Good morning, everyone, and thank you for joining me for the TT Electronics 2022 interim results presentation. Usual format. With me today is our CFO, Mark Hoad. We'll run you through the presentation and then open up for your questions. I'd like to start by saying that I'm really pleased with our performance in the H1. Double-digit revenue growth, order intake continues at record levels, and line of sight for strong profit improvement. The team has done a really great job in difficult conditions. Around the world, they have worked tirelessly to manage these issues, working closely with our customers to satisfy demand and get the product they need, and I'd like to thank our team for a great contribution. Everywhere I look in these results, I can see a lot of evidence of the successful implementation of our strategy. At the heart of this is considerable momentum across the business in both revenue growth and order intake, and this has come from the combination of our strategy to focus on structural growth markets, targeting customers that are growing in those markets, and driven by great execution from the team that I've mentioned. Revenue grew by 8% organically, with excellent growth in Sensors and Specialist Components, and GMS also very strong at 17%. GMS is on track to be almost double the revenue of five years ago. As we told you earlier in the year, the Power and Connectivity business would be H2 weighted due to the timing of revenues and the COVID shutdown in Asia. The pipeline of new business opportunities include significant new wins on multi-year projects and further new customers added to our key account list. Order intake has continued at record levels with so far no sign of softening. Our book to bill in the first six months was 144%, significantly extending revenue visibility with our order book now more than double pre-pandemic levels. We have all the order cover for our planned H2 revenue growth. To be clear, to hit our numbers, we're not relying on any improvement in demand from macro conditions. The growth is locked in. It's all about managing the supply chain and any further COVID issues. Not only that, but we're already more than half of next year's planned revenues covered by orders. In the H1, we have secured 23 significant new contract wins, which will deliver over GBP 60 million of multi-year revenues. One of these comes from Ferranti, which we bought in January and is already working well with the rest of the group. As inflationary pressure started last year, we took action on pricing. This is ongoing and we're recovering costs and expect to see some more benefits in H2. We continue to progress our ESG initiatives. We've set a clear target to halve cumulative emissions by the end of 2023 and to achieve net zero for our scopes one and two emissions by 2035. On carbon reduction, we have been switching to renewable tariffs wherever possible, and we've been shutting older facilities, replacing them with more energy efficient ones. A good example being our new Plano site, all part of our self-help program. Cash spend on this program will be complete in this financial year, and the benefits of the footprint rationalization also underpin margin improvement in the H2 and into 2023. Importantly, we have clear line of sight to achieve our unchanged full year expectations through growth, pricing, and self-help benefits. With that, I'll hand over to Mark to take you through the financial performance for the half. Thank you, Richard, and good morning, everyone. We've had a strong first six months and are making good progress despite the challenging conditions. Revenue is up. We've continued to grow our order book, creating a step change in forward visibility, and we've positioned the business to deliver strong profit growth in the H2 and for the year as a whole. In the H1 of the year, we grew revenue by 8% organically. Roughly 2/3 of that was pricing and material pass-through and one-third volume. We delivered good growth in GMS and Sensors and Specialist Components, while Power and Connectivity was impacted by timing of program revenues and parts availability. Operating profit was up by 5% at constant currency and operating margins were 6.8%. H1 margins reflect some revenue delays, COVID inefficiencies, and the impact of supply chain constraints. On the next slide, I'll show you the moving parts. Earnings per share declined by 8% on constant currency, impacted by a higher interest expense and an increased tax rate of 22.8% with a greater proportion of profits coming out of higher rate jurisdictions. There was a GBP 23.5 million free cash outflow in the H1. Working capital increased as we continued to invest in inventory to support very significant growth in our order book, and this was amplified by supply chain constraints causing us to hold inventory for longer. It is this investment in inventory that gives us confidence in the delivery of the order book. As a result, and as expected, we had a temporary increase in leverage to 2.4x at June 13th. With an improvement in profit along with higher cash generation in the H2, we expect to be back within our target range of 1x-2x net debt to EBITDA by year-end. Given the positive outlook for the H2 of the year and beyond, the board is declaring an 11% increase in the interim dividends to 2 pence per