Integral Diagnostics Limited (IDX) Earnings Call Transcript

Good morning everybody. I'm Toby Hall, the Chair of Integral Diagnostics. I'm very pleased to welcome you to our 2026 Annual General Meeting. For those of you in the room, could you please just check your mobile phones and to switch to silent. And I also ask you just to note where your nearest exit is in the unlikely event that there's a need to evacuate the building. In the event of any emergency, just follow staff instructions. It is 10:00 a.m., and I'd like to begin by acknowledging the traditional owners and custodians of the land on which we meet today, the Wurundjeri people of the Kulin Nation. I pay my respects to their elders, past and present. I've been advised that a quorum is present for the meeting, and therefore, declare the meeting open. Today's meeting is being held in person and virtually by the Computershare platform where shareholders and proxies can watch a live webcast of the meeting, ask questions and submit votes. To provide you with sufficient time to vote. I now declare the voting open on all items of business. I will start today's agenda by taking you through a few procedural steps for voting and submitting questions. I will then give an address and that will be followed by an address from our new Managing Director and Chief Executive Officer, Jason Martinez. I'll now turn to the formal business for the meeting. Firstly, I'd like to introduce my fellow directors who are here with us today: Jason Martinez at his first meeting; Andrew Fay, Ingrid Player, Laura McBain, Kevin Shaw and Manish Mittal. And also, right at the end is Jenny, who's our new CFO. Our auditor is present -- represented by our lead engagement partner, [ Amanda Campbell ]. She's present and very keen to answer any questions related to the conduct of the audit and the auditor's report. And assisting us today is John Merity, our Company Secretary. Several members of our management team are in the room today and we're happy to talk to you after the meeting. For online attendees, voting today will be conducted by a way of poll on all items of business, and Computershare will act as an independent returning officer. For those that is attending in person. I'll ask you to vote once we've gone through all the items of the business today by completing a blue voting card, which was provided to you on admission to the room. White cards and visitors only cannot vote or ask questions today. Shareholders with the yellow card are not entitled to vote on the items of the business. For those attending the meeting online, who are eligible to vote, a voting icon is available for you on your screen. Selecting this item will bring up the list of resolutions present you with voting options. It's my duty as Chair ensure shareholders and proxies had a reasonable opportunity to ask questions and discuss items of business during the meeting. I will take questions once the formal business items have been presented. So far as we can in general questions, which don't relate to resolutions before the meeting will be addressed after the items of formal business. For those in the room, only participants who have been given a blue or yellow voting card are entitled to ask questions. For those attending the meeting online, you may submit a written question at any time by the Q&A speech bubble on your screen. You can also ask a verbal question by following the questions like the word cast window on your screen. If you are asking a question, please state your full name before asking your question. Very pleased to be addressing you today. Integral Diagnostics is a health care company built by excellent foundations and values. Our services dramatically improve the diagnosis to treatment of illness and injury and the communities in which we operate. Our doctors and employees are motivated, committed and I am proud to be leading IDX into its next chapter of growth. In FY '26, IDX continued to improve its financial results year-on-year. Revenue was up 25.6% to [ $788.7 million ]. Operating EBITDA was up 30.3% to $164.8 million. Operating EBITDA margin was up 80 basis points to 20.9%. Operating NPAT was up 50.1% to $47.4 million. [ Strategy ] impact was up by over 600% to $22 million. Operating diluted EPS was up 23.6% to [ $0.126 ] per share. Total dividends for the year were [ $9.03, up from $0.065 ] declared in the preceding financial year. In the context of these strong results, I'd like to emphasize 2 aspects of our industry. Diagnostic imaging benefits from several long-term tailwinds, aging population, earlier disease