I would now like to hand the conference over to Mr. Anthony Scali, Managing Director. Please go ahead. Good morning, everyone. Welcome to the Nick Scali results presentation. The FY 2026 summary is group net profit after tax of AUD 75.7 million, up 22% on FY 2025 underlying NPAT, and up 31% on statutory. Revenue was AUD 516.7 million, up 4.3%. Gross margin was 65.6%, up 210 basis points. Cash on hand, AUD 106.6 million. Final dividend, AUD 0.39 per share, fully franked. For the ANZ group, written orders are up 2.7%, reflecting a challenging second half. Net profit after tax was AUD 80.5 million, up 10% on FY 2025 underlying and 13% up on the statutory NPAT. Revenue in the ANZ was AUD 476.7 million, up 5% on prior year. Turning to the U.K., written orders for FY 2026 were AUD 45 million, with second half orders of AUD 23 million, up 50%. Clearly, the year before, many stores were closed for refurbishment and rebranding. Nick Scali-branded stores, like-to-like, were up 19% in the second half. Revenue was AUD 40 million, AUD 1.8 million less than last year, with interrupted trading in first half for store closures due to the rebranding program. Gross profit margin for FY 2026 was 60.3%, compared to 47.1% in FY 2025. 16 stores refurbished and rebranded as Nick Scali by December 2025. Net loss after tax of AUD 4.8 million, with second half statutory profit of AUD 800,000. As mentioned, on page three of our results presentation, group written sales orders were up 4.7%. ANZ was 2.7%. As pointed out in the second half, written sales orders were down 3.6%. This is compared to a prior year, second half, where like-to-like growth was 7.3%. The U.K. written orders are up 31%. A lot of this, of course, is based on stores being closed. Pleasing to see that the brand stores, like-to-like, was up 19% in the second half. Revenue, as mentioned, was 4.3% up. ANZ was up 5%. U.K. was down 4% as due to the store closures. We can note that written sales orders exceeded sales revenue in the U.K. by AUD 5 million. For the group financial performance, the ANZ margin was 66% versus 65% in FY 2025. The operating expenses increased by AUD 5 million compared to the prior year. This is mainly in the first half, and that was attributable to employment and bonuses, and there were additional advertising. Second half was flat, including start-up costs of AUD 600,000 for four new stores. Just to note, the impact of AASB 16 was AUD 1.7 million after tax, compared to nil the previous year. The U.K. gross margin has continued to improve, which is 60.3%, versus 20%. Other income included interest earned, lower than the estimated final acquisition payment coming in and early surrender bonus leases on stores, which included trading losses during this negotiation phase of the stores. I'll turn now, hand it over to Keith. Thanks, Anthony. On slide five, the group generated operating cash flow of AUD 117.9 million, up from AUD 89.6 million last year. In the U.K., operating cash flows reduced significantly to AUD 2.1 million, compared to AUD 10.2 million last year, reflecting improved sale activity, improved margins, and lower refurbishment spend as that major refurbishment program completed. The group invested AUD 23 million in property and other capital investments during the year, including the Campbelltown property acquisition, land for the South Australian distribution center, and showroom upgrades across both the ANZ and the U.K. We will also complete the purchase of the Richmond showroom property in August, continuing the strategy of selectively investing in strategic freehold locations. Following AUD 61.6 million of dividend payments and the capital investments during the year, the group closed with cash of AUD 106.6 million, up from AUD 101 million in the prior year. With debt unchanged, net cash closed at AUD 34.9 million. We now move to slide six and the balance sheet. The group's balance sheet remains very strong, with net assets increasing to AUD 279.8 million from AUD 266 million a year ago. Inventory on hand reduced to AUD 41.6 million from AUD 44.6 million, reflecting the continued discipline around inventory management. Property at book increased to AUD 131 million, primarily due to the Campbelltown acquisition and the land purchase for the South Australian distribution center. Borrowings remained unchanged at AUD 71.7 million, comprising the AUD 43.7 million of property debt secured at a less than 22% LVR, together with AUD 28 million of corporate acquisition debt. Overall, the group finished with increased cash, higher net assets, and conservative level of debt, while continuing to invest in property and providing flexibility as we enter FY 2027. Thank you. Thanks, Keith. Just on the U.K. summary, as