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    Jonathan Hurn

    Research Analyst at Barclays

    Jonathan Hurn's questions to Spirax-Sarco Engineering PLC/ADR (SPXSY) leadership

    Jonathan Hurn's questions to Spirax-Sarco Engineering PLC/ADR (SPXSY) leadership • Q2 2023

    Question

    Jonathan Hurn from Barclays asked about the H2 growth prospects for Watson-Marlow's Process Industries, the potential margin trajectory for the division in 2024, and whether low-margin orders still exist in the Chromalox backlog.

    Answer

    Group Chief Executive Nicholas Anderson confirmed he expects year-over-year growth for Watson-Marlow's Process Industries in H2. CFO Nimesh Patel explained that the division's margin will improve into 2024 as sales recover, but a return to peak levels will be gradual as the company also plans to restart investments. Anderson added that some older, lower-margin orders remain in the Chromalox backlog but the quality of new orders is much higher.

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    Jonathan Hurn's questions to Spirax-Sarco Engineering PLC/ADR (SPXSY) leadership • Q2 2023

    Question

    Jonathan Hurn from Barclays asked about the H2 growth outlook for Watson-Marlow's Process Industries, the expected margin progression for the Watson-Marlow division into 2024, and whether lower-margin orders in the Chromalox order book have been cleared.

    Answer

    Group Chief Executive Nicholas Anderson confirmed expectations for year-on-year growth in Watson-Marlow's Process Industries in H2. CFO Nimesh Patel stated the Watson-Marlow margin will improve in H2 and into 2024 as volume recovers, but a return to peak pandemic levels is not expected as investments will restart. Anderson added that while some older, lower-margin Chromalox orders remain, the quality of the new order book is much stronger.

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