detection as we're rising chronic disease prevalence. Medicare funding an indexation, MRI deregulation, the recent national lung cancer screening programs and continuing advancements in AI and radiology. Together, these factors support sustained growth in demand for diagnostic imaging services and reinforce the important role of this sector players in the Australian health care system. While demand per imaging remains strong, the industry's principal capacity constraint is actually access to skilled clinical professionals. With shortage of radiologists and [ SonogaFoods ] across Australia continues to limit the speed at which additional patient demand can be serviced despite the ongoing investment in technology and infrastructure. Responding to this through a combination of recruitment, workforce development, training partnerships and productivity initiatives. But the reality is developing highly qualified imaging specialists takes time. We, therefore, expect workforce availability to remain an important focus for both our company and the broader health care system for the foreseeable future. I would also like to acknowledge that notwithstanding our results, our share price has not performed as the Board would have hoped over the last 12 months. While some of this share price underperformance can be explained by broader falls across the Australian health care stock prices generally over the last 12 months. The current share price is clearly a focus for your board. Our management team has a clear plan and the Board's support to drive strategic and operational changes in the current financial year, which the board believes will result in significant benefits in future years. We expect that these changes should be reflected in an improved share price over time. The shareholders would expect the Board maintains an active succession plan for key leadership positions, and we normally seek to stagger seeing executive transitions wherever possible. The near simultaneous commencement of our new CEO, Jason Martinez; and CFO, Jenny Martin in August, was therefore not necessarily the Board's preferred outcome and arise from circumstances beyond the Board's control. Jason was recruited in November 2025 were restrained from commencing until August this year. Jenny, who is the standout candidate in our recruitment process following Craig White's decision to retire earlier this year. was available much earlier than we had anticipated. That said, the true test to succession plan is not where the circumstances unfold exactly as anticipated, but how effectively the organization responds when they do. In this regard, the transition has been handled extremely well. strong planning, thorough handovers and a constructive process from all parties has ensured continuity of leadership and execution. The Board has been impressed with the insights of our new executives into our business. How quickly the team has established itself while maintaining a focus on the company's strategic and operational priorities. I would like at this point to express the board's gratitude to our former leadership team of Dr. Ian Kadish and Mr. Craig White for the instrumental role they played in building at IDX to its current national position and for facilitating a smooth transition process. I'd like also to say a brief word on sustainability. This year, we issued our first [ AASB Scient ] statement. And whilst the reporting requirements and you, the underlying objective is understanding the risks, opportunities that may affect the company's long-term performance of communicating those to shareholders that clearly our duty. I'm pleased to report IDX is now procured green renewable electricity for 100% of our anticipated Australian electricity consumption over the next 3 years contributing to a 93% reduction in our Scope 1 and market-based scope 2 emissions. Looking ahead, we remain focused on strengthening our climate reporting, identifying practical opportunities to reduce emissions and strengthen our climate resilience. Finally, in March this year, [ Randy Murphy ], our Audit Committee Chair resigned after 9 years on board. And on behalf of the Board, I'd like to thank [indiscernible] for his immense contribution service and leadership at IDX. Laura McBain has capably stepped into the role of the Audit Committee Chair. And finally, I'd like to take this opportunity to thank my fellow directors, IDX's leadership team and our clinicians and support staff and you, our fellow shareholders for your continued support. I will now hand over to [indiscernible], you mentioned [indiscernible].

