Dignity’s shares have jumped in recent months: Funeral group Dignity has been a solid performer over the past few years, and trading update suggests the business has plenty of room to grow. Underlying pretax profit was £59 million in 2014, an 11% increase on the year before. The earnings outperformed analysts’ expectations, and revenue also rose, up 5% to £268.9 million. However, the company reported a statutory pretax loss of £68 million, reversing the £50 million it made last year, as a result of a costly refinancing of its debts, which allowed the business to return £64.4 million to shareholders. This refinancing also contributed to the company’s debt pile growing from £370 million last year to £530 million. Dignity operates 718 funeral parlours and 39 crematoriums across the U.K. The company conducted 65,600 funerals in 2014 – falling from 68,000 the previous year – and performed 53,400 cremations, a slight dip on the year before. The number of deaths in the first eight weeks of 2015 was approximately 23% higher than the abnormally low number in the same period last year, the company said. It therefore expects results for the first quarter to be significantly higher than the same period in 2014. With a steady death rate, business is unlikely to dramatically alter any time soon and this company is well worth watching. The company’s management has done a good job of growing profit, and its share price has risen healthily in the past few months, from £17.65 at the beginning of December to a close of £19.42. Questor Says “Hold”.
19 Feb '15
most interesting chart . figures in early March ,
18 Nov '14
My holding in Dignity has reduced I assume its to do with the cash back option i accepted can anyone explain it I cant find any info thanks
4 Nov '14
Share price £15.92 per share I have been into this share since it was sub £5.00
18 Oct '14
how much does a share cost?
19 Sep '14
Dignity returns £54 million in cash: Dignity is planning to make a surprise return of cash to investors as the listed funeral company carries out a major refinancing. The company said it will return around £54 million in cash to shareholders, or £1 per share, only 13 months after its last sweetener to investors. Dignity is looking to raise about £580 million by issuing new corporate debt and with the cash raised it will repay the existing £406 million in debts and return the rest of the cash to investors, less around £15 million in fees. However, there will be a one-off accounting charge in this year’s results of around £110 million related to the transaction. The company uses funds from debt to grow through acquisition. The majority of funeral parlours in the U.K. are still independently owned businesses. The company added 54 new funeral locations last year, once branch closures had been subtracted, and has delivered steady growth for the past decade. Since the company floated in 2004, revenue growth has been 7.3% a year, and earnings per share have increased by 16% a year. Britain has experienced a stable death rate of between 540,000 and 600,000 each year for more than half a century. Management at Dignity is predicting it will be at the lower end of that range, at about 543,000, this year. Questor thinks this company is well worth watching and buying if we get a market correction in the future, but at this price it is looking a bit too rich. Hold. Questor thinks this company is well worth watching and buying if we get a market correction in the future, but at this price it is looking a bit too rich. Dignity at £14.55+23p Questor Says ‘Hold’.
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