Andrew Douglas

Andrew Douglas from Jefferies asked if recent cost reductions are permanent, inquired about the expected shape of the semicon market recovery, questioned Watson-Marlow's internal inventory position, and sought clarification on the year-over-year depreciation trend.

Answer

Group Chief Executive Nicholas Anderson explained that cost-outs were targeted to support an expected recovery, not just current demand, so they won't need to be immediately added back. He noted visibility on the semicon recovery is poor. He also clarified that Watson-Marlow's internal inventory risk is low. CFO Nimesh Patel corrected the premise on depreciation, stating it was actually higher year-over-year as shown in the cash flow statement.

Andrew Douglas of Jefferies asked if costs removed from ETS and Watson-Marlow would need to be reinstated during a rebound, sought views on the shape of the Semicon market recovery, questioned the company's own inventory levels at Watson-Marlow, and requested clarification on depreciation figures.

Answer

Group Chief Executive Nicholas Anderson explained that cost reductions were targeted to avoid compromising a rebound, rightsizing from pandemic highs to expected future demand, not current lows. He noted the Semicon recovery is difficult to predict and clarified that Watson-Marlow holds minimal finished goods inventory. CFO Nimesh Patel directed him to the press release for depreciation details, confirming it was higher year-over-year.