Consider this; Dignity has EBITDA margins of 41% on the funeral home side of their business. Last time I looked the Co-Op’s margin was about half of this. What do you think are the margins of a single site business? As someone in the business you probably have a good idea. You’ll also know that there are very few barriers to entry with plenty of people with the expertise to give it a shot. But they don’t - the number of funeral homes in the UK is growing at just over 1% pa.… Read More
PingPong1 – Thanks for your response but as you say, you’re just putting information out there with no real evidence. And in terms of looking at things from both sides your comments seem very one sided. Take a look at my posts and you’ll see I have been critical of aspects of Dignity’s recent progress, particularly the recent loss of market share in spite of their spending on acquisitions. I also demonstrate a good understanding of their business, with a very accurate… Read More
I'd also like to say, and these are only my thoughts. That with Dignity and the Co-op merrily buying up all the business's they can, and therefore keeping funeral costs and profits quite high, they are also leaving a huge vacuum underneath, and all it would take is a large enough company to market themselves underneath these and things could soon become a quite difficult and obviously reduce profits.
Its obviously very difficult to give any real evidence. All i can say after being in the business for the last five years, and having friends working at a funeral director that was bought six months ago by Dignity, i am therefore party to a little bit of insider knowledge. And this is where i have obtained my information, that suppliers are not being paid at the moment, is this because these suppliers are new and hiccups with setting up payments, quite possibly. But i can also mention that the… Read More
PingPong1 Re: your comment, "i know in the North West they are not able to pay some suppliers and also taking months to pay for business's they have bought." I suspect your comment is pure invention and challenge you to produce anything to substantiate it.
Even a cursory examination of Dignity's accounts shows that cash flow is good. £73m of free cash flow in 2015 and £40m 2016 H2.
Cash is not a problem. It appears to me that the current challenge is market share.… Read More
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