Chemring Grp Plc Unsp/Adr

Good morning and welcome to the ChemRings interim results presentation for the six months to April 30th, 2026. I'm Mick Ord, the Group's Chief Executive, and I'm joined this morning by our CFO, James Mortenson. I'll begin with the first half headlines, then James will take you through the financial and operational performance in more detail. I'll then comment on the group's environment, the market environment, and spend some time on our key growth drivers and why this gives us confidence in Kemring's future growth. We'll then take your questions at the end. Operational and trading performance in the first half was in line with our expectations. Despite the headwinds in the UK market, order inflow in recent months has been encouraging, improving our near-term visibility and reinforcing our confidence in the full year. Approximately 91% of forecast 2026 revenue had either already been delivered or was in the order book at April 30th, and our full year expectations therefore remain unchanged. Market demand is strong, as growing geopolitical instability drives a shift to high-intensity deterrence and structurally higher defence and national security budgets. Against this backdrop, we continue to invest in areas which are aligned with our customers' priorities, particularly in countermeasures and energetics, where we delivered first-half growth and where our capacity expansion projects continue at pace. We continue to execute against our strategy and position in the group for strong future growth. James will take you through the financial performance in a moment, so I won't go into detail here. For me, I'd call out the increase in revenue reflecting a strong performance in cancer measures and energetics, the return to growth in sensors and information, and the order book of £1.4 billion, which is another record for the group. I'd also highlight our safety performance. We have reduced our total recordable injury frequency rate from 0.63 to 0.31, which reflects the progress we are making in our proactive safety culture and our zero harm ambition. And I want to acknowledge the focus and commitment of all of my colleagues across Kemring in keeping safety at the forefront of everything that we do. With that, I'll now hand over to James.