mentioned, the gross margin was 60.3%, and to note, the second half margin actually improved to 61.2%. Up to recently, in terms of distribution, we've been using a third party. We've now leased our own warehouse, a brand-new building that allows us a lot of capacity for growth. In terms of our leadership in the U.K., their focus remains on retail teams in stores and looking for new store opportunities. In terms of product, the best sellers in the U.K. are in line with best sellers in Australia. But where introduction of a new product is first tested in Australia, which has been an advantage and been successful to date, that strategy. We expect now to open one new store in October, and we have a number of other locations under negotiations. We can see from the store network, while we did close two stores, one was in a Brisbane airport. The landlord is now no longer large format retail, so we had to exit that, and another one was in Toowoomba. In place of that, we've opened three new Plush showrooms and a new Nick Scali store in Ballarat and two Nick Scali stores that were due to open in the prior year, in FY 2026, opened in July in Bendigo and Bunbury. The U.K. Lincoln store closed in October and Nottingham in April, as these were shared concessionary stores with another retailer, and they did not suit our long-term strategy. As mentioned, a new store in the U.K. expected to open October and a number of store locations under review. If we're looking at our property, which is growing, obviously the portfolio property, which most of these are retail stores. It's part of our long-term strategy. The historical cost is AUD 145 million. Current book value, which is obviously acquisition cost less depreciation, AUD 130 million. Based on independent valuation, that property value sits at AUD 208 million. As mentioned, during the last year, we bought the Campbelltown property. We've also bought land, and we're currently building a new distribution center in South Australia. We've exchanged contracts on a Richmond property, that will be refurbished and won't be operated for approximately 18 months as we're waiting for the current tenant lease to end. The outlook. For the first five weeks of trading, written sales orders were flat when compared to the same period the previous year, cycling off high single-digit growth. The group opened four new stores during FY 2026 and a further two in July, which are expected to contribute positively to FY 2027 earnings. A further four stores are expected to be opened during FY 2027, supporting the group's continued growth strategy. In the U.K., the positive momentum in the U.K. continued. We've written sales orders for the first five weeks up 35% on the prior period but taking into account a number of stores were closed for refurb last year. The group expects to open a new store in October and other stores. I think that completes our presentation, and we're happy now to take questions. Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Naveed Fazal Bawa with Jefferies. Please go ahead. Hi. Thanks for taking my question. Gross margin was obviously very solid in the U.K. and ANZ. Just wanted to understand how we should think about it going forward, given there's been a bit of movement in FX and freight, in the second half and in the context that you might have some hedging arrangements in place that might roll off. Maybe on the U.K., how much higher can that margin go given it's a very solid outcome in the second half? Thank you. Yeah. To answer your question, I think U.K. margin is probably where it will sit at where it is in somewhere between 60 and 61. When we look at ANZ, yes, we're rolling off hedges that were at lower rates, lower dollar rates, and we've got a bit of the benefit coming through now, but that's getting offset by, at the moment, freight is up because of the oil issue. We've had an increase in the bunker, the BAF. The Australian ANZ margin was very high. I'm not committing that that's always going to be at that level, but somewhere in the range of 65, 66 is where I think it can remain. Thank you. Maybe just on like-for-like written order sales trends. It looks like from the second half into FY 2027, you'll have opened new stores in the second half, then in July it looks like it might have improved slightly from down mid-single digit in February to June, to maybe down low single digits in that first five weeks. Does that sound about right? Maybe if you can give some color on how bad the macro is post. Yep. Yeah. The macro is not good at all. No, this is one of the worst macro for rates for furniture for sure. We've got house prices going down, so there's a negative wealth effect. We've had interest rate increases, we've got inflation, got cost