Telecom Plus Aktie

Right. Let's get cracking. Good morning, everyone. I'm Stuart Burnett, Chief Executive of Telecom Plus. And you'll have seen that we released our FY '26 results this morning and published a video presentation on the results online. And Nick and I will take any Q&A on those FY '26 results after the presentation today because we wanted to spend the time this morning to talk through in detail our strategy update and new 5-year plan that we've launched today following the review that we announced in our trading update back in April.

I'm going to lead us through the strategy update together with some of our leadership team. Joining me, you've got Nick Schoenfeld, our CFO, who you know, together with Justin Bozzino, who heads up our partner network; David Walter, our Chief Commercial Officer; and Rob Harris, our Chief Operating Officer; as well as various other members of our leadership team, who I'll introduce you to later. Now in terms of the running order, I'm going to start by providing an overview of our new 5-year plan, and then we'll step through the important features of our business model and the impact of changing market conditions, followed by a detailed run-through of the 5-year plan itself, then what delivery of the plan looks like before wrapping up and moving on to Q&A.

Now there's a lot to cover. It's going to be about 1.5 hours of presentation followed by around 30 minutes of Q&A. So let's dive in. Now the 5-year plan that we're launching today is all about how we return Telecom Plus to delivering on and being rewarded for the unique and special features of the business that I suspect attracted many of you to Telecom Plus in the first place. In short, it's about building on our leading position in acquiring high-value multiservice customers. And the key takeaways are set out on this following slide. So first of all, we have a unique capital-light business model based on acquiring these high-value multiservice customers who've got market-leading lifetimes and financial contributions that our competitors simply cannot match.

And we're able to sign up these multiservice customers when others cannot because of our unique partner route to market, which has been proven over many years as a powerful way to overcome that natural inertia that exists for switching multiple services at once. And this multiservice and partner-driven business model, it really works. We've got a 30-year track record of profitable growth with particularly strong customer and profit growth performance over the last 5 years, nearly 14% and 19% CAGR, respectively. That said, more recently, changes in market conditions with increased competition, particularly in the energy and the broadband markets, have made it more difficult to sign up multiservice customers in volume, resulting in us signing up more lower-quality single-service customers with shorter lifetimes and lower financial contributions, which, of course, dilutes the quality of the overall customer base and the resulting earnings.

So today, we're launching a new 5-year plan focused not simply on top line customer growth, but instead on doubling our high-value multiservice customer base from 0.5 million today to over 1 million by FY '31. And there are 4 key pillars of the plan. First of all, optimizing our multiservice customer proposition; second, scaling our unique partner sales channel; third, building a nationally recognized and trusted brand; and finally, delivering a best-in-class digital experience with AI at its core and with market-leading cost to serve. Delivering on this plan will create significant value, but it will also require significant P&L investment. It's going to require GBP 55 million per annum of P&L investment over the course of the plan, and we'll step through later exactly how that all flows through. And this means that for FY '27 in the current year, adjusted profits before tax will be in the range of GBP 80 million to GBP 90 million.

I absolutely appreciate that this is a big move. But as you'll hear, I think, as we go through the presentation, it's absolutely the right move for the business and the plan is the right plan. And successful delivery of that plan will result by FY '31 in around GBP 79 million a year of additional high-quality profits driven by that increase in multiservice customers and GBP 20 million per annum in additional benefits from our digitalization and AI programs. And together, that will lead to a targeted adjusted profit before tax in FY '31 of GBP 175 million with appropriate contingency built into that number given, of course, we're looking about 5 years out. And importantly, these will be incredibly high-quality compounding earnings with strong and growing cash generation each year, driven by that significant growth in high-quality multiservice customers and with EPS growing well in excess of customer growth.

And finally, and critically, this isn't just a plan on paper. The steps that we're taking are themselves an endorsement of the unique features of the business model that we know works. And there are also a number of very positive signals that we're already seeing from various early-stage trials, which we'll come back to later and which collectively give us high levels of confidence in the deliverability of the plan. So those are the headlines with a real focus on the long-standing foundations that have made Telecom Plus different and successful for over 30 years, especially our multiservice proposition and our partner route to market and a clear decision to take control of our future direction.

And key to all of this is to really understand our business model and in particular, the power of multiservice, why multiservice customers are the centerpiece of the model, why they're so valuable, why we're focused on doubling our number of these special customers from 0.5 million to 1 million over the next 5 years and what that will mean for long-term value creation. Some of you will already be aware of some of this, but it's important to nonetheless step through it because it provides some really important framing.

But there are also some very important new insights and data points, which really go to the heart of why this is the right plan for the business and for you as shareholders. And the starting point is to clarify exactly how our multiservice customer proposition works. Now this slide shows how the proposition is put together. Very simply, the more services a customer takes, the bigger the savings, which provides an incentive to join, an incentive to take more services and then to stay with us for years. And this is structured so that as they take more services, customers receive a bigger discount of their energy bill, funded through some of the additional margin from the additional service or services they take, plus the operational efficiencies that we gain from spreading one set of operating costs across multiple revenue streams.

This is what makes the multiservice proposition affordable and sustainable. And it means that while we still make some additional margin from each additional service the customer takes, we also critically extend their lifetime. So that's how the multiservice proposition works. Now let's turn to the value of these multiservice customers compared to single-service customers. Now in this table, we've broken out our organic customer base into 1, 2, 3 and 4 service customer cohorts. And for clarity, what we're talking about here are core service types, where core services are energy, broadband, mobile and insurance and service types, meaning, for example, we count energy as one, even if a customer takes both electricity and gas. And likewise, multiple mobile SIMs just count as one core service type in this view.

As you can see, multiservice customers have market-leading lifetimes with an astonishing almost 25 years lifetime for the highest quality full-service homeowners. Whilst multiservice customers as a whole average around 13 years of lifetime, significantly more than single-service customers. I would note, however, that even our single-service customers do have a lifetime that would be the envy of many of our competitors. And you can see on this next slide that this means our multiservice customers have an average lifetime, which is 1.7x that of a single-service customer. But of course, lifetime, as I said, is only one part of the equation.

And as you can see from the chart on the right, our multiservice customers have an average annual variable financial contribution of around GBP 185, which is 1.8x the contribution from single-service customers. So 1.7x the lifetime, 1.8x the contribution combined, that's more than 3x the overall value. So put simply, multiservice customers have market-leading lifetimes and financial contributions and therefore, overall lifetime value. If ever there was an endorsement of our multiservice customer proposition and the partner model, which signs up these multiservice customers, then this is it. Our unique model enables us to build a long lifetime, high-value multiservice customer base that our competitors simply cannot match.

And as we'll come on to, it's that high-value multiservice customer segment, which our new 5-year plan is focused on growing. There's one additional benefit from multiservice that I wanted to call out upfront given its importance. And this is what I'd call the innate multiservice data advantage. And by definition, we have significantly more data, insights and touch points with our multiservice customers than any of our competitors get from their customers. We know their energy consumption habits, both volume and time of day. We know where and when they've traveled and how often from their mobile data and their roaming behaviors. We know the number and type of devices connected to their Wi-Fi. We know the size, value, key details of their home, their card spending habits, their payment history. We know their credit quality, contact propensity rate. The list goes on and on. And this presents significant and in a world of AI, rapidly growing opportunities for us to identify and create value in ways and in places that others simply cannot.

In many ways, our multiservice customer base is the perfect use case for AI, giving us access to unique value creation opportunities, including identifying when and how to cross-sell additional products or services, tailoring our proposition to meet the specific needs of that individual customer, identifying churn propensity triggers, supporting our partners to identify which of their contacts are the best prospects for us, identifying efficiencies and service enhancements across the whole end-to-end customer experience and pricing our services and in particular, our insurance services with the benefit of what you might call a 360-degree inside-out view of the customer.

Now we'll come back to many of these points as we go through our plans, but it's a highly valuable feature that shouldn't be overlooked. So we've talked about the unique value of multiservice customers. But the reason why we stand alone in building this sort of high-quality multiservice customer base, well, it's because of our partner route to market. It's the only proven model for signing them up. Indeed, our partner network has been at the core of our success for the last 30 years, exactly because of that ability to sign up multiservice customers. And so why is that? First of all, there is a natural inertia and also like a perceived complexity to switching multiple services all at once. It's the sort of inertia that traditional advertising or digital marketing simply cannot overcome. But a conversation with a local trusted friend or a family member offering personalized support with a genuine recommendation or endorsement, it does exactly that. It overcomes the inertia.

Secondly, the people who respond to direct advertising or digital campaigns or switch to a price comparison website are typically what I would call savvy switchers, who are typically loss-making in year 1 for their supply and will then switch around every year or the moment that you try to make a fair return by rolling them off from their introductory tariff. These are exactly the sort of customers that we don't want. Whereas the local contacts our partners are speaking to at the school gates, on the side of the footy field, in the queue at the butchers, at the golf club, they're typically not regular switchers. They are not looking to switch. But they like the idea of the savings, the simplicity and the service that you get from our multiservice offer. And they buy into that personal recommendation of long-term peace of mind pricing and the idea of never needing to switch again. And it's a genuine moat around our business.

We've got the expertise in building and managing out this vast local volunteer network that nobody else in the country can match. We've consistently seen growing demand per partner opportunity. The partner numbers have doubled in the last 5 years. And more recently, we've even seen an increase from the 77,000 partners at the end of last year, end of FY '26 to over 81,000 today, an increase of over 4,000 in just 2.5 months, showing that it's more relevant and more in demand now than ever before. And through this large network of partners, we are just 1 degree removed from the vast majority of the UK's best customers up and down the country. And looking ahead, we benefit from several multi-year structural tailwinds. The cost of living squeeze, more and more people in genuine need, not only of savings, but also income and additional income that can help them weather the storm of rising costs and unaffordable mortgage payments and the challenging jobs market.

As the work transition, growing numbers of people who are looking for more flexible part-time way to earn. And while traditional gig economy employers can provide short-term income, the regular income of active partners make and especially the passive income they get is second to none in the UK. And then finally, the pensions crisis will be a multi-decade rather than just a multi-year tailwind. People simply aren't saving enough for retirement. And so as well as providing a flexible working option for pensioners, the passive revenue share income that our opportunity provides is an ideal supplement for pension income.

And in terms of the size of this opportunity, we did some research with the CVR that shows that there are currently 20 million adults in the UK who have some form of second or part-time source of income. So as we double our current partner numbers to around 150,000 over the coming years, that will still only be less than 1% market share of this growing marketplace. And then finally, a word on AI. The AI is already proving its worth in enhancing our partners' ability to perform their roles, giving them better tools and better information, and we'll come back to some of that later. It certainly doesn't disrupt their role just as the launch of the Internet or the launch of price comparison sites haven't disrupted it either because it's the personal connection, the explanation and the recommendation together with that sort of sense of community and being a part of something that overcomes the inertia and the perceived complexity.

So unlike more commoditized services like price comparison sites, we look forward to an AI-enabled world with a great deal of optimism and excitement. So that's multiservice and partner. Now on to the one other key feature of our business model that I wanted to call out, which is our capital-light approach. We are experts at acquiring and looking after high-quality customers in what you might call the capital-light downstream or retail part of each of our markets. And we partnered with experts in the capital-intensive upstream parts. So part of this, we put in place long-term wholesale supply agreements across each of our service verticals, ensuring that we have long-term access to the services, the features, the infrastructure as well as the wholesale pricing that we need to compete. As one of the largest and strongest of the independent challengers in each of our markets and with a proposition and route to market that's not seen as a direct competitor to our wholesale providers. In fact, they view it as complementary. This means that we have good strong negotiating leverage and ensuring we have market-leading terms.

A one case in point is our long-term energy wholesale supply agreement with E.ON, which runs to 2033 and provides us with insulation from price volume volatility, whether due to extreme weather conditions or macro political events around the globe. In addition, we're not exposed to the collateral or mark-to-market requirements associated with forward hedging. But it's a similar story in broadband and mobile, where we are what you call a virtual operator, and we're not exposed to the capital costs of the networks and the upstream infrastructure. As a related point, it also means that we're not exposed to the technology or obsolescent risks or the volume risks that exist upstream. And again, in insurance, we primarily operate as a broker, albeit we do have a captive insurer in the group to provide security of supply, and we put in place extensive reinsurance.

And all in all, this capital-light model has enabled us to maintain a long-run net debt to EBITDA to adjusted EBITDA ratio of around 1x, whilst at the same time, growing the business and returning 80% of adjusted PAT to shareholders. So pulling all of that together, here is a visualization of our unique business model, which some of you will recognize, showing how it all fits together. And it all starts with our multiservice customer proposition. By bundling together energy, broadband, mobile and insurance, we acquire those multiservice customers with market-leading lifetimes and contributions that we talked about. And as well as the more value, the more services that they take, multiservice customers benefit from the simplicity of getting all of these services on one bill, one phone number, one app, one password, combined with our award-winning customer service.

And together, that means that once they join us, they don't want to leave. Essentially, we aim to be their last ever switch. And we also get a number of structural financial benefits from multiservice customers. More margin, lower bad debt, lower cost to serve, a higher contribution to our fixed overheads. And we reinvest some of this back into the customer proposition. And that means that we can put together a compelling customer offer whilst at the same time growing profitably. And this creates a proposition, which is genuinely worthy of recommendation. And that's how we sign up our multiservice customers, that word-of-mouth recommendation by our partners. So our partners are the key to unlock the access to the multiservice customers.

So that's the business model. And as I said earlier, this is a business model that really works. We've got that 30-year track record of customer growth and strong financial performance. And as you can see here, that performance in terms of customer and profit growth has been particularly strong over the last 5 years with a CAGR in organic customers of 13.8% and an adjusted profit before tax of 18.7%. But more recently, changes in market conditions have made it more difficult, as I said earlier, to sign up as many of the high-quality multiservice customers that we were talking about a moment ago. Now you'll remember that back in 2022, our core energy market was then impacted by the Ukraine war and the ensuing energy crisis. And this had a number of consequences.

It cleared out the uncapitalized unsustainable operators who had brought this sort of destructive price competition to the energy market and regulatory changes were introduced to make sure that unsustainable suppliers like that could never operate in the market and brought in new financial resilience and capital adequacy rules. And we view these as very positive changes. They removed the unsustainable price competition that had impacted our growth between 2014 and 2021 and were designed to ensure that suppliers operate rationally and based on a level playing field. During this period, whilst most other suppliers essentially set up shop and stopped taking on new customers and instead use that sort of hiatus period to modernize and digitalize and replatform their technology stacks, we instead seized the opportunity to return our business to significant growth.

Our view based on the market dynamics at the time was, firstly, that single-service customers would not only be profitable as they have always been for us, but also that they would have much longer lifetimes given there would be less switching. And secondly, that we would need to invest less in both acquiring and holding on to these customers given the market was more rational and we set our business growth targets based on these assumptions. But since then the market dynamics have shifted. Octopus has emerged as a new type of challenger. It is the U.K.'s largest supplier now. It is up to over 25% market share from just 6% 5 years ago. And it has achieved this by investing hundreds of millions of pounds in building a strong brand never seen before in this marketplace and an advanced digital platform and customer experience.

The has coincided with customer expectations shifting rapidly and that is set to continue as the energy market as a whole modernizes and customers start to engage with and demand self-serve capabilities as well as new developments like time-of-use tariffs and other innovative tariff types. And you can see on this chart that we are the only other large supplier alongside Octopus that is gaining organic market share. All of the other remaining large players, British Gas, E.ON, EDS, Scottish Power, Ovo they are all now losing market share. And as a result, they have been competing hard on price to stem losses. As you can see on the chart, British Gas technically moved forward on this chart because it acquired inorganically the customers of yet another failed supplier, Rebel Energy, out of the supplier of last resort process last year. This chart shows how our energy competitors have been offering linked to the above increasingly competitive introductory pricing over the last year. Whilst the degree of competitive price investment was already fairly high in FY '25 that you can see on the left hand side of the chart that has meaningfully stepped up over the last year as you can see over on the right.

