Thank you for standing by, and welcome to the Capral Limited first half 2026 results webinar. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Tony Dragicevich, Chief Executive Officer and Managing Director. Please go ahead. Good morning, everyone. Welcome to Capral's first half results presentation. I am joined this morning by our CFO, Tertius Campbell, who many of you will have met in the past, and also by Luke Hawkins, the General Manager of our industrial business and also our supply chain. Luke also heads up our anti-dumping and government advocacy. Luke will be helping us with the presentation today. All right. Firstly, turning to the agenda, I will run through the business overview and the first half highlights. Tertius, including Luke, will talk a bit about the industrial business in particular. Tertius will run through the financials, and then I will come back and talk about strategy and outlook and then guidance to finish up. Referring to slide three, the Capral business at a glance. Capral is Australia's leading supplier of aluminum extrusion and rolled products. We have six manufacturing plants around the country. 65,000 tons of annual extrusion capacity. 24 distribution centers, 19 regional distribution centers, 15 trade centers. The key markets we play in are residential and commercial building and also a wide range of industrial markets, the largest being transport, marine, and infrastructure. Overall, the revenue for the last 12 months is around AUD 730 million. Our market share sits at approximately 27% of the aluminum market in Australia, downstream aluminum market, and we have in excess of 1,000 employees. Moving to the first half highlights on page four. A really solid first half despite challenging market and supply chain conditions. Certainly, the Middle East conflict played havoc on aluminum supply chains internationally in the first half of the year and also on Capral. Luke will talk a little bit about that in more detail later on through the presentation. That led to material higher global metal prices, which drove higher sales revenue on slightly higher volume. The residential market remains subdued, and we expect recovery to be gradual. Strong operating cash generation and a net cash position. Our margins held up well through disciplined cost and pricing management. We have a strong balance sheet supporting continued capital investment. Moving to the detailed highlights on page five. I will not go through all of these. I will just pick out the major ones I want to talk about. Overall, a nice improvement in earnings in a challenging market. The standout was our strong cash generation and strong cash balance at the end of 30th of June. Our volume up 4% to 32,500 tons. Revenue up 14%, driven by the higher metal pricing, particularly LME, which I spoke about earlier. Our underlying EBIT up 4% to AUD 16.7 million, and our underlying EBITDA up 5% to AUD 29 million. Net profit after tax, just under AUD 16 million, up 4%. Last year's number did include a AUD 2.5 million taxed benefit, and this year's included a positive LME revaluation. Overall, earnings per share up 9% to AUD 0.994 per share. Net tangible assets up 6% to just over AUD 13.40. As I mentioned earlier, a very strong net cash position, AUD 62 million, on the back of our best-ever debtors collection in the month of June. So really pleased about that result, leading to strong operating cash flow. Our capital management, our share buyback, continued through the first half of 2026. We managed to buy back on market equivalent of AUD 0.23 per share, which was slightly down on the AUD 0.27 per share in the first half of last year. Similar to last year, no interim dividend. But clearly it's our intention to top up the share buyback with a final dividend. I'll let Tertius Campbell talk a little bit more about that later in the presentation. Really pleased with our safety performance, best on record, 3.1 total reportable injury frequency rate, down from 5.9 last year. Now turning to page six, where we discuss our volume and our channels to market and sales mix. We have diversified our channels quite extensively over the last five or six years, and that supports our overall resilience, particularly in the downturn in the housing cycle. As I mentioned earlier, first half volume up 4%, with the growth primarily coming from our distribution channel, which is a channel where we've made a number of strategic investments over the past five years. Our industrial business now represents 50% of our total volume. That's up from 41% in 2017. That's broadening our demand on our business beyond just the building cycle, and it does reduce our earnings cyclicality. Our residential exposure, as we've spoken about previously, is weighted to detached and low-rise dwellings. The high-rise multi-residential dwellings, the high-rise apartment market, has become the domain of fully fabricated, imported windows and doors. As we're just talking about imports, so imports of both extrusion and fully fabricated windows continue to impact upon the Australian aluminum market. In particular, the big change over the last couple of years has been the growth in imported fully fabricated windows. As a result of Australian Glass & Window Association, together with the largest window fabricator in Australia, have jointly taken an anti-dumping case, which is currently in progress, and Luke will speak a little bit about that later in the presentation. Where we sit at the moment, our channels to market are around 50% of our volume goes directly from our mills to our large customers. Then through our distribution business, 32% of that is extrusion through our distribution business and 16% are rolled products. So rolled, we made sheet and plate aluminum. The