underlying revenue growth and benefit from acquisitions, these dynamics strongly impacted its operating margin. Moving to cash flow. Cash conversion over the period remained strong at 95%. We generated GBP 579 million of free cash flow, a 9% decline year-on-year, reflective of lower adjusted operating profit although free cash flow grew in the second half of the year as working capital management improved. During the period, we paid out GBP 242 million in dividends and made a net payment of GBP 40 million to buy shares for our employee benefit trust, leaving total cash generation prior to acquisitions, disposals and share buybacks of GBP 296 million. A net GBP 17 million inflow from the disposal of R3 safety. Cash outflow related to acquisitions was GBP 145 million. In addition, we had outflow of GBP 205 million related to our share buyback program. Turning to the balance sheet. Working capital increased by GBP 78 million, mainly due to reduction in payables related to the payment of share buyback commitments. Deferred consideration related to acquisitions decreased by GBP 33 million to GBP 226 million. Inclusive of off-balance sheet components, deferred and contingent consideration was GBP 279 million compared to GBP 375 million at the end of 2024. The reduction is driven by a reduced expectation for future payments for some acquisitions, including Nisbets and payments made in the period. We took an impairment of GBP 11 million in the year related to a business, which has seen more negative trading since it was acquired during the pandemic, at a point where performance benefited from demand for COVID products, which has since normalized. Our adjusted net debt to EBITDA was 2.0x compared to 1.8x at the end of 2024. This headline ratio continues to exclude the impact of leases and the increase largely reflects the reduction in EBITDA in 2025. Returns have been impacted by our profit performance over the period with a return on invested capital of 13% and a return on average operating capital of 37%. Our leverage is now within our target range of 2 to 2.5x adjusted net debt to EBITDA albeit at the lower end. Our strong cash generation supports capital allocation opportunities and our priorities remain unchanged: one, to invest in businesses to support organic growth and operational efficiencies; two, to pay a progressive dividend; three, to self-fund value-accretive acquisitions, supported by our strong track record and the attractive valuations and returns we can achieve; and four, to distribute any excess cash. While currently, we see the greatest value in delivering bolt-on M&A, we will actively review our priorities throughout the year. In the 21 years up to and including 2025, Bunzl has committed GBP 6.2 billion in acquisitions to support the growth strategy that has delivered an adjusted earnings per share CAGR of circa 9% and has returned GBP 3.1 billion to shareholders through dividends and share buybacks. As part of our capital allocation framework, we commit to a progressive dividend policy and have delivered a dividend per share CAGR of circa 9% since 1992. Today, we have announced an increase of 0.3% in our total dividend, a continuation of annual growth. Our dividend cover was 2.4x in 2025 compared to 2.6x in 2024. Looking ahead to 2026, our outlook is unchanged. And we expect profit to be more stable. We note that our outlook is set at a time of significant uncertainties relating to economic and geopolitical landscape. We expect moderate revenue growth in 2026 driven by some underlying revenue growth and a small benefit from announced acquisitions. We are anticipating slight volume growth from improved performance and expected business wins despite challenging markets and a broadly neutral selling price environment. Alongside this, we expect typical levels of operating cost inflation of around 2% to 3%, which we expect to be partially offset by operating cost and sourcing initiatives, including the annualization of Nisbets synergies. As a result, we expect operating margin to be slightly down year-on-year versus the 7.6% in 2025, excluding the share-based payment credit. While recognizing the significant uncertainties mentioned previously, we expect a more normalized weighting of adjusted operating profit between the first and second half. We also expect a net finance charge of GBP 125 million and a tax rate of 26%. And I will now hand you back over to Frank to take you through our strategy update. Frank Van Zanten: Thank you, Richard. I will give a brief update on our key strategic priorities, which will support 2026 being the year in which we expect to deliver organic profit growth and support long-term compounding growth. Our long-term strategy remains unchanged. We are focusing on driving profitable organic growth, complemented by disciplined value-accretive acquisitions. We also continued to drive operating efficiencies and strong cash generation, which supports a progressive dividend and where appropriate, additional returns of capital. Organic revenue growth opportunities are supported by our differentiated customer proposition. A good example of this is our long-standing relationship with Wegmans, a fast-growing grocery chain in the U.S. We have recently moved from being 1 of 2 distributors to becoming their sole supplier of goods not for resale. This materially increases our share of business with the grocer. There are several factors behind this successful expansion, including our recent organizational model change in distribution. Firstly, our long-term track record of reliability and service quality. In 2025, we delivered a full range of 99% for Wegmans. Secondly, our own brand development and our ability to innovate across new product lines, helping our customers manage costs while maintaining quality. The new categories we have won will be supported to our own brand offering, and we expect to see a strong increase in own brand penetration