And this level of discounting has meant that it has made it more difficult to acquire as many multi-service customers as for even with our multi-service discounts, for example, for our three service customers. We might often only appear in the middle of the pricing tables at the moment versus some single-service towers being offered by competitors. And at the same time, customers have greater incentives to churn, often able to save what looks like a headline GBP 150 or GBP 250 saving or more by switching. Now, this has resulted in us signing up fewer multi-service customers and more lower quality single-service customers across both energy and mobile and seeing our overall churn rate increase. However, there's one additional trend which I think is really important to understand and which underpins the fact that despite the recent market shifts and this increased competition, the business model is well set with the right plan and the right actions to keep acquiring more multi-service customers and critically that the value of those multi-service customers remains as high as ever and is really worth investing in.

Now, as you can see here, when we look at the 12-month churn rate of different cohorts of our customers over time, you can see on the left that the churn rate of our single-service customers have increased quite meaningfully in recent years in response to some of those recent changes in market conditions. On the flip side, however, the churn rate of our multi-service customers has actually improved over the same period even despite the changing market conditions and increased competition. So this clearly demonstrates that the highly valuable heart of our business, those multi-service customers remain strong and intact despite changing market conditions. And it's here where we'll be focusing our future growth because as I said earlier, we've got 0.5 million of these multi-service customers with the market leading lifetimes and contribution level and a value that none of our competitors can match.

And by the end of our 5-year plan, we expect to have over 1 million of these customers. Customers who are able to retain and build value even in more competitive challenging market conditions. Now before we move on, a quick word about broadband as well as some of these changes in market conditions and competitive dynamics aren't just in energy. At the same time, in the broadband market, the nationwide full-fiber rollout and the emergence of Altnets. So these are some of the new full-fiber broadband providers like Cityfibre, Community Fibre, Netomnia, and others that you'll have heard of who are needing to demonstrate to their financial backers that they can get volume on their networks has resulted in an acute period of competition for broadband.

And you can see here the downward pressure on broadband pricing over the last few years, which is all in the face of course of meaningful underlying cost inflation. Now, while some consolidation has begun to take place in this market and we know from experience that as new technologies are rolled out, in broadband, there's typically a period of margin compression followed by margin expansion back to normal levels. But right here, right now, these dynamics have impacted our broadband gross adds and our broadband churn levels.

So, what does all this mean? Well, as those market shifts have played through, as well as our strong total customer and profit trajectory that we showed you earlier, we've also seen the following trends. First of all, our number of organic services per customer has fallen, as you can see on the left. Whilst on the right you can see how our churn rate has increased back to these higher historic levels driven by single-service churn as mentioned above after significant fall in the big dip you can see in the middle which was during the energy crisis. Now I think it's worth digging a little bit deeper into the fall in services per customer.

Now as you can see on that chart on the left, the fall in service per customer really started from FY '23 onwards. And in that same period between FY '23 and FY '26, it's important to note that, first of all, that we have still increased in absolute terms our base of high-value multiservice customers. And you can see that on the left-hand side here, we've increased them over that period from around 400,000 multiservice customers at the end of FY '23 to 500,000 at the end of FY '26. Albeit as you can see on the chart on the right that, that rate of increase has slowed quite meaningfully over the same period, given those changed market dynamics that we've already highlighted. But even in those more challenging market conditions, we've shown that we can still grow in absolute terms our multiservice customer base, but we've not been set up to do it at the expected rate.

And what this means is that over the last few years, whilst we've still grown our multiservice customers in absolute terms, the percentage of single service customers in our overall base has increased and the percentage of multiservice customers in our base has decreased, as you can see here. And of course, that has a knock-on effect in reducing our overall customer quality. It means reduced average customer lifetimes and contributions and therefore, reduced lifetime values. And reversing these trends, so growing the percentage of our customer base for multiservice with the percentage of single service customers, therefore, reducing is, in our view, the key step if we want to return to being valued as a growing high-quality earnings compounder.

And you can see here why it's so important. So as a reminder, these top 2 charts show the total customer and profit growth trajectory over the last few years, and we showed those charts earlier. But in the bottom left here now, you can see how the quality of the customer growth measured here by services per customer has been falling, and how with a growing proportion of shorter lifetime, lower contribution single service customers where the churn rate of these single service customers is actually increasing for the reasons we mentioned earlier, this obviously has an impact on the quality of future earnings, which over time would put pressure on future profits.

And one view of this is obviously the derating which we've experienced that you can see in the bottom right-hand side of the slide. And what we're announcing today are the clear steps that will reverse those trends on the bottom of the slide, significantly increasing the quality of the customer base, enabling us to consistently build high-quality earnings faster than we add customers. Now, all of that said, I would stress here that single-service customers still remain a valuable part of the overall business. Despite their shorter average lifetime and lower contribution, they're still profitable, albeit less profitable than multi-service customers. And whilst they have shorter lifetimes at 7 years, they still have a lifetime with the envy of most of our competitors. They make an important contribution to covering our overheads in industries where scale is of course important. They improve our wholesale commercial negotiating position, particularly in the telecom space where our wholesale economics improve with scale.

And of course, single-service customers can also be the multi-service customers of the future. We know who they are and we can target our cross-sell efforts towards them as a feeder pool. So what does that mean for future inorganic opportunities? Well, right here, right now, the focus is absolutely on organically growing our multi-service customer base. Albeit, of course, where we identify compelling value from inorganic opportunities, we'll take a look at them, but only as a complement to our organic multi-service strategy, not instead of it. And that brings us to where we are here today. In summary, we have a business model which has the key inherent features and the clear opportunity to create real value over the coming years through doubling down on multi-service customers. Changes in market conditions have meant that this business model is not fully maximizing the significant opportunity resulting in an increased percentage of single-service customers with shorter lifetimes and increasing churn.

As you'll be aware, we had a medium-term target of 2 million customers and that remains as a medium-term target. But as I've unpacked, it's essential that we really apply our focus on doubling our most valuable segment, our multi-service customers. They have longer lifetimes, they make higher contributions, and critically they are resilient to changes in market conditions. Now, the size of the total customer base will rise on the tide, but the value creation from scaling these high-quality multi-service customers is the real prize here. And we have a clear plan to address this and set the business on a path to deliver high-quality compounding growth and creating significant long-term value through doubling our multi-service customers to 1 million over the next 5 years. So now let's step through the plan.

Now the plan covers the following 4 areas. First of all, optimizing our unique multi-service proposition. Second of all, scaling our partner sales channel. Third, building a nationally recognized and trusted brand and fourth delivering a best-in-class digital experience with AI at its core and with market-leading cost to serve and you can see the metrics that we'll be looking to move as a result over on the right-hand side increasing our multi-service customer growth rate, increasing in-life cross-sells, significantly increasing insurance service growth and launching a number of new insurance products, increasing the number of active partners in our network, building our brand awareness and lowering our admin cost per service.

Now, as we said earlier, this is an integrated investment plan across a number of different, but related areas, all designed to increase the number and percentage of multi-service customers, boost our partner channel, and deliver high-quality compounding earnings growth going forwards. It reflects the fact that market dynamics are changing, customer expectations are evolving, competition retention is increasing, and technology is reshaping how value needs to be delivered. And we see a clear opportunity to build on our existing proven strengths, harnessing the unique features of our business model, combined with the power of technology, data and AI to transform how we acquire and deliver both for partners and customers and enhance the value we offer them whilst unlocking some undeveloped areas of the business. Now as mentioned earlier, delivering on this plan will require significant P&L investment in order to unlock the significant value creation, and Nick is going to step you through the numbers on this.

Thank you, Stuart. So, on this following slide, we set out the GBP 55 million per annum planned investment during the 5-year plan. Now, this is of course a significant investment, but this has the key goal of doubling our multiservice customers to 1 million by FY '31 in addition to enabling our digitalization and productivity projects. So, this plan is linked to clear measures which will be used to track the outcome of these investments. The actual targets which we have against these measures will be discussed when we go through each of these plans later on in the presentation. Starting with our multiservice price investment, we have a total envelope of approximately GBP 30 million per annum.

Now Stuart will share some more detail about these pricing investments later on, but for obvious competitive reasons, we can't go into the specific details as to how this will actually be deployed in practice to the individual services and customer subgroups. But this will of course be carefully targeted in a way to maximize multiservice adoption. Furthermore, we plan to invest around GBP 5 million each year in cross-selling to our existing customer base. For instance, that's equivalent to GBP 100 incentive across 50,000 of our customers to take additional services in a particular year where for example, cross-selling another service to a 3 service customer will increase their lifetime by 10 years from 14 years to 24 years.

On Insurance, we're planning an investment of GBP 6 million which is to both launch new products and promote our Insurance offering. This will be split between approximately GBP 3 million of incremental OpEx investment in building capability across the insurance ecosystem and approximately GBP 3 million of investment directly into insurance pricing. Now building out this fourth core service will create even more opportunities to attract multiservice customers. We plan to spend GBP 4 million each year scaling our Partner opportunity which will be split between the Partner commission structure and the capabilities required to broaden the Partner opportunity as we'll explain later on.

The investment focuses on our key multiservice customer acquisition channel. After all, it's through the Partners that were able to acquire multiservice customers at scale in a way that others cannot through traditional acquisition methods. Our GBP 5 million brand investment is built around local impact. The aim here is to make every Partner conversation easier which enables Partners to convert more multiservice customers. As recognition increases, the burden of proof drops and that unlocks an important compounding effect.

Lastly, we plan to invest GBP 5 million of OpEx each year in order to leapfrog our digital experience to best-in-class and further develop our AI initiatives that will enable the delivery of significant operating cost savings per customer and per service whilst at the same time improving the quality of the customer service journey. As you'll see later on, by FY '31, we expect to deliver GBP 20 million of annual benefits from this net of inflation. As you'll see when we go through each of these plans in more detail later on, this investment is targeted to deliver significant long-term value with the growth of our multiservice customer base with its high lifetime values at its core.

And here on the next slide, you can see how the 5-year plan will build over long-term shareholder value. Now, as mentioned, we're targeting a doubling of our multiservice customer base from approximately 500,000 today to 1 million by FY '31, delivering the enhanced variable contribution and customer lifetime, which results from that growth. Now to understand the impact on FY '31 relative to FY '27, we start on this slide with the midpoint of our indicated FY '27 adjusted PBT range of GBP 80 million to GBP 90 million, which we'll come back to later.

Now, as we said earlier, multiservice customers provide a variable annual contribution of over GBP 185 each. Now, we expect to double the number of multiservice customers from approximately 500,000 in FY'26 to 1 million in FY '31. Now given that we expect up to 75,000 of such customers to be added in FY '27, then between FY '27 to FY '31, we plan to be adding approximately 430,000 of them whilst keeping the number of single service customers broadly stable. So that means an incremental variable contribution from the focus on multiservice customers of approximately GBP 79 million per annum by FY '31 relative to FY '27. In addition, there are around GBP 20 million of expected operating cost savings net of inflation from our digitalization plans.

Taken together, that would take us to our adjusted PBT target for FY '31 to around GBP 175 million after including a contingency given that we're looking 5 years out. And in addition, to the increase in quantum of profits. Critically, this plan delivers a significant increase in the quality of profits given that it is driven by a doubling of high-quality multiservice customers from 500,000 to 1 million over the next 5 years. These customers will each provide 1.8x more annual variable contribution than single service customers at GBP 185. And in addition to that, the average multiservice customer has 1.7x the lifetime of a single service customer at 13 years.

On top of that, we actually expect the makeup of the multiservice portion of the customer base to evolve and improve as the plan progresses as we cross-sell to more customers and sell more insurance. Now, for instance, we expect the growth in the number of 4 service customers to be faster than the growth in 3 service customers and so on. Now, that further mix change within the multiservice space would increase the average lifetime of multiservice customers from 13 years to 15 years over the course of the plan. Now looking at the overall plan that will arrest and reverse the current deterioration in customer mix that we've been seeing.

The expected lifetime of our customer base in FY '31 will therefore be around 35% longer than the average lifetime that the overall base would have in 5 years' time if we simply left the current trends to continue. And of course, with that increase in customer lifetimes, we expect lower churn, lower bad debt, greater economies of scale, and lower cost to serve from that evolved customer base over time. And that's why we firmly believe that this is the right course of action and the right plan to create shareholder value. As Stuart has already mentioned, and we'll be demonstrating later by describing the results of trials that we've been undertaking, we had a high level of confidence in delivering the plan. Stuart?

Brilliant. Thank you very much, Nick. So now let's go through the actual detail of the plan itself. I'm going to kick off talking through how we will optimize our multiservice proposition before then handing over to some of the team to talk through the other 3 pillars. And there are 4 proposition areas where we intend to focus. First of all, sharpening our price investment. Second of all, implementing a market-leading cross-sell capability. Third, building out insurance as our fourth core service. And then finally, relaunching our small business offering. And you can see the metrics I'll be looking to move over on the right-hand side. So looking at each of these in more detail, starting off with price investment.

Now, ensuring that our multiservice proposition is compelling to customers on the way in and provides peace of mind value over time is key to building a long-term multiservice customer base. Now, given the competitive dynamics we discussed earlier, plus the fact that multiservice customers have such a high value, we'll be making targeted price investments across all of our core services and the multiservice bundle itself for both new and existing customers. Now, Nick mentioned this earlier, I can't signpost in full to all of our competitors exactly what that pricing strategy will be, but it will include carefully targeted investments across the following areas. Underpinning our energy competitiveness with more competitive fixed tariffs and a new tracker tariff.

Repositioning our broadband offer at the competitive front end. Continued investment in our market-leading mobile offering. Extra sign-ups or welcome bonuses for new multiservice customers. Adding new features and rewards into our Cashback Card. Broadening the range of recontracting and retention offers across a bundle whilst also ensuring that our in-life prices are competitive for our long-standing loyal customers. And these price investments are expected to drive a significant increase in our rate of multiservice customer growth. We're targeting over 10% increase in our multiservice customer numbers in FY '27, the current year, and a doubling to more than 1 million multiservice customers in total by FY '31.

And the price investment will be focused not just on driving multiservice itself, but in particular driving those highest tiers of multiservice that Nick talked about given those outsized lifetimes and value that you get from 4 service customers and the target that Nick mentioned of shifting the mix within multiservice towards 4 service so that we see the average multiservice customer lifetimes rise to 15 years over the course of the plan. And as we build out and implement these price investments, we'll also be building out a more, what you might call, intelligent pricing engine to enable more sort of bespoke data-driven pricing which will support our cross-sell plans and in particular our insurance pricing strategy. Both of which we'll come back to later.

So that's the pricing investment across the bundle to ensure that the proposition is compelling even in a more competitive marketplace. Let's now turn to how we plan to supplement this by building out a market-leading cross-sell capability. Now, as mentioned earlier, our Partners have this unique and proven ability to drive multiservice uptake for new customers on day 1. But motivating customers to add additional services to their bundle in-life is an opportunity that we've just simply not yet maximized. Around 60% of our organic customer base today is still single service. Only around 3% of our current customer base today takes 4 or more services. So cross-sell into our existing customer base, it's effectively a greenfield opportunity.

