Hello, and welcome to the IWG PLC conference call. All participants will be in listen-only mode, and afterwards there will be a question and answer session. Just to remind you, this conference call is being recorded. Today, I'm pleased to present your speakers, Mark Dixon, Chief Executive Officer, and Glyn Hughes, Chief Financial Officer. Please begin your meeting. Hello. Good morning, everyone. You've all had a chance, hopefully, to see this morning's update. Really just to put a little bit more color around that. This is a story that regards only the speed of recovery. We've never been in a better position for the medium and longer term, with more and more companies switching to hybrid working. In the shorter term, that is 2021, whilst we're seeing some very strong positive developments in some markets, particularly the U.S., and now the beginnings of a recovery in the U.K., we are being affected in a number of other countries by continued lockdowns, extended lockdowns. Overall, we're seeing just a continued level of disruption and uncertainty, and it's this uncertainty that slows decision-making. Inquiry levels have recovered in many places to close to or actually exceeding pre-COVID levels. We don't have an inquiry problem. It is really surrounding decision-making whilst this level of uncertainty persists. We're taking a more cautious view on the trajectory of improvement this year. Remember, three things make a difference. Our occupancy rate of improvement, how price moves, and how services come back. In terms of occupancy, in both April, May, and June, we saw pretty much a 1% improvement in each of those months. It wasn't the level we thought it would be. Even though it was good, it wasn't as good as we thought it would be. What you can see when we look at the different rates of improvement, we've got some markets improving at 2% or even 3% per month, and then we've got others that are flat and a very small number that are looking slightly backwards. In terms of occupancy, the average improvement has been good each month, just not to the level that we expected. In terms of price is following well, this price improvements were very tightly in line with occupancy. The better the occupancy improvement, the better the price improvement. We have, again, seen good progress from the middle of April through May and into June on price. Price is the impact really to revenues that takes the longest to bring back into the order book, but it is improving month on month. With services, these, again, this is probably another significant impact in that the recovery here is slower than expected. It continues to improve, but just not at the same level that we had expected a few months back. This is just disruption and uncertainty causing this. Just like to emphasize that we're much more confident on 2022. We've got everything lined up for a strong recovery into next year. We've got unprecedented continuing wins on enterprise-wide accounts. This has continued through May and into June with more and more companies moving over to hybrid work. You can see this widely reported in newspapers as well as more and more companies move this way, and we are a net winner as these companies move, as we have the biggest network, and we have the best operating platform for companies to move in this direction. This plus healthy levels of inquiries overall and very strong levels in some markets that have more completely opened up, plus all of that on a lower cost base, means that we're confident given enough time, and it really is a timing issue that we're talking to you about today, we're lined up for a good 2022. We're confident in that number. Very briefly on M&A. Discussions continue. There are no effects on those discussions and the M&A we're in discussion on are in markets that are unaffected by what's going on today. Also we have a healthy level of growth, which seems a little counterintuitive. There is increasing demand for what we do. Network is what wins the day, and we continue to add to it with excellent levels of growth both in franchise and in management contracts. Low capital requirements or no capital requirements. We should end this year with a reasonable growth rate compared to the market we're in at the moment. Overall, just to say one more time, this is a timing issue. It's a slower recovery than the trajectory that we'd built in and that we had seen. We're comfortable on 2022, and that we expect to see a reasonable level of network growth also coming in the H2 of the year. With that, I'll close and open up for questions. Thank you. If you wish to ask a question, please press star two on your telephone keypad. That is star two on your telephone keypad. If you wish to retract a question, please press star three on your telephone keypad. There will be a short pause while questions are being registered. The first question is from Andy Grobler from Credit Suisse. Please go ahead. Your line is now open. Hi. Good morning. Just a couple at this stage from me. Given the expected losses this year, what does that