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Started: difranco, 4 Jan 2023 23:04
Last post: strathy, 6 Jan 2023 18:13
Cut from RNS
Bidco, a newly formed indirect wholly-owned subsidiary of Valderrama Limited ("Valderrama"), a joint venture between SPWOne V Limited ("SPWOne") and Castelnau Group Limited ("Castelnau", whose discretionary investment manager is Phoenix Asset Management Partners Limited ("PAMP")) (together, the "Consortium"), notes the announcement by Dignity in relation to a possible offer for Dignity (the "Proposal") by Bidco which Dignity's board of directors (the "Dignity Board") is minded to recommend to Dignity's shareholders.
Gary Channon chief of Phoenix. Hands over the reigns via “Directors appointment” to Kate Davidson. We now know why!
During boardroom coupe 2 years ago signed off by shareholders conned into his statement “I only get paid, like you when the share price increases” people bought into this and he got over the line. At that point the share price was £7.50.
Take this private and there is so much less red tape to offload off the assests.
Bidco a newly formed company. This stinks! Well done Gary, you got your money and to hell with the rest.
I am not invested in here and haven’t been since high teens. Disgrace
Probably right.
I've sold out this morning in either respect. Best of luck to longer term holders.
Another example of a take over bid praising the high premium on offer. Delve deeper and the offer is far from a premium. This share was 750 this time last year and a fair price now would be in the region of 650-700. The board have no doubt been offered sweetners to put this 3rd bid forward. Phoenix aren’t the only large holders so there may be some pushback which may result in a more reasonable +600 offer. Also, if other cash laden SPACS see the door is half open there may be a competing bid.
Started: ScottyGonzales, 4 Jan 2023 17:18
Last post: ScottyGonzales, 4 Jan 2023 17:18
The Proposal is 525 pence in cash per Dignity share, which is a 23.4% premium to Dignity's closing price of 425.5p as of 3 January 2023, which was the last trading day before the release of this announcement, and a 32.4% premium to Dignity's closing price of 396.5p as of 11 November 2022, which was the last trading day before preliminary agreement was reached between the parties on price. The Consortium had first approached Dignity on 13 October 2022 in relation to a cash offer of 475 pence per Dignity share (the "First Proposal"), which was a 37.1% premium to the closing share price of 346.5 pence per Dignity share on 12 October 2022. The Proposal, announced today, is an increase of more than 10% compared to the First Proposal.
Started: ScottyGonzales, 4 Jan 2023 16:56
Last post: ScottyGonzales, 4 Jan 2023 16:56
To the moon!
Uncrossing trade hit 535
Started: ScottyGonzales, 4 Jan 2023 11:32
Last post: ScottyGonzales, 4 Jan 2023 11:32
Price continuing to rise...
Is anybody else invested here?
Started: ScottyGonzales, 29 Dec 2022 14:29
Last post: ScottyGonzales, 29 Dec 2022 14:29
Pretty quiet on this board, eh?
Started: ScottyGonzales, 19 Dec 2022 17:04
Last post: ScottyGonzales, 19 Dec 2022 17:04
Nice little rise today.
Looks well positioned for plenty more where that came from
Started: ahha, 13 Dec 2022 20:56
Last post: ahha, 13 Dec 2022 20:56
A sudden massive jump today......and then a sudden return to £3.70 Something is going on!
Started: ScottyGonzales, 17 Nov 2022 15:47
Last post: ScottyGonzales, 17 Nov 2022 15:47
Seems like a good price at around these levels - I'm in.
Chart feels like it this could be the second shoulder of a H&S reversal - anybody else looking at it the same way?
Started: yetie, 3 Oct 2022 19:26
Last post: Funkfeet, 4 Oct 2022 11:01
So it seems you desperately want to own shares but are trying to talk the price down first. It seems after their recently impressive ER combined with GBP at a now new 2 week high you will most likely be left behind on this one.
Share price falls as the company can't manage the increased cost and lower profit margins.. They will not cover the inflation on their running costs, that is heading their way on the funeral's without the higher running costs of crematoriums, while reducing their charges !
Over 400 vacancies with no one rushing to be part of it.