The value from cross-sell from single service to multiservice is significant. We've touched on some of these earlier, but as we went through, the step up from multiservice results in 1.8x the contribution and 1.7x the lifetime on average, plus those particular opportunities of, adding 10 years of lifetime as you take someone from 3 services to 4 services by adding insurance. And of course, even though it's a greenfield opportunity, we don't begin from a truly standing start. Following the acquisition and migration of those customers from TalkTalk, we were able to upgrade and cross-sell around 14,500 customers over the course of last year.

Now, this strong performance was possible without all of the various capabilities needed to be best-in-class being in place. So, accordingly, our confidence is high that as we build out those capabilities and deploy cross-selling across our whole base that we'll see material further progress and upside. So how will we deliver that cross-sell momentum and shift the value of the customer base? Well from the outset with an annual target of at least 50,000 service cross-sells, we'll be increasing the intensity of cross-selling across the existing customer base using those learnings that we've got from our TalkTalk trials. This will include more regular direct digital campaigns across all services as well as activating our Partners. And this will also be in place to support new product launches like motor insurance later in the year, which we'll come back to.

With this momentum established, we'll begin adding data-driven sophistication to it with specialized, what you might call, AI agents offering personalized digital cross-sell journeys for existing customers using things like tenure and service behavior as triggers amplified by prompts to convert through the app, through the contact center, and through various Partner touchpoints. Now, as trailed earlier, these multiservice data points we have on our customers means that we have deeper insights than our competitors do. And that creates real opportunities for this sort of AI-driven cross-sell to outperform industry norms.

For example, we already know that if you've downloaded and used the app, then you're 3x more likely to respond and add another service when prompted. We already know that you're 4x more likely to switch a service to us if we contact you within a certain time window of your renewal for that service, enabling us to do things like capture renewal dates for the services we don't provide to you and then market to the customer at the right moment. And this is just the beginning, just a couple of early examples. By 2031, as you know, we're now targeting 1 million multiservice customers. And by this stage, cross-sell will no longer be a campaign mechanic. It'll be a continuous AI-driven program running across digital Partner service channels simultaneously with 50,000-plus service upsells a year being just part of how we operate.

I mentioned it earlier, but 1 of the services that is perfectly set to benefit from this cross-sell opportunity or this capability is insurance where we're focused on turning this massive opportunity into our fourth core service. So, let's now take a look at how we will do that. UK personal lines insurance, our target market here, it's a GBP 40 billion-plus market and it's characterized by poor retention, commoditized pricing, low trust. They're exactly the conditions where a differentiated relationship model like ours wins. Now there's a key reason why we're so excited about the opportunity in this marketplace. You see, typically insurers price risk from the outside in. They take your postcode, your credit score, your declared behavior, and so on. But we have a unique opportunity to price from the inside out.

See as mentioned earlier, we know our customers' behavior across energy, broadband and mobile. Even their Cashback Card spending habits. We understand their home stability, their payment reliability, their tenure across multiple services. The cross-bundle sort of data sets that we hold in our customers is effectively -- and you think as a proprietary risk signal providing a unique right to win and our existing customer base represents potentially therefore a largely untapped pool of pre-qualified, high-tenure insurance prospects giving us a structural underwriting and pricing advantage that no pure-play insurer can replicate.

So how far are we on our insurance journey? Well, over the last 5 years, we built out our insurance ecosystem, building both a broker and an internal underwriter to give us control over the product design and pricing. Our broker is fully FCA regulated in the UK, whilst our underwriter is established in Gibraltar, fully capitalized for growth and regulated by the GFSC. We've launched a home insurance product and a boiler cover product as our sort of core insurance products.

We have around 113,000 policies in force and that represents, I think, just under 8% of our current customer base. Now over FY'23 and FY'24, as you can see on the chart on the right, we saw rapid growth in insurance services or 140% growth in the number of policies being taken out. However, you'll also recall that this came to a halt with the voluntary pause in new sales of insurance products whilst we were in dialogue with the FCA around 1 of our non-core legacy products. Now we restarted insurance sales early in FY '26 after a positive dialogue with the FCA but as the graph shows here, growth is yet to recover.

Now in that intervening period we've built out the team and we now have a clear plan to drive scale and insurance, including leveraging the unique data sets that we already hold on our customers that I just spoke about. So how exactly will we do that? Well, here are the 3 steps we're going to take. First of all, we're investing in replatforming our insurance business onto OpenGI, which is a more comprehensive insurance platform, which will broaden the panel of underwriters that we're able to work with, whilst also provide a more sort of modern, slicker platform for launching new products. We'll also be strengthening our pricing of both acquisition and renewal and increasing the sophistication, intensity of our insurance cross-sell campaigns, leveraging the capabilities we spoke about earlier.

Secondly, we'll be launching our first motor insurance product in the second half of this year. This moves us into an additional sort of roughly GBP 22 billion marketplace for a product which is an essential purchase for nearly every household in the UK. Now, this is going to be our first major new product launch in around 5 years and has the potential to drive significant penetration into our existing customer base. If you simply assume 1.5 cars per household and just 8% penetration to match our existing insurance penetration rate, that could amount to over 200,000 policies over the next 5 years. Now, looking further ahead to FY'28, we expect to extend into Pet with then Travel and Life as potential followers, we'll be aiming for 1 new insurance product launch per year.

And then finally, we'll be leveraging these data advantages that I spoken about earlier to really power growth across each of these sort of insurance product lines. Just to give you another example, we've identified a correlation between energy usage patterns and home insurance claims. And this is a data point that nobody else out there can see and nobody else can therefore price for, but we can. To give another example, we will be able to see when our existing customers are shopping for insurance online, for example, on the price comparison side, which is where most households these days shop for their insurance. And we'll then be able to quote for them on that price comparison side, knowing that they're an existing customer of ours for other services and with the benefits of what we already uniquely know about them, all of those different behaviors and sort of insights that I mentioned earlier, plus the knowledge that they'll be deepening their multiservice relationship with us with the increase in lifetime that comes from that.

So hopefully, now you're beginning to see and share some about the scale of the opportunity ahead in insurance and why the sort of the feature of this business are really well set to leverage that. By FY '31, we expect to see insurance as a true fourth core service. We'll be targeting sort of 20% penetration of a much larger customer base, generating significant gross profit and materially extending customer lifetimes.

And then the last of the elements of this pillar is the relaunch of our small business offering, which is focused on micro businesses. This is a large and highly adjacent marketplace where we have a very relevant proposition and also the experience here to know that we can play to win. There are around 5 million of these micro businesses in the U.K. We're talking about these are local businesses employing fewer than 10 people, local shops, hairdressers, estate agents, just sort of high street premises, many of which are run from these dedicated premises and they need energy, broadband, mobiles and insurance. These own and run local businesses are a real obvious add-on to the core residential offering that we already have.

In many cases, our partners might actually be the small business owner or they know the people who are running these businesses. Some of these business owners may already be residential customers of ours. And small business owners typically have utility needs that are very similar to those of a residential customer. Now we've historically signed up and serviced these small business customers even without a fully fledged small business proposition. We built up to over 25,000 small businesses in the past, almost by accident, but stopped actively seeking them out during the energy crisis back into 2021, 2022, given the scale of the residential customer growth opportunity that was there at the time.

As a result, the number of our small business customers today has dropped from around 25,000 to 10,000, but we're working on relaunching this offering to the market next year, and we view this as an exciting additional opportunity to really broaden our target markets and provide an additional stream of leads and income for our partners. To frame the size of this opportunity, at its peak, between 5% and 10% of our new customers being signed up each month were small business customers on this. So that's the first pillar, all focused on optimizing our multiservice customer proposition. Now over to Justin to talk about our second key pillar around how we take that multiservice proposition to market. Justin?

Thank you, Stuart. So I'm Justin Bozzino, and I'm responsible for leading and managing our network of partners. Now you've already heard from Stuart how Team Purple, our partner network is so important. Quite simply, that's a reason we're able to sign up so many multiservice customers, building a happy, long-term, high-value customer base that nobody else could match, a wide and deep moat around the business model. And we have a 3-step plan, how we're going to really scale partners, fulfilling this channel's unique potential and driving our multiservice customer base to 1 million by FY '31. And these 3 steps are all about opening up the opportunity for more people to be a partner so we can double partner numbers over the next 5 years, providing a best-in-class digital experience to make it easier for partners to succeed and be more active more often and putting in place strategic partnerships to broaden our access to high-quality customers across the country.

So firstly, it's about building the tracks that the partners of the future can run on. What does that mean? Well, today, we have, in essence, one way to earn, the UW partner. you join, you do training, you generate leads, you sign up customers, sign up other partners and help them get going. It is an incredible model, one that's been at the core of our growth, as Stuart said, and we are absolutely committed to it. However, it's not how everyone wants to earn. It requires you to be all in with us when perhaps you don't want such a committed relationship at least at the start. So we're going to be launching 2 more ways to earn. The first, we're calling customer-focused partners. So we have lots of people who love talking to customers, but are not so keen on building teams of partners.

And that's a core part of the current partner proposition. These partners just want to get on with recommending our multiservice proposition to people they know. And so we want to build a track for them to succeed their passion, sharing the increasingly compelling customer opportunity Stuart was talking about. And the second, we call connectors, and they're like affiliates. Now this is a really well-developed market, very digital, very social media-friendly and it taps into the influencer market, both small and large. It's not one we're a meaningful part of at present. However, plenty of people want to refer us but don't want to complete the sale. And conversely, there are plenty of partners who are excellent at explaining what UW does, but can run short of people to speak to.

Well, this opportunity marries both of them up. So the really good news here is that we launched the pilot last year, just getting the proposition out, letting it organically grow. And the quality of customers that we gained from this pilot was excellent, over 2,500 customers, 88% on multiservice. So we know there is a demand. There's a plethora of businesses, charities, PTAs and people who want to do this. So over the next year, we're going to really beef up the journey, communications, incentives, experience and so on to make them feel a real part of UW. So those different tracks, not only do we increase the overall numbers of partners, but we also increase the range of people we can reach. As Stuart said, having doubled partner numbers over the last 5 years. Now we're looking to essentially double again over the next 5. So 150,000 seems eminently achievable with these tracks.

And second, it's all very well having these partners, but it needs to be regularly active. And in that respect, we can draw on some reliable and mature industries to really energize the network here. Firstly, gamification. And we do this already. We do it pretty well. For example, with our Free Energy Club, where we currently have over 600 partners on a street-based incentive. But it's not quite as joined up as it might be, and it also is really digital first, and that's what we will be investing in. Think of all the nudges you'll serve to keep you active on Strava, Duolingo or whatever your app of choice is. We're going to be leveraging those insights to build out the journeys, nudges, recognition and so on, so we can significantly increase the engagement and therefore, activity from partners.

Secondly, removing the friction in signing up to utility warehouse. And multiservice bundles by their very nature, include multiple options in each service and within each bundle. And this can trip up customers and particularly newer partners, which is why we have a budding system with experienced partners supporting new partners. That's been really successful, but it hinders explosive growth if we have to rely on it. Emerging copilot technology is going to be key here. So instead of having to rely on an experienced supporting partner, they can have their questions and objections answered by our own copilots, enabling partners to do what they do best, recommend without having to be utility geeks. And we're using an early version of this called Askmii, which is already managing 1,400-plus queries a day from our partners. And that's what Stuart meant when he said, we won't be disrupted by AI. We'll use AI to keep disrupting others.

And third, we're building out significant digital expertise, which we'll use to allocate inbound leads for highest converting partners based on skill set, demographic, geographic area and so on. This architecture can also be used for partners to cross-sell to single-service customers, further increasing our services per customer at a low cost and high attachment rate. Our goal here is to increase the number of partners who are active each year in signing up a customer from 20,000 in FY '26 to over 40,000 in FY '31. And to move that, we need to move the number of partners who are signing up a customer in any 1 month, and we're targeting an increase of over 10% this year versus the second half of FY '26.

And finally, our recently launched strategic partnership builds on the other elements in the plan. We've already signed up the National League with its 72 football clubs, which make up the fifth and sixth tiers of English football. But we chose them as strategic partner very deliberately because they have fiercely loyal and local fan bases. These are clubs like Chester, Weston-super-Mare, so they're perfectly matched to our local partners. For every supporter who signs up for a partner, we're making a contribution back to the league, which helps support clubs and the communities around them. And any new multiservice customer gets a voucher to spend in their teams club shop, so for a new club shirt, and that puts money directly back into the coffers of their team. All of that is incredibly powerful.

Our national league partnership reflects the brand values, which David is going to talk about and crucially our local presence in every club. We talk about being in your corner and around the corner. And you can see in the image there, our brand sponsorship at Wembley for the National League playoff final a few weeks ago. And following on from this, we've recently signed an agreement with the post office. We're trialing space in several post offices with partners actually in store all day in a smart conversation with your bank manager type space, and that's something only we can provide authentically.

They'll be speaking to customers about how they get a better deal on their home services, and we'll reach places other suppliers could not hope to reach. It's a big pilot to revitalize the High Street, and we are a key part of that with the services we offer and how we reach the public. Now we can afford to be picky here and really choose the best partners, learning from these trials with the post office and national league and our general learnings from connectors. Over time, we expect to build up a handful of similar relationships, ideally with organizations that have both national reach and local presence and with whom we can work to build on our partner-led customer base, which brings us on to our next key action area, building out a nationally recognized and trusted brand, which David is going to talk through.

Thank you, Justin. So I'm David Walter, chief commercial officer. So pillar three is all about building a nationally recognized and trusted brand. Some businesses have a problem because they overpromise and they underdeliver against those promises. But for UW, the issue is really quite different to that because we have outstanding customer satisfaction, a really high level of trust amongst our existing customer base, but almost no one outside of our customer base really knows who we are. And this plays out in our brand funnel, as you can see here, where we have genuine awareness at 22%, consideration at 11%, and amongst the overall UK population trust of just 10%. And this really narrows the growth audience because if you haven't heard of us, you're really much less likely to trust us to provide those essential services into your family and into your home.

Now, our partners, as Justin just described, are really tenacious in turning that around one conversation at a time, but it's a headwind, and it's a headwind that just doesn't need to be there. Our brand refresh very deliberately puts partners front and center. We believe in the power of people helping people. It's a brand idea that we can really own. It's emotionally distinctive and most importantly, it directly connects the reality of how our partners show up and how our service teams show up for customers every single day.

So building our brand will remove that headwind that partners are faced with when they strike up a conversation. But more than that, it's going to drive partner pride, partner recruitment, partner confidence, and the lead conversion of prospective customers into actual customers on the books. I guess the message is that building a nationally recognized and trusting brand isn't a soft metric. It's not a soft metric. It's an essential part of the growth ecosystem at Utility Warehouse. We launched the brand refresh to customers, partners, and staff in April. And we also ran a pilot campaign so that we could gather some data on how this would play through and how it would land. And the findings have been really exciting. What we saw from the pilot was a 4 percentage point increase in brand awareness and we saw a 10% increase in customers gathered by partners in the pilot areas relative to the control areas.

I'd love to give you a sense of the brand direction that we're taking. So on the left here, you can see how the brand identity shows up on our website, and on the right, we introduced our new brand ambassador Cat Deeley. Now Cat today is an integral part of the partner appointment where we use videos like the one I'd love to show you now to explain our proposition to customers.

[Presentation]

And here you have a still from the pilot campaign that I mentioned a little bit earlier. So it highlights that special role that partners are playing as a friend, as a neighbor who really can't help, but help. So we position it here saving you hundreds of pounds on your household bills, but really doesn't look like any utility company that you've ever seen before. So let's talk through the plan that we'll execute to build this nationally recognized and trusted brand. We'll be taking a local-first approach to building national fame. So we'll go town by town where our partners are most active and we'll be leveraging out-of-home and hyper-local activations. And this will pair together with a focused investment in national media so that we really effectively prime the pump for partners.