chart on the bottom right-hand side of the page represents our six-monthly sales going back to 2017. As you can see, the second half sales are typically, or volumes are typically higher than the first half as we head into the summer months where there's more building activity, and we get more feet on the ground and out there in the marketplace. So we are looking forward to a, once again, a lift in volume in the second half of the year. Turning to page seven. Specifically here, residential. While our exposure to the residential market has fallen a bit in recent years, it is still by far our single largest segment that drives our volume. Just to note that our demand typically lags commencement by around two quarters. If we look at this graph, we can see in 2023/2024, the cycle low, and 2025, the market stabilizing. Then this year, 2026, we are starting to see a lift in housing commencements, albeit we are yet to see that volume start to flow through. We do expect it to start flowing through in the second half of 2026. Beyond this year, the forecast, as you can see on the slide, is for good solid growth in the housing market. A reasonable proportion of that is in the green parts of the graph on which our sales are primarily planned, which is the low-rise and housing market, but also strong growth in high-rise apartments as well. I think the thing to note here is that the impact of the recently announced tax changes by the federal government, I think the budget was in May, have created a fair bit of uncertainty in the last couple of months about what that means for all investments, but for us particularly. Relevant for Capral is the investment in residential housing. While there is, as I said, a fair bit of uncertainty about that at the moment and the knock-on impact leading to lower house prices immediately. We do think that given the underbuild of housing in Australia over the last decade, that with the tax changes favoring new build, that once the market settles, we should see continued strong growth in the new housing market as a result. Okay. Now moving to a few examples of projects recently completed. On page eight. Just want to highlight here some projects completed by our fabricators. The first two are upmarket homes completed by Busselton Aluminium in W.A. using Capral's AGS framing systems, and also an upmarket home there on the Sunshine Coast, fabricated by Elite Aluminium using our upmarket residential system and also our framing systems as well. Then turning to commercial building examples on the next page. Just to give you some idea of where our products end up. We have a shopping center, or outlet center in New South Wales, produced by Elite. We have a train station in W.A., the Nicholson Road station. You can see a lot of aluminum used in these new infrastructure projects. Then we have on the far right-hand side, a medical clinic in Charlestown in New South Wales, with the fabricator there being PCW from up in the Central Coast. Okay. Now turning to the industrial sector. I am just going to let Luke, who heads up this part of our business, talk to this slide. Thanks, Tony. What we can see here is, looking at the key market segments, the transport sector has been pretty steady. You can see it stabilized from the 2025 downturn, and it has been pretty stable into 2026, and we expect that to sort of continue through. The marine segment has been particularly strong for us, particularly the heavy commercial ferry class. We have seen strong growth with Incat, RDM, and to a lesser extent, Austal in the defense space and Echo Marine Group. The solar segment, which is a bit of a longer-term play, we are working with potential beneficiaries of the government's Solar Sunshot solar panel startup programs. We are starting to see some initial volumes with one existing panel manufacturer. In the industrial construction segment, we are seeing strong uptake with regard to cladding replacement. That continues to evolve and continues to gain momentum, and we would expect that to continue for several years yet. Equally, we are starting to see benefit in the data center space. In that space, we are able to provide into the server racking, and arrays space, both the ceilings and flooring systems, and some of these also have a significant aluminum content, as does the facade exterior, I guess, provide opportunity. It is an emerging area, and obviously we expect to get more benefits across the coming years in that space, particularly leveraging our ESG-certified products in comparison to imports. The manufacturing space has continued. Manufacturing, general fabrication segment has remained relatively steady, and we have held our share gains against imports over the last couple of years. Of particular interest is in the reseller space. We have seen BlueScope announce a significant reduction in their aluminum distribution capacity with an exit from Western Australia, significant reduction in South Australia, Victoria, and New South Wales. That is presenting opportunity for us, particularly in the transport sector and marine segment. We are looking to shore that up, and we have managed to secure a purchase agreement for a significant portion of their inventory to help us enter into that market more holistically. You can see, I guess our volume down the bottom indexed from 2012 has shown that we have maintained reasonable growth across the last couple of years. Moving to the next slide, we have got a few examples of what we have been discussing there. What you can see on the left is a Richardson Devine Marine has constructed a fleet of Sydney ferries. That one there is recently completed. Equally, in the transport segment, to give you a feel for where our metal goes, there are some aluminum tippers there produced