Thanks, Mick. Before I start, you'll notice a few images of the Artemis mission throughout the deck. We're proud of our growing role in the space industry, and Artemis is a great example of the critical programs we're contributing to. There's more detail in the appendix. Turning to the results, performance in the first half was in line with expectations, and our focus is now firmly on delivering the second half. The order book reached a record of 1.4 billion, up 8%. Revenue, up 7%, showing continued momentum. Operating profit and operating margin were lower year on year, and that flowed through to EPS. Cash conversion was lower, mainly due to working capital investment to support H2 deliveries. An interim dividend of 2.8 P declared, up 4%. Next, let me take you through the segmental performance. Starting with countermeasure and energetics, another strong performance with both revenue growth and margin expansion. Revenue grew 9% as the businesses ramped in line with our plan, meeting our customers' unprecedented demand. This led to operating profit up 32%, a margin increase to 18.4%. This improvement was driven by better commercial terms and our rigorous focus on operational excellence. turning to sense and information which performed as expected. Revenue growth and strong order intake, but margins impacted by product mix and maintaining operational capability. There were clear positives. Order inflow was up nearly 60% as we saw the Roke business stabilize with strength in national security. We therefore returned to growth with revenue up 3%. As expected, operating profit and margin were lower, and there were three main drivers. First, we deliberately maintained operational capability and so had lower utilization in ROC. This was to support improving national security demand and to position ourselves to take advantage of the significant UK MOD opportunity pipeline as it arrives. Second, revenue mix. Early Cortexa pre-production units carried lower margins. We expect to improve commercial terms going forwards as we enter full-scale production. Third, pass-through. The first work package on the 251 million missile defence centre project increased the proportion of low-margin pass-through revenue. Turning to the cash flow, cash conversion was 42% in H1, mainly reflecting our decision to increase safety stocks and secure inventory for H2 expected revenue. We expect an improvement in H2 conversion with full year guidance in the range of 80 to 85%. CapEx was 44 million with good progress across our expansion projects. Net debt increased as expected through the peak investment phase. We returned 19 million to shareholders, 14 million through the dividend and 5 million through the buyback. We also purchased some shares to satisfy acquisition consideration and employee share options. We signed an additional 80 million UKEF facility, which will replace the current UKEF facility as it expires. Together with the RCF and US overdraft, we now have 342 million of available facilities. We close the period with net debt of 145 million, or 1.5 times leverage. We do expect net debt to rise further, but in line with market expectations. Next, let me update you on the energetics expansion projects, which continue at pace. Chicago, complete. On budget and on schedule. Fit out is done. Production ramping. We are now focused on lean practices to maximize output. The additional capacity positions us well for future demand and gives us optionality should needs increase following the conflict in the Middle East. Scotland remains on track, also on budget and on schedule. Construction is complete, machinery installed and commissioning underway. We remain on track to deliver revenue in 27. Norway, phase one, complete and on budget. Phase two is progressing well. Groundworks are nearly complete. Concrete foundations for nearly all the buildings laid. And as you can see, the first building is nearing completion with the second approaching halfway. Across all the sites, we remain on track to deliver 100 million in revenue and 30 million in operating profit by 28. We're also making good progress on a potential second site in Norway, the Greenfield. As a reminder, this is for a facility at least as big as our enlarged facility and a location has been identified about 25 kilometers southwest of the current site. We are now in the concept selection phase, fully funded by the Norwegian government with around 16 million pounds and expected to report out in early 27. Next, let's look at order cover and the book and bill for the rest of the year. What gives us confidence in our full year guidance? Our record order book provides 91% cover for the rest of the year. That's up 600 basis points on the prior year. In countermeasures and energetics, that order cover is strong, nearly fully covered this year and 81 and 68% in the following two years. In Sense and Information, order cover is now 84%, up from 64% last year, a significant improvement. If we break down the book and bill, the majority relates to expected orders in countermeasures and energetics and high confidence renewals in national security. Those EW product sales are to a number of international customers where tenders are in process. And lastly, there are a couple of orders to the UK MoD. These are largely for programmes we have been delivering on, but procurement delays have pushed timing. And so to guidance. FY26 guidance remains unchanged from the year end, so I won't go through it in detail. It's supported by 91% order cover and an improving performance in the second quarter with 70% operating profit expected in H2. Cash conversion is expected to be 80% to 85% for the full year, reflecting a much stronger H2. As always, there are external factors to monitor. I just flag, while we have seen no supply chain issues and energy is well hedged this year, we continue to monitor the impact of the Middle East situation. And so, we will continue to balance near-term performance with longer-term growth and value creation. And with that, I'll hand back to Mick for the strategy section.

