Sa Sa International said no provision had been taken against the possibility of losing a HK$31.2 million legal action for failing to honour a call option agreement. The writ was filed earlier this month by Edwin John Phillips who claims that Sa Sa made an oral commitment to buy from him 2,000 shares of the company Phillip Wain by exercising a call option. The option was issued last summer following Sa Sa's acquisition of 5,000 existing shares and 2,000 new shares in Phillip Wain which gave the cosmetics firm a 58.33 per cent stake. 'Based on the advice from the legal counsel as well as our accountants no provisions are necessary at this time [and] it is our opinion that perhaps none will be required,' said Sa Sa International chief executive Roger King. Mr King said the company had every right not to exercise the call option which gives the holder the opportunity to buy shares from a specified date at a pre-determined price. Mr King also questioned the basis of Mr Phillips' case which he claimed rests on an oral agreement that was superseded by the written agreement. 'If you go through the writ it says 'oral agreement' and of course once you sign an agreement usually that says it's a final agreement. Anything oral or of other nature or understanding ceases because that's the final agreement. Otherwise why would you have an oral agreement and a written agreement at the same time?' said Mr King. The comments were made at the announcement of Sa Sa's results for the six months to September 30. They slumped 61 per cent to HK$14.9 million compared to the same period last year. Turnover grew 7.6 per cent to HK$719.9 million. Earnings per share were 1.1 HK cents and the firm paid a one HK cent interim dividend.