by Bulk Transport Equipment in Victoria. On the right-hand side, you can see Aussie Play. We have got a number of customers in that segment producing park furniture, producing playground equipment, et cetera, for right across the country. I think we're about now to show one of our Crafted with Capral videos, featuring Aussie Play. Something a little bit different just to show the diversity of where our products end up. We supply all sorts of resources and equipment to early learning sectors and primary schools and councils and everywhere else. Being able to design the product one day and see a prototype the next is the real strength of Australian manufacturing. When we say Australian Made, we literally do every single aspect. We do not buy in pieces and just bolt it together. We cut it all, we bend it all, fold it, weld it, assemble it. We are true manufacturers. There was no aluminum in playground equipment, so we brought that new material to the range, and it sort of set the benchmark that that is what it needs to be as a minimum. The entire time, really, I have been buying my aluminum through Capral, so it has been a long relationship. The beauty of Capral is that because it is made in Australia, we can always talk to Mary-Anne and say, "We have got some urgent stuff going on." And sure enough, a couple of days later, we have got those products here in stock ready to go. One of the beautiful things about playground equipment is where you can design a playground, and then when you watch the children on it, they do not do anything along the lines of what you think. They do something totally different. That is what brings the real pleasure in designing something, is seeing how the children engage with it and what it makes them think and what makes it fun and challenging for them. I love that. I think that is really, really important. Okay. We now turn to our financials. I will hand over to Tertius to take. Thanks, Tony. Let me take you through the first half financials. Three things frame this half. The metal costs rose materially and remained volatile. It is a dominant influence on the result, on our revenue, on our cost of sales, and on our working capital. Earnings were resilient in the face of the higher cost across the business. We finished the half with a stronger balance sheet and materially better cash generation than the prior corresponding half. I will take each of these in turn, but just before I do that, I have asked Luke to just talk about the metal cost component. Certainly, the Middle East crisis has provided a significant volatility in metal costs. What you can see here, I guess that is driven by the fact that 9% of the world's aluminum is produced in the Gulf. Obviously, significant interruptions both to alumina supply in the Strata of Hormuz being closed, has conspired to drive aluminum prices to a full-time high. What you can see here is that the average LME price compared to the same period last year was 17% higher. In addition to that, we are seeing regional premiums, in our case, the MJP being 22% above the corresponding period last year. That conflict is likely to continue to provide volatility over the coming months. It is one of the biggest drivers to our working capital, going forward. J ust do the next slide, please. Revenue increased 14% to just over AUD 372 million on a 4% higher volume, higher average metal cost, and improved mix. The volume growth came mainly through this distribution channel, as Tony mentioned earlier. Underlying EBITDA increased to AUD 29 million, and underlying EBIT increased 4% to AUD 16.7 million. The bridge is best read as a cost recovery. Our inflation, which is wages, freight, occupancy, reduced our EBIT by around AUD 6.2 million. That is what the price and productivity are set to recover. Price and mix contributed AUD 5.6 million, and further savings and productivity throughout the business produced AUD 1.3 million. So AUD 6.9 million against the AUD 6.2 million in inflation. So our inflationary cost was basically covered in full. Compliance and other costs, you could see there on the bridge of AUD 2.1 million, of which some of it is one-off items and will not be repeated. The volume and growth added AUD 2 million, taking our underlying EBIT to AUD 16.7 million. Significant items were a net gain of AUD 1.3 million, mainly LME revaluation, giving us a statutory EBIT of AUD 18 million. Finance cost were AUD 2.1 million, of which AUD 2 million was due to AASB 16, the lease charges. Net profit before tax was AUD 15.9 million, up AUD 3.1 million. In the prior corresponding half, we carried a AUD 2.5 million deferred tax benefit. We did not increase the DTA this half. Net profit after tax, AUD 15.9 million. Our earnings per share increased 9.5% to AUD 0.994 per share, ahead of the 4% growth in profit, reflecting also the reduction in the shares on issue through the buyback. Turning to the next page. The balance sheet is stronger than what it was in December. Our net assets increased AUD 7.7 million to AUD 252 million. The net tangible asset per share increased 6% to AUD 13.43, supported by retained earnings and the continued buybacks. Inventory reduced by AUD 3.6 million. The metal cost rose 25% across a half. Thus, the lower inventory tons, which is mainly a reduction of delayed shipments, provided that assistance. Receivables increased AUD 27.9 million on a higher revenue and metal linked pricing, and our collections were well controlled and achieving a record low DSO in June. Payables increased AUD 25.6 million, tracking the higher metal cost and some timing of the payments improved our cash position at the reporting date. Our working capital was broadly flat at AUD 125 million. While we saw sales grew, the working capital to sales improved