Thanks, James. I'll now turn to the market environment where geopolitical tensions are at increasingly elevated levels. This is driving a rearmament cycle which we expect to last at least a decade and probably longer. And it is these fundamental market changes which underpin our confidence in the long-term outlook. This slide summarizes why we believe defense spending is on a structurally higher trajectory, irrespective of whether we see peace deals in Ukraine or the Middle East. There are several factors behind this, but I want to focus on two. Firstly, defense planning assumptions have changed. NATO has shifted from expeditionary operations to persistent territorial defense and peer conflict readiness. To deliver these changes will require more durable and growing defense budgets. 2% of GDP is now a floor, not a ceiling. Defence spending is becoming more politically embedded across Europe, with multiple NATO members moving towards the Alliance's ambition of 5% by 2035. That shift also supports multi-year procurement visibility rather than sporadic demand. Secondly, the significant material demand arising from the conflicts in Ukraine and the Middle East have drawn down inventories and exposed vulnerabilities in the defense industrial base after years of underinvestment. Rebuilding these inventories requires sustained production at scale, not one-off orders. Defence industrial capacity is now being treated as a strategic infrastructure with governments prioritising sovereign and allied supply chains and supporting long-term framework contracts and capacity expansion, particularly in energetics. Against this backdrop, demand and investment is concentrated in areas where Chemring's capabilities are highly relevant. These include, but are not limited to, long-range strike missiles, integrated air and missile defence systems, space capabilities, cyber and electronic warfare, and counter-drone technologies. Our differentiated capabilities are therefore well matched to where our customers are prioritizing spend, supporting sustained growth across both our home markets. And now I want to spend a few minutes on some of the group's key growth areas, starting with missiles and munitions, where Kemring is a major merchant supplier of high-grade military explosives and energetically actuated devices that are essential to missiles and advanced munition systems. We've called out on this slide some of the key missile and munition programs on which we are a key supplier, and at the bottom, given examples of the types of materials and devices into which we supply. We supply highly engineered, designed-in products and materials that are not easily substituted. They require significant regulatory clearance and involve very long qualification cycles. As our prime contractor customers seek to increase missile and munition output, demand for these materials and devices rises, yet the pool of capable suppliers remains limited. Across the NATO defence industrial base, the supply of high-grade military explosives such as HMX and RDX and insensitive munition compositions is recognised as an area of significant undercapacity. Kemring already has licensed infrastructure and capacity, deep expertise in formulation, production, and handling of these materials, which positions us strongly as governments and prime contractors prioritize supply chain resilience and domestic sourcing. While some European companies have announced their intention to expand supply of lower-grade explosives such as TNT, there are no mature plans for large-scale HMX production, which provides us with a first-mover opportunity in the market. It is these market dynamics which continue to reinforce our decision to invest in additional capacity through a combination of customer-funded and self-funded projects. I'm often asked whether demand across countermeasures and energetics would ease if there were peace in Ukraine and the Middle East, so I thought I'd talk to that for a moment. Operation Epic Fury and ongoing operations in the Middle East have to date cost approximately $25 billion and have materially depleted US inventories of multiple missile systems. In addition, even before Operation Epic Fury, many analysts and commentators judged stockpiles to be insufficient for peer conflict scenarios. So there is now a very significant imperative for the U.S. Department of War to ramp up production to replenish stocks of existing systems and to move new programs into production phases. As a result, the Trump administration has announced several multi-year agreements with industry prime contractors to increase output and place missile production on a wartime footing. And as a merchant supplier into many of these programs, Kemring is well placed to benefit from this increased demand. In Europe, demand is being shaped by a combination of current battlefield consumption, structural stockpile gaps, and long-term rearmament decisions. And on both sides of the Atlantic, governments are increasingly seeing defense industrial capacity itself as a core element of deterrence, not just as a supporting function. The bottom line is that missile and munition demand is being shaped less by short-term crises and more by a structural shift towards sustained rearmament with higher stockpiles and usage assumptions. The next area I want to touch on is air and naval platform protection. Given missile threats relentlessly increase in both number and sophistication, platform survivability remains paramount and mission critical across air and maritime domains, and we see a growth trajectory for countermeasures extending well into the 2030s. As the leading global supplier of countermeasures, Kemring is uniquely positioned to benefit. With more than 65% of the addressable market share, our products protect approximately 85% of NATO's air fleets and 60% of NATO's naval fleets. Our leading incumbency gives us a real advantage as customers expand stockpiles and plan for higher usage rates. In the first half, we secured £123 million of countermeasures orders, which is up 486% year-on-year, with demand primarily coming from European customers. Innovation also matters in this market, and we have several development programs underway on both sides of the Atlantic, including protection for uncrewed platforms and threat agnostic countermeasures designed to address both current and emerging threats. We do have market leadership, deep customer relationships, and growing demand, and therefore the group's position in air and naval platform protection continues to strengthen as the market expands. Finally, let me turn to ROC and the critical role its technologies play in the defense of the United Kingdom and increasingly international customers. On this slide, I called out the areas of cyber, electronic warfare, resilient navigation, and counter drone. And indeed, there are many more technologies I could have mentioned. And whilst there's great deal of focus on defence-related opportunities, we must always remember that national security and law enforcement remain at the very core of ROC, continuing to provide a stable underpin to the business, as evidenced by approximately £40 million worth of programme renewals secured to date. And in addition, national security provides a technology and innovation catalyst which benefits the entire business. To help mitigate the near-term headwinds resulting from the delayed publication of the UK's defence investment plan, the Rogue team continue to take action to protect and reposition the business and are seeking to broaden their international customer base. Rogue's defence product business has a five-year international sales pipeline of more than £300 million and continues to invest in expanding its product portfolio Of note, their counter drone system, Cortexa Guardian, which is a combined radar and electro-optics system, which was officially launched to the market in April 2026, already has multiple opportunities now in sales conversion. Sales have already been made in Sweden and the UK as counter UAS becomes increasingly mission critical. In summary, with strong positions across multiple critical technologies, deep customer relationships and a growing international footprint, Roke is well positioned to benefit from the expected UK defence upturn and opportunities overseas. So to summarise, operational and trading performance in the first half was in line with our expectations. And despite headwinds in the UK market, we have seen encouraging order inflow in recent months, improving our near-term visibility and reinforcing confidence in the full year. And with 91% of expected 2026 revenue either delivered or in the order boot at April 30th, our full year expectations remain unchanged. So, with growing geopolitical instability driving a shift to high-intensity deterrence and higher baseline defence and national security budgets, and with a record order book of £1.4 billion, the outlook is increasingly compelling. Our differentiated capabilities, together with the investments that we are making to expand capacity across our three energetics businesses, mean we are well positioned with where our customers are prioritizing their spend. That supports sustained growth across our major markets, and I remain confident that Kemring is well positioned for strong future growth. That concludes this morning's presentation. We'd now be happy to take your questions. Can I ask that you state your name and organization before asking your question?