Thank you, Toby, and good morning to everyone in the room and [indiscernible]. Yes, this is my first AGM as Managing Director and CEO of IDX. I've been in the role for just under 3 months, and I want to use this morning to do 3 things. [indiscernible], my initial observations explain the tangible actions already underway and be clear about what you expect from us at the half and full year. I'll also be direct about the first quarter. Revenue was softer than expected, and our outlook reflects that. But the key takeaway this morning is that our margin improves in the second half because that is what the team controls and most directly, I'll run through the tangible steps today to get us there. Before I do this, I'd like to acknowledge Dr. Ian Kadish, over 8 years and took IDX from a regional radiology practice to one of the largest networks in Australia and New Zealand, and he completed the merger with Capital Health. I inherited a business with real scale, strong clinical standards and a team that cares about getting it right for patients. That's a very good place to start. I'd like to also thank Craig White, who retired as CFO after the FY '26 result, and welcome Jenny Martin, who joins us as the Chief Financial Officer this month. Let me start with how we plan to engage with you throughout the year. Today, I will share my observations after 3 months. The actions already underway that context -- the industry context, our Q1 trading update and FY '27 outlook. At the half year, we will quantify annualized run rate benefits and delivery costs separately, report financial and nonfinancial operating metrics, explain margin and earning movements, including one-off and timing pigs. We'll update you on New Zealand's strategic review and provide progress on our overall strategy execution. In August, we will present the medium- and long-term strategy outlook. Multiyear performance measures, growth pathways and capital allocation framework. That sequencing is deliberate. 3 months is an uptime to assess the fundamentals, identify the most important opportunities and begin acting. We will explain what we are doing now, report progress at the half year and in August provide a broader update on strategy execution and our long-term ambitions. Diagnostic imaging sits at the front of most diagnosis and treatment pathways. Demand is driven by aging, chronic disease and early detection. The sector is predominantly Medicare funded with annual indexation of 2.4% in FY '26 and 2.6% in FY '27, excluding [ Pet ] nuclear imaging services. Growth is also moving towards higher-end modalities with MRI deregulation, the national lung cancer streaming program and breast MRI screening and a funding and demand in Pet, MRI and DT. IDX is well placed in that market, where Australia's third largest provider with 11.9% share, up from 7.1% in 2022. Across Australia and New Zealand, we have 141 clinics, [ 445 ] radiologists, plus 144 contracted [indiscernible] across our group. We now have 43 MRIs at Australian license practices up from 23 a year earlier. As at 30th of September 2026, IDX [indiscernible] accounts for 14.2% of reporting and AI is applied to approximately 18.2% of scans. In recent years, Medicare benefits and imaging have grown around 7% per year. That is sector context and not a forecast for IDX. Gaining market growth into earnings depends on 2 things. Having clinical capability to meet demands and keeping cost growth below revenue growth. In the first quarter, the business did not achieve either as well as it should have, and that is what we are working to fix. Toby has taken you through the FY '26 financial results, so I'll focus on what they mean operationally. Revenue grew 25.6% to $788.7 million, which includes the first full year of Capital Health, the operating EBITDA margin increased 80 basis points to 20.9%, and we delivered more than $14 million in Capital Health Manager Synergies. Those results provide the basis and a base for our next task, capturing the benefits of our scale and more consistently across the group. The operating task now is to build on those results by capturing the benefits of our greater scale more consistently across our group. That means stronger discipline more consistent execution and clear accountability for clinic performance. We continue to invest in clinical network. During the year, we opened new comprehensive clinics at [ Wangaratta ] and Eastwood Private Hospital, incorporating new MRI capability. We also relocated and expanded our [ longest ] in clinic to include MRI services. These investments improved access to advanced digital imaging and strengthened our presence in those communities we serve. Most importantly, our performance is measured not only by financial results, but also the care we provide patients and our communities. During FY '26, we served approximately 1.7 million patients and performed more than 4 million examinations. Patient satisfaction remained extremely exceptionally high, with a Net Promoter Score of plus 81. This result reflects dedication and professionalism of our radiologists, our clinical teams and our support staff across Australia and New Zealand. We also maintained strong employment, employee engagement. We continue to build a more connected and accountable culture and progress investment in technology and systems to improve the experience of both our patients and our people. Overall, FY '26 demonstrated the strength of our business, the quality of clinical services and the commitment of our people. So 3 months in, what have I found? Firstly, the fundamentals are sound, demand is staff. Our relationships are healthy and our clinical quality is high right across our network. Our clinical IT platform with [ CLARIA ] and FFI provide a strong platform to leverage