of living, housing transactions have been slow for six months. It's a tough macro. Very tough. It's been very volatile. The quarter four was volatile. Some months up, some months down, but we were off high comp the prior year. The first five weeks doesn't mean it's going to be that for sure. It's just very difficult to predict. You've got a battered consumer, I think, at the moment. My hope obviously that if the war stops and the oil comes back down and maybe inflation's controlled, it would certainly be helpful if interest rates started dropping. Thanks so much. Thank you. Your next question comes from James Wilson with Macquarie. Please go ahead. Hi, guys. Thanks for taking my questions. Just a couple from me. Just to clarify there on Naveed's question around written sales orders on a like-for-like basis, we're right to still be thinking that over the trading update, when adjusted for those new stores, we were sort of modestly down negative single-digit declines. Is that right? Very marginal. It might be almost negligible, to be honest with you, on a like-for-like. Right. We actually have two stores that we closed and then new stores that were open. Okay. Broadly flat, even on a like-to-like basis, maybe modestly. Yeah. That's only the first five weeks, we've got a long way to go. It looks like in the second half, in terms of advertising spend, it was sort of roughly flat after a bit of a bump in the first half. Obviously, given the weaker consumer in Australia, can you talk to us maybe about how you're thinking in terms of the marketing and advertising piece over FY 2027? Will there be any change in how you promote or. No, I think we're sticking to the strategy. We're not doing anything different. The main thing is we're trying to have our dollar go further because it's a tough market for the media. We're just trying to get better value, is how we're looking at it. Right. Just one final one from me. We would've just had the U.K. bank holiday weekend over these first five weeks. Can you talk to us a little bit about perhaps how? No, the bank holiday's in August. There was one in Wales and Ireland, I think, or Scotland. Sorry, it was Scotland. Scotland and Wales had the bank holiday, not the U.K. Okay. Not England then. Yep. Yeah, the bank holiday is at the end of August in the U.K. Okay. All right. Okay. Can you just talk to us, though, a little bit about how promotional activity amongst your competitors was in the U.K. then? Yeah, look, the U.K.'s got tougher because, as you know, the DFS Group, which is more than 25% of the market, reported negative 4% written sales order growth. It's a tougher environment. Traffic's down, but our conversion has improved a lot. The U.K. is not easy at the moment as well. All right. On the macro. Thank you. Thank you. Your next question comes from Tom Kierath with Barrenjoey. Please go ahead. morning, Anthony. I've just got a couple on the U.K. That's 35% increase in July. I think you were saying that that was affected by some closures or some remodeling. Should we expect 35% you can do that for the rest of the year? Is that kind of inflated? No, that's what I'm qualifying. It's better to look at the like-to-like, the stores that were open in the prior year is a better indication. No, don't expect that. Yeah. Okay. I think before you've said AUD 51 million is the kind of break-even point for the U.K. I think you did AUD 40 million in the year just gone. How confident are you getting to that 51 in 2027? Is it maybe going to be break even in 2028, not 2027? I think we're lowering the break even. At the moment, we think it's going to be lower than AUD 51. Yes. Look, I'm becoming more confident. The sales teams are definitely better. They're converting better. It's going to depend a bit about the macro there, I think. Product's doing well, and we keep introducing proven winners in Australia that seem to be working, and the range is just improving as well. Yeah. Yeah. Okay. Sorry. I'm feeling confident in our strategy and what we're offering the customer. If the thing holding us back is not enough stores and not enough brand awareness. Yeah. Sorry, last one. I think you've got two Fabb stores, Fabb-branded stores still operating there. What's the plan for them? I assume they're not going to get converted, but will they close? I'm just trying to work out the modeling, I suppose, behind that. Yeah. Look, one of them is in a place, Canterbury. We inherited the store and it's in an industrial area. It's not even a retail park. We're just running the lease out there because it's not very high rent, but it hardly makes any sales. We are always going to quit that. The other one is a smaller store that we're using as a clearance outlet, and we'll continue