All right. Who's first? Okay.

Morning, gents.

Morning.

Ben Bourne, Investec. Mick, can you just talk a little bit more about your confidence in alloy surfaces, please, and the potential for a positive outcome?

That's an interesting question. So we've been on quite a journey with alloy surfaces. So I'm sure, as people in the room will know, so Alloy Surfaces is based in Philadelphia. was NATO's only production capability for pyrophoric decoys. So these are airborne countermeasure decoys. So as you know, we manufacture pyrotechnic decoys, which are the ones that you see coming out, which generate a lot of heat and light. Pyrophoric decoys are a different type of technology, but utilized as air protection. And Alloy Surfaces up in Philadelphia was, up until last year, the only producer of those types of air pyrotechnics for the whole of NATO. Unfortunately, there was an interruption in the ordering pattern from the U.S. DOD last year, and we had to shutter the business because we had insufficient demand. In recent weeks and months, we've been in increasingly conversations with the US Department of War about reactivating and reopening that business to supply pyrophoric decoys. primarily into the U.S. Department of War, but more broadly across NATO into a number of air forces that utilize those technologies. We're in discussion with the Department of War at the moment to do that, and we're highly confident that we should have a positive result to those negotiations.

Good question. Who's next? Oh, I think Sash was...

Thank you. from agency partners. Perhaps if I could just follow on, first of all, your answer on alloy services. So when you're talking about highly confident of a good resolution, Would that potentially include reversing the costs and charges that you incurred in previous years to shut the business? And or, is there any way that rather than this sort of on-off of ordering that has clearly occurred recently, you could actually get the Department of War Defence to commit to a take-or-pay situation for aloe surfaces? Because otherwise, it's not... clear that it's an unmitigated success just to open it for another batch of decoys followed by the same closure process a couple of years down the line?

Yeah, that's a good question. Clearly, I can't go into specific details around what we're negotiating at the moment, but the key thrust of the question of where if we do reactivate and reopen the facility, it will be for a long run as opposed to just another batch. So I think what, you know, without going into specifics, Operation Epic Fury has identified the essential role in platform protection that pyrophoric, sorry, yeah, pyrophoric decoys plays and therefore the Department of War, and this goes to the broader question around defense industrial base, recognizing that the defense industrial base is an integral part of the war fighting capability, not just of the US, but of across all NATO allies. And therefore the discussion that we're having with the Department of War is for a long run period, so three to five years, as opposed to just a single batch.

