The Interim CFO: When, Why and How

When does a UK business engage an interim CFO rather than fractional support, accelerated permanent search, or simply waiting until permanent appointment is made — and how should the interim engagement be structured to deliver value that justifies the dedicated full-time fee?

Interim CFO engagement covers a wider range of situations than the crisis and turnaround context that the term sometimes implies. Planned vacancies during permanent search, leadership departures unrelated to crisis, parental leave cover for permanent CFOs, transaction-driven appointments where dedicated full-time finance leadership is needed for a defined period, transformation programmes requiring senior finance ownership through delivery, PE-backed portfolio companies bridging between investment and permanent appointment — each is a legitimate interim CFO situation. The engagement model fits because the demand is genuinely time-limited, full-time presence is appropriate, and the situation calls for someone with prior experience handling comparable work.

The market for interim CFOs in the UK has matured into a distinct sub-segment of senior finance recruitment. Specialist providers like FD Capital maintain networks of experienced interim CFOs who choose this engagement model deliberately rather than as a stopgap between permanent roles. Day rates reflect the seniority of the role, the dedicated full-time commitment, the absence of permanent benefits, and the experience required — typical UK rates for interim CFO engagement run £900-£1,800 per day depending on business context, sector specialism, and the nature of the assignment.

This guide sets out the comprehensive picture of interim CFO engagement in UK businesses. The specific situations where interim engagement fits, the benefits that distinguish interim from permanent or fractional alternatives, the structuring decisions that make engagements work, the transition from interim to permanent appointment when that becomes the right next step, and the practical mechanics of engaging interim CFOs effectively.

It is written from the perspective of FD Capital’s team — a specialist finance recruitment firm placing interim CFOs into UK businesses since 2018. Adrian personally screens senior interim candidates and conducts the matching for material appointments.

Call 020 3287 9501 or email recruitment@fdcapital.co.uk to discuss an interim CFO requirement.

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When Interim CFO Engagement Is the Right Answer

Interim CFO engagement fits specific situations across the UK business landscape. Beyond the crisis and turnaround context covered separately, the more common scenarios include:

Permanent CFO vacancy during search. When the existing CFO departs and permanent search will take three to six months, interim engagement provides full-time senior finance leadership through the gap. Interim cover prevents the deterioration that vacancy creates and ensures the business remains operationally controlled while the permanent search runs.

Parental leave cover. Maternity, paternity, or adoption leave for a permanent CFO creates a defined-period vacancy that interim engagement covers naturally. The interim CFO works alongside the existing finance team, maintains continuity, and exits when the permanent CFO returns.

Sabbatical or extended absence cover. Some senior CFOs take sabbaticals or extended leave for personal reasons. Interim cover bridges the gap.

Major transaction support. Sale processes, acquisitions, fundraises, or refinancing programmes that exceed what the existing finance function can deliver alongside steady-state operations. Interim engagement provides dedicated transactional capacity from process start to completion.

Transformation programme leadership. ERP implementations, FP&A platform deployments, finance function rebuilds, post-acquisition integrations — major programmes that require senior finance ownership through delivery. Interim CFOs with prior comparable transformation experience deliver these programmes more efficiently than incumbent finance leaders attempting them alongside steady-state work.

PE portfolio bridge. PE-backed businesses between investment and permanent CFO appointment, where the sponsor wants experienced senior finance presence during the search. The interim CFO stabilises the function, builds the team, and supports handover to the permanent successor.

Audit qualification or material weakness response. Where audit findings require dedicated remediation work, interim engagement provides the focus that recovery requires without permanent commitment to expanded finance leadership.

Pre-IPO preparation. Businesses preparing for public market routes need senior finance leadership with prior IPO experience. Interim engagement during the preparation period — typically 12-24 months — supports the work without committing to permanent appointment of an IPO specialist who may not be the right long-term CFO.

Regulatory or governance event. Section 166 reviews, regulatory remediation, control rebuilding following findings. Interim CFOs with relevant regulatory experience handle the work alongside the legal team.

