Dignity PLC Trading Update for the First Quarter 2018 (2421L)
18 April 2018 - 4:00PM
UK Regulatory
TIDMDTY
RNS Number : 2421L
Dignity PLC
18 April 2018
18 April 2018
Dignity plc
('Dignity' or 'the Group')
Trading Update for the First Quarter 2018
On 14 March 2018 Dignity, the UK's only listed provider of
funeral related services, announced its preliminary results for the
52 week period ended 29 December 2017 and stated that, following
the strategic decision to reduce some funeral prices and holding
others in response to changing market conditions and increased
competition, it expected trading in 2018 to be volatile as the
relationship between funeral price, service and volume would take
time to settle down. In that preliminary announcement we indicated
that, although too early to make any conclusions, the initial
analysis of the mix of funerals in that first seven weeks, since
the introduction of the reduced simple funeral price, had shown a
step change in the number of simple funerals as a percentage of all
funerals conducted by the Group but that this was at a run rate of
approximately 15 per cent (lower than the 20 per cent originally
anticipated by the Board). Additionally, the absolute number of
deaths in the first seven weeks of 2018 were approximately seven
per cent higher than the prior year. The Office of National
Statistics expects a decline of 0.2 per cent for the year as a
whole.
The trend highlighted in that results announcement has continued
throughout Q1 and overall deaths are up approximately eight percent
to 181,000 from 167,000 in the comparative period last year.
Additionally, the anticipated mix of simple funerals as a
percentage of total funerals has continued at levels lower than the
Board's initial forecast.
Dignity's Q1 revenue was approximately GBP95 million compared to
GBP93 million in the prior year and EBIT was approximately GBP37.5
million in line with the prior year, but significantly ahead of the
Board's expectations.
Despite this positive start to the year, the Board still
believes it is too early to conclude that the trading experienced
in Q1 is indicative of the likely funeral price / volume mix going
forward and the Group continues to conduct a significant number of
price and service trials across its entire portfolio. The data from
these trials is still at a very early stage and it is not yet
possible to draw any meaningful conclusions. The Board continues to
believe that trading during 2018 will be volatile but based on the
first quarter results believe that results for the full year will
be ahead of current market expectations. In August 2018 the Board
will be able to update the market as to results of these trials and
the operational review being undertaken in conjunction with L.E.K.
Consulting. The Board expects to announce the full first quarter
results on 14 May 2018.
Ends
Market Abuse Regulation
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For further information please contact:
Dignity
+44 (0)20 7466
Mike McCollum, Chief Executive 5000
Steve Whittern, Finance Director
Buchanan Communications
+44 (0)20 7466
Richard Oldworth 5000
Catriona Flint
This information is provided by RNS
The company news service from the London Stock Exchange
END
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