What we'll be optimizing for is awareness that compounds into partner confidence, partner performance, and the ability to convert leads into new customers. A brand headwind that we flip around and turn shift into a brand tailwind. So as a result, genuine awareness will rise over time to 50%. Trust will rise to 33%. So that our brand fame opens up the opportunity and partners close it. So there we are. And now let's move on to the fourth pillar and the final part of the plan. How we will deliver a digital experience underpinned by AI with market-leading cost to serve. I'm going to hand over to Rob who will talk us through this part of the plan.

Thank you, David. Good morning everyone. I'm Rob Harris, chief operating officer. Customer experience at UW has been historically strong and often award-winning. Just last year, we gained the Which? Recommended status for both Energy and Broadband. Whilst our customer experience has been very strong, it's also been very traditional, almost solely through telephony. Today, customer and partner expectations have changed and digital capabilities have advanced dramatically. Many of our competitors use the 2022 energy crisis to replatform and transform their digital assets. During the same period, as Stuart mentioned earlier, at UW, we prioritized maximizing growth. Now, is our moment to transform.

Our plan is not only to progress our digital capability to match the best in market, but to leverage AI to leapfrog this last generation of change. But it's how we bring this to life that really matters. Now, I was leading the retail market, the retail network at Barclays when we launched the first banking app. We used our branch teams to educate, support, and demonstrate what our customers could now do without waiting through this new app. It was those teams that created the shift in customer behavior. Our partner teams at UW are unique in our sector and they'll perform exactly the same role ensuring pace and depth of digital adoption. Our approach has switched from being voice and agent first to digital-first, which transforms both where and how our customers are served. We'll soon offer omni channel assistance, meeting our customers where they are and how they want to be served, either in-app, online, through chat, WhatsApp, and of course, through email and telephony channels, enabling our customers to solve problems on their terms when and how they want.

This omni channel model enables us to make the shift from a reactive service model to a proactive one. We're also transforming how we serve our customers. We're making the shift from a homogeneous service where everyone receives the same level of service to a value-based model much like what is common in banking, airlines, and hotels. So our most valuable and loyal customers will receive a differentiated level of service with teams focused on retaining, growing, and optimizing, thus improving experience, value, and cost to serve. Rather than teams simply processing requests and answering queries, we're creating intelligent next-best actions. Using this unique multiservice data that we have on our customers and leveraging that, combining it with external insights, we can deliver personalized offers, personalized prompts to help our customers get the best of UW.

Now much of this capability will be leveraging AI. And we now have a dedicated agentic team that is currently designing and building specialized agents that are quickly resolving the most frequent queries our customers have and often solving issues before our customers even recognize them. We'll be using these agents in both the front, middle, and back office to drive improved value, improved experience, and efficiency. The agents remove complexity from pretty sophisticated workflows, removing friction from our system and thus dramatically reducing failure demand which is expensive and thereby accelerating the speed of resolution for our customers.

We expect digital interactions, those with no human intervention, to increase from below 10% today to in excess of 65% by the full-year 2031. These changes will not only deliver a step change in customer experience but significant cost efficiency too. Our admin cost per service type is targeted to reduce by around 30% post-inflation over the same period. And on this next slide, we bring this to life. These are the costs associated with customer operations. Essentially, our variable costs. You can see how this program will broadly offset the additional cost of servicing customer and service growth as well as inflation over the period to full-year 2031.

Our fixed cost will remain essentially flat over the period as will our payroll. So, as our cost base remain flat, but our cost per service materially reduces. AI is at the heart of our digital-first strategy, but what we're talking about here is more a fundamental modernization of customer experience at UW. Let me bring to life how we're using AI to accelerate that shift. The multiservice proposition in many ways is a perfect use case to leverage AI. It's perfect because it's so rich in data and it's also pretty complicated to deliver. Well, AI will help us leverage our data to generate greater value and simplify complicated processes. We've already touched on how this will play through with revenue generation through enabling cross-selling or supporting enabling our partners more effectively. But for our customers, we're making progress now and we'll deliver material benefits this year.

I've set out a number of initiatives that are either in pilot or early rollout. To call out a few regarding our quality and compliance, we have three regulators at UW. Our compliance framework is complex. We're currently training AI agents to mark and score interactions. This will give us 100% coverage and real-time agent feedback as opposed to the current analog model which covers under 10% of all interactions. This new solution will always be on and requires less than 10% of the existing team. We also have agent Copilot. This is an AI-powered assistant embedded into our agent systems listening to calls. This supports the agent in real-time, providing knowledge, service, and sales prompts live on the call with our customers. This enables us to develop true multiservice agents, speeding up support and enabling our agents to deal with more complex requests confidently.

Our voice and email channels are currently piloting agentic agents. These are AI voice agents answering simple queries in real-time. We also have the same equivalent on email that are directly responding to our customers' requests. Again, increasing the speed of resolution and dramatically reducing wait times for our customers. And with regards to software development, by the end of this current financial year, our technology teams expect AI to be writing around 20% of all code. These changes will lead to a material shift in productivity, quality, and customer experience. They'll also enable us to reduce our admin costs by around 5% this year.

Genesys is our customer platform provider. So, all chat, email, and voice interactions run through this software. We're really pushing them to innovate and enable us. And as such, they've awarded us the pioneer of 2026 just last month. Mainly, I think, because we're the biggest user of Copilot across Europe and the first globally to go live with agentic agents. We're embracing this new wave of AI and seeing firsthand how it's enabling us to improve the speed and quality of experience at a lower cost. The nature of the multiservice model really lends itself to leveraging these capabilities. So there's much more to come in this space. Back over to you, Stuart.

Brilliant. Thank you very much, Rob. So there you have the plan. So now let's talk about delivery of the plan, starting with what we expect the business to look like in FY '31 after successful delivery. Now, we've talked about all of these things as we've gone through the presentation and the update today. So I won't go through it line-by-line, but I'll call out a few highlights. Hitting 1 million-plus multiservice customers is of course a key metric, but all of those other key operational metrics here are really important in making sure we build out the ecosystem or the platform that will set us on our path to our next multiservice customer target once we break through 1 million.

And critically, with the multiservice mix evolution we expect to see during the course of the plan as we focus on bringing in more customers all the way up to those higher tiers of three and four services. We expect the average multiservice customer lifetime of those million customers will be around 15 years. The 2 million customer total customer target is still there, but the focus is absolutely on growing the multiservice customer base with the 2 million total customer target being a secondary measure over the medium term. And you can see the strong financial metrics at the bottom of the slide as well. But the key here is that because of all of those key operational metrics being hit, the quality of the earnings that results is incredibly high, underpinned as they will be by the long lifetime multiservice customers and a business that is really playing to its strengths.

Now, in terms of tracking progress and delivery against the plan, we've got a number of key progress metrics, I'm calling them, that we've mentioned during the presentation. Now, I'm sure you'll hear lots of ambitious 5-year plans promising stellar growth and returns, but first up, this is a refocus on our proven strengths, not a wild new strategy. And secondly, we want to be completely transparent with you about how we're progressing, which is why we will report on these metrics at each full and half-year results update while the plan is running so that you can really measure how we're performing against our targets and really track progress against delivery of the five-year plan.

I don't plan on running through them again here, but you can see them all set out on the slide. And there'll be both the FY '31 target, but also each year that comes, have a year-ahead target, and obviously set out on here you have our FY '27 target, and in terms of what that all then means for the current year FY '27, you can then see our outlook summarized on the next slide. We plan to achieve at least a 10% increase in multiservice customers, which is a more than doubling of that growth rate in multiservice customers compared to the 3.9% growth rate we saw in FY26.

The investments that we've talked you through today will impact profits in the short term and we expect adjusted profit before tax this year FY '27 to be in that range of GBP 80 million to GBP 90 million. Note that our H1/H2 profit split will be roughly 15%-85% due to the timing and phasing of those planned investments across the year, which will broadly follow our revenue split 40%-60% H1/H2. There's a slide in the appendix of the deck for people in the room. For people not in the room, that they can find on the website and we can also cover that off in Q&A as necessary.

We intend to continue to distribute at least 80% of adjusted profit after tax to shareholders. As we set out in our trading update in April, we intend that at least 50% of that distribution to be by way of dividend with the balance allocated to share buybacks if our forward PE is below 20x, otherwise by way of special dividend. The investment plan for FY '27 will also see our leverage ratio rise modestly, but we expect it to remain at a very comfortable level for a profitable growing business providing essential household services at about 1.5x before coming back to 1.0x as we go.

And as we move through the year, we expect to be able to show that we're making really strong initial progress with delivery of our 5-year plan, taking tangible steps to really refocus on what makes this business special, multiservice customers and the high-quality compounding growth they deliver. I mentioned this early on. Critically, this is not just a plan on paper. It's a plan grounded on reality and deliverability. And as you can see here, over recent months on the left-hand side, we've been trying a number of early-stage initiatives. And the early indications from those initiatives are already very promising.

First of all, we've already seen over on the right-hand side our multiservice customer growth rate in the first two months of the new financial year. Off the back of these initial trials and tests we've been doing, more than double from that 3.9% growth rate last year, FY '26, to an annualized rate of 9.7% across April and May. And that trend is actually continuing and actually accelerating as we move into June.

Second, we've begun to see insurance returning to growth over the last few weeks. In fact, it's early days, it's small numbers, but the tide is turning. Third, our partner activity rates have been increasing. I mentioned earlier the significant increase, the 4,000 increase we've seen in total partners in the last few months, but our activity rates are increasing as well. Monthly active partners, which provides an early indication of the improvement of yearly active partners, is up 15% in the last two months compared to the second half of last financial year.

And then fourth, as David mentioned earlier, we ran a pilot or a trial of local advertising utilizing some of the new brand positioning and we saw a 4 percentage point increase in brand awareness and 10% increase in customers gathered by partners in the pilot areas compared to the control areas. So collectively, these early-stage positive signals give us a high-level of confidence that this is the right plan and that the plan will deliver. So we've stepped through the 5-year plan in detail and shown why we have high levels of confidence in delivery and we also have the experienced team in place to implement and deliver on it with decades of experience both in the business combined with extensive external experience at other leading businesses. Now you've heard from some of the team today and others are in the room and you may hear from them in future updates and presentations. So before we move on to Q&A, let's return briefly to where we started and the key takeaways.

In essence, we're prioritizing and focusing on growth in multiservice customers rather than simply total customers, given that multiservice customers are our special feature, the core of our business and the key driver value. Our plan is to double the number of these multiservice customers to 1 million over the next 5 years, leveraging our unique business model with its 30-year track-record. This plan will involve P&L investment of GBP 55 million a year over the course of the plan across four key pillars. Optimizing our multiservice proposition, scaling our partner sales channel, building a nationally recognized and trusted brand, and enhancing our digital and AI capability to improve both the customer experience and drive down costs.

Delivering on this plan and doubling our multiservice customer base will not only result in targeted adjusted PBT of around GBP 175 million by FY '31, but critically these will be higher-quality earnings generated from a loyal and secure multiservice customer base with market-leading lifetimes of up to around 25 years as well as lower bad debt, lower churn, lower cost to serve and with average multiservice customer lifetimes increasing during the plan to 15 years. Taken together, the actions that we'll be taking will result in a strong, competitive, profitable, and growing business designed to embrace the latest technology and growing its high-quality earnings through focusing on its unique strengths.

And as I mentioned, critically, it's not just a plan on paper. We're already seeing some tangible positive signals from these early-stage trials, giving us high confidence in delivery of the plan. And together with soon. I can't wait to get cracking and get Telecom Plus really motoring again. Thank you. We now have time for Q&A. I think Nick is going to join me up on the stage. I'm happy to take questions both on the strategy update in new 5-year plan we've just been talking you through, as well as of course on our FY '26 full-year results. There's a microphone in the room. So, if you could please raise your hand for a question and the microphone will appear.

Lovely. Thanks Charles Hall from Peel Hunt. Stuart, could I just start on the single service customers? Obviously, there's been a lot of focus in this in multiservice, and you're expecting single service to be broadly flat over the 5-year plan. How confident are you that you can keep it flat if all the emphasis is going on to multiservice, both in terms of pricing and initiatives with partners?

So we still expect that we'll be signing up new multiservice customers as we go forward. Multi single service customers -- single service customers as we go forward, and we also continue to generate single service customers from home moves. Which is a dynamic where a multiservice customer that we currently have in one property, they then move to another property, they leave their energy service behind and a new single service customer comes in. So both the fundamental will still be just as part of the general new customer sign-up mix, some single service customers, and it'll also be a group of single service customers that just appear from that home move dynamic.

I think we're actually relaxed if that number is slightly below broadly stable or whether it's slightly above broadly stable. The key focus and the value creation comes from the increase in the multiservice customers over the timeframe. That absolutely is where the focus is. But for those two reasons, we expect to see single service customers continuing to be added into the mix.

And one of the notable charts had multiservice churn actually coming down last year. So the issue was very much on the churn side was very much in single service, and so you're saying that you're happy for that single service churn to remain high because you're not putting as much emphasis into them?

Those single service customers, they're still profitable for us and they still have a reasonable lifetime, and certainly a higher lifetime than most competitors of ours will have for their single service customers. So they're not bad customers. They're just not the unique customer type that we're able to generate through our partners multiservice customers, and the customers are really worth investing behind and building this business around.

And then you split out that multiservice versus single service churn. Is that why you're looking at putting the price emphasis at the new customers rather than on retention?

So the pricing investment will actually be split across a few different areas. It will be split across both each of our individual services at the front-end across, which will be roughly a third of the price investment, on what you might call multiservice incentives. So incentives beyond the pure price of the individual tariff or the service to take more services. So what you might call a welcome bonus or a broader bundle incentive, and then roughly a third are what you might call recontracting retention loyalty benefits for existing customers. So there'll be a spread across all of those. It's not just at the front-end.

And then Nick, the contribution, the GBP 185 that you highlighted. Can you just walk through how that's being calculated and how much of the initiatives that are coming through contributing to that moving over time, like adding insurance products?

Yes, absolutely. So that is a variable contribution. So in other words, you've got the revenues from that additional, imagine an additional customer coming online. It's the incremental revenue, the incremental raw cost of sales, the incremental bad debt, commissions paid to partners, the incremental operating costs as well that were associated with bad debt. I think I might have mentioned that actually at the FY '27 level of costs. So for instance, within that number is not the digitalization benefits that we are expecting to get. That's the first point.

The second point is that within that number, we've got that number for FY '27. We've used that in the construction for FY '31. So it does not include, for instance, general price rises over and above -- which are inflationary for instance, on the one hand, and it also is assuming that within that multiservice mix that the mix of two service, three service, and four service customers is exactly the same. When actually we know that there is upside from the fact that we're going to with the relaunch of insurance and the various initiatives and the pricing initiatives we've talked about, that mix will change in favor of three service and four service customers that the upside associated with that is not within that variable contribution number if that makes sense.

Yep, that makes sense. And then you also talked about small business opportunity. How would they compare in terms of the multiservice mix and the contribution?

So they're obviously a small part of the embedded contribution at the moment. Very, very small part. Obviously, as those plans develop, that will also be incremental upside to that. Yes.

Hello. It's Michael Donny from Investec. Two for me, one for Stuart, one for Nick. Stuart, when you looked, as I'm sure you did, at what Octopus and OVO was investing in for their growth, was there anything that you specifically saw and thought, No, I'm not going to do that. That's not right for our business? Or is everything that you can see them doing to drive their growth matched on to your 4 sub bits of your 55? So that's question 1, and I'll do it.

Okay. So, while of course we look at what other people are doing in our marketplace, and the competitive shifts in our marketplace is obviously something we talked about today. We are competing differently from them. So they are trying typically to sign up single service customers and they're therefore prioritizing what they're doing with that mindset. We're an energy supplier signing up single service customers. We don't think of ourselves as just an energy supplier, and we're not prioritizing signing up single service customers.