Specific project mandates. Some interim CFO engagements are scoped around specific projects — a fundraise, a sale, a particular transformation, a defined remediation. The engagement begins with the project, runs through completion, and ends with delivery.

For the crisis-specific subset of interim engagement see our Interim CFO for Crisis & Turnaround guide.

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The Many Benefits of Interim CFO Engagement

Interim CFO engagement delivers specific benefits that distinguish it from fractional, permanent, or unstaffed alternatives. The benefits compound when the engagement context fits the model.

Immediate availability. Permanent CFO recruitment typically takes three to six months from search start to appointment. Interim CFOs are typically available within days to weeks. For situations where the gap matters — pending transactions, vacancy cover, urgent transformation — the speed of availability is itself a meaningful benefit.

Dedicated full-time presence. Unlike fractional engagement, interim CFOs work full-time on the engaging business. Daily presence in the business, full executive team participation, complete attention through the engagement period. For situations requiring sustained senior attention, the full-time commitment delivers more than fractional engagement could.

Defined endpoint. Unlike permanent appointment, interim engagement has a defined endpoint — typically six to twelve months, sometimes shorter for specific project mandates. The defined endpoint creates urgency around delivery and supports the discipline of completing rather than perpetuating the work.

Specialist expertise. Interim CFOs typically choose this engagement model deliberately and develop specialism — transaction support, turnaround, transformation, regulatory remediation. Engaging a specialist for the specific situation delivers depth that generalist permanent appointments may not match.

Prior pattern recognition. Interim CFOs working across multiple businesses develop pattern recognition — what works in comparable situations, what fails, what timing matters. The pattern recognition cannot be replicated by single-employer career paths and benefits the engaging business directly.

Independence from internal politics. Interim CFOs have no career stakes in the engaging business’s permanent organisation. The independence allows them to deliver candid input, surface uncomfortable findings, and operate as trusted neutral parties. Permanent finance leaders sometimes struggle to deliver these contributions because of relationship costs.

No commitment beyond the engagement. Permanent CFO appointments carry significant exit costs if fit proves wrong. Interim engagements end at the agreed endpoint without redundancy obligations or extended notice periods. The reduced commitment matches the situation’s actual time horizon.

Network access. Experienced interim CFOs maintain networks across banks, advisors, investors, and sector contacts that benefit the engaging business. The networks are particularly valuable for transaction-related engagements.

Cost predictability. Interim engagements are priced as day rates with defined notice periods, providing cost predictability over the engagement horizon. The economics may be higher per day than permanent equivalents but the total cost over a defined period is often comparable or lower than the alternative.

Lower risk than permanent appointment. Where the business is uncertain about the right long-term CFO profile, interim engagement allows trial without commitment. Some interim engagements convert to permanent appointment when fit proves strong; others end at the agreed endpoint with the business better positioned to define what they need permanently.

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What Interim CFOs Actually Do: Common Engagement Patterns

Interim CFO engagements fall into recognisable patterns. The pattern shapes the structure of the engagement and the candidate profile that fits.

Vacancy Cover

The classic interim CFO engagement — bridging the gap between the previous CFO’s departure and the permanent successor’s arrival. The interim CFO maintains finance function operational continuity, ensures monthly close and reporting continue without deterioration, manages key external relationships (bank, audit, investors), supports any in-flight initiatives, and prepares for handover to the permanent successor.

Vacancy cover engagements typically run three to six months. The interim CFO’s contribution is calibrated to maintain rather than transform — the focus is on continuity through the gap rather than substantial change that the permanent successor will need to own. Where significant change is needed, vacancy cover sometimes evolves into transformation engagement once the situation becomes clearer.

Project-Specific Engagement

Interim engagements scoped around specific projects — completion of a transaction, delivery of a transformation, response to a regulatory matter, preparation for an event. The engagement begins with the project’s start, runs through completion, and ends with delivery.

Project-specific engagements typically have clearer success criteria than vacancy cover — the project is either delivered or not, with the interim CFO’s contribution measurable against that delivery. The candidate profile prioritises specific project experience over generalist senior finance background.