mean for the balance sheet and the expectation of M&A from the equity raise and so forth last year? Secondly, can you just help us with, from a cost perspective, what your expectations are for this year, just to build a bit of a bridge from last year to 2021, please? Glyn, do you want to deal with that? Yeah. Go for it, Glyn. In terms of balance sheet, Andy, we have adequate funding within the business. We envisage closing 2021 at a net debt level of between GBP 350 million-GBP 400 million. We have no concerns in that respect. As occupancy picks up in the business, we get favorable cash inflows from obviously working capital as customers place deposits with us. All okay there. I think on M&A, we're doing quite a bit. It's not really M&A, but it's sort of very cheap M&A in that we're taking over failing operators. It has some cost, but these are the costs of gaining synergies and we should see this year a good uptick in terms of management deals. These are largely management deals, where we take over failing competitors, of which there are quite a number. Up until, we're not seeing the right opportunities, yet, in terms of distress, where doing more significant M&A would make sense. If we saw the right opportunity, Andy, where we could make the right returns with the right risk profile, we have the firepower to do it. We're not curtailed in any way. We're looking forward to the other side. We're not focused on today, in terms of where everything is. We know and we can see that having the network, the coverage, and the operating system that allows companies to flex and use and offer it to their employees wherever they want to use it, is a thing that's going to be really a major move in the future for many, many companies, and we're well placed to benefit from that. To do that, we're going to need more coverage to convert more of that. We have this in mind as we're doing it. We're doing it, basically managing this for many property owners who can also see that if they just keep to their old model of leasing space, it's going to be an uphill struggle. We've got a significant number of new management contracts, just managing space, that are not takeovers from building owners who can see that there's a new thing coming. In terms of costs, finally, Andy, look, I'm not quite sure, Glyn, how to answer this. The costs must be lower. Yeah I might have to come back to you on that. Yeah. Look, high level, Andy, the cost savings guidance that we've given in previous announcements, we're on track to deliver those, both the property-related and the non-property related costs. That broadly takes us in line with previous communication. I think the one piece to say is there are certain elements of the business that we're going to continue to invest in ahead of the curve, particularly around franchising personnel, etc., in certain markets. The cost guidance that had previously been communicated at the outset of the year, it still applies. Mark, thank you for that. Mark, just going back to your previous answer around M&A, just trying to bring all of that together, because when you were issuing convertibles and raising equity last year, you talked about this once in a lifetime opportunity to acquire and not. There hasn't been all that much activity on one side. Two, in terms of capabilities when that does come through. I think cash expectations are now materially lower, hundreds of millions lower than they would have been at the time. Just putting all of that together, do you really have the firepower to go and do a big deal, or is that now not really on the cards? Look, A, we really have the firepower. B, there's not enough distress. There is distress, people limp along. That firepower is there for true distress. It's coming out of the woodwork, it's all small. You're going to get a growth rate this year. You will see it as it starts to emerge as these sort of takeovers come in, you'll see that once we have the firepower, we're growing using almost no capital, which is the most attractive type of growth, you would agree. If the right deals come along, we have a lot of liquidity. Remember, the business is improving month on month. We're not updating today to say the business is going backwards. We're updating to say the business isn't moving forward at the same trajectory as we had expected. That's it. It's definitely moving forward. With moving forward, as Glyn said, rising occupancy, rising price gives you more cash flow and more negative working capital coming in. Okay. Thank you very much. Thank you. The next question is from Sammy Maalouly from Kepler Cheuvreux. Please go ahead. Your line is now open. Shall we go to the next question operator? Of course. The next question is from Edward Donahue from Ward Investments. Please go ahead. Your line is now open. Morning, gentlemen. A couple from my side. Just going back to the area, to the geographies where everything is looking more robust and tracking back to as you planned. To get an idea on the service take-up and the pricing that you're seeing there versus