The company needs to be rid of the simply-awful management they have in place on the ground.
I'm even thinking of buying when it drops to £2
35 years a funeral director - they are people in a round room, looking for the door in the corner !
Started: ahha, 29 Sep 2022 12:17
Last post: ahha, 29 Sep 2022 12:17
Very good points made by you both Cassandra & Strathy! Points that I had not considered previously, so I am grateful to you. Even more so in the light of recent economic events. As you say, a key part of the equation regarding the true value of the company is not only future profits going forward. but how much interest they have to pay on their enormous borrowings. In the light of what you say....these shares could have further to fall!!!
Could they go back to £2.80 or below? In the present climate certainly!!
There are only two positives as far as I can see.....people will always need funeral directors, so it is a steady niche market. And with the recent devaluation of Sterling, a foreign bidder might emerge. But for the moment this share is looking too risky....I'm out!
Started: ahha, 23 Aug 2022 18:55
Last post: Cassandra29, 4 Sep 2022 14:16
There will not be a take over.
The market has changed and margins that Dignity used to make are a thing of the past. Twice the work for half the profit. They had things their own way for a long time and this is no longer the case.
The public no longer consider death a taboo subject and are willing to shop around for the best price whilst retaining a high level of service.
The original directors after listing got a fortune. Phoenix group is the major share holder and the architect of a boardroom takeover a couple of years back. Yet the price has halved, clearly it wasn’t as easy as they thought to bolster the share price. I am aware there has been a new strategy implemented. Sadly, this came at the cost of either diligent personnel who wouldn’t stoop to levels below their personnel standards or long serving experienced staff who had the opportunity to take an exit package which many have.
Mr Channon would be delighted to get an approach but in its current guise there is no appetite. Crematoriums should be sold off IMO.
If it gets to £3.50 I will have a nibble.
Range bound up to £5
Despite negative comments here, it must not be forgotten that Dignity is a major name in the funeral industry and will always be in business. I think that its a good bet to buy these shares at any price below £5. Should there be a takeover......we are looking at least for £6.75. A nice safe share to tuck away and wait for the jackpot!
Started: ChannonOut, 9 Mar 2022 11:55
Last post: yetie, 13 Jul 2022 14:41
Dignity are now working for half the profits Independents were working for 10 years ago
It makes them "busy fools" instead of setting a more realistic pricing structure
To suggest that they will always be in business is a very bold statement. I started my business career with ICI - a company about which many might have made a similar statement - and look what happened to that company!
Channon's gone but still pulling the strings behind the scenes, his toxic management succesfully tanking the share price. The puppet team left in place won't make a difference. Phoenix out!
Despite negative comments here, it must not be forgotten that Dignity is a major name in the funeral industry and will always be in business. I think that its a good bet to buy these shares at any price below £5. Should there be a takeover......we are looking at least for £6.75. A nice safe share to tuck away and wait for the jackpot!
Quite alarming that the share price has halved since the ousting of the board over a year ago.
I’d challenge the new CEO’s credentials to run a listed company however, Gary Channon needed to get out and Kate Davidson was his choice for COO only recently, something fishy here.
When you think his whole speech and courting of the investors was to increase the share price. Their new strategy is dodgy at best. In essence they have cut the price of their funerals to match the market average. All that says is we have been profiteering from families grief for the past 15 years and now we can’t do that anymore without market share implosion. Doing more funerals now but margins have been hammered.
Any long term experienced staff are looking for the door and accepting redundancy. Loads of people have left this company.
Don’t know what I’d expect the share price to get to when the strategy is fully run out but won’t see £7 for a long time.
I sold my 100 year old business to Dignity, then Andrew Davies left , the amazingly bad regional, area and local management along with the amazingly poor choice of staff are stuffing it into the ground.
No one tells the truth, therefore no one can be trusted. If they don't take a real look at the people problem
within this business, its only going to go one way ! .
Come on guys ! many of my friends have bought pre paid plans, sort your staff out, you only need to take a look at
Dignity Indeed to see what nice people who are employed by the company. think of it, be quick they don't stay long !!
