Blooms The Chemist Management Services Ltd P + 61 2 9526 3800 Suite 1, Level 1, 15 Bourke Road Mascot NSW 2020 PO BOX 594, Mascot NSW 1460
20 August 2021
Dear Shareholder, I wish to share the following updates regarding the company with you. The restrictions imposed due to the Covid-19 pandemic in the 2021 financial year impacted the performance of the company’s loan book. The lockdowns and other measures led to a reduction in turnover in the Blooms’ network pharmacies, with Category A stores, those in large shopping centres, and Category B stores, those in the middle suburban centres more affected. Strip shopping centres stores were also affected, though not as dramatically. While the stores’ prescription business remained steady, mainly due to home deliveries of medicines, the front of shop suffered as customers were loathe to come into pharmacies, especially when the NSW State Premier listed pharmacies and doctors surgeries as possible sites of infection. We anticipate that lockdowns in NSW and other states will continue to impact the company’s returns from the loan book. Last year the government supplied Covid affected businesses with a range of stimulus packages, including Job Keeper and the Cashflow Boost. This year, these have not been repeated. While the unaudited net profit of the loan book, excluding its revaluation (which was positive) is 8% higher than last year, the Board has decided to take a very conservative approach to dividend payments, not knowing what the future holds. The board resolved on 11th August to declare a dividend of $0.0175 per share, fully franked. With this dividend the Company will have paid total dividends for the financial year 2021 of $0.10 per share (grossed up amount of $0.1429). The record date will be 5pm on the 24th August and the dividend will be paid on 31st August into your nominated account. If you are a new shareholder or have changed bank accounts, please provide your preferred bank details (name, BSB and account number) to andrew.crawford@blooms.net.au by 30th August.
Blooms The Chemist Management Services Ltd P + 61 2 9526 3800 Suite 1, Level 1, 15 Bourke Road Mascot NSW 2020 PO BOX 594, Mascot NSW 1460 Capital Raise The recent capital raise resulted in the following increases to issued capital in the Company: Ordinary
$ Amount # Shares Shareholders
Pre Capital Raise $117,398,988 117,398,988 143
Capital Raise $23,222,211 19,848,044 191
Post Capital Raise $140,621,199 137,247,032 334
Capital Raise $277,100 236,838 4
Post Capital Raise $277,100 236,838 4
A Class (Suppliers)
$ Amount # Shares Shareholders
Pre Capital Raise 0 0 0
The Board welcomes the new shareholders to the Company. A further $12.5 million was rejected by the Board from suppliers who had put conditions on their purchases. These offers were considered to be outside the terms of the prospectus. Store Network and Loan Book Expansion As detailed in the Prospectus, the funds received from the capital raise will be used to expand the store network through consulting partner loans. Since 1 July 2020 the store network has grown by 12 stores and the Company has provided over $33 million in loans. In addition to the above, we have a strong pipeline for the balance of this calendar year which will see the store network grow by an additional nine stores and $14 million in consulting partner loans. Share Trading Shares in the Company can be bought and sold on the Primary Markets trading platform. The Primary Markets trading platform operates in a similar way to the Australian Stock Exchange. Current shareholders can list shares for sale at a set price and buyers are able to list offers to buy and place bids on available shares. The share price is determined by agreement of the buyer and the seller. Matched transactions are then approved by the Board. The Primary Market trading platform has been updated to include the shares issued during the capital raise. A transaction fee of $275 is payable by both the seller and the buyer directly to
Blooms The Chemist Management Services Ltd P + 61 2 9526 3800 Suite 1, Level 1, 15 Bourke Road Mascot NSW 2020 PO BOX 594, Mascot NSW 1460 Primary Markets. Please note the minimum trade is 5,000 shares unless the shareholder has less than 5,000 shares in which case they must sell the whole holding. You can register to trade your shares at: www.primarymarkets.com All rules governing the Primary Markets trading platform are shown attached. If you have any queries regarding the Primary Markets trading platform, please call Primary Markets on (02) 9993 4475 to speak to one of their assistants.
Kind regards,
John Thorne Chairman