the latest AI and tech. Nothing I've seen in the 3 months changes the long-term case for this business. Second, performance is uneven by geography. Metro Victoria is the clearest example. It has lagged the rest of the group at both the top and bottom line and is where we've moved first. More consistent execution is the immediate priority. Third, labor needs to be forecast and managed not simply reported after the fact. Doctor costs and rostering have historically been managed retrospectively in practice, that means that growth cost was often recognized after it happened rather than planned and managed ahead of time. It is the main reason our costs grew faster than revenue in the first quarter, and this is where we can make the quickest difference. Better forward visibility, disciplined scheduling and closer alignment between revenue and remuneration others are among the first changes underway. Importantly, we are developing a clear strategy that links work of every IDX team to the company's purpose and priorities. That means aligning our people, resources and investment to deliver sustainable growth and shareholder value. The point I want to leave you is this we have identified concrete operating actions and are working through them now. Workforce shortages remains a constraint, but stronger forecasting, more disciplined scheduling and consistent execution are areas that we can act. Our job is to compete, compete for radiologists and sonographers where they can improve our service offering and to use technology to make each one more productive. Our refreshed the leadership team, including Jenny as CFO, our new General Manager in Victoria from within the industry supports our work. Revenue grew 3% in Q1 or 4.4%, excluding closed sites and adjusting for constant currency. In Australia, revenue grew -- revenue growth, excluding closed sites, was 5.1% against Medicare -- estimated Medicare Benefits growth of 7.1% for Q1 FY '27. To reiterate, the demand for services was there at our clinics in Australia. Our capacity to meet it was not because we did not have enough radiologists and sonographers in the right places. Metro Victoria site continued to underperform at both the top and bottom line. We have appointed a new General Manager in September with more than 25 years of industry experience and clinic profitability is the immediate priority. Our South Coast Radiology revenue growth was flat because we have doctor shortages. Across the group, our MRI revenue grew by more than 10%, and we are broadly in line with CT growth in services we provide, consistent with our focus on high-end modality. Staff shortages reduced ultrasound capacity. Volumes increased in our hospital contracts and the new [indiscernible] private hospital site opened in August, exceeding revenue expectations. In New Zealand, revenue declined 6.5% in New Zealand dollars or 15.1% in Australian dollars with the Australian dollar result also reflecting unfavorable exchange rate movements. 4.5% of the decline in revenue is due to the absence of CT referrals from Health New Zealand and industry-wide issue and 2% to our site closure. The strategic review remains underway, and we'll update the market at the half year results or earlier, if appropriate. Radiologist costs as a percentage of revenue increased in Q1 because of the number of one-off and timing factors. Doctor shortages increased reliance on locums and additional incentives were paid in July and August to reduce unreported this. The rollout of [ Clarion ] in Victoria, our largest region, also had a short-term negative impact on productivity. The removal of quarterly superannuation cap brought 52% of expected annual radiologist superannuation into Q1. Some of this unwinds within year the because more of the superannuation costs fall in the first quarter, less of it falls in subsequent quarters. These factors weigh on the first half and are not expected to reoccur at the same level in the second. Following capital integration of the group also recharacterized $2.5 million of annualized labor costs from the low the loan to above the loan. This change -- this changes how we report the costs not what we spend, and it gives a clearer view on underlying earnings. It also means our margins from here carry the cost that earlier periods did not. Both labor and other cost growth and are currently outpacing revenue growth and action to reduce unnecessary costs have commenced. The FY '27 outlook. Revenue growth in the first quarter was softer than expected, driven by labor shortages. We expect the full year FY '27 revenue growth to be between 4% and 6%. We are taking action to reset the cost base across both labor and nonlabor costs with initiatives already underway. Our focus is on stronger operational and cost discipline to improve operating leverage. In parallel, we are accelerating technology initiatives to improve productivity and moving towards a more national coordinated approach to procurement. That assumes growth improves from the first quarter as the clinical appointments we have made come through the new sites, including [ Meritor ] and builds volume. Revenue is only part of the picture. Costs in the resulting margin at our team controls more directly, and that is where I want to be specific and offer you as much tangible detail as possible. Following implementation of these cost initiatives, we expect our operating EBITDA margins to improve in the second half of FY '27. For the full year, we can expect an EBITDA margin in the range of 19.5% to 20.5%. The full year range reflects a first half that carries one-off timing costs that I described. The second half reflects the cost of initiatives which will have an early impact and which are already underway. Less reliance on locums, more disciplined