If Australian Pharmaceutical Industries thought it would soften the impact of a poor result by reporting the bare bones of the 2007 figures on Tuesday evening, it failed.
It fleshed out the figures yesterday and suffered: in a market generally firmer than the rest of the week, API shares fell 12c to a low of $2.17 before recovering to close at $2.20, its lowest point since early May.
And if anyone is still thinking about the possible interest of Sigma Pharmaceuticals in API, then think again.
Sigma's share price continued to lose ground, closing at $2.15 yesterday, a 52 week low, as the market continues to fret about its strategy.
The irony is that after this second poor result, API is a takeover candidate. Sigma tried twice last year at $2.50 and $2.20 but walked away when API's major shareholder, Washington H. Soul Pattinson, wouldn't play.
From reports around the market, there's interest now in selling, but no one is interested in buying.
Healthscope is trying to takeover rival Symbion, while Sonic and Primary are going their own way and don't seem to have much interest in distribution, manufacturing or retail pharmacies. Although Primary did have an abortive nibble at Symbion in February.
So, for the time being API struggles on, waiting for more troubles to beset it, although the board and the CEO, Stephen Roche, are confident it is back on track.
In fact the release of the full year figures raised more questions about the quality of the group's earnings
They were not highlighted that much.
The best the company could boast of as a 'lead' to its press release announcing the result was that sales rose during the year to April 30.
"Sales for the year of $2,649 million, up 2.6% on the prior year. Earnings before interest, tax, depreciation (EBITD) and significant items were $53.1 million for the year. After significant items EBITD was $22.6 million. The company recorded a net loss after tax of $11.3 million.
"As advised on 26 June 2007 the EBITD for the second half was $36.4 million before significant items of $6.2 million."
Directors said in their short review of operations: "During the half year ending 31 October 2006, the company's trading result was affected by the share trading halt and recognition of significant one-off costs, totalling $24.3m, resulting in a half year loss before interest, tax and depreciation of $7.6m.
"The second half profit before interest, tax, associates and depreciation totalled $30.2m resulting in a full year profit before interest, tax, associates and depreciation of $22.6m."
"The Board of Directors will be looking for further improvement in the trading position prior to reinstating a dividend."
Its current strategy of converting Priceline corporate stories to Priceline Pharmacies, operated independently.
These corporate stores are being sold off and there are reports some of those stories seem to be selling at discount prices and healthcare analysts wonder about the prices API is receiving for them.
Analysts say an $8m "transaction in corporate store sales" will now not be booked until the next interim period.
This they have put down to sales of Priceline corporate stores to pharmacists and that it will booked as a significant item, just like the negative significant items that have been brought to account on this report.
There is nothing sustainable about asset sales, so its interesting the company is 'reviewing' two of its retail formats.
They are the Price Attack and House chains (around 240 stores all told). That's raised questions why?API has received offers for both but these have been informal and nothing tangible has been received.
With financial markets volatile and the likes of Coles seeing private equity buyers vanishing, can API have much hope in receiving a premium price for its two chains, or attracting any significant buyers except for tyre kickers?
Perhaps the cash flow statement might answer it: the company's cashflow fell sharply in the year as expenses and selling costs rose an unexplained $34 million
API Managing Director and Chief Executive Officer, Stephen Roche, said that the company was now positioned to push forward with the development of its strategy.
"API has made very good progress since August last year, we've been rebuilding the Pharmacy business and at the same time developing the fastest growing retail brand in Australia and taking API to a unique position in the Australian market," Mr Roche said.
"The second half performance is a significant improvement on the first half, however we still have more work to do," he said.
Operational performance improved during the course of the second half in the Pharmacy division.
"There's been a concerted effort in this division to build customer relationships with an experienced management team and it has taken until we were into the second half to see those efforts flow through with more significant customers joining API during that period," Mr Roche said.
"Sales from the division in the second half were $960.6 million compared to $936.7 million in the second half of the previous year. This excludes any benefit from Priceline Pharmacy sales and is a demonstrable improvement in the market.
"We've kept our focus on the importance of independent pharmacy customers and the services that we are delivering for them are making a difference, whether it is the new Soul Pattinson format or the new services in the API Member program.
"There is a continual focus on improving our logistical efficiencies which includes working more closely with pharmacists in managing our delivery cycles."
The Retail division has continued to roll out the Priceline Pharm
