Welcome to the results presentation for the first half FY25. Looking at page 2 of the summary, for the 18.5% versus prior year, revenue was $100 million, up 13% on the prior year.

The gross profit margin was 61.5, 8 points on the first half and by 25. Net profit after tax was $45.6 million, or 29% FY25 underlying, and up $12.5 million, or 37% on the first half FY25 statutory.

For the UK, revenue was $17.6 million, impacted by store closures due to the rebranding program. Written orders for the first half were $21.6 million, up 6.7 million.

The next Nick Scali brand are up 32%. Gross profit margin was 39.2% compared to 45.1% first half.

16 stores refurbished and rebranded as Nick Scali by December, loss after tax of $5.6 million as per forecast. Profit after tax was $41 million.

Cash and bank deposits was $91.6 million and the interim dividend of 39% per share. Turning to page 3, as mentioned, the written sales are up 10.5% on the prior, with like-for-like written sales orders up 10.1%.

The UK written sales orders were $21.7 million, up 8% on the prior comparable half. Year-on-year comparative trading due to the numerous store closures for refurbishments.

The group written sales total was $26 million, 10% up. On the revenue side, revenue was $251.7 million, up 13%, reflected in the high written sales in May and June FY25, which is up 60%, a strong first quarter FY26 new growth.

ANZ like-for-like revenue for the first half was 12.7%. The year contained $0.6 million.

That's down 38.5%, low written sales over the quarter for FY25, caused by closures of numerous stores for maintenance periods before store refurbishments, and group revenue for the half was $269.3 million, up 7%. Turning to page 4, group financial performance, profit margin was 65.9% compared to FY24, 64.4%.

Operating expenses increased by 5%, mainly attributable to employment bonuses and additional marketing in line with sales growth. Yet tenures to improve with Nick Scali product in place and the legacy Sage product now cleared.

By 26 gross margin was 59.2% versus half FY25 at 45.1%. Reported net of interest rate subsidy costs impacting margins.

For the first half of 26, operating expenses in the UK in local currency terms, expenses were in line with prior, and property costs offset by additional marketing. I will now hand over to Kylie Archer, who will fill the cash flowing balance sheet.

Looking at the cash flow slide number 5 there, cash generated after deducting amounts due on operating leases was $51.5 million for the half, up from last year, with ANZ contributing $53.4 million. The operational funding requirements for the period decreased as commitments reduces as refurbishments are completed, with net operating cash outflows for the UK of $1.9 million.

Property and point 1 million include two property purchases in the period, the first being $3.8 million for land acquired in South Australia, with construction due to commence this calendar year, and the second being $7.9 million for Townsville. In addition, fit-out costs were incurred for a number of stores, $28.2 million was returned to shareholders in the period, final FY25 dividend, and finally the closing net debt as at December was $15.9 million last year.

We move on to the balance sheet. Inventory levels overall remain broadly consistent from the table on the right-hand side of the page, with slightly down on June 25 levels to $44.6 million.

We see an increase of $20 million to $132 million due to, as mentioned on the previous slide. Borrowings remain unchanged in the period at $43.7 million related to a 30% loan-to-value ratio.

The balance of the borrowings relates to the term change in the reporting period. I'll now hand back to Anthony.

UK summary: sales orders continued to improve where we rebranded. Before rebranders, like-for-like in January 2025 showed growth of 32%, 59% net of interest rate subsidy, growth in the medium term.

Distribution progress has been made in restructuring to reduce margin leakage. Further consolidation of UK head office roles with Australia and upper UK, driving greater efficiency across the group, teams in stores and evaluating and seeking new...

Looking at product, the best-sellers in the UK and Australia. New product introductions based on Australian performance will be the norm going forward.

The break-even position is $51. million of sales revenue.

New stores are critical to increase brand awareness. A new plush showroom was opened in November 25 in Bendigo.

FY26, being planned to open, which will bring the total. In the UK, the Lincoln store was closed.

We believe it's not suitable to rebrand and optimisation of the UK store network, mostly complete, with 16 stores converted to the Nick Scali branding and product range. A number of new store locations in the UK are under negotiation.

Turning to page 10, ANZ, the written sales for the month of January 26 and for like written sales increased during the half. Second half, a further five stores are planned for opening, with additional opportunities currently in the UK.

With store refurbishment now mostly complete, materials compared to the prior period, total January written sales was $6.7 million, up 32% compared to last year, and most stores are currently in negotiation. That concludes our presentation, and we're happy to...

On January, I thought it might have been a bit stronger than 3% in ANZ, just given you're lapping. Is there anything in the promotional timing or the calendar, a true reflection of how you're tracking at the moment?

I think what's happened that month is getting stronger and stronger every year. We're being very close to the Boxing Day sales.

Just seems a bit of a shift because of a lot of, I guess, forward orders you might have got in January, by 7%, and sales are still up 3%. Conversion did improve.

That's one, is maybe interest rates are maybe having an impact. I think March and April will tell that story.

Yep, that make it order bank. You did obviously more profit than you guided to at the AGM.

What's the shape of the order bank like at the moment? Based on my, by about $22 million in the half?

I know you don't actually report that number, along the order bank and kind of logistics, and just how quickly you're getting product to customers.