to do that. Got it. Thank you. We have clearance out in Australia. Yep. Thank you. Thank you. Your next question comes from Sam Teeger with Citi. Please go ahead. Oh, hi Anthony. Good morning. Sorry to dwell on it, but there's a couple of questions I'm getting from clients on it. I'm just wanting to confirm the earlier questions around like for likes in the Australian trading update. You mentioned it was broadly flat because you closed two stores, but the only closures I can see in the pack are in the U.K., Lincoln and Nottingham. Which closures were you referring to? In Australia. Yes. Toowoomba and Brisbane Airport. Okay, great. Thanks very much. Yeah. Is it reasonable to conclude that the stronger than expected final dividend is a function of M&A being less likely over the next six months or so? Remember, at the February result, the company seemed pretty keen to buy something in Australia, but the drums don't seem to be beating as loud on this topic anymore. No, the dividend. No, we've got a stronger balance sheet than we ever had and a lot of cash. No, that's not going to impact that at all. Okay, great. That's just M&A. No relation to M&A. As you can see, even our properties now that it's AUD 200 million and we've got property debt of AUD 43.7 Million. A lot of capacity in our balance sheet. Are there things you're looking at right now in ANZ? I beg your pardon? Are there potential acquisition targets you're looking at right now in ANZ? We're always looking. Okay. Last question. At what point do you expect to see the post-budget deterioration in the housing market really start to show up in the company sales? I guess, given we have to take into account the time it takes for property contracts to settle, and then the time it takes for people to move in and furnish their new dwellings. I think that's happened. I think we've already seen that. That started happening back in February. Traffic's down. The traffic is down in stores a lot. Yeah. Yeah. Post the federal budget in May. What do you? When things really deteriorated. Yeah. Well, it hasn't deteriorated further, yes, I agree. Yeah, I don't know. The interest rates might drop sometime later. I don't know. I really don't know at the moment. We can only look recently. Yeah. All right. Thank you, Anthony. Thanks. Thank you. Your next question comes from James Ferrier with Canaccord. Please go ahead. Morning, Anthony. Keith. Thanks for your time. Good morning, James. First question is on the U.K. The operating costs were pretty similar in the second half to what they were in the first. Looking forward and maybe excluding new stores, how does the new warehouse impact that line and how do you see marketing costs ramping up in that line in the year ahead? Well, we've moved from a third party to a new warehouse. We're going to have a larger property cost, but a lower logistics cost. Overall, it will be marginally higher, the cost maybe, because we've got a warehouse with capacity. Marginally higher, if you like. There was a benefit from the third party, the savings there, but then we've got the property cost. It's small number, but it's higher overall. That cost. Yep. Marketing, how do you see, you talked a bit about the macro and the conversion improving from your sales team. It sort of sounds like you feel like the business is more reliant on more foot traffic coming in the top of the funnel, and therefore, how quickly are you going to ramp that marketing expense line through [FY 2025?] Yeah. Look, the U.K., it's a big population. Advertising on what we traditionally do, like on TV, is very expensive and we did experiment with it and the fact is we don't have enough stores to justify a spend that would be meaningful, that would work at the moment. We just thought not advertising, we were getting good results anyway. We are in retail parks after all, and we're marked there, and we're paying a lot of rent to be in a retail park for a good reason. We will do promotions from time to time, but very controlled. Yeah. Okay. Interesting. Just related to that then, ballpark, what revenue line do you think the U.K. needs to give you the scale and the confidence to spend on marketing equivalent to what a normal business would? Well, that's if you look at the percentage. We need at least another 10 stores to be able to promote as we would like to promote with a decent schedule. That costs money, but that's what I think we need. Yeah. Okay. Last question from me. Just your earlier comment around the macro in the ANZ market, one of the worst environments. I get that, there's nothing surprising about your description there. In the context of the Nick Scali business having a really long track record of navigating consumer cycles successfully, I'm