with this customer. Thirdly, our single IT system, which uniquely positions Bunzl to provide consolidated data and supports better customer decision-making. Fourthly, our sustainability expertise which continues to be an increasingly important differentiator and delivers commercial benefits to our customers. And finally, our ability and commitment to onboard large programs with no disruption. This is critical when ensuring the timely delivery of essential items to customers. Acquisitions represent a significant opportunity for Bunzl as we operate in large but fragmented markets. Since 2004, we have completed over 230 acquisitions and spent over GBP 6 billion. Our pipeline remains active and extensive with over 1,300 potential targets identified across countries and customer end markets and bolt-on acquisitions continue to be our focus. We're a good home for these businesses, providing them with opportunities to enhance their offering to customers and leverage Bunzl scale whilst maintaining their entrepreneurial spirit. Since 2020, we have announced 74 acquisitions with enterprise values below GBP 200 million. We spent an average of GBP 300 million annually on these deals, with an average committed spend of around GBP 25 million. Our balance sheet and cash flow are supportive of an ongoing similar level of annual spend in the coming years. The average multiple that we are paying for these deals has been around 8x operating profit and has remained consistent for the last 10 years. We continue to target paying a range of 6 to 8x depending on the specifics of the individual businesses. Bolt-on deals typically deliver a return on invested capital well ahead of their project WACCs quickly, and recent deals have demonstrated a year 2 return on invested capital of 13.3%. Alongside acquisitions, we continue to maintain strong portfolio discipline. Since 2022, we have completed 4 disposals, including the sale of R3 safety in the U.S. in 2025. These businesses had relatively low margins and their disposal improves the overall quality and focus of the group. As I mentioned earlier, we completed 8 acquisitions in 2025, although on average, these were on the smaller side. Despite an active pipeline and ongoing conversations with attractive targets, our spend was at the lower end compared to our recent history, driven by the macroeconomic environment. Historically, acquisition activity has picked up quickly, and we expect an improved year for acquisitions in 2026. I also want to give an update on Nisbets after its first full year of trading as part of Bunzl. Nisbets is a leading and scaled distributor of catering equipment and consumables and is a strong addition to the Bunzl portfolio. Whilst it had a more challenging start, given a weaker market and ongoing optimization of an automation investment made prior to the acquisition, I am pleased to see the business deliver an improvement in performance in the second half of 2025. This has been supported by strongly enhanced inventory management processes resulting in improved availability, reduced working capital and reduced storage costs. Furthermore, we have delivered significant and better-than-expected synergies related to predominantly to third-party logistics as well as procurement savings. Overall, the business is expected to see its return on invested capital, meet the required project WACC around year 4, which is consistent with our expectations at the time of acquisition. Whilst this reflects slightly lower than previously anticipated earnings in year 4, it also reflects the reduced deferred consideration to be paid. Our disciplined approach to valuation and integration remains unchanged. Operational efficiency remains a core pillar of our strategy, and we continue to make incremental improvements across the group. Over the year, we completed 36 warehouse consolidations and relocations. This is a material increase compared to an average of 19 over the previous 3 years. Automation projects are a further example of potential opportunities. In one of our largest warehouses in the Nordics, we are implementing an automated picking system supported by robots, which is expected to double productivity compared to manual picking. In one of our German warehouses, we are automating 60% of order lines, which is expected to increase productivity by around 30%. These examples continue to demonstrate how Bunzl reviews opportunities on a case-by-case basis as there is no one solution that suits all. Stepping back, Bunzl has a resilient Bunzl business model with a value-added customer offering supported by our global scale, which will continue to underpin our performance in the longer term. We have a very strong proposition for our customers. Our product expertise and value-added services, including our sustainability capabilities, deliver commercial benefits to our customers that set us apart from competitors. This is supported by our global reach and scale where we leverage investments across the group. Furthermore, our robust supply chain with more than 15,000 supplier relationship strongly supports our reliability. These areas of strength are complemented by a decentralized model, which allows for local market responsiveness and an entrepreneurial approach. Ultimately, our focus on low-cost essential products and services is the foundation of our resilience and supports very sticky customer relationships. Alongside strong cash generation and high returns, this model and our positioning will continue to provide a robust foundation for long-term growth. Before we move to Q&A, let me summarize the key takeaways. Decisive actions across the group have improved performance and supported the moderation of margin decline in the second half. We expect some underlying revenue growth in 2026 and a more stable adjusted operating profit to provide a foundation for future organic profit growth. We continue to see significant opportunity for