Great, thank you. And then just questions on just two of your other big contracts and relations relationships. The Storm BMD program. It's quite hard to reconcile the rate of order of inflow at the moment with the total scale of the program, because otherwise it's going to be a six, seven, eight-year program at current rates. I fully accept that you can't see into what passes for the mind of MOD, but do you get any indications of... whether they are changing the time scale for the program or indeed changing the overall scale of the program. Because otherwise, at some stage, just mathematically, you're going to get this enormous slug of business coming in, and it's quite hard to work out how you will scale your own business to cope with that.

Yeah, that's another good question.

So Storm was about $250 million as an overall framework contract, and to date we've... About $22 million to date.

Is that the first initial call-off?

So I think it's really difficult, Sash, to, like you say, to look into the MOD's mind and understand how they're going to profile that programme. And no doubt, as with everything associated with defence procurement here in the UK, it's caught up in the inevitable discussions around the defence investment plan and whatever. I think the one thing I would say about Storm is that integrated air and missile defence of the UK homeland remains right at the top of the priority list. from a UK defence planning assumptions perspective. And indeed, integrated air and missile defence is one area that we're seeing significant growth across the whole of the group on both sides of the Atlantic.

Hi, guys. Jamie Murray from Bank of America. Can you just provide a little bit more color on potential new energetics CapEx programs? I know previously you've mentioned Germany and the UK government. Obviously, the balance sheet is a little bit constrained. So how are you kind of balancing that?

Yeah, I think essentially it's too early to say at the moment exactly what they could be, given we don't know exactly what the scale of them could be. If you think about what's going on at the moment, the facility in Germany that we're building, the blending facility, that's fully funded by the German government. We've just signed an agreement with the UK MOD here to start the next phase of the feasibility study for a potential new site both up in Scotland and capacity addition to our site in Salisbury as well. But I think at the moment, because we're not sure exactly of the scale of them, I couldn't give a guidance on capex. I think what I would say is in all of these conversations, the conversations that we're having is around supported by grant funding from the governments that we're in discussions with. So it wouldn't be us fully funding these facilities, that's not the intention.

Morning, it's Richard Page from Deutsche Neumis. Just a couple from me, please. First on, thank you for the bridge on the second half. Just the bigger chunk is obviously national security, which you said you've seen a recovery. So do you have decent visibility on that order?

Yeah, I think we're finding it's very much a customer that seems to have a kind of healthy budget. We're seeing growth in that area, certainly a stabilisation and growth in the second half. And so, yeah, you know, we talk about that 40 million of renewals already this year. We're pretty confident that the rest of them will come through. Remember, these are always work packages that we're currently working on. And so it's extending work that we're currently doing rather than kind of new bodies of work.

And again, obviously, the second largest chunk is the product sales. Can you just remind us the sort of typical size of those orders?

Yes. This is a number of different international countries. Interestingly, the majority of them begin with the letter S. And the size is, you know, three to kind of five million. It's not more than that. So it's certainly not one big one. It's a number of smaller ones. And this is for, there's a small amount of core techs are in there, but it's mainly resolve and perceive to these international customers.

Thank you. And the final one, just, you're obviously making fantastic progress on the new capacity that you've already spoken about. Chicago in place, you're getting Scotland up and running and signing off. pricing environment, demand environments changed quite positively, I would imagine, over that period. How are we feeling about the 100 million and 30 million figures that...

Yeah, still pretty good. I mean, I think we're certainly on track for them. Like we say, Chicago made really good progress. They're delivering against that. The same in Scotland. We're just in the commissioning phase. Expect to complete that in 27. And then we're looking to bring the new capacity online in Norway in 28. And yeah, you're right, the commercial terms that we're getting are certainly improving as we look forwards and the demand is certainly there. So yeah, we're pretty confident.