Look, I think our lead has increased by three. We're delivering a little bit quicker, but not...

We don't call out the order bank. At the end of the day, our revenue is based on FY26.

It's really about May to March sales orders. Written orders gives you the line.

Is it fair to assume the order bank has reduced?

No.

Okay. All right, that's all I've got.

Thank you.

Okay.

Good morning, Anthony and Kylie. Thanks for taking my question.

Margin performance was good. Have you had to engage, or has that impacted your promotional activity in the market?

Then if you could just touch on FX and currency impacts looking and when you expect those benefit come through in this half, or is that more of an FY27?

Yeah. First, the margin, that did not impact our promotional activity.

On the FX side, cover. That won't benefit the currency, if there is any, first half next year, next financial year.

Being in a competitive environment, not necessity, we might pass it on with further promotion.

Terrific. If I may, one more.

Just the tax rate in the half was up quite a bit. Was there anything in there that you're not allowed to deduct, UK losses, or had something else?

Was there another impact that we should be aware of?

Sorry,

is it 30% tax rate, or something?

Traditionally that has been the rate. Yeah.

Thank you.

Good morning, Anthony, Kylie. Thanks for your time.

Can I ask you first of all about the store sales? You've been on a bit of a journey there to improve the quality, capability of that team.

Where are you at?

Looking at the January results at the moment. Yes, good leadership in the UK, and we work on better sales teams.

There's never any points where it can never be as bad. I think we can see that from the January result.

If you split traffic conversion to sales orders, would you say it's now improved in Australia?

At Australian level, we're scaling Australia anyway.

Yeah. That was marketing spend.

Just in your earlier remarks, you mentioned that marketing spend, ANZ increasing loss, right? That would imply that you spent about half a million dollars in the UK.

Does that sound about right?

Yes. Maybe marginally more, in fact.

You're converting Australian dollars,

yeah. That's right.

When you look forward now, Anthony, and you sort of see the landscape as it is, sales trends, things like that, what do you mean the ANZ business through the rest of the year? Do you sort of see it sort of pretty stable, or do you see an opportunity to best some of that stronger gross margin?

What are your plans on that marketing spend?

Look, it's managed on a month-to-month basis, to be honest. Depending on the strength and the traffic into stores, we insert promotions where we think we've got a strong offer, may increase this.

If we do increase, it's managed. We're trying to ensure we don't waste to get the result, and we continue to invest.

I will invest more as we have more of a whole brand.

Yes. Yep, and then just lastly, same topic, but for the UK, how quickly do you see the trajectory for marketing spend as a percentage of sales to maybe not to 10%, but towards 10%?

10% is a lot. I'm not sure where you want to...

It depends. Marketing gets more efficient with more stores, and clearly at the moment we have quite a bit of waste in this.

We've only got 16 stores, and they're spread across. Not a lot of opportunity for localised advertising.

It's mainly national. We're aggressively pursuing more stores in the short term, we can then increase the spend in marketing, which does two things: helps the same-store sales improve and a larger store network.

That's helpful. Thanks.

Good morning, Anthony and Kylie. The first question is on the UK like-for-like.

With those four rebranded stores that were trading last year as well, the 32%, does it give you on firstly the break-even position and sort of where some of these stores per store versus some of the Australian stores?

Yes, certainly gives us that January number on the like-for-like stores was a great uplift. The whole January result.

Clearly we need to continue that momentum, but particularly. Similar to the break-even point in the short term.

Look, I'm not... the short term, whether it's a small loss, what's really relevant is that we open new stores and have a conviction to continue to open stores and improve, which we are doing.

Yes, on the whole, really encouraging result for January.

You talked a bit about earlier it came up here in Australia, but margins have been very solid. Turning to the UK, 59%, how did that go into the rest of the second half?

How will that balancing act of work as the brand awareness increases?

Look, the first thing is obviously it's helping us have prices, even on promotion, that are very, very competitive, and that's particularly because of our lambs volumes across Australia. We are very confident that we're going to be more than this margin.

As I said earlier, look, that margin will improve in the UK once there's the industry subsidy costs that is not.

Perfect, thanks for that.

Hello, can you hear me?

Yes. Yep, can hear you, Sean.

Thank you. Thanks, Anthony.

I was just hoping to do a follow-up question on the business. Could you please tell me what's the implied GP margin performance for your order bank compared to the same time last year?

Implied margin on the order bank. It's going to be slightly higher, given what our margin has been delivering.

Cool. Thank you.

We don't expect our margin to be different with the first half to the second half, is what our expectation. There are external factors that may potentially impact it, at the moment, the order bank is in line with the first half margin.

Got it. Another follow-up.

This is the same question I asked you on this, because my understanding is Axis manufactured capacity in China from your supplier in Vietnam to catering for the U.S. export business.

I guess I just want to hear this positioning to negotiate or renegotiate a more favorable supply term with some of your partners in Asia, please?

That has been occurring already. Yes.

Production for the U.S. well, all the production in the U.S.

has moved to Vietnam from many of the China factories. Yes, we've got more capacity in China, but, I think, with good support from the factories, but I don't see any risk with that.

Thank you.

Of presentation and to provide a good result for the first half and for the full year. Thank you.

Participating,

Goodbye.