Transformation Leadership

Interim CFOs leading specific transformation programmes — ERP implementation, FP&A platform deployment, finance function rebuild, post-acquisition integration. The engagement runs through the transformation’s defined phases.

Transformation engagements often run 9-18 months — longer than typical interim engagements, reflecting the realistic timeline of major change programmes. Sometimes the interim CFO transitions to permanent appointment if the cultural and capability fit emerges through the engagement; sometimes the engagement ends with the transformation complete and a permanent CFO appointed for the steady-state phase.

PE Portfolio Bridge

Interim CFOs supporting PE-backed portfolio companies — typically engaged at investment completion or shortly after, providing senior finance leadership during the early hold period while permanent CFO search runs in parallel. The interim CFO establishes investor-grade reporting, embeds sponsor playbook discipline, and prepares the function for permanent appointment.

PE portfolio bridge engagements often last six to twelve months. The interim CFO frequently has prior PE portfolio experience, allowing immediate engagement with sponsor expectations and operating partner working patterns.

Pre-IPO Preparation

Interim CFOs supporting businesses preparing for public market entry. The engagement covers the IPO preparation period — typically 12-24 months — and may end at IPO completion or continue into the early public period before transitioning to permanent appointment.

IPO preparation engagements require interim CFOs with specific public market experience — prior CFO involvement in completed IPOs, understanding of FCA listing requirements, familiarity with public company reporting and governance expectations.

Regulatory or Audit Response

Interim CFOs leading the response to specific regulatory findings or audit matters. The engagement covers the remediation period — typically six to twelve months — and ends when the matter is resolved.

Regulatory response engagements require sector-specific regulatory knowledge alongside general CFO capability. FCA-regulated firms, in particular, often need interim CFOs with FCA Senior Manager Function experience.

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Structuring the Interim CFO Engagement

How the engagement is structured affects whether it delivers value. Specific structural decisions matter at engagement design.

Day rate vs project fee. Most interim engagements operate as day rates — typically £900-£1,800 depending on context — with the candidate’s PSC invoicing for days worked. Project fees fit some specific scenarios (defined transaction support, scoped transformation deliverables) but day rates generally fit better for the variable demands of senior finance leadership.

Working pattern. Full-time presence five days per week is the baseline interim assumption. Some engagements operate at four days per week if the demand genuinely supports it, with the saved day reflected in pricing. Anything below four days starts to look more like fractional engagement than interim.

Engagement duration. Initial engagement typically scoped at three to six months for vacancy cover, six to twelve months for portfolio bridge or transformation, with extension options agreed in the contract. Indefinite engagement undermines the discipline of interim engagement — the discipline of having an end point matters.

Notice periods. Typical notice is one calendar month either way during the initial engagement period. Some engagements use two-week notice for shorter assignments. The notice period gives both parties protection against abrupt termination while supporting the time-limited nature of interim work.

IR35 status determination. For interim engagements through PSCs, the engaging business (where it is medium or large under the off-payroll working rules) must determine IR35 status. Most genuine interim engagements are deliberately structured to be outside IR35 — through services-based contracting, multi-client work patterns, the interim’s bearing of genuine commercial risk, and absence of mutuality of obligation indicators. Where the engagement is determined to be inside IR35, the engaging business operates the off-payroll rules with PAYE deduction.

Reporting line. The interim CFO reports to the CEO or owner at peer level. Reporting through a more junior internal contact undermines the senior credibility the engagement needs.

Authority delegation. The interim CFO is granted authority appropriate to the role — banking authority, signatory rights, expense authorisation, hiring approval within agreed limits. Withholding authority undermines the role.

Scope definition. The engagement letter specifies what the interim CFO is responsible for, what reporting they produce, what success criteria define completion. Vague scope produces drifting engagement; clear scope produces focused delivery.

Knowledge transfer commitment. The contract includes commitment to handover documentation, briefing of the permanent successor, and transition support. Interim engagements that end without proper handover damage the value the engagement delivered.

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How to Find an Interim CFO

UK businesses seeking interim CFOs have several routes. Each has different economics and candidate access.

