Ann: Sigma 2018/19 Half Year Results Presentation, page-5

Some Investment Media are only headlining that the drop in profit is due to the loss of the CW contract which is deceptive, scaremongering and ignoring other factors. There are some investment journalist who are totally unethical and speak false truth to foster ulterior motives of course for the investment houses they represent? They should be held to account....it is as unethical as insider trading but has been going on for years.

The Chemist Warehouse factor has now been priced in several times now firstly at the time the dispute arose, then when EBOS won them over and then again in with the last trading update in early July.

No one denies there are headwinds for CSO Wholesalers and Pharmacists alike principally brought on by the Govt generics policy - price disclosure / price reductions and also the impact of adding a lot of high priced new immunotherapy/cancer therapeutic agents which have miniscule margins. The additional loss of revenue created by exclusive direct distribution of some high volume PBS products through DHL has hurt as well. I will be interested to see if we see any of these factors mentioned in the media tomorrow.

Sigma in my book has shown some real guts to rid themselves of the CW burden and make important decisions with regard to investing in state of the art new distribution centres and other cost saving measures.

I note in what I thought was a very sound and balanced presentation that although the slides mentioned mergers and acquisitions only was the fact that Sigma were in acquisition mode. The "M" word did not.

In view of all the fundamental CSO headwinds and with EBOS's agressive grab for market share I personally see the synergy of an API / Sigma merger as an overwhelming factor governing future directions.