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.