Sigma has pointed to “doubtful debt” relating to one pharmacy group as having impacted its earnings before interest and tax during the last financial year
Sigma Pharmaceuticals says it will announce its results for the full year ending 31 January 2017 on 23 March, but that it expects its underlying EBIT to be just over $100 million.
This is approximately 12% above last year and compares to previous guidance of 10% underlying EBIT growth; it remains subject to audit and Board signoff.
“Reported EBIT is however expected to be broadly in line with last year, impacted by one-off accounting adjustments totalling almost $20 million,” Sigma says.
“This reflects the insurance premium recovery of $11.4 million announced on 13 May 2016, and an additional provision for doubtful debt relating to a single pharmacy group.
“Whilst Sigma continues to seek a resolution for the outstanding debt, it was considered prudent to provide for the full extent of our exposure.”
Mark Hooper, Sigma’s CEO and managing director, said that the one-off impacts were “disappointing”.
However, “Sigma’s business is in good shape and we remain comfortable with our existing guidance of at least 5% underlying EBIT growth for the 2017/8 financial year even after delivering above guidance underlying growth for the current year”.