pre-COVID. Just to give an idea of sort of benchmarking when you say things are actually on track. Just give us an idea of what's actually going on in those regions would be a helpful start. I think, look, to deal with price, what I've said previously, and I reiterate today, and Glyn will back up, is that it takes about a year for the business to recover, and that's largely down to price. Occupancy is first indicator, services, then price. With price it takes a long time to go down. It's taken a year to reduce, and it will take a year to recover. What we've seen in the past month, if we look at the month of May, the H2 of April, is strong price recovery, and we're talking around about 8%-9%, but that 8%-9% is in new sales that were done in that month. However many sales you're doing in the month, it then takes time for that, so you have to do that every month for a year to get a 9% price increase. Just to be clear, it's not a price increase, this is just reducing discounting. You're getting back to your target price. We're making good progress on this where we have improvements in occupancy. The two, as I said in my comments earlier, very closely linked. That's an average increase on price. That's where we've got slow and fast trajectory. If we move faster on occupancy, we move faster on price. We don't need to offer as much discount. If you go to those areas where you've got the better trajectory, with that tracking the correlation between occupancy, pricing, and service, acknowledging the lagging effect on those as you were planning. If you go back to previous cycles, and I know this one is very different because of the circumstances, but are you seeing a similar behavior pattern? Well, look, you can't go back to any previous cycles except for SARS, and the SARS effect was minor compared to the effect of this pandemic. We're seeing exactly as I'm saying here, where you get the shining example here is the United States, where you've got pretty much the whole of the U.S. improving, but the states that exited first will be right at the top end of improvement month-on-month, and the states exiting second, third will be lower, but everything's improving. With that, less discount, so better price and services coming back. The U.S. is less affected by seasonality in the summer, Americans take less holidays, and it's not like Europe closing down and so on. There, again, one of the reasons for our caution is that we know that in parts of Europe, companies will delay making decisions until after the summer. We're taking a cautious view now just to manage expectations going through the rest of this year. It's evidenced everywhere. We can see this in many, many markets that just different rates of recovery, and they are all similar in terms of how they come out. We've got quite a uniform business in that way. Okay, two other questions, if you don't mind. Just as the recovery is gathering momentum broadly, what are you seeing with regard to landlord behavior and the dialogue from that side? The other one with the last question would be just on your dedicated city center urban sites, what again is the behavior patterns and the take-up and returns that you're seeing there versus some of the original planning? Well, look, the biggest change is in the sort of downtown areas, because as people start to come back into them, they were the worst affected, so clearly they will improve relatively speaking the most. We're seeing that improvement. It is a question of, I think it's also related to commuting and that people, where the commute's the longest, those are the slowest to recover. We're seeing improvements. In places that were very, very difficult, such as New York, we're seeing quite strong improvements in New York. You have to just look at the reasons why. During the whole of COVID, we continued to sell in New York and London and so on. We didn't stop selling, but we were selling to a new type of customer, and these were customers that were companies that had a break in their lease and were downsizing. I've pointed this out over the past year. These were companies saying, "We just don't need to have so much space in the city. We'll get smaller space and sort of take space on a flex basis where and when we need it." That is continuing. There is a definite trend for more and more companies to adopt a much more flexible approach to their space and have more people working either from home or from close to home, and have smaller sort of central offices, and we win on that. We can see that happening in these city markets where you get more and more companies that are looking for smaller space and more flexibility. I think from a trend point of view, and we're adding more centers in these city centers, just to be clear. Which brings me onto the second point on landlords. Landlords, even though you will hear from brokers, all the real estate brokers will say they're the busiest they've ever been, et cetera. It's partly true, it's because you've got a year's pent-up activity all happening at once. The reality is these