further consolidation, and our business fundamentals remain attractive. And I remain confident in realizing the group's medium-term growth opportunity. Thank you for your attention. We are happy to take your questions. Unknown Executive: Rory? Rory Mckenzie: It's Rory McKenzie from UBS. Firstly, on the new business wins you called out in the slides, I think they added up to about 1% of sales in itself, which actually is quite a lot for Bunzl. So have your sales teams been more proactively targeting larger accounts or tenders? What does the pipeline look like there? And also, can you talk about what headwinds you're facing that offset some of that growth in some markets? Just trying to get a sense of how growth kind of could phase through this year. And then secondly, thanks for giving the gross margin figure today, stable on last year at 28.8%. Within that, can you comment on the M&A contribution? Did Nisbets add about 50 basis points or more or less? And then can you just talk through the pressures versus tailwinds driving that reduction in the underlying gross margin, please? Frank Van Zanten: Okay. Let me take the first question, you take the second. In terms of new business wins, so yes, so we saw some good wins in -- during the second half in North America in the distribution business, which was encouraging because this really goes back to why did we make that organization model change. Initially, during 2024, '25, we saw some issues around agility in the local business. Now it feels like we're seeing more of the benefits from the new model in terms of having more focused sales team. So the pipeline is being very actively managed, not only in distribution but also in areas like Continental Europe, for instance. So that's fair that there's more focus on that. In terms of the headwinds, I would say I think all the things that we can control, we made good progress in. The one thing that we can't control is the market and the levels of wars that are starting around this. So that's the thing we don't control, and we'll have to see how that pans out. Richard Howes: So on gross margin, as you say, flat at 28.8% overall, but down slightly when you look at underlying. The best way to think of this is that essentially gross margin decline has driven our operating profit -- operating margin decline. The 2 numbers are not that different. So that's, I think, the first part of your question. As to pressures versus tailwinds, look, I think what we've seen throughout the year, as we've gone through 2025 is that the market has been more -- become more and more difficult. And that could be in foodservice in North America, it could be in our processor business, it could be in our convenience store business or it could be the effect of the U.S. challenges to the rest of the world. We've seen that, I think, more generally. So what that tends to mean is you see, even though we don't see a change in the overall competitive environment, you've got the same competitors fighting for lower volumes. So inevitably, there's a degree of price pressure which flows from that. I think we've seen that in -- certainly in North America and also across the world. As the tailwinds, look, it's good to see own brands up at 30%. We are taking a slightly more measured approach in the U.S., as Frank talked about. We still think there's opportunity. But also, we will be taking every opportunity to continue to buy better. I mean the cost of sales is our biggest single product. The best way we can grow to grow profits and offset any margin pressures is to buy better and then -- and ideally hold on to those prices where we can. So the 2 combined, I would see as the pluses and minuses. Unknown Executive: Suhasini? Suhasini Varanasi: Suhasini from Goldman Sachs. Just a couple for me, please. Is it possible to give some color on how early trading year-to-date has been? Given the new business wins that you won at the end of last year, it felt like momentum was maybe a little more positive heading into the beginning of the year. And when I think about the SG&A, I think on the cost side, you have taken some one-off costs above the line. You've also done warehouse consolidations that have been completed in Europe. Can you help us quantify the net benefit to SG&A potentially? We can obviously work out margins after the revenues are done for 2026. Richard Howes: Yes. So if I think of -- look, in terms of early trading, I would say January is the -- is all we've seen in terms of profit trading. It's the lowest month of the year. So you need to keep that in mind. But against that context, we are seeing trends that are consistent with what we're guiding to. So -- but it is against the context of a very -- a typically low starting point. We did see momentum in Q4 in the revenue growth. I would caution though, because I think that is largely seasonally driven. So we do tend to see this where you have businesses which are very much servicing at Christmas peak, like our distribution business in North America, our retail businesses globally, it doesn't necessarily translate and you see that landing in January. It just doesn't tend to happen that way. As to SG&A, so yes, Bunzl always takes the cost of any change within our numbers. There's no separate lines pulled out at all. It is also fair to say we don't tend to see big restructuring activity, which could create big numbers. The change in France that we've been talking about by consolidating warehouses, we took some of that cost in 2024, and there were some property profits at the time, which broadly offset it. If I look to 2025, there are some one-off costs that hit us in the year, particularly around the activity levels we took in place in North America. You should think of those as low single-digit numbers. And therefore, I don't really see there being much of a benefit when it comes to 2026. Unknown Executive: Annelies? Annelies Vermeulen: Annelies Vermeulen from