Dignity PLC Third quarter trading update (2333W)
13 November 2017 - 6:00PM
UK Regulatory
TIDMDTY
RNS Number : 2333W
Dignity PLC
13 November 2017
For immediate release 13 November 2017
Dignity plc
Third 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 third quarter of 2017.
39 week 39 week
period period
ended ended Increase
29 September 23 September (per
2017 2016 cent)
Revenue (GBPmillion) 243.9 229.3 6
Underlying operating profit(a)
(GBPmillion) 79.4 75.8 5
Number of deaths 440,000 434,000 1
Non-GAAP measures
The Board believes that whilst statutory reporting measures
provide a useful indication of the financial performance of the
Group, additional insight is gained by excluding certain
non-recurring or non-trading transactions. These measures are
defined as follows:
(a) Underlying operating profit is calculated as profit
excluding profit (or loss) on sale of fixed assets and external
transaction costs.
Following a very strong start to the year, the number of deaths
in the third quarter was flat on the previous year. The Group's
results for the period were in line with the Board's expectations
with underlying operating profits increasing five per cent to
GBP79.4 million (2016: GBP75.8 million).
As described in our interim report published in August, we
continue to see significant competition across the business. Whilst
our pre-arranged and crematorium businesses are performing
strongly, we continue to see increasing price competition and new
competitors in our funeral business. We remain focused on providing
the highest level of service to our clients and improving our
digital presence. The Group continues to anticipate incremental
costs of up to GBP1.0 million in 2017 in relation to this evolving
strategy. This is expected to be a recurring expense in future
years, with costs likely to increase over time.
The Group has acquired 20 funeral locations and one crematorium
for an aggregate investment of GBP28.8 million and has opened 12
satellite locations in the period to 29 September 2017. Since this
date, the Group has acquired four funeral locations and opened one
satellite location.
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 plc commented:
"Following the Group's solid third quarter results expectations
for the full year remain unchanged. The Board recognises the
increasingly competitive environment and the consequential
challenges facing the Group. Alongside the work being undertaken on
the Group's digital strategy and our continued call for regulation
of our markets, we are assessing other initiatives to help the
Group build on its strong market position."
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 more information
Mike McCollum, Chief Executive
Steve Whittern, Finance Director
Dignity plc +44 (0) 121 354 1557
Richard Oldworth
Catriona Flint
Buchanan +44 (0) 207 466 5000
www.buchanan.uk.com Dignity@buchanan.uk.com
Notes
An analysts' briefing will be held at 9:00 am this morning by
telephone. Please contact Buchanan for dial in details if you wish
to attend and have not already been invited to the call.
A recording of this conference call will subsequently be
available at http://www.dignityfuneralsplc.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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