share. Here, you can see the key elements of the change in operating margin in the period. Adjusting for FX and the one-off cost of the Violence project, last year's H1 margins were 8.3%. Ferranti is performing well, delivering high-teens margins, enhancing the group's margins by 20 basis points. We've described before the pass-through effect in GMS, where they're transparently passing on material cost inflation to customers with no markup. It's inflating the revenues in the H1 by around GBP 10 million and depresses margins by 30 basis points. While we've delivered growth in the H1, margins were impacted by COVID inefficiencies, supply chain constraints, and the mix of revenues. The combined impact of these effects was 150 basis points. We see these effects now moderating, and therefore we expect this margin impact to improve in the H2 of the year as revenues increase and agreed price increases take effect. Our self-help program added 50 basis points, and the rebuild of discretionary spend continued as planned. As we look into the H2, we see revenues increasing, agreed price increases taking effect, and further self-help benefits coming through, and with that, expect improved margins for the H2 of the year. Moving on to see how that revenue and profit performance has played out in the divisions. In Power and Connectivity, revenue decreased by 2% on a constant currency basis and by 7% organically. There were a number of factors that impacted the revenue performance. Timing of aerospace and defense program revenues, which do tend to be lumpy. Parts availability, pushing product shipment from the H1 into the H2. The COVID-related closure of our factory in Dongguan. However, we're now seeing an improved order book for the H2, and the product that was delayed out of the H1 will ship in the H2. We've also had a healthy number of multi-year contract wins that underpin our positive view for this division. As I've already mentioned, Ferranti is performing well and contributed GBP 3.7 million of revenue and GBP 0.7 million of operating profit in the H1. Operating profit declined by 48% at constant currency due to the organic reduction in revenues and some lag on repricing given ongoing inflationary pressures. With higher revenues, associated efficiencies, and the impact of price increases already agreed with customers, we have clear line of sight to a substantial improvement in profit and margin in the H2 of the year. Global Manufacturing Solutions delivered organic revenue growth of 17%, of which half related to pass-through of costs. Demand was particularly strong in the U.S. and in Asia, while Europe was impacted by parts availability, which held back revenues despite an increased order book. The GMS order book overall continues to grow at pace, and as a result, the division is already booking orders for the H2 of 2023. Adjusted operating profit was broadly unchanged on a constant currency basis. Margins declined by 120 basis points, but half of this is explained by the GBP 10 million of cost pass-through with no markup. GMS has had to work hard to manage supply chain and COVID disruption, and there has been some lag in repricing, which we expect to reverse in H2. With an acceleration in growth and as agreed price increases continue to take effect, we anticipate margins improving in the H2 of the year. Finally, Sensors and Specialist Components. Here we grew revenue by 8% organically, with strong demand from distribution customers in particular. As you'll hear from Richard, this demand is to satisfy their end customers rather than for any meaningful build in their inventory levels. In the face of long industry lead times, we're working with customers to secure committed orders. The order book for this division is up by more than half compared to a year ago. This business, which in the past typically only had 8-12 weeks of order visibility, is now booking orders for Q2 next year. The profit performance has been very strong, with good operational leverage on revenue growth and self-help benefits continuing to come through. Adjusted operating profit grew by 34% at constant currency, and margins are up 320 basis points to 16.3%. There is some tailwind in the H1 from favorable product mix, but this is a record level for S&SC margins, more than 200 basis points up on the previous high of 14.1%. Moving on to cash flow. As you can see, the main dynamic here is working capital. As we flagged earlier in the year, with the material growth in order book and ongoing extended lead times, we've continued to invest in inventory. This has been compounded by parts availability, impacting our ability to ship product, which means it's taking longer to convert inventory to cash. Has also pushed revenue and EBITDA into the H2. In the H1, there was a GBP 33 million working capital outflow. We agreed improved terms with some customers in the H1 to mitigate the impact of the working capital investment. This will start to take effect in H2, and we expect to deliver modest improvement in working capital in the H2. There were no pension deficit contributions in the H1 of the year. We do expect to catch these up in the H2 and pay the planned GBP 5.7 million contribution for the year, all in the H2. Given the very strong funding position of the scheme, we're putting in place a new escrow arrangement