major class action group forming

Someone at the top of SIP has got to pay the price with losing their position for not doing their due diligence properly on Arrow,telling a few porkies pre Arrow,ending up overpaying for it and then raising the 297m cap to stop the haemorrhaging.

Can anyone really confidently believe what the board have got to say now,going forward?

Large class actions will be the result of SIP's inability to correctly manage the business and keep the the market fully informed as per 3.1(1).

The end result could be a full takeover down the track.

IMHO there needs to be several changes at board level o stakeholders feel justified and to reinvigorate the company in order for it to grapple with the coming changing market conditions particularly in the generics sector,finally bed down the Arrow acquisition and other business parts so that true efficiencies can be obtained so the company can survive and prosper.

Their madia announcement and outlook is contradictory.


ASX and Media Release Wednesday, 31 March 2010
Sigma announces A$389 million loss due to
impairment of goodwill
Result includes goodwill impairment of $424 million
Underlying business sound sales revenue up 4.5 per cent to $3.22 billion

In that review, the company has taken into account recent increases in 'market pressures' in
generics in the last quarter of FY2010. As a result, the future cash flow forecasts that
support the carrying value of goodwill have 'declined'.

Underlying FY2010 net profit was $67.7 million, a 15.5 per cent decrease on the prior year due principally to increasing 'market pressures' in generics and a
lack of uptake in year end promotions.

As a consequence of the 'accounting impairment charges', no final dividend can be paid this financial year.

As previously foreshadowed, the group had 'breached' interest cover and certain other borrowing covenants related to its syndicated banking facility as a result of these
adjustments. Sigma is pleased to advise that these covenant breaches have been waived and the facilities have been 'renegotiated' within a short space of time with appropriately reset covenants.

All debt facilities remain committed and are in place to various dates beyond January 2011.

In FY2011, the group expects to 'improve' cash flow and reduce debt through:
Renegotiation of agreements with customers currently enjoying extended trading
terms
Improvements in inventory levels
Rationalisation and sale of non-core assets

Managing Director Elmo de Alwis said: Sigma is confident of the continued sound operations and underlying profitability of the company.


Mr de Alwis said: In the last quarter of FY2010, our generics business saw 'increased
discounting' and a delay in the launch of another new product due to legal action. This led to
a 'reduction' in forecast future cash flows for the business, with flow on effects to accounting
carrying values.

Outlook
FY2009 Net Profit After Tax was $80.1 million. Sigma is budgeting that FY2011 NPAT will
return to similar levels.???????????

Further information
Investors
Mark Smith, 0419 135 043
James Barrie 0417 121 228
Media
Matthew Horan 0403 934 958