Morgan Stanley. Just going back to your own brand strategy, you touched on this in some of the earlier comments, Richard. But how are you implementing that this year? And how is that -- what kind of progress do you expect to make with your own brand, particularly in North America over the course of '26? And then secondly, just on -- you mentioned a write-down of an impairment on a business that you bought during COVID. Is that a one-off in nature? Or is there -- are there other parts of the business where that could also be the case? And as part of that, could you also perhaps talk about disposals and if there's anything else we should expect in the next year or so? Frank Van Zanten: Yes, let me take the own brand. So yes, we're very pleased with the own brand progress we have made. Still a good opportunity there because we have overall -- we moved from 28% to 30%. So the way to think about this is, of the overall level of cost of sales, 30% is in own brand, then we have a level of preferred branded supply spend that we want to grow, and we want to continue to push forward. But then there's quite a big piece in the middle that is still up for grabs, basically. And to give a very simple example, when we sell products to our customers, you have people who ask for Kleenex tissues because it's a brand and it's from Kimberly-Clark, obviously, and we're gladly delivering that with a margin. But a lot of the products also have the nature of, let's say, a plastic or a paper straw. And if I would ask you, what is the supplier of a straw, you wouldn't know that's like the equipment of a Kimberly because these things are being provided by importer or suppliers that have -- people have no brand recognition, no salespeople in the field. So these kind of products are still, for us, a potential area to further own brand without any possible conflict. So certainly, in our distribution business, we are much more mindful of what we're doing on own brands. Really sort of reengage and reenergize the supplier relationships. They are very keen. In January, we had a big promotion called [ Jan Sanity ], which is around January and [ Jensen ] products, cleaning hygiene products. So it's a lot more engagement sort of on a local level, but also centrally. So in summary, we expect own brand to develop in a gradual way. It still depends a little bit on the mix of acquisitions going forward. As I said before, if we would only buy safety businesses that have almost 100% on brand that obviously will drive the own brand up quicker, but that really depends on what is going to happen. So I still feel good about the potential to further develop, but the 30% is a nice level already. Richard Howes: And on the impairments, I mean, this doesn't happen very often, thankfully. And I think this is a particular case in point where we acquired this business during the height of COVID when we knew there were some COVID products in there, but it was not as clear that the level of COVID products that they were benefiting from would ultimately continue. It hasn't continued. And as a result, we've had to reflect that in our carrying value. That said, this is still a decent business, and I think there is opportunity here for us to -- whilst technically, we have to do this, this business still has opportunity to grow. And our teams are very, very focused on making sure it does exactly that. But look, it is -- I do think of it as a one-off. I look around the rest of the estate, I don't see anything in a similar position. As to disposals, well, look, we've seen us do, I think, 4 disposals in the last few years, GBP 250 million of revenue. It is part of how we think about the portfolio. If there are businesses which for whatever reason the market has changed or whatever has happened, but ultimately we see as having a more valuable home elsewhere, we may consider it. We obviously always want to make sure we try and fix and improve these businesses first. But in certain cases, as you've seen with the 4 that we've done, that can happen. I think you should assume this is housekeeping, and we carry on doing exactly the same. Unknown Executive: David? David Brockton: It's David Brockton from Deutsche Bank. Can I ask 2, please? One, specifically in relation to the U.S. local business, and secondly, in respect of CapEx. When you rebased guidance in April, I think you indicated that you felt it would take 2 years to get that U.S. local foodservice business back to where it should be. Do you still stand by that? And can you confidently assert that some of the issues you've had there are now behind that business just purely for the local side? And then secondly, in relation to the CapEx, that number has trended up quite materially over the year against relatively flat revenue, which I presume is property consolidation related. But can you just touch through what's happening there and how we should think about that going forward? Frank Van Zanten: Yes. So let me take the first question. So yes, on the local business, in the U.S. distribution business, 3 things happened. And that was my objective when I went in. You remember me saying, listen, I know what needs to happen, I'll fix it. And we focused on 3 things. Service levels, and I always say to our management also, there's really 3 things that are important in distribution. That's on time in full service deliveries, so which is delivering on time what people ask. Number one is service levels, number two is service levels and number three is service levels. So our service levels are back to their historical levels. So we are in a good position. The local agility has returned. So the salespeople have the cost that they need. If they want to bring in products, they can bring in products. If they want to change suppliers with the local management, they can do that. So that's been restored. And then obviously, the last thing is the people motivation, that people need to be excited. They