So our -- the way we've actually thought about and constructed our plan is based on the unique features and fundamentals of our business model, which actually don't really map that closely to their business models because they're typically very similar to each other, and we have, we're differentiated in a number of ways. So, our plan is a bespoke Telecom Plus plan based on investing in our proven strengths and the critical pillars. We've already got the last two months showing that the initial trials of the decisions that we've taken and put into the plan are working, which gives us the confidence it's the right plan as well.

That's great. Thanks. And then for you, Nick, can you just building a bit on Charles's question, can you talk us through the main leakage points between what you're calling the contribution level and the adjusted PBT and how -- what might surprise us about the difference between those two numbers over the five years of the plan because I'm not totally sure I understand the contribution bit just yet.

Okay. So the contribution bit, the most important thing is it doesn't include fixed costs. It only includes the variable contribution piece. So just to make sure that that's absolutely clear that includes the revenues, including by the way, the discounts that we are providing. So it's an average of the first-year discount that is provided say in the first or second year, and then the ongoing pricing. So it includes the discount that we are providing to customers embedded within that. You've got the raw material costs associated with the provision of those services that we pay to our wholesale partners. You've got the commission that we pay to our partners because that's of course is variable, and you have the bad debt associated with those customers, which is also variable.

So those are the individual dynamics that are within there, but it is taking the FY '27 number just to explain in terms of the overall rules. So it's looking at the FY '27 mix of multiservice customers as things stand as of now. But when insurance comes, insurance which is back in growth mode, and as we put in those additional insurance initiatives into play, the mix of the four-service type mix within multiservice, which comprises two, three, and four. Four will grow faster than three-service types. Three-service types will grow faster than two-service types. And as a result of that, that upside is not captured into that static number that has been used. I don't know if that helps clarify what the positive is on the upside.

Yeah, I think positively it does help us think about how what that line's going to look like in 5 years' time. Okay, I'll leave it there. Thank you.

Alex Smith from Berenberg. Just a quick one on that GBP 185 number. Just kind of what the contribution energy is to that overall number in terms of the mix and the nominal number I guess, and I assume that is the largest contributor, and therefore I guess in the short term, is that the biggest hurdle to almost deliver savings there given the competition in energy markets, and I guess what's stopped competitors also beginning to deliver extra cost savings for customers like your Octopus?

So I think first of all, at the moment, we apply our energy discount -- our multiservice discounts are loaded against energy and they're obviously set at a certain level, and that is effectively built in, as Nick said, into that GBP 185 number because it's looking at things today. Over the course of the evolution of the plan, that could change. We could either change the way in which we deliver those discounts so we could shift away from energy, or we could change the level of the discounts within energy. And both of those are absolutely options.

The way that we fund our discounts though is through two places. First of all, it's the additional margin that we get from the additional services that a multiservice customer takes out. And second of all, it's the broader benefits that we get from that multiservice customer in terms of what you might call the operational savings that we get from spreading multiple revenue streams across one set of overheads, plus the lower bad debt, the lower churn and cost of replacement, the lower cost to serve that you get from looking after a multiservice customer. So, we're funding our energy discounts in the current structure in a different way to how someone like Octopus or OVO or whoever will be funding that. And so therefore, I'm not sure the right way to cross.

Do they need to take energy really to kind of get a major discount?

At the moment, the way that our discounts are structured, that the discount being loaded into energy. Energy is the dominant service. Of course, in different market conditions, we could decide to shift that and apply the discount to a different service, but at the moment, energy is the largest share of wallet. It's probably the most high-profile, the most emotive of the services, and that's where we put the discounts at the moment.

Again, the key thing I'd say is that the competitive environment that we were talking about during the presentation today is the competitive environment that we've been seeing over the last few months, which is a few months in which we've been deploying some of our price investments and seeing the positive initial signals from that I've mentioned a few times.

Just one last one. I guess there's been a shift in the partner model, more of a cross-sell element to maybe going out and getting new customers for that organic growth. I guess there's probably a bit of teaching incentivization programs that you probably need to roll out there, just like plans for that.

So the partner model is still focused on those pillars that Justin talked about. So our traditional partner model, our customer gathering partner model, and so the connector model, which is the partnerships with small local businesses. The cross-sell will be predominantly centrally managed and will be sort of -- and all of the different touch points we have with customers looking at ways where we can offer them at the right moment using all the data they have. From them additional service prompts at the right moments. Now, one of those interactions that they will have will be through our partners. So, educating and supporting our partners to go back when we launch motor insurance later this year. We'll be asking our partners to go back to all of their customers and talk to them about motor insurance in the same way that we will be communicating that centrally to them as well.

So, that element is how we'll be using our partners in it. But it's not the core role of the partner. The core role of cross-sell is to be managed by us using partners as one of the incremental touch points that other people don't have along the way. In terms of the education piece, again, we're increasingly using -- so much more -- in the past, we used to do school room, classroom teaching to update our partners. We've then shifted it all to online, and we're increasingly using AI-driven teaching tools where partners can both hone their skills and learn new things in an interactive feedback online AI tutor. So our ability to provide quite bespoke coaching to a large and growing partner network is sort of changing rapidly.

Thank you. It's John Karidis from Deutschbank. Just a few questions please. So the first one is I'm trying to understand how the gross profit per energy customer compares with that of a broadband customer. Versus mobile versus insurance. So and also just to check, when you talk about energy, you talk about both services, right? Gas and electricity I suspect?

So when we talk about energy as a core service, we're talking about electricity and gas as one. So when we're talking about our multiservice customers, a two-service customer would have to take energy, electricity and gas, and one of broadband, mobile, or insurance as well, for example. So just to be really clear and simplify that, Nick, in terms of the gross profit. I mean, it's not a number, it's not a breakout that we formally disclose, and that's partly because, because of the way in which we do discounting between our different products. So the fact that we apply discounts to our energy service by taking a broadband product, that obviously has an impact therefore on the relative gross margin, which isn't -- because of the way that the discount lands. So therefore, it can create complexity and confusion as a result. What we really focus on is the customer level view rather than the individual underlying service level view.

Yeah. Sorry, I'm trying to understand if I take insurance and mobile, am I as valuable versus someone who takes energy and broadband? We're both multiservice customers.

Yeah. So broadly speaking that customer would be of similar value. Obviously, there will always be differences, but there's obviously the lifetime and there's the contribution side that you need to look at. And when we look at the, I've done both the contribution and the lifetime analysis, it's been looking at obviously a blend of all these different customer cohorts that sit underneath that.

Okay. Thank you.

One point. Let me -- remember, sort of when you look then below at the contribution line, there's a very different cost to serve associated with the different products as well, where energy has by far the highest cost to serve. So it's actually stopping at the gross -- in any event, stopping at the gross margin level is the one place to stop.

Secondly, what you talked about monthly active partners being up 15% in the first two months. I've got two questions around there. So the first one is what's the year-on-year change? And then secondly, is the number still about 3,000 to 4,000 in any one month?

So the year-on-year change is even bigger than the 15%. I don't have the exact number to hand, but it's even bigger. And at the moment, we are recruiting new partners at a rate of around -- new coming on board is sort of over 4,000 a month.

In terms of monthly active partners, in the past you'd say that in any one month that number is 3,000 to 4,000. Has that changed?

It's higher than that. Higher than that at the moment. And in some of the recent months, it's been over 5,000.

Okay. Thank you. And then a couple of easy numbers questions. Capex went from GBP 12 million in FY '25 to GBP 18 million in FY '26. What's the right number going forward please, and the opposite of that is that your working capital outflow has been very much smaller than the GBP 25 million to GBP 30 million, so why would it revert to GBP 25 million to GBP 30 million going forward per annum?

Yeah, so in terms of the CapEx going -- first part of that question. CapEx going forward, we expect to be in the region of GBP 20 million. So slightly higher as a result of the various digitalization and AI initiatives that we've been talking about, but broadly the same envelope as FY '26, slightly higher than that. Working capital going forward, we continue to indicate around an outflow of about GBP 25 million to GBP 30 million in particular because of the focus on multiservice customers.

Multiservice customers requires -- as a result requires more working capital outflow. Examples of which are routers or partner bonus payments, which are paid because we are very confident that those customers last for a long enough of time. So those are the sorts of things that influence that working capital and that's why we continue to indicate GBP 25 million to GBP 30 million outflow per year.

Thank you. And my very last question is why 20x PE, why is that the right multiple for a buyback and not 15 or 12?

Well, we look back at with other high-quality businesses with growth rate similar to ours and also back at our historic multiple over an extended period of time and formed the view that this was an appropriate multiple as a result.

Thank you. It's Tim Ramskill from Bank of America. I've got quite a few questions, but I'll start basically perhaps with the single service piece. So you've given us an awful lot of information and data today to work with, which I'm sure will take us a bit of time to work through, but if my math is correct, then your single service customers, as you said, it's 60% of the business. And so therefore, it's probably the best part of 45% of the contribution to the group based on that GBP 103.

So as you said, you've got excellent customer lifetime values that are 7 to 8 years. So my slight concern is, have we misdiagnosed the issue because we've shown a chart with a PE multiple declining very dramatically alongside a relatively modest decline in the number of organic services per customer? So it looks to me like you've got best part of 50% of your business from single customers with very long lifetime values. So question 1 is, are we overlooking the ongoing benefit of that?

And then my other question is, I largely group into a category of, is the investment kind of adequate? Is it sufficient given again a lot of what you've pointed to? So GBP 30 million of price investment against the backdrop in the market of 15% discounts. Stuart, as you showed in your chart. Does that touch the sides? And then similarly, GBP 5 million of spend on digital and GBP 5 million on brand awareness? Again, what gives you the confidence those are adequate levels of investment to make a difference because they're not huge numbers in the scheme of things?

Yeah. So, I might answer it slightly back to front. So taking that, what gives us confidence that this is the right number? Well, we're effectively deploying in the first two months of this new financial year, the annualized run rate of the price investment that we've been trying over the last few months, and it has been working and delivering in this existing competitive environment. As I mentioned, we've seen that more than doubling in the number of multiservice customers that we've been signing up in the last couple of months. They've increased partner activity and so on and so forth. So that gives us very high confidence that this is the right plan, the right level of investment, and that it's already working. In terms of things like the brand. Well, we already, we've already, again David talked about the fact that this is not intended to be a more large business national high-profile above-the-line campaign.

This is getting national fame through local executions because that's where our partners are. That's who our partners are. It's where they find their customers and it's focused on putting a halo in effect around our partners and the proposition that they're talking to people about. Open the door for them so they can have better quality conversations. And again, with our, so we're doing it in a different way to how others are spending their money. We're spending it in a more locally targeted way. And once again, we've done this pilot campaign, which again was local, fits in with the budget and the spend envelope if we were to roll out that sort of thing more widely across the country, and we saw very positive results from that as well.

Again, when you look at the digital capabilities, there's what we're talking about here is the P&L number. There's obviously some CapEx, there's some more sort of pounds being spent in total on some CapEx as well, so it's a slightly bigger number than that. But again, we've got experienced team who delivered these sorts of programs in the past, and again, we're already starting to see the effects of some of the things that we're doing already. I mean, Rob walked you through some of the things that we've already deploying in line with our investment envelope for the year ahead, and we're already starting to see the benefits of that. And we expect to generate from that in the orders of magnitude of the 5% efficiency gain across the course of the year just from what we're doing this year.

Now, some of that will be redeployed and moving faster and more productivity rather than -- because that's the phase on the stage that we are, rather than take that out to the bottom line. But again, across each of these different pillars, we are already trying and testing and doing in line with the plan and seeing that the plan is working in line with that with that level of investment. That's what gives us very high confidence. In terms of your first question, can you repeat your first question?

Yeah, it was a bit elongated. So with apologies, but I guess in essence it was single service is a very big chunk of your existing contribution. So I guess kind of what's wrong with that? Like why not you know I get the fact that it's very obvious multiservice customers have a larger lifetime value, right? That's very clear, very obvious. But I'm struggling a little bit with whether we're pivoting too aggressively in response to a big derating on the stock. You just delivered 5% profit growth this year. I'm not sure I've ever seen a company reposition its outlook so dramatically on the back of -- on the face of it isn't a bad set of results.

Yeah, that's right. So we're very clear that the focus on multiservice customers and this degree of focus on multiservice customers is absolutely the right thing to do. But when it comes to single service customers, we've got no real point of differentiation. There's a lot of people out there trying to sign up single service customers with very similar business models. And they're competing in the same way for this principally the same pool of customers. Trying to build a business in that way to my mind is not the right way to build long-term value. There isn't a problem, as I said, in having single service customers for all the reasons that you mentioned. They're profitable and they have a lifetime where they're going to give you the appropriate level of payback for whatever you invest in acquiring them.

But if we want to build a business that is playing to the unique strengths that we have, which is a multiservice proposition and a route to market that can sign up multiservice customers, we should really be doubling down on those unique features. And if we look to where the business would be in 5 years' time following certain alternative paths, there's no doubt in my mind whatsoever that more value will be created over the course of this plan by doubling down on multiservice customers and focusing on multiservice customers than it would if we were to pursue a plan that was -- had a bit harder continuation of the level of single service growth. There's no doubt to my mind there that more value will be created than going for multiservice customers, and that's where it's clear to me it's the right thing to do.

And if I can just one last one, so I don't recall you mentioned at all today the TalkTalk customer bases that you'd acquired and the cross-sell ambitions you had. Just give a quick update there and is there any risk of a write-down on some of that acquisition spend if it isn't going quite as well as planned?

So, as we've said previously, the TalkTalk customers we see delivering a return on investment in excess of the WACC even without cross-sell, and we are cross-selling into them as well. So therefore, that return on investment will be even higher than it otherwise would have been. I think when you look at what that means post-amortization, it's maybe a handful of million pounds a year of therefore contribution embedded in the numbers that we're talking about. But critically, what we've got from this is the insight to give us both the know-how and the confidence about how we develop and build out our cross-sell across the board business. And that's what again, we've already started rolling out some of those insights and we spoke today about how we're going to build out a world-class cross-sell capability leveraging some of those insights, and that's the key here.

Brilliant. Do we have any other questions? No other questions? No.

Okay. In that case, I'd like to say thank you very much for coming. I appreciate it's been a long update, but a lot of important material to cover. And just to reiterate that this is a very comprehensive and considered plan to really set this business on a very different trajectory over the next 5 years. And me and the team are really chomping at the bit to get stuck in and set Telecom Plus on it's deserved trajectory.

Good morning, everyone. Thank you for joining us today for the Telecom Plus Full Year Results Presentation for the year ending 31st March 2026. I'm Stuart Burnett, CEO; and with me is Nick Schoenfeld, CFO. And we're pleased to report another strong performance in FY '26 with double-digit percentage organic customer growth, resulting in record profits and an increase in total cash distributions to shareholders.

Now let's run through the key highlights of our performance. We saw a 23% increase in total customers, including 193,000 broadband customers acquired from TalkTalk with an underlying organic growth rate of just over 10%, which includes 14,500 TalkTalk customers who we upgraded and cross-sold. Our organic service growth of 7.6% lagged customer growth due to faster growth in single service customers, resulting in organic services per customer declining in part as a result of increased competition in the energy and broadband markets.

Adjusted profit before tax of GBP 132 million was at the lower end of our guided range following an unseasonably warm winter, which led to a reduction in household energy consumption. And a total of GBP 80 million will be returned to shareholders in respect of FY '26 with a total dividend of 50p, plus a share buyback of GBP 40 million, which will start today, equivalent to a further 50p per share in line with our updated shareholder distribution policy. And it's our unique business model, which has enabled this performance.