to 17% on a 12 months basis. We ended the half with AUD 62.1 million cash and a syndicated facility in place with additional headroom, and we remain comfortably within our banking covenants. Our lease liabilities under AASB 16 totaled AUD 71.3 million. The accounting treatment reduced our net assets by around AUD 17 million or AUD 1.09 per share, which is non-cash in nature. To the next slide. Operating cash flow was AUD 28.2 million against the AUD 7.8 million in the prior corresponding half. Most of that improvement is working capital. AUD 1 million released this half against the AUD 16.1 million build in the previous first half, a swing of AUD 17.1 million. EBITDA growth contributed the balance. I would not read this half's conversion as a run rate. Payments for higher cost inventory falls due in the second half, and we expect working capital to increase. Capral expenditure was AUD 8.7 million across sustained and growth programs, directed at reliability, automation and productivity. Our free cash flow was AUD 10.3 million after lease principal payments against an outflow of AUD 4.6 million in the prior corresponding half. We returned AUD 8.4 million to shareholders through the final dividend and the buybacks. Cash increased AUD 1.9 million before our foreign exchange effects. Trade instruments, letters of credit, were AUD 36.8 million, consistent with imported product flows and the higher metal pricing. The key points on this was cash generation was strong this half. The improvement was real, but there is an impact. Timing does have an impact on this. Next slide. Capral management. Our capital allocation framework remains unchanged. We target a cash distribution to shareholders of 40%-60% of underlying earnings over time Maintaining flexibility between our buybacks and unfranked dividends. In the half, we bought back just over 300,000 shares at an average price of AUD 11.77, below the NTA per share of AUD 13.43, which is accretive to our earnings per share and to long-term shareholding value, shareholder value. That equates to AUD 0.23 per share against the AUD 0.27 in the prior corresponding half. Around 2.2 million shares have now been purchased since we started this program. As Tony mentioned, we are not declaring any interim dividend at this time. Our intention for 2026 is to focus on returns via the buybacks, but then top that up with unfranked dividends as required at full-year. The 2026 program is for up to 10% of our issued shares. Buying resumes tomorrow, 25 August, as soon as our results blackout lifts. Over the five years to June 26, Capral has delivered a total shareholder return of approximately 97%, or around 14.5% per annum compounded growth. Capral returns are supported by the AUD 62 million in cash and our significant availability under our syndicated facility, preserving flexibility for growth and for through cycle volatility. In summary, resilient earnings, a stronger balance sheet, disciplined capital management, that positions Capral well to manage volatility and the benefit of the residential demand recovery throughout the second half. With that, I'll hand back to Tony. Thank you, Tertius. I'll now turn to our strategy and outlook. We remain focused on increasing returns on invested capital, strengthening our competitive position, and growing our distribution footprint, in what can be quite challenging market conditions within this industry. We have a clearly defined strategy, which has been consistent over the past decade or more, which consists of building on our strength. Which is we have the widest range of aluminium products, we have a national footprint, we have a strong development of our own aluminium systems and our supply chain, and last but not least, committed and experienced people. Second leg of our strategy is optimizing what we do. We continue to focus on our key customer service metrics, drive lean manufacturing in our plants, invest in new technology, optimize our supply chain to maximize our efficiencies, and protect our margins through very careful price management and continue to improve our productivity. The third leg is growing for the future, so leveraging these capabilities into new opportunities. Developing new products and channels, which we continually do. Enhancing our presence in the architectural market has been a big focus in the past five years, and continues to gain us market share and profitability. Expanding our footprint through acquisition and into adjacent markets. You'd be aware that we've completed, I think, five or six small acquisitions over the past few years, and we will continue to do that as the opportunities arise. Next slide, just in terms of the key things that are going on around our business. Firstly, manufacturing. Continuing to drive productivity and metal recovery improvements across our extrusion network. Ensure that we can continue to spend money on our plants to maintain their reliability. We've got some major capital projects coming up this year at our Canning Vale site in W.A. and our Bremer Park site in Queensland. At Canning Vale, we're rebuilding the press, and at Bremer Park, we're putting in the first electric furnace in the Southern Hemisphere will be installed at our plant up in Southeast Queensland. We're very proud of that and looking forward to those two projects being successfully completed over the Christmas break. We're progressively upgrading our shop floor control systems, and we're continuing to develop and deliver automation and digital initiatives in our manufacturing operations. In terms of our distribution business or distribution channel, we continue to focus on developing our own window and door systems and range. We had a big product release two years ago with introducing our new