Specialist interim recruitment partner. Firms like FD Capital that maintain networks of active interim CFOs across sectors and specialisms. Specialist partners conduct the screening, match candidates against business context, manage the introduction process, and handle the contractual mechanics. Most successful interim CFO engagements come through this route.

Generalist executive search. Larger firms that handle senior finance recruitment across permanent and interim. Less specialist focus on interim engagement specifically; sometimes weaker candidate pipelines for time-sensitive interim mandates; typically more expensive than specialist interim partners.

Direct network. Personal network referrals, former colleagues, advisor recommendations. Works for businesses with strong existing networks; less reliable for those without and for time-sensitive requirements.

Specialist platforms. Online platforms aggregating interim CFOs and FDs. Useful for breadth of candidate access but the screening rigour varies and quality control depends on the platform.

Big 4 advisory practices. Big 4 firms increasingly offer secondment of senior finance professionals into client interim assignments. Higher cost than independent interim CFOs but the firm-backed structure suits some specific situations (regulatory remediation, post-fraud rebuilds where firm support adds credibility).

For most UK interim CFO requirements, specialist interim recruitment partners deliver the best balance of speed, candidate quality, and cost.

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The Conversion Question: Interim to Permanent

Some interim CFO engagements convert to permanent appointment when fit proves strong on both sides. The conversion can produce excellent outcomes — the business gets a permanent CFO whose capability and cultural fit have already been proven; the interim CFO transitions to permanent compensation with full visibility into the business they are joining. But the conversion isn’t always the right answer, and the decision benefits from deliberate framing.

When conversion makes sense:

• The interim CFO’s capability has proven excellent through the engagement period
• Cultural fit with the CEO, executive team, and Board is strong
• The business needs ongoing senior finance leadership of the type the interim has been delivering
• The interim is genuinely interested in permanent appointment (not all interim CFOs are)
• Compensation expectations align between the parties
• The conversation is transparent — both parties acknowledge they are considering conversion rather than letting it emerge ambiguously

When conversion doesn’t make sense:

• The interim CFO was engaged for specific situational expertise (turnaround, transaction, transformation) that doesn’t match the steady-state CFO need
• The interim is committed to interim career rather than permanent appointment
• The interim’s compensation expectations exceed what the business can sustainably support permanently
• The Board or sponsor wants a different profile for the permanent role than the interim represents
• The business genuinely benefits from open permanent search rather than defaulting to the interim incumbent

The discipline that helps: treating conversion as a decision with structured assessment rather than as drift. Some businesses run formal permanent search even when the interim is a likely candidate, ensuring the appointment is the result of deliberate evaluation rather than convenience.

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PE-Backed Growth: When to Shift from Interim CFO to Permanent FD

One specific transition pattern worth examining is the shift from interim CFO to permanent FD in PE-backed growth contexts. The pattern occurs because PE portfolio companies often need senior finance leadership early in the hold period — when the situation is dynamic and the right permanent CFO profile isn’t yet clear — but ultimately need permanent finance leadership at FD or CFO level for the steady-state operation.

The typical pattern:

Months 0-3 post-investment. Interim CFO engaged to establish investor-grade reporting, embed sponsor expectations, stabilise the function, and build understanding of what the permanent role should look like. The interim CFO has flexibility to define the role rather than executing against a pre-defined specification.

Months 3-9 post-investment. Interim CFO continues to operate the function while the business’s needs become clearer. The sponsor and CEO develop a view on whether the permanent role should be CFO or FD level, what specific profile fits, and what compensation makes sense. Permanent search begins during this period.

Months 9-12 post-investment. Permanent FD appointed (or CFO depending on the conclusion of the role definition). The interim CFO supports handover, briefs the permanent successor, and exits over an agreed transition period.

The downgrade from CFO to FD framing. The interim engagement frequently uses CFO title because the interim is typically a senior figure at CFO level. The permanent appointment may be at FD level if the business’s scale or needs better fit FD seniority. The transition isn’t a downgrade; it reflects the right-sizing of finance leadership to the business’s actual needs.