And below is a simple visualization of the business model that many of you will be familiar with. First of all, our multiservice proposition. By bundling together energy, broadband, mobile and insurance, we acquire multiservice customers with those market-leading lifetimes and contributions. As well as more value, the more services they take, multiservice customers benefit from the simplicity of getting all their services on one bill with one phone number, one app, one password combined with our award-winning customer service. And together, that means that once they join, they don't want to leave. Essentially, we aim to be their last ever switch.

Secondly, we have our structural financial advantage. You see, we also get a number of structural financial benefits from our multiservice customers. More margin, lower bad debt and a higher contribution to our fixed overheads. And we reinvest some of this back into the customer proposition, meaning that we can put together a compelling customer offer whilst, at the same time, growing profitably.

And finally, we have our partner route to market. What we've just been talking about creates a proposition, which is really worthy of recommendation. And that's how we sign up our multiservice customers, word-of-mouth recommendation by our 80,000 strong network of partners. You see our partners are the key that unlock our access to multiservice customers.

And it's a business model which really works with a long and demonstrable track record. We've now been delivering double-digit organic customer growth for a number of years as a result of this business model. Since FY '21, we have seen our customer numbers, excluding those customers acquired from TalkTalk, increase at a compound annual growth rate of 13.8%, whilst our adjusted profit before tax has increased at a compound annual growth rate of almost 19% over the same period.

Now looking more closely at our organic customer and service growth for the year, it's important to understand the key competitive dynamics during the period. As mentioned earlier, we met our double-digit growth target for organic customer growth, including the customers upsold and cross-sold from TalkTalk with growth of just over 10%, albeit with organic service growth of 7.6%, lagging behind customer growth. Now the context for this is that we saw increased price competition in the energy market with energy suppliers offering fixed tariffs at a large discount to the price cap as well as spending heavily on marketing and branding.

Despite this, we continue to grow our energy services, albeit at a slower-than-expected rate of 1.8%, but in an environment where only one of the 'Big 6' suppliers increased their market share organically. And together, this competitive backdrop led to our churn rate increasing slightly during the period to 14.2%. In broadband, our full year organic growth was 3.8%. During the period, the broadband market was impacted by increased price competition, driven by discounting from altnets fighting for customers while dealing with high debt levels and consolidation.

Our partnership with CityFibre remains strong and 74% of new customers are now choosing Full Fiber broadband, which we expect to increase now that we've launched our first VoIP product. In mobile, our offering continued to grow very strongly with mobile services up 29%, reflecting our competitive position in the mobile market. And then turning to insurance. This has been slower than expected to recover from the pause in new sales that took place following an FCA review in FY '25. Now whilst our home insurance product began to see positive growth in the second half of the year, this was offset by a decline in our boiler insurance services.

And finally, we saw strong growth in Cashback Card take-up following a number of enhancements to the product during the year, including the launch of open banking, adding new retailers and a 3-month free promotion. Now across the year, we continued to invest in our unique multiservice proposition and partner route to market.

We were incredibly proud to become the first-ever company to be Which? Recommended for energy and broadband at the same time during 2025, which is a testament to both the strength of our customer proposition and the quality of service that we provide. And this was in addition to being named Best Value for Money by Uswitch at their 2025 Energy Awards. Our partner offering is increasingly of its time, driven by the ongoing cost of living crisis and trends towards multiple incomes, not to mention the pensions crisis and the growing need for many households to bolster their retirement income. As a result, we saw a strong growth in the number of partners during the year to over 77,000. And to broaden the reach of our partners, we also launched a trial that we're calling Connectors, where partners sign up a local business or a community organization, which in turn provides them with warm customer leads with the sign-up bonus shared between the partner and the connector.

We also relaunched our insurance proposition during the year after that brief hiatus I mentioned during an FCA review. Insurance service, however, still continued to decline during the year, although we're looking to return insurance back to growth over the year ahead and are planning to launch our first new product in a number of years expected to be motor insurance in the second half.

Finally, we strengthened our customer proposition with new product launches at our biannual partner events, including trialing free energy days and a welcome bonus as a new customer sign-up incentive, introducing a wider range of energy fixed tariffs as well as adding new retailers to the Cashback Card. We also further enhanced our mobile offering with a new introductory SIM and unlimited multi-SIM deal, resulting in an increase in the rate of mobile service growth. Competitive dynamics, however, continue to impact service growth in energy and broadband.

On the subject of broadband, I also wanted to spend some time on the performance of the cross-sell initiative with former customers of TalkTalk, which we see as a real success. As a reminder, we acquired 2 tranches of broadband customers from TalkTalk in late FY '25 and early FY '26. We had 193,000 of these customers on our books at the end of the last financial year, with 160,000 of them actually migrated onto our systems and available for cross-sell. The balance have since been migrated onto our systems over the last couple of months.

Now the key takeaway here is that the initial cross-sell results are encouraging and show that significant conversion is achievable, significantly above what is typical in most industries for cross-sell initiatives. 14,500 customers were upgraded and cross-sold in FY '26, with 2/3 of these customers taking at least one additional service. This represents a 17% conversion rate of the customers available for cross-sell across the year, given that these customers were migrated gradually despite using only manual processes and limited incentives.

Now as previously explained, we expect to achieve a return from these customers above our post-tax cost of capital even without any cross-selling. And going forward, this opens up a significant opportunity to cross-sell to our existing base of single service customers, now we have the know-how and once we have built out the capability to do so.

Now I'll hand over to Nick to talk through our financial performance.

Thanks, Stuart. Let's start with the P&L. As Stuart mentioned, adjusted profit before tax is at GBP 132 million relative to the prior year of GBP 126 million. This was at the bottom of the guided range due to an unseasonably warm winter. Now it's important to note that the rephasing of certain energy costs, including metering, did not impact our full year profits or cash flow as we stated at the half year results. Gross profit is up 9%, reflecting the growth in services, offset by the impact from the warmer weather in winter. Distribution expenses of GBP 48 million remained flat as a percentage of sales. Admin expenses increased by 10% to GBP 159 million against the backdrop of customer and service growth, a higher depreciation charge related to TalkTalk and higher national insurance and minimum living wage costs.

The bad debt charge for the period as a percent of sales was higher at 2.1%. This reflected continued elevated levels of customer non-payment, which arose from the previously high energy prices and that temporary moratorium on the involuntary installation of prepayment meters. Now a progressive ramp-up of this debt recovery process is underway. And as a reminder, typically, any movements in bad debt levels across the industry are recovered through increases in the relevant Ofgem price cap allowance, all of which accrue to the group.

Net interest was higher due to higher net debt following the TalkTalk customer acquisition, and this results in overall adjusted profit before tax of GBP 132 million, which is up 5% on the prior year. The balance sheet includes an increase of GBP 60 million in non-current assets, and that reflects the acquisition of broadband customer contracts to whom we can cross-sell together with investment in software development. Net current assets increased by GBP 40 million, and that's driven by working capital resulting from growth. This contributes to net debt increasing GBP 27 million, driven by the purchase of these customer contracts.

With all this, the net debt-to-EBITDA ratio remains low at 0.9x given the strong cash generation of the business. On the cash flow, well, this starts with an FY '26 EBITDA of GBP 162 million, which is up from GBP 148 million in the prior year. There was a working capital outflow this year of GBP 10 million.

Now as a reminder, the typical working capital outflow expected across the whole year, given the rate of multiservice growth continues to be around GBP 25 million to GBP 30 million. You then have tax of GBP 32 million, and then there is CapEx of GBP 64 million. That includes GBP 46 million for the acquisition of customer contracts, which relates to TalkTalk compared to GBP 5 million in the prior year, and that leaves a residual spend, which is primarily technology of around GBP 17 million.

With all this and the payment of dividends, you have an increase in net debt by GBP 27 million to GBP 143 million. And as mentioned earlier, that results in a net debt-to-EBITDA position of 0.9x despite the acquisition of the TalkTalk customers.

Now turning to shareholder distribution. The backdrop is that we have a capital-light business model given that this has low working capital requirements as we grow, and it has underlying CapEx, which is limited primarily to technology development. That's what determines our progressive distribution policy where we maintain low leverage of around 1x net debt to EBITDA and at the same time, return at least 80% of profits after tax to shareholders.

Now our policy has been revised to split the distribution to shareholders into at least 50% via ordinary dividends and the remainder via a share buyback if it is financially beneficial to the company and the company is permitted to do so. The share buyback will be actioned if the company's shares are trading below 20x implied post-tax earnings. Otherwise, this part of the distribution will be via a special dividend.

Given that the shares have been trading below that level, we're allocating 50% of the distribution to share buybacks. This means that today, we are declaring a final dividend of 12p per share, bringing our total dividend for the year to 50p per share and allocating a further GBP 40 million to a share buyback starting today. That's equivalent to a further 50p per share, bringing our total return to shareholders for the year to GBP 1 per share. Now back to Stuart.

Thank you, Nick. Now as we said in our FY '26 trading update back in April, we've been reviewing initiatives focused on progressively increasing services per customer, reducing churn and enhancing customer lifetime values in order to maximize long-term shareholder value. And today, we have published our new 5-year plan, which includes a renewed focus on multiservice customer growth and aims to double the number of multiservice customers to more than 1 million by 2031.

For full details of the plan, together with our outlook for the current year, FY '27, please see the separate RNS and the presentation of our new plan, which will be webcast at 9:00 a.m. this morning and published on our website. Thank you, everyone, for listening.

Good morning, everybody, and welcome to the Telecom Plus Full Year Results Presentation for the year ending 31 March 2025. I'm Stuart Burnett, CEO, and I'm joined by Nick Schoenfeld, CFO. And we're very pleased to report another year of record performance across the board, resulting in record customer and service numbers as well as record profits and returns to shareholders.

Now before we get into the detail today, here's a quick overview of the running order this morning. I'm going to kick off with a run-through of our highlights for FY '25. Nick will then take you through our continued strong financial performance, and I'll then finish with our exciting outlook for the years ahead.

And as we go through the update today, I think there were 3 key takeaways that you can see on this slide. First of all, once again, our compounding double-digit growth performance is underpinned by 3 things: our unique multiservice subscription star business model; secondly, our structural cost advantage; and thirdly, our partner route to market. And together, these 3 things enable us to sustainably outcompete as we stride on towards our medium-term target of 2 million customers with expectations of growing at between 10% and 15% a year as we go. And in FY '25, of course, we delivered 15% total customer growth with over 12.5% underlying organic customer growth.

Second, for the new financial year, for FY '26, we expect total customer numbers to increase again by around 15%, with underlying organic growth in the low double digits. And for adjusted profit before tax, we expect a range of between GBP 132 million and GBP 138 million. And then over time, as we head towards that 2 million customer target and beyond, we see a real opportunity to increase our EBITDA customer from sort of the mid-120s mark, up towards that GBP 150 million mark.

And then third, we've entered into an exciting cross-sell trial partnership with TalkTalk for around 95,000 broadband and landline customers with the aim to cross-sell additional services from our multiservice platform utilizing our partners as a unique cross-sell channel.

And as we prove that out, we'll end up with, I guess, what's something you can think of as a blueprint for acquiring further books of customers, further books of single service customers from across our service lines into which we can create value by cross-selling our multiservice offering.

So without much further ado, here are the business highlights for the financial year with the headlines set out on this slide. And as you can see, as we said, we had another very strong year in FY '25. We saw a 15% annualized increase in customers, over 12.5% of which were acquired organically with service numbers increasing by over 265,000. Gross profit was up around 1%, as expected, reflecting significantly lower energy prices during the year compared with FY '24 with adjusted profit before tax up just over 8% to over GBP 126 million in line with consensus.

And you might recall that in the first quarter of last financial year, energy prices were particularly high, and that resulted in a positive impact of a handful of millions of pounds last year. And when you strip that out, profit growth in FY '25 was in line with customer growth. And of course, this profit trajectory was aided by admin costs falling despite double-digit growth, which is driven by our ongoing efficiency initiatives, including our investments in digitization and AI. And then finally, we've increased the full year dividend by 13% to 94p in line with our policy of distributing 80% to 90% of adjusted profit after tax.

Now it goes without saying that we are, once again, very pleased with these results. And I think it's important to call out that we're now 4 years into delivering double-digit percentage growth in both customers and profits, and that trend gives us significant confidence about the future.

But to understand exactly how the business delivered this record performance and why it's such a positive indicator of what's to come, I think it's important to also understand the key competitive dynamics in play during the year that you can see on this slide, though. First of all, over the last year or so, I think everyone in their own lives have sort of seen some of this firsthand competition has firmly returned to the energy market. All major suppliers are out there advertising and actively seeking to acquire new customers. But despite this, given the sort of the stable and resilient marketplace that we're now in, pricing strategies have remained rational as they should be in a highly regulated, commoditized essential services marketplace.

Now having shown that the business can grow rapidly when energy prices rose significantly in FY '22 and FY '23 and also when energy prices fell significantly in FY '24, we've now demonstrated how the business can continue to grow rapidly with energy prices have been much more stable, with the price caps over recent quarters moving more by sort of tens of pounds a quarter rather than hundreds or even thousands of pounds a quarter.

And as a result of this, as we mentioned, we've delivered our fourth consecutive year of double-digit organic customer growth. And you can see the bar charts on the left-hand side here, which show the impressive 4-year compound annual growth rate from FY '21 through FY '25 of over 15% for customer growth and over 22% for adjusted profit before tax growth.

Now a slightly slower rate of service growth in FY '25 is due to a combination of things, including, first of all, the temporary pause on new insurance sales that you'll be aware of and increasing customers taking our 2 service bundle versus our 3 service bundle and an increase in some customers taking mobile-only services as follows.

Going forward, we expect service growth to pick up. Now that -- first of all, now that we've relaunched -- fully relaunched our insurance products and also as we build out our cross-sell capabilities, which I'll come on to it a little bit later.

So those are some of the key dynamics in play during the period. And in broad summary, we're essentially back to exactly the sort of marketplace that our business model was originally designed for. And here, you can see on the screen, that very simple but incredibly powerful business model. Now you've all seen it before. So we'll jump straight in to showcasing some of what we've been doing across each of the 3 key pillars, starting with our unique multiservice subscription platform. Now we are continually improving our proposition to make sure that we're consistently competitive and giving our customers what they're asking for.

Now at the half year, we step through various developments, including our EV tariff launch, our faster full fiber broadband launch, our growing partnership with CityFibre and our multi-SIM mobile offering. So since then, there have been a number of additional highlights, including something which we were very proud of is attaining the Which? Recommended Provider award for both energy and broadband and that makes us the first provider to ever hold both of those awards at the same time.

And that's a testament, I think, to 2 things. First of all, to the incredible service that we provide to our customers, but also to the fact that we're uniquely positioned as the only true multiservice provider in the U.K. On the energy side, we also launched our new Free Energy Days initiative to reward our highest-value multiservice homeowner customers with free energy.

On broadband, our big move was to launch a loyalty, or recontracting tariff for our broadband customers who reached the end of their contract so that they don't face such a steep price increase after the initial term. And that's sort of a key part of the ethos of the business of providing long-term peace of mind pricing. And then in mobile, service growth continues to go from strength to strength with our new multi-SIM offer helping to take our mobile service numbers over the 600,000 mark.

And then finally, on our unique cash back card, for which our customers are now consistently month after month receiving over GBP 1 million in cash back, which reduces their -- it gets knocked directly off their multiservice bill with us and also that really builds the extra level of loyalty. And into that program, we've added recently, all of the major mobile -- major cinema chains alongside Caffe Nero and Pizza Express. And we're also trialing various additional initiatives like trialing free cash back cards for some customers to see whether that will boost take-up because we know that when customers take the cashback card and use the cashback card, then they are our longer-standing, most loyal customers.