are companies getting out of leases and taking smaller space in the main. Some companies obviously are not, but many are downsizing in the cities. This is giving forward-looking landlords understand there's a problem coming and are talking to us and we are opening centers with them to provide the space that future companies want, which is managed, it's flexible, it allows smaller space, has great central amenities. That's what companies are going to be looking for more and more in the future is what we do. More than we've done in any other year coming through now in terms of us working with landlords to create that space. Overall, in spite of whatever you may read, there is going to be a definite change in office occupation. It's certainly not going back to where it was. It bodes very well for us. Again, as I mentioned in my comments, more significant wins. We'll update on the half-year results, more significant wins from enterprise-wide customers, where you can see them changing and all research points in this direction. Our wins point in this direction of the way companies use space has changed and will not change back in our opinion. Great. Thank you very much for that. Thank you. The next question is from Steve Hall from Numis Securities. Steve, go ahead. Your line is now open. Morning, all. Just a few from me. In terms of the rate of recovery, you flagged that Europe is definitely a laggard in that U.S. is better. It sounds like Asia is also lagging, but of course part of that has been better in terms of the rate of recovery. Just generally, I appreciate Japan is possibly an exception to that. I was wondering if you could give a bit more detail on Asia. Secondly, if cost savings are on track, I just wondered, could you remind me of the impact of the annualization of those cost savings in 2021? Two more as follow-ups. The renewals rate, you mentioned that new deals are going through at a better rate than the floor of about 8%-9%. Is that also holding true for renewals that you're going through? Yeah. Finally, just a question regarding that level of net debt at sort of GBP 300 million-GBP 400 million. Could you just remind us, or remind me rather, on the covenants you've got against some of that there as well, please? Thanks. Okay. Dealing on the first, renewals have reached pre-COVID levels. This is a very strong underlying sign, and that's one of the reasons that occupancy is picking up. It's not just sales, it's that less people are moving out. That's a strong indicator. If I turn to the next question I think you had, which is price. That price is not the renewal price. That is the new sales improvement in price. Yeah that I was talking about. With renewals, that's a different price. Okay. The Okay. The renewals often going through at, what you were saying. Yeah is the pre-COVID price. Okay. Yeah. Then the overall price improvement, you're looking at about 8%, 9% on average. This is just sort of one and a half months data. That, again, it's a strong sign, and that's reduction in discounts, not an increase of price. Yeah, indeed. In terms of the, Glyn, the annualizing, not quite sure about the question, but leave to you, Glyn. Yeah, that's fine. I think, high level, the previous messaging we've given on anticipated cost savings still hold for 2021. Some of these cost savings were delivered in 2020. For 2021. Yeah we've got savings from closures, which are kind of property and non-property of about GBP 130 million. Then we've got an extra GBP 50 million-GBP 60 million in-year savings from procurement, people, and other rent deals that we anticipate. Yeah coming to the fore. You're looking for in-year 2021 of around just under GBP 200 million. Okay. Perfect. The covenants, obviously, have the convertible in there as well. Just general covenants. Sorry, Steve, I missed that. On the net debt position and the covenants again now, I appreciate you've got the convertible in there obviously as well. The net debt, closing 2021, we're anticipating net debt in the GBP 350 million-GBP 400 million range. We've also taken the opportunity to advise the covenants with our banking partners over the last few months as well to give us more operational flexibility. We have no concerns in that respect. Okay. The covenants themselves, are you prepared to disclose what they are, two and a half times? Well, firstly, those are commercially sensitive, and secondly, they are, let's say, more flexible than they have been in the past, bearing in mind the recovery phase that we're in. We're not in a position to disclose the actual targets. Okay. No problem. Just one follow-up. In terms of that recovery, I think some of your competitors have perhaps been a little more positive regarding the pace of recovery. Have you found that perhaps? Which one? slightly more difficult? Which one? A very noisy competitor, shall we say. Obviously there was comments from Workspace yesterday in terms of London- Yeah albeit that's London specifically. I think, look, if you look at Workspace, Graham's talking about a recovery over the