for contributions to go into, rather than paying them into the scheme and risking a trapped surplus in the future. With the free cash outflow of GBP 23.5 million and lower H1 EBITDA weighting, there was a temporary increase in leverage, as anticipated, to 2.4x. We expect this to mechanically return to within our 1x-2x target range by year-end, as both EBITDA and cash generation improve in the H2. Finally, we've recently completed the refinancing of our bank debt facility. The new RCF with our core relationship bank group is for four years, with the option to extend by one year, and complements the long-term private placement notes we completed late last year. Lastly, I wanted to give you an update on our self-help program that is now close to completion. We're delighted that we're on track to deliver the full benefits as planned. We've closed six sites so far, Barbados, Carrollton, Corpus Christi, Lutterworth, Tunisia, and Akron. Last year, we opened our new facility in Plano, Texas. Line qualification is being progressed, albeit it's taken longer than planned, in part due to the prioritization of resources to meet the very high levels of customer demand that we've been experiencing. We expect the qualification process to be completed in H2. The reconfiguration of the Bedlington site is close to completion. One of the last big steps, setting up new clean room is underway as we speak. The final piece of the overall program is the integration of Covina into the Torotel site in Olathe, Kansas. This is also now well underway. We've continued to manufacture in the site to meet increased customer demand, but remain on track to complete the move and the overall self-help program by the end of the year. Overall, we remain absolutely on track to deliver full project benefits next year. With the delayed Plano qualification, overall project costs have increased slightly. As we approach the end of the project, the team has done a great job to deliver it while dealing with growth and supply chain challenges, and we're delighted with the overall contribution from the project. Hopefully, that's given you a good sense that with a strong order book, great customer relationships, and ongoing self-help actions, we're in good shape for a strong H2. With that, I'll hand back to Richard. Great. Thanks, Mark. Let me take you through why I'm confident about the H2, and why I'm really excited about the opportunities for the future. To remind you, our strong performance is a direct result of our strategy to position the group in markets with long-term structural growth, investing in self-help initiatives, business development and R&D, and good execution. Our customers are winners in their markets. They place a high value on a strategic partnership with us. This translates into order momentum, giving us more visibility, and our strong relationships allow us to mitigate material and cost inflation by passing on price increases in consultation with our customers. This slide is a reminder of the growth rates in the markets where we operate. The combination of our business development success and the structural growth evident in each end market are supportive of even higher growth rates. We grew our top line by 8% organically in the H1, and now expect this growth rate to increase to double-digit levels for the year as a whole. Taking each in turn. In healthcare, electronics is playing a critical role in advancing medical technology. The growth in surgical navigation for minimally invasive digital and robotic surgery is right in our sweet spot. Our products enable the development of smaller, lighter, and more precise surgical devices, meaning smaller incisions, shorter recovery times, and better patient outcomes. Revenue growth rates from our larger healthcare customers are already above 10%. In aerospace and defense, current events in Ukraine demonstrate the need for strong defense capabilities. NATO members are increasing budget commitments, supportive of long-term growth from this market. The need for these have provided equipment to Ukraine to replace their stock as they provide more assistance, will also drive growth. Commercial aerospace is also beginning to pick up. We are seeing orders starting to come through and more urgent requests for product. Production in Airbus single aisle is now recovering rapidly, and we expect a steady improvement in wide-body volumes. Together, this means we could exceed these aerospace and defense growth rates over the next few years. In automation and electrification, investment is expected across the supply chain to offset capacity constraints and rising costs, as well as creating US and European capacity locally instead of relying on supply from Asia. Demand for automation is diversified across all end markets, and the current drivers of growth should be more resilient to any recession impacts. This is because structural growth is being driven by electrification, power efficiency, improved productivity, and environmental requirements. Short-term dynamics are driving more growth opportunities and new projects. Now I want to show you a few examples of how we're capturing the demand in these end markets and winning new business. First, healthcare. In surgical navigation, we've won a GBP 8 million contract over five years with a medical device and