And then to top it all off, our multiservice proposition is getting back to full strength now that we've fully reopened insurance sales. So just by a bit of background here, that we launched insurance as our sort of fourth core service a few years ago. And when we did that uptake really started to build, and we actually saw a 40% increase in insurance policy numbers during FY '24. And we also took the step to set up our own in-house underwriter to provide security of supply.

Now as we discussed, last year, we began a product review with the FCA. And as part of that, we voluntarily paused new sales of our Bill Protector and Boiler & Home cover policies. And since then, our positive dialogue with the regulators resulted in all of our insurance products being cleared for new sales, and we've now fully reintegrated them into the customer journey, with our Boiler & Home cover policies returning to the front end new customer sign-up journey since April.

Now that brief pause in new sales for insurance resulted in a moderate fall in insurance service numbers during FY '25, but we expect to see a return to growth in the service side now it's fully reintegrated. And it's a service line that we're really excited about. There's a significant opportunity to scale currently only around 10% or so of our existing customers take insurance from us. And at the same time, we're exploring what other complementary insurance products we could add into our current offer.

So currently, we offer home insurance, boiler cover and sort of an income protective product. And we're exploring how over time we can add motor, travel, pet and potentially other insurance lines as well. In addition to that, but we're also actively looking at how we can leverage our sort of really broad, wide-ranging in-house data that we collect from our multiservice customers to support insurance growth and performance.

So long story short. It's really great to get insurance properly back on the road, and we're really looking forward to building out and growing this exciting service into a key part of our multiservice bundle going forward. So our multiservice platform is in great shape. And the great thing about multiservice customers is that they are core to enabling us to generate a unique structural cost advantage.

And to underpin our structural cost advantage. We've been increasingly focusing on driving efficiency across the business, especially given the way that our admin costs increased as we went through the energy crisis. And we're pleased to see, as we indicated at the half year that our admin costs in FY '25. Not only did they increase below the rate of customer growth, but they actually decreased by 5% during the year.

And that was at the same time as boosting and improving our overall customer service and customer experience. I mentioned earlier, about the rich Recommended Awards that we would achieve for both energy and broadband. And those are just 2 examples. We've also consistently being rated at the top or towards the top of the Citizens Advice rankings as well as the Institute of Customer Service rankings and the Uswitch awards and the list goes on and on.

And key to our continued progress here is our investment in AI and digitization, which is continuing to improve our efficiency and at the same time, create some revenue-generating opportunities. We're pushing forward with our 24/7 sort of AI-powered WhatsApp knowledge assistance, which have been launched now for both customers and also for engaging with our partners. And we're already handling over 10% of customer queries through this channel as well as around 5% of partner quotes.

And of course, there's much more to come. This is the tip of the iceberg. In addition to that, at the half year, we talked about our copilot tool, which listens to live calls between our customer service agents and customers. And then surfaces to the agent in real time, the informational articles that they need in order to provide an accurate and speedy answer to the customer, which again is further improving efficiency and core quality.

And then looking forward, over the coming months, we're already working on using AI to drive revenue growth, as I mentioned. We're in a very early stage trial of how we can use machine learning to deliver increased conversion when we're doing cross-sell, and we can already see some increased conversion coming through compared to traditional approaches. And in addition to our partner channel, we've also launched a -- again, sort of an early stage sort of version of that copilot tool I mentioned we're using in our call centers. It's a wingman tool, called Ask Me, to assist partners in sign-up appointments.

And on top of that, we've created a new churn model using AI, which is much better at predicting when customers might be at risk of churning, so we can then take action to retain and that's something we'll be putting into action as we go through the year.

So again, in summary, a huge amount going on here, but even more to come. And it's really early days, particularly as we go on this sort of digitization and AI journey. But we do feel like we have an emerging line of sight to aim at reducing our FTE per customer numbers over time as we scale by as much as 30% to 50%. So a significant opportunity. And with all of that, hopefully, you can see how our one-of-a-kind multiservice value and service proposition creates a product that's really worthy of recommendation. And that's exactly what our partners are for.

Now I'll move quickly through this slide. I think you've seen it before. But as a reminder, we've got over 71,000 partners, who are ordinary people based all over the country, as you can see from this heat map, who are put simply experts at recommending our unique model to their friends, their family and people in their local communities.

One way to think of them is sort of as micro influencers, whether in-person at the school gates, in the golf club or online, on Facebook or Instagram. Now our partner model, as we've been talking about for a few years now, is increasingly of its time. And there are 2 really important tailwinds there. So the first is around what you might call the work transition.

Put very simply, there's now 20 million people in the U.K., who have some form of second or third income on the go. These are people who don't want to do the 9 to 5, who don't want to do the daily commute, people for whom our partner model is right up the street. So our partner is increasingly closer to the modern way of working than a traditional 9 to 5 opportunity.

And then second of all, the pensions crisis, which I'm sure you all understand, which is tens of millions of households, not saving enough for retirement. And therefore, facing retirement poverty. And our model with its really important upfront income, but critically, this long-term sort of revenue share or sort of residual income approach really fits squarely into that gap.

Now at the half year, you might recall I shared a video, which shows how right here right now, some of our partners are using the UW opportunity to build sort of a long-term residual income. But today, I wanted to share another video, which interestingly is over 20 years old. So please, I apologize in advance for the slightly poor sort of film quality for it. But this was from one of our original training programs over 20 years ago.

[Presentation]

Now that gentleman there was Tony Griffiths. And very sadly, Tony passed away last year. But because of UW, he was able to retire. He was able to spend more time with his disabled son, Joe, who needed his presence and support and who Joe will continue after Tony's passing to benefit from his father's UW residual income because the residual income asset you build up as a UW partner can be willed to your family as it's like a form of legacy. That is the power of the UW income model.

Now -- before handing over to Nick, there are a couple of finals and very exciting developments that I wanted to share and talk about briefly about how we can acquire and drive even more leads into our partners and into our unique multiservice platform.

First of all, Connectors. Now we've been experimenting over the past year or so, through a number of small trials, about how we can link up small local businesses, community groups, organizations, clubs and charities with our partners, whereby these organizations can earn a new commission or income stream by introducing their customer base or their membership base to one of our partners, where our partners can then sign up those customers onto our multiservice offer.

Now these trials have been a real success. And as a result, we've launched what we are now calling -- what we're now calling Connectors. I think of this as a new lead generation source for our partners. If you're the average partner, you might expect that in your town, you might know maybe 5% of the people, but all of the local small businesses, community groups, clubs and charities will collectively know pretty much everybody.

So by putting in place this Connector model, partners will share 50% of their commission with the local business or local organization in exchange for the successful warm lead. And this creates a real win-win between the partner, who gets this additional new source of leads from people in their local area, they may not have known and may not have come into contact with, and also for the local business, which generates a new income stream and also a deeper relationship with our own customers on membership base. It's early days. We launched this Connector program back in April. We've already signed up over 1,000 Connectors onto the program, and these range from everything from estate agents and hairdressers to local clubs and charities, and we're going to be very excited to see how this develops over time.

And then secondly, towards the end of FY '25, we agreed a partnership agreement with TalkTalk, who are our long-standing broadband partner, under which we've acquired around 95,000 broadband and online customers, with around 25,000 of those arriving at the tail end of FY '25 and with the balance approaching 70,000 or so due to land during the new financial year FY '26. Now not only are these customers already serviced by the same underlying broadband technology that we have, which makes migrations sort of relatively straightforward, but by moving to UW, they'll, of course, benefit from our Which? Recommended broadband service and offering.

But the key reason for the trial is to demonstrate how with our unique multiservice offer, plus with our partner route to market, we can provide even better value to and create significantly enhanced value from these customers through cross-selling our other services, energy, mobile and insurance. Now we're in the relatively early stages of exploring and trialing a whole range of different cross-sell opportunities with our partners at the center. And this is including matching our partners with customers who live near them. They're using various prompts in the -- whenever we interact with these customers through app engagement, when they call us into our call center, through outbound marketing trials, testing, learning and improving as we go.

And once we've proven out the model, this will provide essentially what you can think of as a blueprint for us to acquire further books of customers, whether broadband or mobile or insurance or indeed energy and whether through acquisition or through partnership, and sort of pots of customers who are not receiving a differentiated service from their current provider. We look out there and see large numbers of customers who are sort of stranded with a non-differentiated provider, where -- and there's a demonstrable opportunity for us to acquire those customers and increase customer LTV through our model.

Now it's early days, so I don't have like a detailed sort of numbers-based update on how that cross-sell trial is performing yet or indeed when the next opportunity might arise. But what I can say is that we're seeing some early positive signs, and we're quietly confident about how it's progressing. So watch this space.

And so there you have it, the 3 key pillars of our unique business model, hopefully brought to life in a way which helps to explain why the business is performing so well and why we expect that to continue.

And with that, over to Nick to talk through the numbers.

Thank you, Stuart. So let's start with the P&L. Now as Stuart mentioned, adjusted PBT is up 8% to GBP 126 million, and that is driven primarily by the strong year-on-year organic customer growth, partly offset, as expected, by the much higher energy price cap level that there was in the prior year, particularly in quarter 1 of FY '24. Without that prior year quarter 1 energy price impact, FY '25 adjusted PBT growth would have been more in line with overall customer growth.

Now highlighting the main themes within the P&L. Revenues of just under GBP 1.84 billion are 10% lower than the prior year, driven by energy prices returning from their higher levels, as just mentioned. And as we've said before, though, revenue is a KPI, which is not particularly relevant as a driver of profit growth. And that's because the energy commodity cost movement are passed on to customers via their bills.

More importantly, these same effects feed into the gross profit line, which is up year-on-year by 1%, driven by customer growth, but meaningfully offset by those energy price reduction effects that we've mentioned. Admin costs decreased by 5% year-on-year, and that's with these efficiency initiatives significantly kicking in together with some of the higher costs associated with customer service during the previous extreme energy price period no longer being needed. And this resulted in a restructuring charge of GBP 5.7 million, which has been excluded from the adjusted PBT view given its one-off nature.

Now as these initiatives develop, we expect admin expenses going forward to increase below the rate of customer growth in the coming year. The bad debt charge as a percent of sales was 1.8% compared to an underlying 1.6% in the prior year when you exclude those energy price guarantee revenues from the government that we had in FY '24. That level has been mainly driven by the continued impact from the temporary moratorium, which was imposed by Ofgem in Feb 2023 on those involuntary installations of prepayment meters.

Now although the moratorium has since been lifted, it will take time to ramp up that -- those debt recovery processes back to previous levels. There were higher interest costs this year given that in half 1 of the prior year, we benefited from the temporary cash timing difference from the government's energy price guarantee scheme before that normalized by September 2023 in the prior year. And all this contributes to this adjusted PBT increase of 8% to GBP 126 million with adjusted earnings per share increasing 9%.

So if we now look at the balance sheet key movements, you've got net current assets, which are driven by working capital and which I will cover off in more detail on the cash flow slide. You've got net debt improving slightly relative to the prior year-end position by GBP 7 million to GBP 116 million, which results in a conservative net debt-to-EBITDA ratio of around 0.8x.

Now in terms of debt facilities, we increased our revolving credit facilities with our banks by GBP 30 million to GBP 205 million and increased the maturity of these to November 2028. And we also increased our private placements from GBP 75 million, which mature in 2030 by another GBP 50 million, which mature in 2032. So that all in results in diversified total facilities of GBP 330 million relative to our net debt level of GBP 160 million, and that's to support our ongoing double-digit annual growth plans of the company.

So moving on to the cash flow. The cash flow starts with an FY '25 adjusted EBITDA of GBP 148 million. From that, there's a working capital outflow of GBP 15 million, and that also includes a small final reconciliation true-up benefit following the end of the energy price guarantee scheme, which finished last year. The typical working capital outflow expected across the whole year going forward, given our rate of growth continues to be around the GBP 25 million to GBP 30 million mark. You then have the tax charge and also CapEx at GBP 70 million, which continues to be primarily technology development.

And with all this and the payment of dividends, which in the prior year included GBP 10 million of share buybacks before we move back to a 100% dividend payout approach, you've got a small improvement in net debt by GBP 7 million, as I mentioned previously, to GBP 116 million, the net debt-to-EBITDA position of 0.8x. And that's in line, of course, with the leverage of around 1x, which we usually have.

So if we now talk about capital allocation, the backdrop continues to be that we have a capital-light business model, given that this has low working capital requirements as we grow, and it has CapEx, which is limited primarily to technology development. So that's what determines our progressive distribution policy, where we maintain low leverage of around that 1x net debt to EBITDA, but at the same time, return between 80% to 90% of adjusted net income to shareholders via dividends. And given that dividend growth last year was lower, whilst we were returning money in the form of both share buybacks and dividends, now that we're returning solely to dividends that the full year dividend growth for FY '25 will be over 13% to 94p.

Stuart?

Thank you, Nick. So we've now talked through our record operational and financial performance during FY '25. So now let's take a few minutes to look forward to the years ahead and our journey to our next big milestone of 2 million customers and beyond. And as you can see on this slide, we have currently 3% energy market share and are the seventh largest energy supplier in the U.K. and the biggest independent challenger to the new big 6. And of course, our market share is meaningfully smaller than 3% in our other services of broadband, mobile and insurance.

So thinking ahead, when we hit that 2 million customer milestone, we'll only have 6% energy market share based on this here, and we'll still only be the seventh largest energy supplier. So the question, to my mind, to our mind, is not about the size of the opportunity, but it's about our journey to delivering on it. And as a reminder on this slide, you can see our 25-year journey so far to this point. Now I think you're all aware of some of the different dynamics that we've talked about in depth in the past, so between the period 2008 to 2014 and then from 2014 to 2021.

And now having gone through the energy crisis, which cleaned out all of those unsustainable operators that entered the market, we're now, as we mentioned a few times, 4 years into delivering double-digit net customer growth. And in this normalized marketplace with our market-leading customer proposition and tailwinds around our partner opportunity, we have a lot of confidence in our continued growth trajectory.

So what does this customer growth opportunity mean in terms of returns? Well, you can see on the right-hand side of this chart, our EBITDA per customer evolution over time, which has stabilized at around the mid-120s level since FY '23. And in FY '25, we again delivered EBITDA per customer in the mid-120s.

Now in terms of the drivers and looking forward as we go on that journey to 2 million customers and beyond, we can see a clear opportunity to further increase our EBITDA per customer from the 120s to the 130s, 40s and ultimately towards that 150 mark. We've set out the key components of that on the slide, but just to sort of break it and step through the gross profit and then the admin cost side of it.

On the gross profit side of things, the main levers are in the positive direction, first of all, improved supplier terms that come with greater scale and buying power. Second of all, selling additional higher-margin services into our customer base and increasing multiservice penetration through cross-sell opportunities and also through adding new additional services into the mix. And also thirdly, by optimizing our pricing for overall returns. And then pulling in the other direction, of course, there's the headwind that comes from lower energy prices and also things like the reduced operating cost allowance in the energy price gap. Together, on the gross profit side of things, we see this as being worth GBP 10 and maybe up to GBP 20 of additional EBITDA per customer over time.

And then on the admin cost side of things, as mentioned earlier, we're scaled for growth. And whilst we delivered meaningful operating leverage improvements in FY '25, there's real scope for more to come. And linked to this, we see real opportunities to come from our investments in digitization and AI. And then again, in the other direction, you've got the impact from things like employer -- increased Employer National Insurance contributions and the National Living Wage. And again, putting those together over time, we might see the admin cost opportunities being again worth in the region of GBP 10 to GBP 20 or more.