residential systems, and the focus currently is on upgrading our commercial systems. We want to grow our direct distribution channel organically and through acquisition. As I mentioned earlier, we have completed five since 2022, and just a couple of months ago, at the end of June, we opened a new trade center, Greenfield Trade Centre in Geelong. The first new aluminum center for Capral in how many years, Luke? More than 20. More than 20 years. Very proud of that, and it is a great site, and we look forward to that site in Geelong, which is a really strong industrial area, going to contribute over the next forthcoming years. The Comsupply acquisition was completed late last year. That business has grown our presence in the window and door hardware market significantly. It is performing to expectation, slightly above expectation, and we are looking at expansion opportunities on the east coast of Australia in the years ahead, building on that. Big focus on margin discipline, particularly as our metal costs are moving around, and ensuring we stay ahead of the game in terms of recovering our inflationary metal cost increases and focusing on our working capital efficiency. Luke alluded to or spoke about the opportunity or the exit of BlueScope from the aluminum distribution on the, I think all sites apart from Queensland, where they have quite a large presence, but certainly Western Australia, South Australia, Victoria and New South Wales. We have concluded an arrangement to acquire the inventory from BlueScope of Western Australia, and we are currently negotiating to do the same in the other states that take advantage of the opportunity that is presenting. Most of this is in sheet and plate. There is only a modest amount of extrusion. By acquiring the inventory, it puts us into the best position to secure increased market share for Capral from these industrial markets. That's it, yeah. Anything else to add there, Luke? I think that covers it. I think it's an opportunity where we haven't had to acquire the business, and we're looking to capitalize on it. We've secured the inventory. We've got the, I guess, the opportunity in front of us. Yes. Okay. In sales and marketing, we continually invest in technology in this area around EDI, digital marketing. We're very active on that front. Branding of the business, particularly in the industrial and in the architectural segments. This year, we'll be implementing a new CRM system, so that's very exciting for our team. So that we're bringing all of our customer information together on one platform. We're expanding our lower carbon, LocAl, which is our local Capral branded offer, or LocAl offer, for our low-carbon aluminum. We now have approved EPDs in place for those LocAl products. Our Crafted with Capral program continues and deliver positive outcomes for our customers. We have played a leading part in the resurrection of the Australian Made campaign this year. Our Smithfield site was selected as the campaign opening site in late January. We also conducted an event at the MCG, featuring that one of our fabricators makes the goalposts for all of the AFL and football games. That was an exciting event as well. Next slide, we now move on to anti-dumping, and I am going to hand this over to Luke. Luke has headed up our anti-dumping and government advocacy over the last close to a decade now, Luke, I would think. That is right. So very close to what is going on in this area. I will let him speak to that. I think, first of all, I think the slide points out that the impact of the U.S. tariffs has no direct impact on Capral. We do not export directly to that market. We are dealing with some indirect consequences around trade flows. Broadly speaking, that is the biggest risk associated with it. One of the challenges around the Australian system is, I guess it has not had a great deal of reform over the last decade, and it is an area where, I guess, a contemporary system is important to ensure that people do not work around it. In the aluminum extrusion context, we currently have measures in place against China that were renewed and extended for a further five years late last year, which puts them in place till 2030. They are relatively modest and have floor prices in place. Similarly, in Malaysia and Vietnam, there are sort of three different cases that cover those category of products, but we have measures in place for a further five years through to 2031 with a similar floor price and modest duties in place. The challenge around all of those cases is that the measures aren't contemporary to the rising LME that's currently underway, and we're reviewing options with regard to that at the moment. The other case that Tony has already alluded to, which is most important for ourselves, is the window and doors case. Ventora, one of our customers, in conjunction with the Australian Glass & Window Association, initiated a case on fully fabricated windows and doors end of last year. That case is progressively coming closer to finalization. It obviously has a significant impact on our customer base, particularly in that windows and doors space. We're competing against fully fabricated imported windows and doors. That case is due for a statement of essential facts. Our preliminary position to be released on or around September 23 this year, with a finalization date as it currently stands due on Christmas Eve. We continue to advocate for a strong, fair system across all of these product types, and we're heavily involved with the government with regard to consultation around further reform to strengthen the system and make it more relevant. That's what's going on in that space. Thank you, Luke. Now turning to our ESG. First of all, safety. As I mentioned earlier, one of the highlights