rostering and procurement and nonlabor savings that we've started to catch on. It does, in part, depend on revenue growth, but with enough buffer based on our expectations for business going forward. Our FY '27 capital expenditure guidance remains at $50 million to $60 million. Our FY '27 work has 3 priorities: stronger operating discipline, greater use of our scale and technology that improves productivity and experience. Operationally, clinic profitability in Victoria is the immediate fire. Across the group, we are seeing forecasting -- we are strengthening forecast for doctor costs, matching labor more closely to demand and competing harder to attract and retain radiologists and sonographers through our [indiscernible]. We are also reviewing pricing by modality and geography, assessing low-margin clinics and our footprint and linking remuneration more closely to revenue. On scale, we are consolidating and centralizing where that creates value. We are extending centrally negotiated procurement moving typing, workflow and facilities management towards a national model and establishing more consistent reporting and clear accountabilities across the business units. A unified operating model and culture will help us act as one network and capture the benefits of scale. On technology, the Board approved prioritizing access and customer experience program or PACE, as we like to call it, covers online bookings, digital forms, electronic referrers, electronic referrals, unified worklist and voice AI. The [ Claria ] rollout is progressing well, creating a shared radiologist reporting environment across the business. Alongside this, we are supporting AI-enabled solutions and looking at autonomous draft reporting to improved reporting turnaround and productivity, and we are extending our IDXT deployment. Together, these initiatives are intended to improve patient and referral experience and lower the cost to serve over time. We will track digital bookings and referrals. The share of scans with AI applied and further IDX deployment. These initiatives are underway or approved, and the half year results, we will report their benefits and delivery costs separately and explaining how they will support sustainable margin improvement. Beyond these priorities, we are building a disciplined pipeline for the next phase of growth, where we use existing capacity first, [ Denise ] greenfield, brownfield opportunities, new hospital contracts and selective M&A. Each opportunity will be measured against the return we can earn on the capital invested. Our scale, IDXT, and the clinical model provide options for long-term for the long term with future investment guided by our disciplined capital allocation framework. IDX has a strong underlying business, and we know where performance must improve. Our priorities are clear: execute within the platform, pursue disciplined and selective growth, build capability and culture and use transformation and innovation to improve pathways and productivity. The outcomes, we will measure ourselves against our sustainable revenue growth, EBITDA margin improvement, greater productivity and capacity, improved patient access and continued balance sheet gearing. We are taking tangible actions and are confident in our ability to deliver improved performance and sustainable shareholder returns. The first measure of that will be the second half margin, and we will report our progress towards in February. I'd like to thank our radiologists, sonographers, radiographers, nurses and support team whose commitment to patients is evident across our network every day. Thank you also to our referrers and patients for their trust. To Toby and to the Board and to the leadership team for their support through my first months. And to you, our shareholders, for your patience and your confidence in the company. Thank you.

Thanks very much for that, Jason. I'll now proceed to the formal business as set out in the notice of meeting dated 25th September 2026. A number of shareholders have already voted ahead of the meeting, and we can't play them for their insight. I will introduce each resolution in turn and the proxy results for each resolution will be displayed on the screen. Shareholders will have charts to ask questions on each resolution before we move on to the next slide. The first item of business is to receive and consider the financial report of the company and its controlled entities and the reports of the directors and auditors for the year ended 30th of June 2026. This item does not require a vote from shareholders. I'll now invite questions on this item. [indiscernible] online questions. There'll be no further questions will come to the items of business for which voting is required. Item 2 relates to the adoption of the remuneration report. The resolution being put to the meeting is displayed on the screen. The remuneration report is contained in the annual report and describes the policies and sets out the remuneration arrangements in place for directors and executive key management personnel. The vote on this item is advisory only and does not bind the directors of the company. Nevertheless, the People, Culture and Remuneration Committee will take into account the discussion on this item and the outcome of the vote when considering the future remuneration policies and practices of the company. The valid proxies for [indiscernible] on a screen. Are there any questions or comments in relation to this resolution? So are there any online questions? As there are no further questions on this resolution. I move that the remuneration report for the year ended 30th of June 2026, we [indiscernible]. That completes the business for Item 2. I will now stand aside and Andy Fay will come and look after this part of the meeting.