healthcare company for electromagnetic tracking sensors for use in cardiac surgery. We have invested in the development of an innovative new sensor in surgical navigation that can measure six degrees of freedom, another step forward in the technology delivering higher accuracy for the surgeon. On the back of this success, we have subsequently been awarded the patent for it. We're working with med tech companies to provide integrated solutions which incorporate TT sensors into higher level catheter assemblies. This again moves us up the value chain. We've also invested in expanding our Minneapolis clean room capacity in response to increased customer demand. This comes on stream in the H2, supporting revenue growth in Power and Connectivity. Secondly, in defense. Following the win for power converters on the U.K. Boxer army vehicle program, we have been awarded additional contracts for electrical cable or harnesses, taking our work on the program to GBP 16 million over the next few years, significantly increasing content. We've had further success with the order of similar work for the Challenger 3 tank development project. TT will lead the design, development, manufacturing, and initial fitment trials in a contract that extends out to 2024. I also want to mention a very recent win, announced a few weeks ago at Farnborough with Honeywell Aerospace, for an upgrade to the navigation system used in military aircraft with a new power supply technology developed by TT. In aerospace, recently acquired Ferranti has been successful winning a design contract for a power converter for a new business jet. This seven-year contract involves two years of development and will result in TT owning the IP. After that, it's five years of production, all worth over GBP 6 million, with the potential for more dependence on the demand for the jet. To capture the essence of our new aerospace and defense capabilities in power and connectivity and demonstrate how we've moved up the value chain from components to assemblies to entire product solutions, we launched a new marketing campaign at Farnborough, and you can see this in a video on our investor website. I would encourage you all to take a look and see why I'm excited about the capabilities we brought together and our opportunities for the future from significantly enhanced IP in TT based in the U.K. and in the U.S. In automation and electrification, in March, we talked about a new optical encoder sensor we had developed called FlexSense for customized high-end sensors, which can be configured for high resolution, faster response, all in a compact unit. We've had our first success, and FlexSense is now designed in and being tested in a robotic arm for factory automation. This is an example of how we invest in IP for new products in our sensors business. We launched this product last year. We now have the opportunity to monetize the IP by adapting and designing it across multiple applications. We've talked in the past about our work to develop our connectivity products, creating more value from our technology. In the H1, we secured a multi-year, GBP 8 million contract for a market-leading stair lift provider, clear evidence of our importance to them and their new product range. Let's take a look at how this growth is reflected in the order book. There is real strength and momentum in our order book, reflecting the buoyant markets we have targeted and our business development focus on winning market share on new programs with our targeted customers. We talked about the 144% book to bill in the H1 with no signs of it letting up. Our 2022 planned revenue growth is now fully covered. Proactive focus on pricing since last year is recovering inflation, and we are transparently passing through any extreme cost increases. Clearly, as the inflationary environment continues, we need to keep on top of cost increases, and inevitably, there will be some lag in recovery in some areas. What is encouraging is that even with this effect in some parts of the business that Mark referred to in the H1, we have maintained gross profit levels, demonstrating we are recovering the inflation overall and knowing there is more price to come through. It's worth repeating. Our largest customers are growing ahead of market growth rates in the current environment. Their mindsets are a lot longer term. They are giving us increased visibility as we work together to manage the supply chain challenges and inventory requirements. Now to give you an idea of how the strong order book helps us with visibility. You can see the order book growth in the first chart. Our order book has now grown to GBP 666 million, up 55% on this time last year and more than double pre-pandemic levels. This includes an additional GBP 35 million of customer backlog, which if we were able to ship, customers would take immediately. To support our customers and maximize growth, we have continued to invest in inventory. That inventory investment is order based, not speculative. It is needed to deliver on contracts and maintain good customer relationships. It is also needed to address the supply chain impacts on parts availability, which has been extreme for many months now. It is this inventory enabling us to have the confidence in delivering the order book. As Mark pointed out, we are having