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9 May 2016 07:00
For immediate release 9 May 2016
Dignity plc
First 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 first quarter of 2016.
| 13 week period ended 25 March 2016 | 13 week period ended 27 March 2015 | 13 week period ended 28 March 2014 | 2016 versus 2015 decrease (per cent) | 2016 versus 2014 increase (per cent) |
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Revenue (£million) | 81.2 | 85.5 | 69.1 | (5) | 18 |
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Underlying operating profit1 (£million) | 31.1 | 35.8 | 25.8 | (13) | 21 |
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Number of deaths | 156,000 | 175,000 | 147,000 | (11) | 6 |
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1 Underlying operating profit is calculated as profit excluding profit (or loss) on sale of fixed assets, external transaction costs and exceptional items.
2 Amounts for 2014 are included in this announcement to provide a more meaningful comparative for 2016 performance following the unusually high number of deaths in 2015.
The first quarter results are consistent with the Board's full year expectations, which remain unchanged.
The number of deaths in 2015 was abnormally high compared to long term trends, helping the Group deliver an exceptional result in 2015. The Group continues to expect this unprecedented increase in deaths to reverse in 2016. Its current assumption remains that the number of deaths in 2016 will be broadly comparable to 2014.
Average incomes continue to be robust and overheads well controlled. The Group has acquired one funeral location since the start of the year. There were no other significant transactions in the period to 8 May 2016.
Although operating performance in the quarter was lower year on year, it was approximately 21 per cent higher than the same period in 2014. The Group's expectations for the year remain unchanged and consistent with its target of increasing earnings per share by ten per cent per year over the medium-term.
Mike McCollum, Chief Executive of Dignity commented:
"I am pleased with the Group's performance in the first quarter, which was consistent with our expectations and supported by surveys that continue to demonstrate the outstanding work being done by our staff. The Group's expectations for the full year remain unchanged."
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 further information please contact:
Dignity plc Mike McCollum, Chief Executive Steve Whittern, Finance Director
| +44 (0) 121 354 1557 |
Buchanan Richard Oldworth Sophie McNulty Catriona Flint www.buchanan.uk.com
| +44 (0) 207 466 5000 |
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