The market demand for energetics, whether that's materials or whether it's devices, is incredibly strong. So a couple of stats, I don't think they're in the presentation, but if you look at the business in Chicago, for instance, I think year to date we've submitted 160 proposals to customers on the back of customer requests, and we've got another 69 in work. So that gives you a feel. I mean, these are hugely elevated levels to what we've seen previously. And I think the team up in Scotland, year to date, they've submitted 60 proposals to customers. Again, these are funded programs where customers are seeking the key materials and devices that we produce.

And I think in Norway, we've often said, haven't we, we could sell out that capacity that we're building in FY30 many times over. So we're very confident that there's the demand there for that material.

Thank you.

Thanks. Morning. Ben Varo, RBC. Yeah, just building on that, obviously they had clear demand. You know, demand picture has clearly improved for energetics, but order intake was 52 million in the first half. So how should we think about timing for those, also all the proposals that you've submitted and how that feeds through?

Yeah, I mean, you just look at the order book in that side of the business, right? I mean, it's 95% nearly fully covered this year, over 81% next year and nearly 70% the year after that. I think, you know, what we saw last year, we saw some, you know, very large order intake in that business. And so I think it's just timing of, you know, further orders and, you know, you can see from our order book and we're pretty well covered out into the future anyway. And lots of that cover is in that energetics business. So, you know, I wouldn't read anything into the lower order intake in the first half this year in that side.

And then sensors and information, the margin, obviously a big step down in the first half. You mentioned it's sort of tracking better in Q2. So can you give us, shed some light on the exit rates in the expected margin then in the second half?

Yeah, so in the second half, so overall in that business, we expect it to get back to a kind of similar margin to last year in the second half. And yeah, I think what we've seen in the second quarter is running towards that kind of run rate.

Last one on that bridge as well for H2, there's still some MOD orders within that. Is there still an aspect in terms of the DIP needing to come out for you to hit the numbers or are you relatively comfortable?

I think the, well, certainly in the second half there are orders from the UK MODs since they're a major, important customer for us. And we fully expect to see that those orders will flow, whether they flow as part of the dip itself or whether, as you see, the MOD are placing orders irrespective of whether the dip's coming out or not, but clearly it's taking a lot longer and it's far more difficult to get those orders through their approvals process. but we still see that those orders will come through. And the vast majority of those orders are for extensions of programs and frameworks that were already contracted on, as opposed to having to go out and win new programs. Thanks.

Hi, David Farrell from Jefferies. A couple of questions from me. Just firstly on space, obviously a clear growth area for you. A couple of questions there. Chicago, I think when you announced the expansion, it was probably doing 30-odd million pounds of revenue. You're adding 10 million, but you doubled manufacturing footprint. Could that not scale up to 30 million of incremental revenue over time, therefore?

I mean, what we said in that business is we've added that new capacity and that gives us the space to expand further should, you know, that more demand come through. And, you know, we talk about the Middle East and the number of systems that have been utilised there and the increase in the kind of space market. So, yeah, certainly it gives us the capacity to do that.

And when we expanded, when we purchased the new facility in Chicago, I think it was about 41,000 square foot of productive capacity. I would say that we're probably using about two thirds of that at the moment. We purposely purchased a facility of that size because we saw that the demand would continue to increase. So in fact, I was in Chicago not last week, the week before, and the team are fully in that new facility. It's all laid out, lean production, you know, you know, modern manufacturing flow techniques as well. And there is great, you know, expansion capability further.

As a percentage of revenue, how much is space?

We don't break down and give the individual components like that, but it's a small but growing percentage of the overall group.

Mick, you sounded a bit more positive around the profile for countermeasures, and obviously the order intake was very strong. I think if I look at your medium-term guidance, the expected growth rate is maybe 2% or 3%. Do you think that gets revised higher?

Is what, sorry?