for us in the first half was improvement in our safety performance. I'm very proud of what we've been able to achieve there. We continue to work very hard to ensure we provide a safe place for our people to work. EPDs. We have now EPDs for our LocAl products, and we are the only ASI-certified extruder in Australia, allowing us to provide a chain of custody guarantee for our customers. Now with the EPDs in place, puts us into a strong position locally versus our competition to sell a lower carbon product into both the built environment and the industrial environment as well. As far as emissions are concerned, we are on track to achieve our 2030 target of a 20% reduction in scope one and scope two. We're well down the path of analyzing our scope three emissions, which as you'd probably be aware, will primarily come from the aluminium raw material we buy from our smelters and also from the aluminium sheet and plate that we import. Sustainability reporting. We've been through our first climate report. We're one of the first cabs off the rank being a December financial year. So our 2025 climate report was issued earlier this year and not without its challenges, being one of the first to release, but a huge amount of work to get that up and running and not to be underestimated, the complexity and the challenges this provides for all businesses in Australia, not just ASX-listed companies. Okay, let's now move to, what will be next? Outlook and guidance. Okay, we're on the home straight. Market conditions. As I said earlier, demand is forecast to lift in the second half of 2026 as the commencements start to flow through. Industrial demand has suffered from recent highs, but we expect it to remain broadly stable this year, in the second half of the year. LME and premiums are expected to remain volatile while the conflict in the Middle East continues. We will continue as an organization to focus on productivity, recovery, and cost control and have a disciplined approach to capital expenditure. As a result of that, our full-year earnings are expected to be broadly in line with prior year, depending on some recovery of the residential housing market starting to flow through into the second half, which we expect. Metal cost volatility, freight cost, and residential commencements remain the key sensitivities. That is the outlook and guidance. I think that is a wrap for our presentation, and we can now move to see if there is any questions that may come through. Thank you. If you wish to ask a question from the phones, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Your first question comes from Andrew Johnston of MST Access. Please go ahead. Good morning, gentlemen. Yeah, another great result amid what looks like a pretty tough environment. Just a couple of quick questions if I can roll through them. The CapEx outlook for FY 2027. What sort of numbers should we be thinking about for 2027? A little bit lower than current year. Around AUD 10 million is where we anticipate next year to be. Tony, the proprietary building systems that have been, I think, an important part of the margin improvement over the last few years. How is that tracking? Yes, look, very well. We have, as you said, Andrew, put a big investment in the last probably five, six years now when we started on this program to grow our building systems business. It has borne fruit and continues to do so. We are growing our market share in this area. We have the installation of the paint line here in Sydney, has helped deliver a far better service to our building system customers, not only in New South Wales, but also Victoria and Queensland. Are able to utilize this line to provide faster turnaround for our customers and good quality, high-quality powder-coated product. We have developed, as I said during the presentation, a new range of residential suites, not only the entry-level but also the higher-end residential suites, which we've now been in the market for nearly two years. The focus in the last 12 months has been on redeveloping our commercial range, which we are consistently doing. Together with our security offer, with our Amplimesh brand heading our security offer, and our hardware business with Comsupply coming on board, we are developing a much stronger and a more resilient building systems division. But also a much more resilient and stronger Capral overall. Okay. If I am right, when you made the acquisition of Comsupply, you talked about leveraging that model into the East Coast. Correct me if I am wrong on that. But I thought there was something around that. That is correct, Andrew. We are not quite there yet. We are looking at both greenfield, but also acquisitions in this area as well, which we haven't quite concluded at this point in time. But certainly, it is top of mind and is a core part of our strategy. Okay, excellent. And just finally, the BlueScope exit. You are acquiring the inventory. Has the closure of their sites left any meaningful geographic gaps that need to be filled? Well, that is a very good question. We already play in the major markets. Probably the only one that is a gap which we haven't got our heads around yet is the Albury- Wodonga. Yeah, they have a presence in regional New South Wales— Regional New South Wales. —that we don't have. Which we don't have in that region. Yes, this is early days, but yes, certainly it's something we will be looking at. Okay. Our competitors. We do have competitors in those regions already. We do, yeah. Yeah, okay. The question, obviously, you have asked is does it justify opening a new site there when you have already got competitors in that space? Yeah. Right. Yep. Okay. All right. No, I appreciate that. Okay, thanks again. Well done. I know the working capital will