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It seems that NEWB is the perfect opposite to me in my view of API, which is fair enough every one has their own opinion and I am happy if I am wrong.

When I look at the Annual report, I saw sales reductions of 7.6% due mainly to Pfizer which took effect in January and Pharmacy Alliance which took effect at the end of March. As the sales are to the end of August I would imagine that this is a six month give or take effect, is it possible that the full year effect is 14-15%.

I also say total receivables down from 644 million to 541 million. Which either confirms a reduction in activity of in excess of 15% or they are extra-ordinarly good at retrieving their receivables.

I also saw their reported cash net profit excluding the impairment charge as being 20.8 million which on turnover of 3430 million is 0.6%.

Early next year there are flow on effects of reductions in the cost base of many of the pbs items which will put pressure on revenue turnover and associated mark-up.

My worry about the stock is that the net margin is so tiny any reduction in turn-over will flow through to the bottom line as there are large fixed costs in distribution.

When the competitor is claiming 9% increase in H1 earnings which probably does not have the full term effect of pharmacy alliance, and 2% net margin vs 0.6%. I am not sure where the upside will be coming from. Perhaps the Pfizer direct distribution model may fail.

Only my opinion so do your own analysis.