Dignity PLC First quarter trading update (0624F)
15 May 2017 - 4:00PM
UK Regulatory
TIDMDTY
RNS Number : 0624F
Dignity PLC
15 May 2017
For immediate release 15 May 2017
Dignity plc
First quarter trading update
Dignity plc (Dignity or the Group), the UK's only listed
provider of funeral related services, announces its trading update
for the first quarter of 2017.
13 week 13 week period 13 week period 2017 versus 2017
period ended 25 ended 27 2016 increase versus
ended March 2016 March 2015 2015
31 March increase/
2017 (decrease)
(per cent) (per
cent)
Revenue (GBPmillion) 93.3 81.2 85.5 15 9
Underlying
operating
profit(1)
(GBPmillion) 37.4 31.1 35.8 20 4
Number of
deaths 167,000 156,000 175,000 7 (5)
(1) Underlying profit is calculated as profit excluding profit
(or loss) on sale of fixed assets and external transaction
costs.
(2) Amounts for 2015 are included in this announcement to
provide a more meaningful comparative for 2017 performance
following the fluctuations in the number of deaths in the first
quarters in recent years.
As anticipated at the time of the Group's 2016 preliminary
results published in March, the number of deaths in the first
quarter was higher than the previous year, but lower than in 2015.
Data from previous years indicates that large variances in the
number of deaths at the end of the first quarter tend to normalise
by the end of the year. The Group's current assumption continues to
be that the number of deaths in 2017 will be lower than 2016 (which
was a 53 week period).
Average incomes continue to be robust and overheads well
controlled. In addition, the Group's pre-arranged funeral plan
business is trading well, with sales significantly up in the
quarter compared to 2016.
The Group has continued to develop its digital services
strategy, with various developments underway. Further commentary
will be provided as part of the Group's interim results, due to be
released on Wednesday 2 August 2017.
Acquisition activity in the period has continued, with the Group
completing the acquisition of a total of 12 funeral locations and
one small crematorium for consideration of approximately GBP20
million. This includes one funeral location acquired after 31
March, but prior to the date of this announcement. Further
acquisition activity is expected throughout the year. In addition,
the Group has opened three satellite locations in the period,
submitted a planning application for a new crematorium and is still
awaiting a decision on another crematorium planning
application.
There have been no other significant transactions since the
period end date.
Taking these factors into account, the Group's overall
expectations for the year are positive and remain unchanged.
Mike McCollum, Chief Executive of Dignity commented:
"This has been a strong start to the year, with all parts of the
business performing well. The Group's expectations for the full
year remain positive and unchanged."
Dignity (2002) Limited (the holding company of those companies
subject to the securitisation) has today issued reports to the
Rating Agencies (Fitch and Standard & Poor's), the Security
Trustee and the holders of the Secured Notes issued in October 2014
in connection with the securitisation.
Copies of these reports are available at
http://www.dignityfuneralsplc.co.uk.
For further information please contact:
Dignity plc +44 (0) 121 354 1557
Mike McCollum, Chief Executive
Steve Whittern, Finance Director
Buchanan +44 (0) 207 466 5000
Richard Oldworth
Catriona Flint
www.buchanan.uk.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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