interested in what observations you're seeing from a conversion or maybe average transaction value perspective. I get that foot traffic's down as a consequence of that macro, but. Correct. Yeah What differences are you seeing in conversion and transaction values? The transaction values are holding. The average is. Conversions are up. They have to be because traffic is down. Traffic can be down at times 10%-15%. There's a lot of focus on conversion. Look, I've been in store talking to the salespeople, and what they're saying is that the people coming are really buyers. Yes, we're fortunate that we've held the average transaction value because that was my concern. Our focus is on conversion then. Yeah, look, it's a tough environment. It's a really tough environment. Understood. That's helpful, Anthony. Thank you. Thank you. Your next question comes from James Leigh with Goldman Sachs. Please go ahead. Hey, Anthony. Thank you for taking my question. Maybe just one on costs in ANZ. It looks to me like they were pretty well managed in the second half. How are you thinking about the award wage increases into next year and how we're managing costs into next year and what sort of rationalization we can achieve? Yes, that's challenging. Fortunately, our pay will above award, quite a bit above award. That won't have an impact. I think there's wage inflation, just natural, particularly if you want good salespeople. It's about being more efficient and rostering and managing numbers carefully and having effective people. We don't have a lot of fat in our employment. That can be trimmed. Right. Yeah. Maybe to ask it slightly differently, against that 4.75, appreciate your employees are not on award wages. How should we think about that growth rate into next year? Is that a reasonable starting point, or do you think you can run a bit leaner than that? Hopefully run it leaner than that. Yep. Thank you. Thank you. Your next question comes from Chami Ratnapala with Bell Potter Securities. Please go ahead. Good morning, Anthony and team. Thanks for taking my questions. I think firstly, just on the U.K. Within the second half result of profitability, can you give us a sense of if all of the economies of scale are annualized and how the flow through to FY 2027 in terms of incremental profitability would look like, given that you've also brought down the bar of breakeven with better expectations there? Yeah. Sorry, can you repeat that? Yeah. Could you just repeat it? We missed a bit of that. We had a bad connection. Yeah. Yes. Just want to understand U.K. profitability. Yeah. The second half. Do we have quite a bit of economies of scale annualized? Is there anything more to play out against some of those logistics costs going up? Like for likes are looking quite good too. How are you thinking about any guide that you can give on incremental or FY 2027 profitability for the U.K.? Yeah. Look, overall, we're hoping to hold costs pretty flat. Maybe, in certain areas, we think there's potential savings on costs, but small. Yeah. Overall, there's nothing materially on the cost side. Perfect. Thank you. Then on ANZ, like for like, or we've noted sales outcomes, we've seen it, despite growth margins at a very strong level. Is there any element of probably balancing up those growth margins versus traffic and conversion? Would you predominantly put it down to basically the traffic issue at the moment or macro? You're saying our margin's higher? Yeah. Margins. Correct. Have been strong, like for like. Yeah. Have, yeah, come in at these levels, is there any element of balancing growth margins versus sustaining like for like or. Oh, yeah. [crosstalk] Average transaction value? There's always that balance. Yeah, of course. We watch that carefully. You're right, and that's something we manage every day. Yes. You're correct. Committing, yeah. Look, overall, 66 is a very high number, and I'm not saying that will be sustained, but you could bank on somewhere between 65 and 66 is how I'd answer this. Great. Thank you so much. I think, obviously quite a few tough conditions ahead or already playing out, macro stuff, you sort of talked through everything. Maybe bottom-up, is there anywhere that you're optimistic on within the business, more thinking bottom-up? Can you clarify what you mean bottom-up? Yeah. Just for the business versus what's playing out there in the macro setup. Where are you most optimistic on? No, I don't think so. None at all? I think maybe rostering practices across the group. Certainly in the U.K. Yeah. Perfect. Thank you. Okay. Thank you. That's all the time we have for our question and answer session. That does conclude our conference for today. Thank you for participating. You may now disconnect.