reverse a bit, but I think that was a massive surprise. Are you giving any guidance around what the cash might look like at the end of the year? Or, if normal working capital levels were maintained, not on a dollar basis, but on a volume basis, what would the cash have looked like in the first half? Second half. Look, we have done some work on it. We have not got the numbers yet, but it will be lower than the first half, there is no doubt about that. Because we have also taken in the inventory acquisition on the BlueScope side is to the tune of AUD 8 million-AUD 9 million, so it is not insignificant as well. Of course, yeah. It takes some time to work through. So it will be quite lower. Yes. I'm going to say significantly lower than what it is at half year as a result of the lag and the higher metal cost suppliers being paid and the acquisition of BlueScope inventory. Right. This is if you're going to need anything. Yeah, no, that's true. Andrew, it depends on what happens with the LME for the remainder of the year. Yeah, sure. If LME goes up again, then it will have a bigger drag on the working capital. Okay. All right. Great. Thanks very much. I have taken more than my share of time. Thank you. That is okay. All right. Any other questions? Again, if you wish to ask a question from the phones, please press star then one. We do have a number of questions on the web if there is none on the call, Allison. Did you want to proceed or take Andrew's on the follow-up? Yeah, I think let me ask and if there is a call one, we can carry on with that then. Okay. So the first question here is from Mr. Alan Menzies from Pango Family Trust. He says Australia's manufacturing cost base continues to increase relative to imported products. As you look over the next 5- 10 years, how do you think about the competitiveness of Capral's Australian manufacturing footprint? Under what circumstances would you consider further rationalization, consolidation or investment in your plants? And do you believe maintaining a broad domestic manufacturing footprint remains a long-term competitive advantage? That is an excellent question and one that we do not ask ourselves every day, but certainly when it comes around to a strategic planning and investment in our facilities. Yes, we do. Look, this year marks 90 years of manufacturing in Australia for Capral, and I am not sure whether they are going to be doing it in 90 years' time. But certainly in the next five years, we will continue to be, in the foreseeable future, a strong advocate for Australian manufacturing. Yes, it is getting hard. But we can compete. There is a reasonable freight cost to import aluminium from overseas. The supply chains are typically two to three months, particularly around certain times of the year where ports and shipping gets really busy. So there is a strong case to maintain local manufacturing and being close to our customers. However, quite right to ask the question because clearly, labor costs in Australia are only going up. Our investment, we are able to offset that to a degree through automation. But handling of aluminum and processing of aluminum does require labor. Energy is the other area where, despite being promised lower energy costs, we are paying more for energy than our competitors, albeit, sorry, offshore competitors, albeit it represents less than 10% of our total conversion costs. So it is challenging, but the benefits of local manufacturing currently outweigh importing. Our customers value it, and it's one of the reasons why we have invested in our distribution business to ensure that we can continue to play a major part of the aluminum market, both in terms of extruding and distribution. But it is a challenge. A key part of that is to ensure that we have a robust anti-dumping environment here in Australia. We can reasonably compete against imported product, as long as it's not dumped. That's been the challenge of a number of countries around the world because dumped aluminum subsidized by very large governments, both in terms of smelting and downstream extrusion, have caused us challenges over the last decade or more. But with the work we do on that front, and with government being acutely aware of the challenges and to prevent dumping into the country, we believe we've got a good future to continue manufacturing. It may not be for another 90 years, but certainly for the foreseeable future. I've got another question from Mr. Menzies. Could you talk through your expectations for maintenance and growth capital expenditure over the next three to five years? Specifically, how should shareholders think about the balance between sustaining the existing manufacturing network versus investing in capacity expansion, automation, and productivity initiatives? Given the strength of the balance sheet, should we expect CapEx to remain around historical levels, or do you see a period of increased investment ahead? Look, our maintenance CapEx in our plants runs to between AUD 4 million and AUD 5 million a year. We've invested significantly in that maintenance CapEx over the last four or five years. Two rebuilds at Penrith, Canning Vale, and Smithfield and Bremer Park now. So that runs to the tune of AUD 4 million- AUD 5 million every year. The other CapEx we're looking at in terms of growth CapEx is around paint lines and automation of our plants. So that investment will also sit probably in a similar number, probably AUD 3 million -AUD 4 million -AUD 5 million, depending on the project and the timing. One of the things we're also considering, albeit yet to be put in front of the board, is automation of our warehousing environments. There are quite sophisticated high-bay automated warehousing facilities for aluminum extrusion that operate in Europe