next couple of years. It takes time. We're saying it's going to take about 12 months. Graham Clemett's saying more like 24 months. We're much more dynamically set than a company like Workspace, and we have a lot more diversity. We've got enterprise accounts and so on. Yeah which are giving new layers of income that a company like Workspace don't have. If we look at WeWork, look, the acid test will be the actual numbers. Yes, they're talking positive, but the actual numbers all went completely negative. Yeah. They will be benefiting from a U.S. recovery, just like we are. They are so far underwater that it's hard to see the sort of level of improvement they're talking about. If they're able to achieve it, we as a company would be very happy because it will mean we will achieve it as well, and there would have been no need from this update today. We're in this for the long term. We want to make sure that we're not having expectations that we feel would be difficult to achieve. On. The acid test will be the numbers, Steve, and it's going to take a miracle for them to achieve theirs, I think. I agree. Thank you very much. Cheers, Mark. Thank you. The next question is from Daniel Cowan from HSBC. Please go ahead. Morning. Daniel Cowan here from HSBC. I have got two questions. One is, could you give us an idea, I don't know if actually if you have got enough data on this, but what is the take up been of the enterprise deals that you have signed so far? Have you got any idea of the rate at which they are being used so far? Appreciate it does take time to onboard these big accounts. Have you got any sense of the likely- Yeah. Look, what we're sort of modeling is, and again, it's only what I've said previously, is that our short-term occupancy, that's the use of drop-in day office products, will move next year from 1%- 5%, maybe it will be more. Just to give a backdrop on this from our friends at WeWork, they're claiming that they're going to have 10% of their revenue coming from drop-in. They're not signing up any enterprise accounts. They're all individuals. We are seeing the take-up improves sort of month on month, week on week. More people on board, more people tried, and more people come in, the company gets more used to using it. The two impacts will be day office and meeting rooms. We will be spending a little money to upgrade our meeting rooms in some places this year because we're seeing more meeting room usage from these companies. As you would expect, as they reduce their own space, they need to use someone else's space then. Right. We're comfortable in this. As I said, we've signed up more. My underlying concern remains is, do we have enough space in the right places? That's my underlying concern, has not gone away. Got you. Thank you. Just the second question is actually on occupancy. I think Q1, you were talking about 66% occupancy from mature centers. Can you give us an idea, roughly, we'd see that for the full year and maybe into next year? I appreciate it's a bit of a moving target, but given the sort of confidence in 2022 still being pretty firm, can you give us perhaps your thoughts on where occupancy might end up? Glyn? Yeah. Thanks, Dan. At a very high level, as Mark Dixon indicated, we're anticipating continued pick-up month-on-month in occupancy, and would hope that at a total kind of global level, our occupancy levels are in the low to mid-70s at the end of 2021, with the mature estate a couple of percentage points higher than that. From that starting point, we're working on the premise that occupancy would steadily improve throughout 2022, and particularly in the H2, as Mark Dixon alluded to. 12 months from now, the business should be at, I would say, a steady state and more representative of what the future holds. That would get us in 2022 at an occupancy level slightly ahead of where we were pre-COVID, in the high 70%-low 80%. If you add to that, Glyn, you add. The enterprise piece. Put a conservative 3% of additional occupancy. Don't confuse our occupancy with a WeWork occupancy, where they're dividing the number of members by the number of seats. We don't do that because it's not occupancy. What our occupancy that we're giving you, and that Glyn was speaking about, is long-term occupancy. In addition, we have short-term drop-in occupancy, and that, again, if it became 4%, just if you took it on a 3% average in that 2022 year, that probably, Glyn, would be reasonable for people to do. Yeah, that's what we've kind of embedded in our forecast. Yeah. Right. We would be at the low 80% occupancy, plus an overlay for the enterprise deals that Mark referenced. Yeah. If services are badly hit, again, you can just compare them to, it's quite easy to do, to compare where they were with. It's them coming back on the size of the estate then. It's quite easy to see that coming back, and then price. The price has taken an impact, but that building back has the biggest effect. With what I think we'll be talking about next year, which will be inflation, we're very well set with what we've done