need to score. They need to go out and sell. So significant progress has been made in terms of these leading indicators, which is important. So the business locally operates much better. I think we fixed that probably faster than I expected it given the size of the company, this is like almost a $5 billion business in total. What obviously takes time is, let's say, the winning back element. And the good thing is, in most cases, we have retained the customer because this is food redistribution. So they buy a lot of categories. And in some areas, we've lost some categories during that process. And that takes time to win back over time. We won't win everything back, but we also win some other stuff like we talked about GBP 100 million that we won in food redistribution but also in grocery. So very pleased around the progress we are making. I set the bar very high. So I won't let go before it operates much better than it used to be, but we are well positioned to go out and win. Richard Howes: And on CapEx, David, look, yes, it is high in 2025, and that's driven by 2 things really. Warehouse consolidations in France that we talked about, but we're taking -- and this is our biggest cleaning & hygiene business, taking warehouse account from 15 down to 6. About -- that was about 15 down to 9 within 2025. And this requires us to -- there's a chunk of fit-out cost that goes into standing up the new site, particularly the one outside Paris. And we're doing something similar -- slightly different, but similar in Memphis in our safety business, our biggest safety business, MCR, who's a big extension that we're doing that will allow us to consolidate some other warehouses into it in the year. Both are going very well. We've also had some of the investments we talked about in Denmark as well. So you can think of this as being unusually high. It will reduce down to more normal levels in 2026 and beyond. Unknown Executive: Sanjay? Sanjay Vidyarthi: Sanjay Vidyarthi, Panmure Liberum. I had 2 from me as well, please. First one, in terms of the phasing of EBIT margin in the U.K. in '26. Obviously, there's a big uplift in the second half of '25. Should we see the synergies from Nisbets offsetting the kind of the seasonal weakness you have there and so more kind of balanced in '26, H1, H2? And then second question, in terms of deferred consideration, you mentioned lower expectations for the year ahead. Could you give any guidance for '26 and '27 cash costs for deferred consideration, please? Richard Howes: Yes, guess this is mine. So phasing -- so if you think about 2026, we -- I think we've talked about in the statement that we expect a more normalized profit contribution from first half, second half. And I think you should think of the -- when you search for what that means, I would look pre-COVID has been a more indicative period. COVID's been a highly disturbed time when a lot of the normal trends have changed. So I think that's the starting point, Sanjay. Within that, actually, the regional shifts are not that different. So they're broadly the same. We do expect margins to be, I'd say, flat, maybe slightly up for the first half and therefore, the offset in the second half, given that we're guiding down slightly. Specifically to Nisbets, yes, there is an annualization to come on some of the Nisbets synergies. They've actually done an extremely good job in generating synergies, not only within Nisbets, but also flowing back into our other foodservice businesses in the U.K. and Ireland. And so we're pleased with that. I think that's within the wrapper of what I've just said. So it won't specifically change the overall group number. From a U.K. perspective, though, I think you should still expect that phasing to be certainly more second half and first half weighted because January and February for Nisbets is a quiet time, I mean, for a lot of food service businesses. As to deferred consideration, we give -- we do give a phasing of time scales on the cash outflow in the statement. But broadly, you can expect a lion's share of that total cash outflow will land in '27 and '28. There'll be a bit in '26, sort of low to mid-10s, but the rest will come in '27, '28. Unknown Executive: Jane? Jane Sparrow: Jane Sparrow, JPMorgan. Just one for me on the pricing outlook. I know you're guiding broadly stable. But can you comment on within that, whether you're expecting continued deflation in the cleaning & hygiene business? Just trying to understand where you are in the air coming out of that? And if that is coming down, if where else it's being offset by inflation? Richard Howes: Yes. Look, I think we -- so we enter the year seeing a benign outlook for input prices. We're not really seeing any big shifts in paper or plastics or anything else. So then when thinking about '25, '26, then you're to think about the full year effect of '25. There should be some benefit from tariffs given that we put tariffs through in Q2 last year, there will be at -- let's say, a quarter's benefit in 2026. We have seen -- we do see continued deflation in cleaning & hygiene businesses, but it did moderate through the year. So I think there's probably a bit of that as well. Now obviously, the changes -- there's 2 things that aren't included in our guidance from what we've seen more recently, the Supreme Court ruling on tariffs. It's still very early for us to understand what that really means as to how this plays out and indeed, how the refund process works, should there be one. And of course, all that we've seen over the weekend and any changes to oil prices or gas prices driving plastics prices, yet to be seen. Obviously, there would be a lag in any event between the base, the substrate level and the finished goods. So I would imagine if it does -- if we do see something, it will be later in the year. Frank Van Zanten: Okay, no more question. Well, thank you for attending the presentation. Richard Howes: Thanks.