and in the U.S. in particular. We are looking at those. That is more of a one-off type project, but they are quite expensive. We are talking about a significant capital investment, not so much in manufacturing, but in distribution, which would be the tune of maybe around AUD 20 million, which will be some sort of a one-off. But potentially transformative in terms of our aluminum distribution in Australia. Okay. Next question, again from Mr. Menzies, is just what is your annual cash rent payment amount? It is just north of AUD 20 million, is the answer there. Then we have one question from Tas Davies from Namsat. It says, "Firstly, congratulations to management on another solid and consistent result. I also want to acknowledge the disciplined approach to capital management and the quality of Capral's communication with shareholders. The reporting is clear, transparent, and very useful. First question. You are forecasting residential commencements to begin flowing through to Capral's volumes in the second half. What are you actually seeing in current orders and customers' activities that gives you confidence this recovery is now occurring rather than being pushed out again? Yes. Well, it is not as strong as what we originally planned. But we have started to see in June and July, markets were, in the residential side, relatively soft, probably getting over the shock of the federal budget tax changes. But in the month of August, we have started to see a lift in volume coming from those window fabricators. Albeit, as Luke mentioned, the local fabricators are being impacted by fully imported windows. So that is having a bit of a negative impact on the availability of our fabricators to market. But yes, we are starting to see the early signs of recovery in August. But certainly, it would be fair to say that June and July were quite quiet. Just a follow-up question as well is, revenue increased 14% in the half, but underlying EBIT increased only 4%. With aluminum prices and premiums expected to remain elevated, how confident are you that pricing can fully recover those higher costs in the second half? And should investors expect EBIT margin to return towards historical levels? Yes. Another good question. A little bit difficult to answer. We typically, particularly in our mill high-volume business, we sell on a spread above the metal cost, fixed spread, which preserves our margin in a dollar per ton basis. When we have rising prices, the percentage gross margin and percentage net margin falls as a result of the fixed KG pricing regime we have in place, which is insurance with back-to-back metal pricing with our customers. As the metal pricing rises, our percentage margin does fall mathematically. Our spreads, if you like, or our gross margin per ton, remains consistent. We do not see that as a negative. In fact, it gives us a natural hedge against the ups and downs of the aluminum market. Clearly the reason why our sales revenue grew 14% and our volume only grew 4% was because it was a factor of higher metal prices flowing through to our selling prices. Hope that answers your question adequately. That is it, and we do not have any more questions online. Allison, back to you. Thank you. We have a follow-up question from Andrew Johnston of MST Access. Please go ahead. Oh, thank you. Just one extra question. Luke, around the comments about the anti-dumping measures, wanting to see those be more contemporary or the need for them to be more contemporary. Can you just elaborate on that a little? Yeah, sure, Andrew. The way the investigation works is it effectively measures the import prices through an investigation period, which obviously our cases have different timelines, but they are not in recent times, so they are two or three years old. Obviously, we have seen a significant escalation in metal price in the last 12 months, which means that the measures in place are against an old average import price. The challenge around how do you make those measures become contemporary, and there is an investigation type of variable measures investigation that we could initiate, and are considering that at the moment on all our cases that we have completed. Okay. Sounds like they need a complete restructure of how they think about the whole measurement of it. But anyway. They are out in front. Okay, thanks. I appreciate that. Yes, absolutely. Yes. So that is one of the reforms that we are strongly advocating for is that there is a much faster turnaround and quicker turnaround of these contemporary measures, of what we call variable measures reviews. They typically can take up to how long, Luke, around? 12 - 18 months. They can take 12 -1 8 months. By that time, the horse has sort of bolted. It is one of the— Yeah, absolutely. Well, it is probably the top thing on our agenda was the, in terms of the anti-dumping reform packages. That's right. There's obviously a range of reforms that we've participated in consultation that do address those issues longer term. We understand they're in cabinet and confidence at the moment. We expect to hear further consultation opportunities in the new year. Under this government, there does seem to be the best opportunity for meaningful reform in this area that we've seen. Okay. Fingers crossed. Great. That's it from me. Thank you. All right. I think we may be— Not showing any further questions. Yeah, I can turn back. Please proceed. Yeah, sure. Well, thank you everyone for your time this morning. That completes the presentation. It has been a solid first half for Capral in quite challenging conditions, particularly around aluminum supply and pricing. We are looking forward to a lift in the second half and delivering another solid result for the full-year. Thank you for your attendance.