constructive conversations with our customers around the funding of the inventory. The second chart shows that as a percentage of our order book, inventory levels are now only marginally higher than June 2021, and actually 600 basis points lower than June 2020. We have been increasing prices, as I have mentioned, and in some cases, actually repricing the orders already booked. Approximately 80% of the June 2022 order book is already repriced. This, coupled with changing commercial terms to be non-cancelable, non-refundable, and sometimes non-reschedulable, gives us strong confidence in the fixed nature of the demand and the extended visibility. We are also monitoring what inventory looks like across the supply chain. We have engaged our largest customers to understand their inventory position. They're reporting that inventory levels are low or merely adequate. No one is reporting being overstocked. Our distribution partners give us regular visibility of their stock levels. This covers 20% of group sales. Here, their inventory is still 5% lower than pre-pandemic levels, and they continue to sell through any product that is made available. Again, no evidence of inventory buildup. The order book is providing a step change in visibility to 2023 revenue growth, even in traditionally shorter lead time businesses. We are already 55% covered for next year. Everything we've seen in the H1 gives us confidence our journey to transform the business is intact. Nothing has changed in our expectations for margin progression over the next few years. Looking at the building blocks on this slide in turn. On self-help, S&SC margins are now in the mid-teens. In GMS, the long-term margin performance and the outlook continues to be very encouraging. In PNC, we expect an improvement in the operating margin in the H2. The self-help program has been, and continues to be an important contributor. Secondly, organic growth. We are in a good place. The new programs, new customers, and market demand have driven a record order book underpinning growth and operational leverage. Finally, acquisitions. The acquisition of Ferranti Power & Control, a high-teens margin business, further enhances our power business in Europe. In short, we are confident that we can reach double-digit margins. Pulling this all together, we are in a good position for the future. Order and sales momentum continues, with 2022 expected revenues fully covered and great visibility for 2023. This puts us in a strong position, although of course, we're conscious of today's wider macro environment and supply chain dynamics. We expect to continue to offset inflationary pressures through pricing and operational efficiencies. Our net debt to adjusted EBITDA is expected to be back within our 1x-2x range by year-end. We have a clear line of sight to unchanged full year expectations, with the group performance continuing to benefit from growth, pricing, and self-help. With good customer wins, strengthen our target markets, we believe the group is well positioned for further growth and margin improvement. Thank you very much. That concludes the presentation. Now we'll open up the call for questions. Over to the operator. Good mor- Ladies and gentlemen, if you would like to ask a question, you can do so now by pressing star one on your telephones. That's star one if you'd like to ask a question. We will now take our first question from Michael Tyndall from HSBC. Please go ahead. The line is open. Morning, gentlemen. Just, a couple from me, if I can. Can we talk a little bit about the revenue at PNC? Just can you split it a little bit in terms of how much was to do with Lutterworth, how much to do with the lockdown in China, how much you expect to be recovered in the H2? Sure. The second question, just around pricing. If I remember rightly, at the full year, we were talking maybe about 3%-4% for the full year. Based on the numbers you just gave us for GMS, it looks like it's more like 9%. Can we talk about how much pricing there was in the H1 and what that looks like for the rest of the year, please? Yeah, sure. Do you wanna- Yeah. On PNC, Mike, there are a few things, but in relatively simple terms, the step up in H2, there's both Lutterworth that you mentioned, where the new clean room in Bedlington comes on stream, as well as a new clean room coming on stream in Minneapolis, where Richard mentioned we've invested with them through because of customer demand. That's of the order of GBP 3 million in aggregate between the two. The Dongguan shutdown moved about $2 million, so about GBP 1.5 million of revenue from H1 into H2. Then there are some U.S. government contracts that again, just timing related, will ship in the H2. That's about another GBP 3 million. Got it. Okay. Your other question, Mike, on pricing, I think you must be referring to some element of the pass-through costs that we've talked about that particularly go through GMS. We've got kind of around GBP 20 million of that in GMS going through in the full year. It's around 50/50. Yeah. That's about 4%- Yeah Increase in both the H1 and in the H2. The H2. Yeah. In pricing. The other pricing, I mean, of course the pass-through is pricing that does have to be a group of customers. But the other pricing is about a 1% impact in the H1. But we've agreed, for the group, a range