Does that get revised higher? Do you think that market can actually grow at kind of mid-single digits?

Might do, absolutely. Let's see. So we've had an incredibly strong first half with regards to order intake, and there's some interesting trends that we're seeing in air countermeasures and naval countermeasures. So firstly, naval countermeasures, so soft-kill protection capability on warships is an area that the team here in the UK are seeing significant growth, so let's see how that develops. And from an airborne protection perspective, Clearly what you're seeing in Operation Epic Fury and the discussion that we had earlier around alloy surfaces, I think is bringing back to the fore actually the essentiality of airborne countermeasures capabilities. And the thing that you have to always bear in mind is how sophisticated the missile systems are. You've seen platforms of incredible complexity that have been defeated and brought down in Operation Epic Fury. And that just reinforces in defense planners' minds the essentiality of protecting what are increasingly expensive platforms. And even when you see that shift into unmanned platforms and some very expensive high capability and high technology capabilities, those themselves require protection as well.

And sorry, Jay, you rushed through relatively quickly kind of what's going on in Norway. Can you maybe kind of give us a bit more detail in terms of kind of the progress made on the various facilities, revised cost estimates, etc.? ?

I don't think you rushed through it. There is a lot going on and it's a really exciting time. We have so many growth opportunities ahead of us that we have to try and work our way around them. In Norway, the team are making great progress out there. The first phase which was de-bottlenecking the existing HMX plant. So that's gone incredibly well. I think it's extensively finished, and we're already seeing those benefits flow through there. The second phase is around the NTO facility, and that is the one that we talked to you last time around. We had seen some cost increases on that baseline, and that was driven not by the facility itself, but by all of the enabling infrastructure and utilities that go around that. But that's executing well. In fact, there's a couple of photographs in the deck around that. And the buildings are now starting to be completed. And then we'll soon move into installing the plant and equipment. And then we'll get into commissioning. So that's going well. And then the third phase which is a further expansion of HMX production, wherein finalising the detailed design of those facilities and the planting equipment so that before we start that final construction phase, we have a very de-risked baseline that we'll be able to execute against. And then obviously from a Norway perspective, that's the existing site. And as James mentioned, we've been funded a further, is it 16 million pound? Is it 16 million? 16 for the... By the Norwegian government to go into this concept selection and do far more detailed engineering associated with a second facility, which the Norwegian government are incredibly positive about. So Norway sees high-grade military explosives as one of the key contributions that it as a nation wants to make into the European and NATO alliances with regards to their defense industrial base. And therefore, identifying the second site was a major step forward into realizing that ambition. And if you look at that market for high-grade military explosives, so I'm talking about HMX and RDX, not TNT. There's a lot of TNT sites being built. but for high-grade HMX and RDX. On this side of the Atlantic, you're looking at one plant, which is Surges. I think that's Southeast France, owned by Urenco. And then you have to go across to Holston Ammunition Plant in Tennessee, which again is a US government-owned go-co operated by BAE Systems. So there is a very, very constrained industrial base for high-grade military explosives. And indeed, if you look at what's happening from a warfare and deterrence perspective, utilizing high-grade materials is becoming ever more important, especially when you're looking at what we talked about earlier from a missiles perspective of strike missiles. So you've seen everything that's happened in Operation Epic Fury. The vast majority of those ordnance utilised materials that we, the types of materials that we manufacture in Norway, and also in air defence, so integrated air and missile defence, things like NASAMs and whatever. We supply the energetic material from Norway into 100% of those systems. So I actually think that the whole area, that there has been a realization in defense planning on both sides of the Atlantic that real constraints in the supply chain, especially around these types of materials, is the structural weak link in so much of the defense planning, and therefore that's why you're seeing very, very significant governmental support for us to expand capacity.

Any more for any more?

No? Okay. Well, thanks very much for joining us today, and we look forward to presenting our FY26 results in December.

Thank you. Thanks, everyone.