Strong discipline: Management retain a disciplined approach to capital allocation, prioritising organic & inorganic investment, a growing & sustainable dividend and a prudent approach to leverage. The b/s is in good shape, with net debt/EBITDA of 0.3x at 30 April and a robust pipeline of opportunities. The buyback should deliver value for shareholders, whilst still maintaining a strong b/s. The programme will end on 31 July 2024, investment opportunities will continue to be assessed for its duration, and it will not impact the dividend policy. M&A strategy: The acquisition of Geollect last December, for an initial consideration of £7m, again showed management can secure selective bolt-ons for Roke. Management continue to explore opportunities to expand and accelerate the Sensors & Information capabilities but any acquisition must meet a strict set of criteria, enhance shareholder value & fit with wider growth plans. Capex plan: We visited the niche energetics site in Scotland last month, a critical supplier of explosives, propellant and energetic devices. It represented c.10% of FY22 sales, achieves high margins and attracted 50% of the £90m expansion capex announced at H1, spread over 3 years. This, often overlooked, asset is replacing old plant and growing capacity to deliver c.£30m of incremental revenue. A further £30m in aggregate is expected from the other niche energetics sites in Norway and USA. Customer stores of traditional capability are low, suggesting sustained demand over the next decade. Our view: The creation of a deployable balance sheet is the result of impressive business improvement over recent years. Moreover, this buyback reflects confidence in the outlook and commitment to balance near-term performance with longer-term value creation. The shares on a forward EV/EBITDA of <9x represent an attractive opportunity given improved visibility, sector-leading margins and a strong balance sheet. Next catalyst: DSEI show in September.