- Who do I contact to change my shareholder details?
Link Market Services manages all shareholder details on behalf of Sigma. You can manage and update your own share registry details online by visiting the Link Market Services Investor Centre (www.linkmarketservices.com.au) follow the link from our web site, or contact Link directly.
- What is the ASX code used by Sigma?
Sigma Healthcare now trades under the ASX code SIG, having previously traded under SIP. The change reflects the change in company name to Sigma Healthcare that was approved by shareholders on 3 May 2017.
- Why does Sigma buy-back its own shares, and will the buyback program continue?
Sigma commenced a share buyback program in October 2012, and has bought back and cancelled almost 10% of our shares on issue. The buy-back reduces the number of shares on issue, meaning as profits grow it is shared across fewer shares. The Board considers this on a regular basis as part of our capital management program.
- Does Sigma have capacity to take on debt to grow the business?
Sigma has a very strong balance sheet with little or no debt. This is after we have reinvested in the business, paid 33 cents in dividends to shareholders since 2010, and conducted a share buyback since October 2012 that has reduced the number of shares on issue by almost 10%. We continually assess opportunities to utilise our strong balance sheet to grow our business. We have significant capacity to take on debt, but are very disciplined about investing in opportunities that provide the right return, are earnings accretive, and add to our business improvement initiatives.
- What role does Sigma play in the retail pharmacy market?
Sigma has the largest footprint pharmacies in Australia with over 700 pharmacies operating under our brands Amcal, Guardian, Discount Drug Stores, PharmaSave and Chemist King. In addition, we provide significant support to a large contingent of independent pharmacies across Australia.
- Why doesn’t Sigma just own the pharmacies rather than operate like a franchisor?
Current regulation in Australia requires that a pharmacy is owned by a pharmacist. This precludes Sigma from owning pharmacies. The scale delivered by being a brand owner provides us with capacity to invest in numerous programs and services to support the success of our branded pharmacy members, which in turn supports Sigma’s success.
- What is Sigma doing to grow your revenue when the value of the PBS is flat or declining?
Sigma has a clear strategy of continuing to diversify our revenue and more importantly earnings base beyond the PBS. Whilst PBS revenue continues to be important to the underlying business, profit growth is being driven by our investment in diversifying our income stream to other areas, such as increased OTC products, our private and exclusive range of products, the delivery of various services, and our expansion into hospitals and third party logistics services.
- Why has Sigma expanded into the hospital pharmacy services market?
Our acquisition of Central Healthcare Services (CHS) in 2014 had the benefit of accelerating our strategy as CHS already had a presence in the Victorian hospital pharmacy market. This new business is a natural extension of the Sigma operations that leverages our existing capabilities and provides an opportunity for Sigma to extend our reach outside of Victoria.