Good morning, everyone. Item 3 relates to the reelection of Toby Hall as Director. Toby's qualifications and experience are set out in the notice of meeting. And I'll now invite Toby to say a few words on his reelection.

Thanks very much, Andy. It's good to be back up here. As I said earlier, it's good to be able to do this more [indiscernible]. This organization is at the forefront of health services in Australia. I believe that diagnostic imaging is going to be the center of the health sector for the long-term future. We've got incredible tailwinds behind this business, the demand and the growth of diagnostic imaging services is quite incredible. The need for prevention activity in terms of the health care system is absolutely vital. We're very lucky we've got a great technology team. I think we have some of the best AI technology in the business in the sector and that work allows us to impact Australian lives on a daily basis. It's a prudent which to lead an organization that works with close to 2 million people a year to ensure that the health is as good as it can be. I will continue to serve the shareholders and be shareholders of the Board as long as you would like me to.

Thanks, Toby. And I think it's pretty clear his passion for the business and how it goes about in creating an exciting place, but also very disciplined. The resolution to the meeting is displayed on the screen. The Board with Toby abstaining, we unanimously recommend that shareholders vote in favor of the resolution. The valid proxies for Item 3 are also shown on the screen. Are there any questions relating to this resolution? Any questions? Okay, there are no further questions. [indiscernible] Toby Hall eligible and being eligible will be reelected as a director of the company.

Thank you very much, Andy. I'll now move to the reelection of Ingrid Player as Director. Item 4 relates to the election of Ingrid as a director. Details of Ingrid's qualifications and experience are set out in those meetings. I'll now invite Ingrid to say a few words regarding her election.

Thank you, Toby. Good morning, everybody. My name is Ingrid Player. I have been lucky enough to be a board member of the last 3 years, and that presents myself for reelection again today. I've been an active member of the Board and in its committees over the last 3 years, and I currently chair the Risk and Sustainability Committee. Hard to rival Toby's passion for IDX, but we are all equally passionate although many less adhesive in our tone. In addition to serving here at IDX sales and service as a Non-Executive Director to other listed companies, [ Cleanaway ] Australia's largest independent feed waste management company and Costa, which is a commission testing company supporting global clinical trials and also work with [ Airpoint ] Foundation, Victoria's largest nonprofit hospital group. So I bring all that experience with me to IDX and as Jason mentioned, IDX is the company full of great people. They work hard every day to deliver high-quality services and care for our patients, and we've seen this directly in the work of the risk of [indiscernible] committee that many of you might not think that risk is the most exciting topic going around, but we'd be very excited to be part of our risk in sustainability committee meetings because that's where we get to see the passion of our people front and center at every meeting. That's where we work on our top risks as an organization and amongst those include ensuring safe workplaces for our people and a robust clinical governance system and process for our patients and that we do all of that sustainably. And you heard from Toby earlier about our purchasing in Green Power, which some of our leaders are in the room today, who are responsible for that deal and [indiscernible]. So we just look forward to continuing to serve our shareholders for a better term and to working with our fresh management team to deliver our sustainable growth and shareholder value. Thank you for your consideration.