Started: SssEee, 23 Mar 2022 08:43
Last post: SssEee, 23 Mar 2022 08:43
Surprising drop in share price this morning. The Preliminary results are about the same KPIs as last period, so not sure why the fall. Perhaps many investors were expecting a significant increase in KPIs due to increased deaths, but the deaths has remained the same as last period.
Started: Mercadooly, 1 Oct 2021 14:34
Last post: katenip, 17 Jan 2022 21:15
so ...who controls the UK funeral industry? Used to be Co-Op were the biggest Rolls Royce owners because of all the funeral services but now?? is it all horse and cart, or Uber?
re crematoriums GC mentioned bringing in a external party to recapitalise the Crematoria Biz or even a spin-off (estimated 1bn GBP!?) Either scenario provide shareholder value. This is 1 of 4 strategies outlined at the last AGM. Nothing is guaranteed and the uncertainty is weighing on the SP methinks. Holding for now.....
Thank you for that. I was heavy in Dignity when £26 ish .
When the directors made a statement after removing much of their stock ? .
It fell like a brick costing us a great deal.
It seems to me this method of disposal is going to do the same unless we don’t keep abreast of it .
I thought we did similar but better ?. I’m going underground, very expensive.
No one taken up the challenge of doing similar at the graveside, only private arrangements.
There is no connection with “Pure Cremation” dignity is a traditional style funeral service provider.
In that it has a retail presence throughout the U.K.
They manage the service they provide and excuse the pun. “Undertake” all the services themselves.
Pure cremation is a disrupter. This is a collection of the deceased and taken to the crematorium. That’s it. Tbf this service has become more popular in the past few years and is certainly eating into the market share of the Dignity and the Co-op alike (the big two). There are a number of similar style service providers for disposal only.
Volume is everything as margin is very low. As such Pure Cremation have no retail presence and everything is pretty much carried out from a single service centre which keep the expenditure as low as possible. Man with a van you could say!
Dignity does have an entry level business trading as “simplicity” look it up.
Hope this helps.
FYI they own a load of the properties they trade from, add in a bunch of crematoriums and cemeteries and their market cap is below the book value. This should really be separated and parts sold. I’d be so bold to state the crematorium division is worth 500 million alone. I come to this number as a competitor recently sold 11 crematorium for over 110 million. Dignity have way more than that.
Are we allowing pure cremation steel our thunder. TV advertising, Funeral booking request forms posted to our properties. Hard sell no less.
Is this company connected to Dignity. ?
Started: MIKESM, 1 Jul 2021 12:22
Last post: MIKESM, 1 Jul 2021 12:22
As expected, the presentation about the changes to Dignity's future operations made by Gary Channon at the AGM was very impressive. As I suggested in my previous post, he has the ability to analyse where the company can optimise its potential profitability and will undoubtedly deliver for Phoenix and all other shareholders. I feel that the recent rise in the share price is just the start of what is to come....
Started: Beatthemms, 23 Jun 2021 12:39
Last post: Beatthemms, 23 Jun 2021 12:39
AGM today news to follow
Last post: Bridgedogg1, 9 May 2021 18:58
I would say that Pheonix lost patience with the board who cant generate any free cash flow from a large asset base, so Pheonix have decided to asset strip the company to get back as much of their investment as possible. Good for shareholders? Maybe. OIn the short erm. But anyone waiting for a long term price recovery based on a strong business turnaround will be disapointed IMO
Ahha, I can think of no logical reason why someone as talented as Gary Channon would wish to take over as Dignity's CEO unless he can see where the company has fallen short of its full potential and has a clear vision of the steps required to take it to the next level. With 30% of the shareholding, Phoenix has a vested interest in maximising Dignity's success and there is no doubt in my mind that as CEO Gary will very soon create considerably more value here both for himself and all the other shareholders. I have full faith in his abilities, and have backed his judgment with a chunky top up ;-). GLA...
.
I have been in management situations like this before and your thinking in this matter concurs exactly with my own. I think Gary Channon has been very tenacious and courageous to stand up to the lot of them. Of course now they will want him to fail and would love to see egg on his face. I wish him all the luck in the world. The plain and simple truth is, that it is good news the "cumbersome and retrograde" directors have been banished and the company can move forward with fresh vision!
