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    Mark Davies Jones

    Research Analyst at Stifel

    Mark Davies Jones's questions to Spirax-Sarco Engineering PLC/ADR (SPXSY) leadership

    Mark Davies Jones's questions to Spirax-Sarco Engineering PLC/ADR (SPXSY) leadership • Q2 2023

    Question

    Mark Davies Jones from Stifel asked for a breakdown of the drivers behind Steam Specialties' exceptional H1 growth, specifically the price/volume split, and questioned if there was a financing risk for Watson-Marlow's smaller, startup customer base.

    Answer

    Group Chief Executive Nicholas Anderson attributed the strong Steam Specialties growth primarily to the business's competitive strength and an increasing contribution from self-generated projects, while acknowledging price was a larger factor than historically. He dismissed concerns about customer financing risk, noting that Watson-Marlow's customer base is dominated by large, well-established players, not capital-constrained startups.

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    Mark Davies Jones's questions to Spirax-Sarco Engineering PLC/ADR (SPXSY) leadership • Q2 2023

    Question

    Mark Davies Jones from Stifel asked for a breakdown of the exceptional H1 growth in the Steam division by price versus volume and potential catch-up effects. He also inquired about potential financing challenges for Watson-Marlow's smaller, startup customers.

    Answer

    Group Chief Executive Nicholas Anderson attributed the strong Steam growth to the business's underlying competitive strength, a growing proportion of self-generated solutions, and a higher contribution from price due to inflation. Regarding Watson-Marlow's customers, he stated that customer financing is not a factor, as their base consists of large, established pharmaceutical and biotech companies, not primarily capital-constrained startups.

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