Sigma dividends unlikely
March 18, 2010
Sigma Pharmaceuticals Limited (SIP) said that reductions in carrying cost of goodwill and other write downs would affect the company's bottom line as it prepares to report half year results, expected to be reported on 23 March. The expected reduction in profit for the company meant that it wasn’t expecting to pay dividends in the second half of the year.
Talking more specifically on writedowns, the pharma said the adjustments relate in particular to items such as inventory provisioning and writedowns, redundancy provisioning and licence carrying values.
”The reduction in the expected cash flows combined with changes in Sigma's estimated cost of capital are likely to result in a material reduction in the carrying amount of goodwill on Sigma's balance sheet,” the company said.
”Most of these adjustments are non-cash items.”
Sigma shares are suspended at 90c.
Talking more specifically on writedowns, the pharma said the adjustments relate in particular to items such as inventory provisioning and writedowns, redundancy provisioning and licence carrying values.
”The reduction in the expected cash flows combined with changes in Sigma's estimated cost of capital are likely to result in a material reduction in the carrying amount of goodwill on Sigma's balance sheet,” the company said.
”Most of these adjustments are non-cash items.”
Sigma shares are suspended at 90c.
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