so far on costs to, we've got good cover, I think, in what I think is going to be an inflationary market in 2022, on average. Obviously, the payment checklist is really useful. Thank you. The next question is from James Zaremba from Barclays. Please go ahead. The line is now open. Hi. Good morning. Yes. One follow-up just on services. Can you discuss what level of incremental improvement is interested here to meet your kind of 2022 expectations and how that level kind of compares to pre-COVID levels? One on occupancy, just in terms of being slightly below, behind the trend you're expecting, and just mainly higher churn than expected or was it lower new sale rates than expected? I guess where does that churn at the moment compare to pre-COVID levels? Just one for Glyn on the kind of cost base and your comments about SG&A investment going to support the franchise strategy. Kind of conversely, can you talk about how much SG&A gain there's been from, I suppose, doing lower conventional lease openings this year and I suppose going forward? Thank you. Sorry, what was that last question? I missed that one, sorry. The last one was just about within SG&A, I guess there's been some cost here historically to support conventional lease openings, which are obviously reducing. I think just to deal with that in order, then I'll pass that over to you, Glyn, but I think Glyn, you've already answered that third one. Churn is at pre-COVID levels, we're back up to the retention rate or the churn rate at pre-COVID, which is a very strong sign. We've been there for the last two months at least. The occupancy gains are coming from your churn rate is at a lower level, and new sales are at a stronger level, pure and simple. We've seen sales overall, and I'm taking this off the top of my head, but close to or even ahead of pre-COVID levels in places like the U.S. It's patchy overall globally, the U.S. overall improving, U.K. improving in the last month, and even places, Germany improved. Everything's primed for improvement. On average, everything is improving in general. It's just the rate of that improvement we need basically more sales, and to keep the retention level up. The retention level looks very healthy. We're not concerned on that. It's just getting more decisions. We have the inquiry rates. It's just getting more conversion. In the SG&A question, Glyn, I think you answered it. On frankly, we continue to invest. Do you want to deal with that? Continuing to invest. I think at a high level, we've, I would say, taken decisive action to reduce the level of overhead expenditure within the business, both people and non-people. Our capital expenditure plans for this year, I think are more aligned with a lower risk, lower capital intensity growth plan going forward. That will over time feed through into lower depreciation rates. The impact on 2021 numbers in terms of that latter element is relatively low. That takes a while to feed through the system. We're making, I would say, good progress in terms of keeping overheads at a level which is relevant for the future business. I think finally, you mentioned services and services recovery. One of the areas apart from growth that we've continued to invest in fact, we've increased the investment, has been in the tech platform and has been in services. This is business development teams that are developing services for the future. We've launched new services. We are anticipating what these larger hybrid accounts want, and we've got people developing solutions for them. We've also acquired a few very small but very attractive services businesses which we have synergized, we've now invested in to grow. We see the services side as being a potential upside for 2022, but definitely an upside for the future beyond that. We're taking, again, we're comfortable with 2022 because we had cushion in there anyway, but there are upsides. If these services initiatives start to deliver in addition to everything else, that will help. Thank you. Thank you. The next question is from Sam Dindol from Stifel. Please go ahead. Your line is now open. Morning, guys. Couple questions from me. Firstly, on Australian recovery, it sounds like your price expectations have not been changed too much. Just wondering when you expect to get to sort of EBIT breakeven, if that can be. Early or late in the H2 or any sort of color around that. Second on the M&A, obviously make comments on some discussion in the final stages. Is it fair to assume those are possibly more American-based given common trends or trading trends, et cetera? Would we expect announcement for interims or is that more likely to be in August? Thanks. Okay. Do you want to go first, Glyn? Sorry. I was going to say in relation to operating performance, at an EBITDA level, we are making a small positive EBITDA month-on-month as we speak. In terms of that translating into operating profit becoming positive, the back end of 2021, early 2022 will be in positive territory at an operating profit level post overheads. Yeah. M&A, again, we would expect