Thank you very much, Ingrid. The resolution being put to the meeting is displayed on screen. The Board with Ingrid obtain any unanimously recommends shareholders vote in favor of the resolution. And I would just add she is an excellent contributor to the Board and an excellent commuter valid proxies received for item 4 are shown on the screen. Are there any questions or comments in relation to resolution? John, any other line questions? As there are no further questions on this resolution, I move that Ingrid Player may be eligible to be reelected as a Director of the any. That concludes the business for Item 4. There are 2 resolutions related to approval of equity grants, the CEO. The proposed grant of FY '27 short-term incentive rights and the FY '27 long-term incentive rights to our CEO, Jason Martinez. Details of the terms and conditions of the proposed equity grants set out in the notice of meeting. The resolution be put to the meeting, the resolution [indiscernible] put the meeting and displayed on the screens. The Board with Jason an unanimously recommends that shareholders vote in favor of both resolutions. The valid proxies received by the company for Item 5A and 5B are shown on screen. Are there any questions or comments in relation to this resolution? John, there any online questions? As there are no further questions on this resolution, I move that approval be given for all purposes for the grant of deferred equity rights to the Chief Executive Officer and Managing Director Mr. Jason Martinez and the IDX FY '27 short-term incentive plan on the terms set out in the explanatory memorandum. And that approval be given for all purposes for the grant of [ 369,458 ] [indiscernible], the Chief Executive Officer and Managing Director, Mr. Jason Martinez under the IDX FY '27 long-term incentive plan on the terms set out in the explanatory memorandum. That concludes the business Items 5A and 5BThere. Are also 2 resolutions to this item relating to proposed top-up grant of FY '26 long-term incentive rights and FY '27 long-term incentive rights to our former CEO, Dr. Ian Kadish. Details of the terms and conditions of the proposed equity grants are set out in the Notice of Meeting. The resolutions being put to the meeting are displayed on the screen. The Board unanimously recommends shareholders vote in favor of both resolutions. The valid proxies received by the company for Item 6A and 6B as shown on the screen. Are there any questions or comments in relation to this resolution? John, are there any other online questions? As there are no further questions on this resolution, I move that the approval be given for all purposes had a [indiscernible] grant of an additional [ 721,060 ] performance rights to Dr. Kadish under the IDX FY '26 long-term incentive plan on the terms set out in the explanatory memorandum. And the approval will be given for all purposes for the pro rata grant of 87,181 performance rights Dr. Ian Kadish, under the IDX FY '27 long-term incentive plan when the terms set out in the explanatory memorandum. That concludes business for Item 6A and 6B. Move on to Item 7 approval for issue of securities under the company's equity incentive plan. This item of business seeks approval for the issue of any securities under the plan not to count towards the company's 15% annual limit on issuing securities without shareholder approval in the next 3 years. Details of the proposed resolution is set out in a notice of motion. The resolution being put to the meeting is displayed on the screen. The Board, with Mr. Martinez abstain, unanimously recommends that shareholders vote in favor of the resolution. The valid proxies received for item 7 by the company are shown on the screen. Are there any questions or comments in relation to this resolution? John, are there any online questions? As there are no further questions on this resolution, I move the approval be given for all purposes for issues of securities under the company's equity incentive plan on the terms set out in the explanatory memorandum. That concludes business for Item 7. Moving on to Item 8. Renewal of the proportional takeover approvals, approval provisions and the constitution. This item allows shareholders to decide collectively whether a proportional takeover bid is acceptable in principle, and it may ensure that any partial officer is appropriately priced. Details of the proposed resumption are set out in the notice of meeting. The resolution being put to the meeting is displayed on the screen, and it is a special resolution. The Board unanimously recommends shareholders vote in favor of the resolution. The valid proxies received for item 8 by the company are shown on the screen. Have any questions or comments in relation to this resolution? John, are there any online questions. As there are no further questions on this resolution, I moved that pursuant to Section 648G as a corporation act, the existing proportional takeover provisions contained in Rule 6 of the company's constitution be renewed for a period of 3 years from the date of this meeting. That concludes the last item of business. I'll now take general questions relating to IDX from any shareholders, if there are any. First, I'll come to the room.