of price increases with customers that continue to flow into the H2. In the H2, that pricing effect steps up to more like 3% across the group. Got it. Thank you. Thanks, Mike. Thank you. We will now take our next question from Mark Davies Jones from Stifel. Please go ahead. The line is open. Thank you very much. Thank you, Richard. Can I come back to your comments around inventory and the fact that this is real demand that it's serving? Sure There isn't a load of inventory building up. I take the point, but obviously within your own numbers and within the reporting of just about everybody else we've been looking at over the last couple of weeks, everybody seems to be building quite a lot of unusually high inventory. Do you think some of that is more structural, people are just gonna run with higher levels given the ongoing issues in supply chain? Or is the risk that perhaps there's inventory somewhere down the channel at the end customer rather than in the intermediaries? Sure. Look, morning, Mark. Just to be clear, are you referring to our own inventory or the overall supply chain? Because there's two different dynamics there. Yeah, no. I was talking about the overall supply chain, but you are to some extent an example of what's happening in that supply chain. Sure. Well, I guess let's just reiterate on our own inventory position. I think, you know, we feel very clear and firm about what we've been doing in terms of investing in the inventory to support our customers deliver their demand and the growth that we're experiencing. You know, you've seen strong growth in H1, accelerating growth in H2 and an order book that's got incredible levels of visibility. As I said just now in the presentation, we're, you know, we've been clear on that order book. We've been working all the time to change commercial terms to ensure that we are sure it is a robust and as far as possible, fixed order book. High confidence that the inventory levels that we've got are in line with what we need, and also, as you can see, is that the sanctuary of the order book are actually more efficient than they were. From the supply chains perspective, I guess to point to a few different dynamics that I mentioned in the presentation. First one, on the distribution channels, which is probably where we start to see that whole thing play out first. Inventory levels are still 5% below pre-pandemic levels in our distributors. Anything we get to them, they're selling through immediately. That, that's number one. We've pulsed, if you like, pulse surveyed all of our major customers. Everyone is reporting low or adequate levels of inventory. Finally, within that order book, as I mentioned, we have GBP 35 million worth of demand that people would take from us tomorrow that we cannot forecast into our output in the short term. That number has risen in the H1 from more like GBP 20 million at the end of the year. That I think that is telling you that there is a need for this product and there's strong growth on top of the growth that we've been delivering. I think you've got to look at, are you growing, what's the order book, is it fixed, and what's left, what's in the customer chain above you? No, that's very clear. Thank you. I wonder if Mark could give us a bit more detail around the refinancing and the terms of that in terms of the sort of average interest rate, how much of it is fixed, what the covenants are. Anything you can give us on that would be helpful. It's a four-year facility with an option to extend by one year once we're a year into the facility. Covenants are as they were previously, so covenant maximum of leverage maximum of 3x. It's an entirely floating facility. You remember we put private placement debt in place last year, so that gives us our sort of fixed versus variable sort of blend that we look for. Rates is, I'm not really allowed to say. I think suffice to say we have refinanced it on terms that are A, competitive, and B, just a very modest increase over the expiring facility. Thank you. In the H1 finance cost number, there was some arrangement costs and funnies. Was that Because we did the refinancing early. The old facility was due to expire at the end of next year. There was about half a million pounds of unamortized fees that we wrote off in June. Great. Thank you very much. Thanks, Mark. Thank you. We will now take our next question from Mark Fielding from RBC. Please go ahead. Thanks for taking my question, if that's okay. Firstly, it's a bit of a clarification from, I think, Mike's question earlier on just about pricing in the H2 and also the volume catch up. When you're talking about growth accelerating to 10% from 8%, my interpretation of that sort of half of that probably is price and half of that is a little bit higher volumes being allowed by some of these changes, particularly around P&C. If you could just confirm that or tell me that I'm wrong if that's not the case. In terms of acceleration, we expect. As we said, pass-through element is about 4%, and then we expect the growth from other pricing and volume for the year to get up towards high single digits, if not touching 10%. We'll actually be in aggregate between pricing, pass-through, and volume, getting up into the low teens organic. I just want to say that that does imply some volume increase in the H2 as well