Probably making extra provisions for bad debts.Likely be more...

Probably making extra provisions for bad debts.

Likely be more pharmacies going under. Government generic price disclosure policy policy combined with fierce discounting competition has resulted in many pharmacies becoming very marginal and being revalued by lenders. Those that are highly leveraged are most susceptible.

API have been very conservative in their approach to risk and at this time making extra provisions is sensible. It should not have any noticeable operational effect and payment of dividends.

If we see a pull back it may be an opportunity to pick up a few more.