Why this pattern works. PE sponsors often don’t know at investment completion exactly what permanent senior finance role the business needs. The interim CFO period provides time to develop that understanding before committing to a permanent profile. The flexibility to evolve from interim CFO to permanent FD (or to permanent CFO if scale supports it) protects against premature permanent appointment that doesn’t fit the business’s actual needs.

For wider PE portfolio context see our CFO Value Creation in PE Portfolio Companies and Fractional FD: Value Creation in PE Portfolios.

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What Distinguishes Strong Interim CFOs

Not every senior CFO suits interim work. Specific characteristics distinguish those who deliver consistently in interim engagement.

Genuine interim career commitment. Some interim CFOs have chosen the model deliberately and run interim careers as a sustainable choice. Others are between permanent roles and treating interim as temporary. The deliberate interim CFOs typically deliver better than those whose interim work is incidental to permanent search.

Speed of impact. Interim engagements have defined endpoints. CFOs who take three months to build context aren’t suited to engagements that may be six months total. Strong interim CFOs build context fast through structured first-week diagnostics and start delivering substantive work quickly.

Comfort with incomplete information. Interim CFOs join businesses they don’t know well and need to make decisions before they have full context. Comfort with making good decisions despite incomplete information distinguishes strong interim performers.

Pattern recognition from prior engagements. Multiple completed interim engagements develop pattern recognition that benefits each subsequent engagement. CFOs in their first interim role lack this pattern recognition; experienced interim CFOs bring it.

Stakeholder relationship building. Interim CFOs need to build credibility with multiple stakeholders quickly — bank, auditor, investor, Board, executive team, key suppliers and customers. The relationship-building capability is essential for the role’s effectiveness.

Operational pragmatism. Interim engagements don’t permit endless deliberation. Strong interim CFOs choose the best available action and refine as new information emerges, rather than stalling for ideal conditions.

Comfort with ending engagements. Strong interim CFOs work toward their exit from the start. Building successor capability, documenting decisions, preparing handover. CFOs who try to extend engagements indefinitely undermine the discipline the engagement was meant to deliver.

Sector or situational specialism. Most successful interim CFOs develop specialism — sector (financial services, technology, real estate), situation type (turnaround, transaction, transformation), business stage (PE portfolio, scale-up, mid-market). The specialism positions them for engagement matching that capability.

Resilience. Interim engagements are intensive — full-time presence in unfamiliar businesses, multiple stakeholder demands, defined-period delivery pressure. The resilience to operate at this intensity over months is a baseline requirement.

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Interim CFO Day Rates: What to Budget

UK interim CFO day rates reflect role seniority, sector specialism, situational complexity, and assignment type. Typical ranges:

Engagement Context	Day Rate Range	Notes
SME interim CFO (£3-15m revenue)	£800 – £1,100	Often blends interim CFO/FD scope
Mid-market interim CFO	£1,000 – £1,400	£15-50m revenue businesses
PE-backed portfolio interim CFO	£1,200 – £1,600	Investor-grade reporting and sponsor engagement
Crisis or turnaround interim CFO	£1,300 – £1,800	Premium for crisis-specific track record
Pre-IPO preparation	£1,400 – £1,800	Premium for prior IPO track record
FCA-regulated firms with SMF	£1,300 – £1,800	Premium for regulatory specialism

The figures above are typical day rates for the candidate’s PSC. Total weekly cost for full-time interim engagement runs five times the day rate; total monthly cost approximately 22 times the day rate. Engagement length matters: a six-month engagement at £1,200 per day represents approximately £150,000 of total fees, comparable to permanent CFO compensation for the equivalent period but without permanent benefits, employer NIC, or pension obligations.

London and South East roles attract premium rates compared to regional engagements. Specific specialisms (FCA SMF, IPO experience, crisis track record, PE portfolio experience) attract day rate premiums of 20-30% over generalist equivalents.

Recruitment partner fees typically operate as percentage of the candidate’s fee — typically 12-18% — added to the candidate rate. Some partners charge fixed introduction fees; some charge ongoing margin throughout the engagement. The structure is agreed at engagement start.

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Interim CFO vs Other Senior Finance Engagement Models

The choice between interim and other engagement models depends on specific factors.