as just. Absolutely. Yes. more pricing. It does. Yeah. Volume will accelerate into, you know, 10% plus in H2. Great. Thank you. A question just around margins and one question really is two. Just talking about the divisional margins, obviously Sensors, you know, incredibly strong. How do we think about the medium-term margin potential of that business? You've talked in the past about sort of mid-teens and obviously we're slightly above that. The other side of that, you've also talked about mid-teens for Power & Connectivity in the past and obviously with some distance from that to just how you think the margin evolution occurs in both those businesses. Sure. Yeah. Sensors obviously, you know. Delighted with that performance. You can see there very clearly the self-help coming through and some strong growth, the business executing really, really well. Yeah, we definitely see it in the mid-teens now. As you point out, it's probably, you know, maybe touching above that, but. Look, we'll see how it develops. There's a bit of mixed headwinds in H1, but overall, it should be in that sort of mid-teens position for the year. If they continue to grow, you can see the leverage that's coming through in that business. You know, let's see. They're doing exceptionally well. On Power and Connectivity, I guess two points. Obviously, Mark's talked at length there in terms of the volume benefit that comes through in H2. We expect that to mean that during the H2, they'll start to get back towards the double-digit margin. I think the main thing to do is to point out the things that we're winning, looking forward and the sort of gross margins we're pricing those new entire product solutions are definitely indicative of being able to get to, you know, the mid-teen margins over time for that business with the intellectual property we're creating. Great. Thanks. Just actually if I can, one follow-up question in terms of just of the, you know, your order book's very strong, provides significant cover into next year. Yeah. There's a lot of wider concerns about, you know, the macro environment. Just, I suppose, you know, are you seeing any signs of weakening anywhere today? If you were, you know, where would that likely, you know, if you do in the future, which of the divisions do you expect to be sort of impacted first, and how does the order book counter that sort of thing? Was that three questions in one? Right. One big question. One big question, right. First things first, no change whatsoever in the demand rate from the order book, order intake, that's building the order book across the whole business. We haven't seen any evidence at all of any part of it softening. You can see that from the book and bill rates, if you track back what we've been reporting for the half as the organic growth has strengthened. You know, July's the same, not seeing anything else currently either. Lots of encouragement and confidence therefore in you know what's coming through from our customers in all of those markets that I described, the structural growth demand in there, our customers are winning, and they're definitely doing better than the broader market growth rates. As I pointed out, in each area, you can see reasons why longer term there's more growth to come. You know, I think that the order book is giving us great visibility, but it's actually the projects and the programs and the new wins and the pipeline beyond that also, you know, get us excited about where we can take the business. In terms of where it might see anything first, I guess usually if you go back, we would probably be looking into the distribution channel to see any first signs of anything. Right now, all markets, all divisions are not showing any of it. Yeah. I think in terms of, I mean, in terms of division, Mark, it would be S&SC that we typically would have seen it first in the past. In the past, it would have only had eight-12 weeks of order visibility, and customers would have had an ability to change those orders. It's now got much longer order visibility, and the orders as you've said are now non-cancelable, non-refundable. You know, we have a lot more visibility and time to deal with what comes down the line. Great. Thank you. Thanks, Mark. Thank you. We will now take our next question from Vanessa Jeffriess from Jefferies. Please go ahead. Hi, Vanessa. Yeah, thanks for taking my question. Obviously, Ferranti is doing really well. Looks like it accounted for a third of profit in PNC, obviously it's a non-normal half. Do you think that 19% margin is sustainable, and where do you see it as a percentage of sales in the division? Secondly, can you talk any more about Torotel financial? Yes. I mean, Ferranti is coming really well. No reason to see any change in their margins, in terms of that sort of contribution rate. We're encouraged by the bidding we're doing with them and the opportunities we've seen in their existing business to move that forward. Mentioned in the release as well that there's been some programs we assumed when we brought the business in were gonna tail off, have had some recent announcements that are gonna extend those programs three-four years. That's a really good underpin to them going forward. In terms of contribution to the division, they're around 8%, I think something like that in terms of