11 May 2015 07:00
For immediate release 11 May 2015
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 2015.
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| 13 week | 13 week | Increase |
| period ended | period ended | per cent |
| 27 March | 28 March |
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| 2015 | 2014 |
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Revenue (£million) | 85.5 | 69.1 | 23.7 |
Underlying operating profit1 (£million) | 35.8 | 25.8 | 38.8 |
Number of deaths | 175,000 | 147,000 | 19.0 |
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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.
As expected at the time of the Group's 2014 preliminary results published in March, the number of deaths in the first quarter has been very high, approximately 19 per cent above 2014, which in turn was approximately 7 per cent below the previous year. However, data from previous years indicates that large variances in the number of deaths at the end of the first quarter tend to normalise by the end of the year.
The Group's current assumption is that the number of deaths in 2015 will be broadly flat on the previous year. Average incomes continue to be robust and overheads well controlled, with the Group yet to decide on the timing of any changes to its pricing. Taking all of these factors into account, the Group's overall expectations for the year are positive and unchanged.
The Group has acquired 10 funeral locations since the start of the year, for an investment of approximately £8 million.
There were no other significant transactions in the period to 10 May 2015.
Mike McCollum, Chief Executive of Dignity commented:
"The year has started very strongly compared to a weak first quarter last year. Our client surveys confirm that even though the business is very busy, service levels remain extremely high thanks to the continued dedication of our employees. The Group's expectations for the full year remain positive and 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 +44 (0) 121 354 1557
Mike McCollum, Chief Executive
Steve Whittern, Finance Director
Buchanan +44 (0) 207 466 5000
Richard Oldworth
Sophie McNulty
Robbie Ceiriog-Hughes
www.buchanan.uk.com