Interim is right when:

• Full-time presence is required for the duration of the engagement
• The need is genuinely time-limited (vacancy cover, project completion, transition bridge)
• The situation requires senior finance leadership immediately rather than after permanent search
• The business is uncertain about the right permanent profile and benefits from interim trial
• The defined endpoint creates appropriate urgency

Fractional is right when:

• Part-time engagement matches the actual finance demand
• The business’s economics fit fractional fees better than interim full-time fees
• Ongoing rather than defined-period engagement suits the situation
• The role doesn’t require full-time presence

See Fractional CFO Cost, Pricing and ROI for the fractional alternative.

Permanent is right when:

• The business needs ongoing senior finance leadership at full-time scale
• Permanent compensation and equity participation make economic sense
• Long-term commitment and cultural integration are priorities
• The CFO profile that fits is well-defined and recruitable

See Finance Leadership Recruitment & Hiring for permanent recruitment.

Part-time employment is right when:

• Less than full-time hours suit the engagement
• Employment relationship (rather than contracted services) fits
• Long-term ongoing engagement is appropriate

See Part-Time CFO: Value, Cost, ROI and When to Hire.

Many UK businesses use multiple engagement models across the senior finance leadership lifecycle — interim cover during vacancy, permanent appointment when the right candidate is found, fractional engagement post-departure, repeat as needed. The flexibility to use the right model for each specific situation is one of the strengths of the modern senior finance market.

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Engaging an Interim CFO with FD Capital

FD Capital places interim CFOs into UK businesses across the full range of interim situations — vacancy cover, transactional support, transformation programmes, PE portfolio bridges, regulatory response, and crisis or turnaround engagements. We understand that interim CFO experience is specific — the gap between an interim CFO with prior interim track record and a senior CFO whose CV is strong but lacks interim experience is visible quickly.

Our candidate network includes interim CFOs with sector specialism (financial services, technology, real estate, manufacturing, professional services), situational specialism (turnaround, transaction, transformation, regulatory), and stage specialism (SME, mid-market, PE portfolio, pre-IPO). We match candidates based on the specific engagement context the business faces.

Adrian personally screens candidates for senior interim placements and conducts the matching for material appointments. Initial introduction is typically within 48 hours for urgent requirements, with full shortlist within five working days for specific assignments.

Initial consultation is confidential and at no charge. Call 020 3287 9501 for an immediate interim CFO requirement, or email recruitment@fdcapital.co.uk.

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Related Reading

• Interim CFO for Crisis & Turnaround — crisis-specific interim engagement
• Interim FD: Crisis, Turnaround & Financial Controls — FD-level crisis interim engagement
• CFO Strategic Leadership: The Complete UK Guide — strategic CFO contribution at scale
• CFO Value Creation in PE Portfolio Companies — PE portfolio CFO context referenced above
• Fractional FD: Value Creation in PE Portfolios — fractional alternative for PE portfolios
• Fractional CFO Cost, Pricing and ROI — fractional alternative engagement model
• Part-Time CFO: Value, Cost, ROI and When to Hire — part-time employed alternative
• The CFO Career Path: Progression, Transitions & Skills — interim CFO career context for candidates
• Finance Leadership Recruitment & Hiring — permanent senior finance appointment process
• Fractional CFO for M&A and Exit Planning — transactional CFO support

FD Capital Recruitment Services

• Interim CFO — interim CFO recruitment
• Interim Finance Director — interim FD recruitment
• Turnaround FD — turnaround-specialist FD placement
• Temporary Finance Director — short-term FD cover
• CFO Recruitment — permanent CFO search
• Fractional CFO — fractional CFO recruitment
• Part-Time CFO — part-time employed CFO recruitment
• Fractional FD — fractional Finance Director recruitment

External References

• ICAEW — professional body for Chartered Accountants
• ICAEW Corporate Finance Faculty — professional resources for senior finance
• HMRC — Off-Payroll Working (IR35) — IR35 framework relevant to interim engagement
• Financial Conduct Authority — UK financial services regulator (relevant for FCA SMF interim roles)
• Companies Act 2006 — director duties applicable to interim appointments

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