revenue contribution. The sort of Torotel Covina assets, so we're bringing those businesses together. Obviously in terms of the near-term financial Mark mentioned a few of the program related things that flipped from H1 to H2. You know, no reason to be concerned about that at all. It's just a timing period issue. I think I point more to the successes they've had on winning new business and significant new programs. The Polaris win with Honeywell was excellent. It's brand new power supply technology that we'll be developing over the next couple of years and then production after that. There's another program that I can't mention that's doing very well with revenues stepping up. Then obviously there's been some good news that I guess started dripping out of Farnborough, but for the Boeing 787 and its sign off. You know, Torotel has $6 million of run rate revenue in that business and hasn't been producing anything for the recent period. Thank you. That's great. Maybe if you could just talk more broadly about aerospace recovery in the business. I think you've recently said there was GBP 40 million of sales to come back. Is that still the case? Yes. The forty million number was from the bottom across the whole group. So we've now got, you know, certainly got some of that coming back into the business now. 787 is part of it. The wide body generally, from the indications we've had recently, is looking like it's gonna broadly step back up over the next 18 months. Clearly, single aisle is, for Airbus, at least, you know, is marching forward now. I think good news, and it's just feeding into the revenue stream as we move forward over the next couple of years. Thank you. Thanks, Grace. Thank you. We will now take our next question from Harry Philips from Peel Hunt. Please go ahead. Excuse me. Good morning, everyone. Just sorry to say, just continuing on Power and Connectivity. Margin's down at sort of 3.1%. Last year, obviously, they were deflated anyway by Virulence. I appreciate you've got the sort of delivery delay into the H2 of already delivered, so there's a distortion there because clearly you had all the costs. Yeah. Appreciate also you had the China shutdown for an extended period. Just thinking and coming back to the earlier points really, Power and Connectivity was sort of, you know, you go back to 2018, 2019, doing GBP 16.5 million, the EBIT on GBP 138 million. I appreciate the world's changed a little bit, but here we are GBP 2.1 million in the H1. It's just I know you sort of outlined it a little bit, but it's quite a leap of faith to sort of see Power and Connectivity getting back to double-digit margin. I mean, I'm guessing that the bulk of the balance of the cost reduction program sort of comes through in P&C as well. Right. Still would leave it quite a long way light. I think actually, Harry, you when you mentioned going back to 2018 and 2019, I think that's a really good demonstration of that this is a business that is of a size that it hits a critical mass, and then the margin starts to improve quite quickly. We went from 9%-12% back then very quickly because we hit that critical mass of revenue, and that's exactly what's going on here. Yeah. In, you know, there are a number of things that have affected it. You know, when those revenues come off because of scale, it's quite painful. As they come back, we get a high level of drop-through on it. You know, there is pricing benefits come through. There is self-help benefits come through and with strong drop-through on that pickup in revenue, you know, we absolutely believe this is gonna move back towards double digits for the H2 of the year as it has shown in the past. I mean, that really is the sort of key then sort of for us to watch is, you know, we can all sort of debate what's getting near to what double digit might be, and as you obviously is P&C revenue-wise booked out like the balance of the business for 2023, so you can literally see your cost moving parts to give you confidence in that assumption? It's absolutely got the order book for this year and to be clear what I mean by approaching 10%, I'm talking like 9%-10%. Then- Yeah Visibility into next year, it's sort of got close to a third of revenues covered. It is a business that doesn't tend to carry as much order book, although they also have runner products that don't appear in the order book but come in each month that we know are coming because they're on platforms that have build rates. Yeah, sure. No, that's great. Then just secondly, just to be clear. Well, rather I'd be right to assume or guess that our guess is probably accurate, that the bulk of the sort of GBP 13 million-GBP 14 million on top of what you've done so far on the cost savings is P&C related. Some P&C and some sensors, especially as components, Harry. Okay. Fantastic. Thanks very much indeed. Thanks, Harry. Thank you. There are no further questions. We'll turn the call back to your host. Okay. Thanks, Emma. Well, thanks everybody for joining us this morning. Hopefully, you got a good sense that we've got some great momentum and really pleased with where the business is going and some real opportunities to continue to build margin and profit performance going forward. Thanks for joining us today and, thanks guys for all your questions. Much appreciated. Have a good one.