announcements this year and the earlier part of the year. Again, these will take the time that they take. Number of discussions ongoing as before, and we'll update as soon as we have something to say. Hi there. The next question is from Edward Donahue from Ward Investments. Please go ahead your line is now open. Sorry, gentlemen, you just got me back. It's just one quick one. I just want to get a clear understanding of the EBITDA we're referencing for full year 2020. That's my starting point. That's the first, then we can just follow on question from there. Glyn? Yeah. We referenced in the announcement that we will be below the 2020 number, and that was GBP 134 million of recurring EBITDA, anticipating that 2021 will be below that number, somewhere in the region of GBP 50 million-GBP 100 million. I acknowledge I don't run your business, but I do invest in it. I'm slightly confused as to the calls that were progressing through last year, the early part of this, and to the figure we got today. Looking at the cost-saving program, looking at the, I call it the hopper of commercial discussions you were having and how that was actually being converted to sales. Your conversation and points with regard to reduced churn, various key regions back to or slightly better than pre. Bringing all that together, I have difficulty to understand why this year would be. Leave aside the number that the market had. What I don't quite get is why it'd be significantly below that of 2021. You've just got more bad months in the year. It's basic mathematics. You had the best Q1 we've ever had at the beginning of 2020. Then you have from that high point, you have mathematically nine months of decline. Okay? Three high months and nine declining months. If you look at 2021, we went down from continued to decline into the Q1, okay, and even into April because the following effect of price. The bottom of the curve is sort of April time. You start moving up in May and onwards, and you have less months to recover. That's all. It's simple mathematics. Now, it can change. You can do the arithmetic yourself. If occupancy, which is improving at 1% each month, recovers at 2% each month, you have a better outcome. You have obviously the effect of occupancy and price, and the services come back more quickly. It's just the number of good months you have in a difficult year. Okay. I'm sorry. Look, Mark, I apologize, but I acknowledge that, but I'm also remembering that there was a significant effort put by yourselves as a management team into reducing the cost base as well. Yeah. A lot of handling. I just have difficulty seeing where everything is sort of misaligned. Okay, maybe I’ve got to go back and look at my spreadsheet. We need to take you through it because basically the costs are reduced. Okay. Essentially, we're missing half of our service revenue, which is painful. Our occupancy levels are off and price is off. That is what it is, and we've reduced the cost, thankfully, and continue to do so. There's no getting away from the arithmetic. I get that. Right. Yeah. We'll take you through it. It's a tough one, but it is what it is. Again, it's our job now to try and improve the trajectory of recovery, and that's the upside for this year if possible. Our focus is on 2022. The better we can get the trajectory this year, the better the exit to this year, the better next year will be. Do you see a need on what you're tracking so far to actually look harder at the cost base than the original planning would've been? Or is that actually a flexibility now? We're looking at it all the time. Don't worry. We're not ignoring cost at all. In fact, the opposite. Part of our problem here running the business is it's easy to focus on fixed costs. Go back, and we are going back and redoing leases even today. We're not hesitating. Where we think we've got an unviable unit, we'll go back and work that one over again. The challenge when running a business, it's hard to see it obviously with today's update, but we're in a super exciting place with the world of workplace coming in our direction. The challenge is investing in the right things for the future business, and that is in the business development required for the platform, for the services, and so on. We're doing it in a small way, in a cautious way. That's the challenging part. The easy part is to close non-performing units or renegotiate them. That's easy. The difficulty is actually investing for the future in a time like today. We are doing it, but moderately. Many thanks, gentlemen. Appreciate the candor. Thank you. There are no further questions, so I'll hand back to Mark for closing comments. Okay. Right. Thank you all very much, and thank you as always for the questions and for joining us in short notice this morning. Rest assured, we'll be back to any investors today that want to get any further information or color. We thank you for your patience this morning. Thanks. Bye-bye. Thank you. This now concludes today's call. Thank you all for joining. You may now disconnect your lines.