Dominic Convey

Dominic Convey from Numis Securities asked for details on the hardware vs. consumables split in Watson-Marlow's Biopharm business and requested quantification of the financial benefits from recent rightsizing actions in Watson-Marlow and Durex.

Answer

Group Chief Executive Nicholas Anderson explained that consumables are roughly 40% of Watson-Marlow's Biopharm sales, but noted that even "hardware" like pumps are low-cost and often replaced, blurring the lines. CFO Nimesh Patel quantified the Watson-Marlow restructuring cost at GBP 5 million, suggesting a ~2x payback with half the benefit expected in H2 2023, driven by higher volumes and cost-action drop-through.

Dominic Convey of Numis Securities asked for clarification on the sales split between hardware and consumables in Watson-Marlow's Biopharm sector, the typical lifespan of a pump, and a quantification of the financial benefits from rightsizing actions in both Watson-Marlow and Durex.

Answer

Group Chief Executive Nicholas Anderson explained that consumables account for about 40% of Watson-Marlow's Biopharm sales, though the distinction can be blurry as low-value hardware is often replaced rather than repaired. CFO Nimesh Patel quantified the rightsizing benefit, suggesting a roughly 2x payback on the £5 million restructuring cost, with half of that benefit expected in H2 2023, and noted smaller actions were taken at Durex.