And so bringing it all together in summary. In FY '26, we expect to deliver total customer growth again of around 15% with low double-digit organic growth. We expect to deliver adjusted profit before tax in the range of GBP 132 million to GBP 138 million and the full year dividend increasing in line with our adjusted net profit. Now the profit before tax range is slightly behind customer growth as a result of the modest headwind that we see from the operating cost review that Ofgem has undertaken and the increase in National Insurance contributions and National Living Wage, both of which we'll be looking, of course, to mitigate.

And then when you look out further over the medium-to-longer term, so think of this from FY '27 onwards, we expect to continue building market share across all our services. And remember that there's really significant upward potential here given that our 2 million customers with just 6% market share in energy. We expect to be building out our platform for these sort of subscription-style services, adding further additional services into our platform across both insurance and financial services as well as in the Energy as a Service space.

We expect to be opening up new opportunities. We've already talked about the TalkTalk cross-sell partnership, which could be a blueprint for further transactions and partnerships as we prove out the model. And we see some powerful structural drivers and lead to continued demand for our partner opportunity. And as all of these elements come together, we expect to be delivering continued growing shareholder returns with the opportunity to increase our EBITDA per customer over time.

Thank you very much, everybody.

Let's move on to questions. I think we've got a microphone to be passed around. So if you could pass that on to Charles to kick off the questions.

Charles Hall, from Peel Hunt. Stuart, could you just talk a little bit about customer growth? And I think you're talking about organic growth, low double digits. How are you thinking about the TalkTalk customers and the opportunity of cross-sell? Does that come in as acquisition customers, organic growth? How do you think about it?

Yes. No, it's a good question. So obviously, we're guiding towards low double-digit organic growth and total customer growth of around 15%. And that -- the difference between those 2 is essentially the balance of the customers that we've acquired from TalkTalk so landing as we go through the course of this year. Obviously, we're going to be looking to cross-sell to these customers as we go. And when -- if you think of these customers that we've acquired as being a bit like when you've acquired a lead, and they haven't engaged or made an active decision to join you. But once they've engaged with you and taken additional services from you, they are much more -- that behavior and activity and that engagement is much more in the nature of an organic customer who's taken an active decision to join you. So we think of those customers as being organic in nature and the balance of customers who we have just acquired and are sort of more sort of -- they are more maybe dormant in their behavior as being inorganic customers.

Got it. And then can we just talk a little bit about the competitive environment. Last year, churn went up a fair bit. And obviously, that was partly due to timing on the energy price cap. But have you had to be more competitive on price as a result to offset that churn? And when you think about all the other products you're offering, are there any areas where you feel you're having to invest more in price to keep the customer growth going? Or are we now in a sort of normal scenario?

Yes. I mean it's -- whilst it's a rational environment, like I mentioned, and everyone is behaving sort of responsibly and rationally, there are very competitive marketplaces, which is what they should be, and that's not something that we're sort of put off by or afraid by. We lean into that. In terms of the 2 parts. In terms of first of all, of the churn that you mentioned, there were a couple of sort of peak moments around when the price cap was at its highest with a falling forward curve, therefore, creating an opportunity for customers to move on to what appeared to be very attractively priced fixed price energy deals relative to the current level of the price cap.

Obviously, the price cap will then come down and chase the forward curve down over time. So they won't realize the full perceived savings. But nonetheless, at that moment in time, it feels like a good opportunity. And we saw that back in the sort of the September, October period, where the price cap rose and then the forward curve tailed off. And then the forward curve increased again, leading to a higher price cap period that we're now in. And obviously, the forward curve since then has been trending down other than over the last 10 days, where there's been obviously macro sort of geopolitical things at play. And both of those 2 moments in time led to sort of spikes in churn, and we've seen churn start to sort of trend down as we now approach the July when the price cap is due to fall.

In terms of price investment, probably there's 2 areas where we've been sort of -- have been investing in price. One is in fixed energy deals because that has been a competitive fixed energy market out there. And that's an area where we are sort of happy to invest in price because at the moment, we've only historically offered fixed energy deals for multiservice customers, and those are customers that we're happy to invest in.

And the other area where we've been investing in price is we've launched a new sort of broadband recontracting offer that I mentioned as well. And that, again, we think is a really good -- an area where we're happy to invest because these customers are typically some of our most long-standing loyal customers, and we want to make sure that we're treating them well. But both -- all of these marketplaces are competitive, but I'd say that energy and broadband are probably the 2 most competitive, and we've therefore been sort of making some further investments in price in [ those areas ].

And taking that through to EBITDA per customer, just doing the math on the guidance, you've got EBITDA per customer coming down this year. I guess part of that is because the TalkTalk cross-sell is only going to happen in the back end of this year, and you've also got some headwinds on costs. And do you see those as sort of just both temporary issues on that route to the potentially 150 in the medium term?

Yes. I think that's the right characterization. Obviously, things like energy price movements will be a thing that from year-to-year, there will be an impact from that up or down of sort of a modest impact. The exact rate of customer growth, the proportion of customers that we acquire through not just the TalkTalk deal, but any sort of further deals that we do once we've proven out the blueprint. I think the key thing is being understanding what these levers are there, and we will use them in the right way at the right time just because they're there doesn't mean we're going to pull them all at once. The key thing is making sure that we keep the growth trajectory going. And then I'd much rather pull the levers harder once we get to 2 million customers and beyond rather than pull those levers sooner and either slow or damage that journey to 2 million customers. I think that's definitely the right balance in the way that we're thinking about it. But the key thing is to know that they're there.

Alex Smith, from Berenberg. Just a quick one. You mentioned the size of the opportunity to kind of reduce admin costs, and the potential efficiency gains from digitalization and AI. Could you maybe provide a bit of color specifically on where you expect those savings and maybe time lines from those savings given the investment in tech...

Nick, do you want to take...

Yes. I can give a feeling of size. As we mentioned, our admin costs are around the sort of GBP 145 million mark. In terms of the people costs within that, it's approximately 70% to 75%, so say, approximately GBP 100 million. Now in terms of the ultimate efficiencies that we've been talking about, if you take the sort of the lower end of that range, 30%, that would therefore be equivalent to about GBP 30 million. The degree to which that feeds through into -- drops through the -- into an increase in PBT depends on the amount we choose or not to reinvest in the product offer over time.

In terms of time frame, we're not providing a time frame at this stage. It's to provide the sort of flavor of the opportunity as we progress over the years.

And just one quick one on inorganic growth. TalkTalk, I guess, was the first step. I'm just wondering, has that opened doors to other services other than broadband? Have you been approached from other service providers post this TalkTalk acquisition?

Yes. So the first thing here is, without question, sort of proving out the blueprint through doing the cross-sell. But as I said, there are some sort of positive early signs that we're seeing from our sort of early activities there. But as we go through the year, we'll learn a whole lot more. Once we've done that, there are for sure, going to be further opportunities we expect in the broadband space. Across other services, the reason why broadband was an attractive starting point is because lots of businesses have tried selling or cross-selling telecoms products into energy customers. And they found it quite difficult, albeit they haven't had our sort of developed multiservice offer or our partner route to market to help them to do that. But we believe that selling energy and other services into a broadband customer is likely to be more productive because energy is a more simple service to switch and broadband is a more complex service for people to switch.

That said, we think that having proven it out it will open up opportunities across the full range of different service lines. Obviously, where those opportunities come from will depend on all the usual things. And obviously, it takes 2 parties to want to do this. So finding a willing seller as well is obviously the key thing. But we do believe, as I mentioned in the presentation, that there are lots of -- I sort of think of them as like stranded customers. So customers that they are just there in the hands of a single service supplier providing them with a fairly generic service experience. It's not better value, it's not a better service, and they're sort of slightly lost. And I think that we can -- we've got a way to create value from that in a way that other people don't.

Yes. A quick one for me. Stuart, you mentioned early positive signs twice now on TalkTalk. Can I just encourage you to maybe a little bit more specific, both about that positivity, but also a year from now, what would good look like in terms of the potential penetration within that TalkTalk book?

Yes. So it's -- I'm not going to give any numbers in terms of more detail on the positivity. What I can say to flesh it out a little bit is that we're trialing a whole range of different things, lots of small trials with small cohorts of customers. And some of those trials that we've done have started to deliver sort of conversion rates sort of in line with our expectations, some slightly below our expectations and some slightly above our expectations. But if you've got any of your little -- your trial samples with a cohort that's delivering something that's slightly ahead of your expectations, then you might -- yes, we've got this belief that we'll be able to double down on that particular approach and build out that particular approach and roll that out to the other cohorts and therefore, deliver a strong outcome.

So yes, we can do lots of different -- we can do lots of -- all the trials that we're doing, we're sort of -- we're iterating on a pretty much daily basis with how we're doing it. But we're also doing very small-scale trials before we sort of roll it out at a larger scale. We're not in like a rush to do it either. We are -- it's important to make sure that we migrate and onboard these customers in a really positive way that we warm them up, that they get introduced to a new business and a new business model. So we're not in a rush. I think it's very much making sure that we -- and some customers don't want to move that quickly. They want to check, okay, let's see how my broadband experience goes with you over the first period of time. I like the sound of the additional services. In 6 months' time if everything has gone well, then let's have a conversation then.

So there will be a whole range of different types of customers within it as well. I think that the measure of success ultimately is going to be us having the confidence as we go through the year to perhaps actively explore additional opportunities in this space. That's ultimately the litmus test of us delivering what we wanted it to deliver.

So John Karidis, from Deutsche Numis. A few questions, please. Can I just confirm that the 10% to 15% yearly customer growth on the way to 2 million, is that organic only? Or is it likely to be a mix, organic and inorganic per annum going forward?

Yes. So looking at FY '26, we -- first of all, we've obviously talked about low double-digit underlying organic growth within a total customer growth of around 15%. I think as a starting point, that's a useful lay down to think about going forward. Obviously, it will depend on what opportunities present themselves and the extent to which we're able to cross-sell using our partners into those opportunities because obviously, for every bit of activity that we're steering our partners to do to cross-sell over on the right-hand side might take them away from doing something that they otherwise have been doing over on the left-hand side. And so there will be like an interplay of sorts between the amount of cross-sell that we do and what you might call the sort of the more sort of natural historic organic growth that we've delivered. So I think it's too early to sort of be for hopefully understandable reasons to be sort of too fine-tuned about how it might play out over a multiple year period. But hopefully, that gives you enough of a lay down for how we're thinking about it.

Yes. Then in terms of the exceptional admin costs to do with the energy crisis, I guess I have 2 questions. The first one is the assumption was that you sort of rent out call centers somewhere overseas. I'm not quite sure why that would result in exceptional restructuring costs at the end of it. Did you sort of end the contracts earlier? And then -- sorry, related to that, how much of this exceptional cost is left in the GBP 144 million or whatever the number was? And what's the timing of that moving out, please?

So first of all, going through the energy crisis, there was a number of things that we did as we both return to double-digit growth, but also dealt with all the inbound contact that customers were giving. People were terrified about what was going on with their energy bills. And so we received disproportion amount of contact. We did a whole range of things, including significantly scaling up our employed workforce to deal with that as well as taking on expensive predominantly onshore contact center support as well. That onshore contact center support is something that has broadly washed through the system before last year. What was in the last year was, amongst other things, us beginning the process of normalizing our core employee base as we go through that.

Going forward, I think -- it's quite difficult to say how much of that is still left because so many other things are changing. Because of the progress we're making on digitization and AI, we've got just a different view now of how much resource you need to provide a great experience to people. So if you'd asked us a year or 2 ago, we'd probably have said that there wasn't that much additional sort of overinvestment to recover. If you ask us now, I think we'd say that there is, but it's for slightly different reasons.

Yes. I think the question on the GBP 5.7 million is probably has the cash being paid out? And the answer is pretty much predominantly it has.

Right. In FY '25?

In FY '25.

Okay. And then lastly, there are sort of recurring headlines about TalkTalk going bust. So in that scenario, I'm sure somebody will come in and pick up the pieces. But would you incur exceptional costs? I don't know, would you have to change the routers, for example, as a consequence. So if that were to happen, what would be sort of the worst-case scenario for Telekom Plus, please?

Yes. So our contract with -- it's actually with -- technically speaking, it's with PXC, which is sort of like the platform sister company of TalkTalk Retail, but all under the sort of the overall sort of TalkTalk umbrella. And our contract with them is a profitable cash flow generating contract for them and therefore, will be a valuable asset for whoever -- if the scenario that you painted was to arise, our relationship will be a valuable asset that whoever picked up the pieces would absolutely want to hold on to.

And if they didn't -- and if they weren't able for whatever reason, there's other people because we've had regular interest in people who sort of would covet our broadband business. So our expectation is that, like you say, first of all, because of the fact that they've got, however many it is, to 2-point something million customers that will need to be looked after, it would need to be -- the sort of the management of that situation would need to be orderly and have the customer situation at heart. And we'd expect that we would end up being a sort of a very valuable part of whatever the resolution is and any new ownership would want to really look after us.

And so if I were to buy it, would you have to change your routers? Or would you ask me to wear the cost of that if I needed to do that?

I think it depend on exactly who -- depend on who bought it and what sort of migration was needing to be planned, if any, from what network to what network over what time frame. And so it's quite -- yes, a whole range of factors. But as I said, the key thing is to understand is that the customers need to be looked after. So therefore, they need to be an orderly -- sort of an orderly process. And we're probably the crown jewel part of that sort of relationship, and we expect to be heavily sort of fought over by the -- whoever was involved in picking up the pieces.

Maybe one more question, and then I think we have to wrap up.

Just a quick one for me. It's Andrew Ford from Peel Hunt. Just on the customers, so that there's -- obviously, there was more 2 than 3 on the customer sign-ups. I just wondered whether there was anything more underlying in there, which -- yes, sorry, I've got -- anything more underlying in there from a customer service perspective that's changed from a mix perspective or anything else?

No, I think it's a combination of points that I mentioned in the presentation. It's in part the fact that we didn't have insurance available during the large part of the year for new customer sign-ups. It's in part, we made changes as we went -- sort of came out of the -- as we're going through the energy crisis, to make our -- easier to get great value from us by just taking 2 services, whereas in the past, that only -- and that's because we could, whereas before that, the only way that we could compete with some of the rational pricing in the marketplace was providing 3 customers, 3 services plus to you as we reinvested the additional margin from those -- from all the services into the energy price during that period.

So that, for sure, will have had a diluting effect on the number of services per customer. And then the third and final thing, which is important not to overlook is also an increase in mobile-only customers, but also now with the addition of the TalkTalk customers that came in, we had 25,000 sort of essentially broadband-only customers that landed during the year as well. And as we look to the new year, we're obviously going to have 70,000 or so. So the balance of the customers that we bought are broadband-only customers that are going to be landing in FY '26 as well. So that will have an impact on that sort of that mix as we look forward.

Great. I think that takes us to time. So let's wrap up quickly. I think the place to wrap up is maybe back where we started on the 3 key takeaways. So first of all, as a reminder, our double-digit growth performance is underpinned by those 3 key strands of our business model, which enable us to sustainably outcompete as we go on our journey to the 2 million customer mark.

Second, for FY '26, we expect total customer growth of 15% with low double-digit percentage organic growth, adjusted PBT between GBP 132 million and GBP 138 million and full year dividend increasing in line with adjusted net profit. And as we head towards that 2 million customer mark over time, we see a real opportunity to increase our EBITDA per customer.

And then third, we've opened up a new and exciting opportunity to acquire and drive further leads into our multiservice platform through this partnership that we put in place with TalkTalk. And we would expect that to provide a blueprint for further inorganic and partnership opportunities in the future.

Thank you very much, everybody.