Half Year 2020 Spirax-Sarco Engineering PLC Earnings Call Transcript
Key Points
- Resilient trading performance despite COVID-19, with only a 5% organic revenue decline.
- Strong cost containment actions maintained operating profit margin above 20%.
- Watson-Marlow achieved good sales and profit growth, driven by strong demand from the biopharm sector.
- Thermocoax, acquired in May 2019, achieved double-digit sales and profit growth, supported by market share gains in the semiconductor sector.
- Strategic capital and revenue investments were maintained, ensuring readiness for future growth opportunities.
- Reported sales fell by 4%, with an organic decline of 5%.
- Operating profit margin fell by 100 basis points to 20.9%.
- Steam Specialties and Electric Thermal Solutions businesses experienced sales declines consistent with industrial production declines.
- Currency impacts represented a headwind of under 2% in the first half, expected to increase over 2% for the full year.
- Net finance expense reduced slightly, but a charge of GBP 9 million is anticipated for the full year.
Good morning, ladies and gentlemen. Welcome to the Spirax-Sarco Interim Results 2020 Conference Call and Webcast. (Operator Instructions) Just to remind you, this conference call is being recorded.
I would now like to hand over to Nicholas Anderson, Group Chief Executive, to begin today's conference.
Thank you, Molly. Good morning. And welcome to all those who are joining us on this call and on the webcast. I'm Nicholas Anderson, Group Chief Executive. And I'm joined here by our CFO, Kevin Boyd, who, as previously announced, will retire at the end of September after 4.5 years on our team.
Kevin has been a fantastic teammate for me and an outstanding contributor on our positive transformational journey. While saddened to see him go, I fully understand and respect the personal nature of his decision and I'm very happy for him.
Also with us here today is Nimesh Patel, Kevin's successor, who joined us 2 weeks ago. We're all excited to
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