Started: ahha, 24 Apr 2021 11:13
Last post: ahha, 30 Apr 2021 01:58
Spot on! I have been in management situations like this before and your thinking in this matter concurs exactly with my own. I think Gary Channon has been very tenacious and courageous to stand up to the lot of them. Of course now they will want him to fail and would love to see egg on his face. I wish him all the luck in the world. The plain and simple truth is, that it is good news the "cumbersome and retrograde" directors have been banished and the company can move forward with fresh vision!
Bridgedogg, maybe that question would be best answered by the writer of the latest Investor's Chronical article, dated the 22nd of April 2021
https://www.investorschronicle.co.uk/news/2021/04/22/fighting-at-funerals/
Operating profit... but what baout the £800m bons ds and repayments?
"It is for reasons similar to those that I can gross up the weighted average of Dignity’s operating profits for the past five years – about £59m – annuitise that amount and, after a bit of tweaking, find that Dignity is worth approaching £800m, or £16 per share. True, put a value on Dignity’s likely free cash flow – often a better, though more demanding measure – and the per-share value drops to about half that amount. Even so, the underlying message is clear – there is a lot of value in Dignity waiting to come out."
Started: ahha, 28 Apr 2021 10:57
Last post: ahha, 28 Apr 2021 10:57
Back in 2008 and subsequent years, I remember watching this share as a potential investment. It was solid but boring. It paid a very low dividend and seemed to stay for years within a very narrow price range, before eventually moving from £7 to £25!! However, by this time, I had lost interest, as I could not find a suitable entry point. So I never saw those lofty days of profit. Fortunately, today, we have an opportunity to get into these shares at a reasonable price and with the prospect of new new management. I believe that Pheonix do not see failure as an option! They will get value out of this company by "hell or high water" and I have absolute confidence in that. I cannot emphasize the huge difference the change of leadership will have.....from a company just to plod on in the same tired old ways, to one that is clearly focused on success!!
Started: ahha, 26 Apr 2021 12:18
Last post: JepGambardella, 26 Apr 2021 17:30
Unlike retail investors, the institutions take much longer before they get around to buying. But word must be out that these shares are a snip at this price. I'm surprised more people are not buying today. They may not be so cheap again!
Started: ahha, 25 Apr 2021 18:34
Last post: Shezray, 26 Apr 2021 05:59
I totally agree. I’ve been buying the dip in small chunks since Feb 2021.
Even the investment portfolio’s liabilities that back the pre-paid contracts are ‘prudently’ priced. Which means the surplus is actually bigger. Asset performance (no allocation to bonds) would have done great over 2020 and YTD 2021. All this add to shareholder value.
One worry( or uncertainty which I haven’t unpacked yet) is that I read the Phoenix AM think the crematoria business might be spun out.....
"We believe Dignity to be a good business with great potential, and as a Board are now focused on the future. We are very excited to unlock this value for the benefit of all shareholders, clients, employees and our wider stakeholders and look forward to engaging with all of these groups as we embark on delivering the strategy and vision for Dignity. Work is already underway and we will update shareholders in due course." Gary Channon
I should imagine that this company will soon catch the attention of the institutions in search of a solid, safe, cash cow. The future looks rosy. This is precisely the time to buy!!
Last post: arsenal58, 25 Apr 2021 09:24
The last RNS on friday after hours instills a modicum of hope
Lets get some outsiders on the board for some sort of security for shareholders
That is a scary proposition......I assume you believe this could be done without shareholder approval.
Well maybe as a safety measure, one could invest in Pheonix Asset Management's Investment Trusts, as they would benefit considerably from such action. Based on their past performance, we could do a lot worse!
Started: ahha, 24 Apr 2021 11:07
Last post: ahha, 24 Apr 2021 11:07
Dear Shareholders and other observers, I should like to draw your attention to this excellent and most encouraging article in the Investor's Chronicle dated the 22nd of April 2021 https://www.investorschronicle.co.uk/news/2021/04/22/fighting-at-funerals/ F
or your comfort and ease, I shall cut and paste, what I consider to be a crucial excerpt for your investment consideration , in my next post. This is not investment advice, I am just curious to know what my fellow investors make of its views.