22 Sep 2010 16:33
For immediate release 22 September 2010
Dignity plc
Notice of General Meeting of Dignity plc and Issue of Prospectus by Dignity Finance PLC
Further to the announcement on 20 September 2010, Dignity plc is pleased to confirm that the subscription agreement for the issue of further Secured Notes has been executed. Dignity Finance PLC has also today issued a Prospectus in respect of the issue of Secured Notes.
The Group will today post a circular to shareholders, including a notice of general meeting. Copies of the circular may be obtained from the Group's investor website www.dignityfuneralsplc.co.uk. The meeting will be held on 8 October 2010.
The Prospectus confirms the pricing and quantum of the new Secured Notes at the levels announced on 20 September 2010 and the circular confirms the Group's intention to return £63.9 million, equating to £1 per share to its shareholders. The Dignity Group also confirms that as a result of this intended return, it has today cancelled the interim dividend of 4.43 pence per Ordinary Share that was declared on 30 July 2010 and which would otherwise be payable on 29 October 2010.
Commenting on the issue of further Secured Notes and the proposed return of value, Mike McCollum, Chief Executive said:
'This transaction once again demonstrates the Group's ability to use the stable, cash generative nature of the business to support an efficient capital structure and generate additional value for our shareholders.
As a result, an investor at the time of the IPO in 2004 will have had nearly all of their initial investment returned in cash and still hold shares in Dignity, which, at the current market price, are worth approximately twice their original investment.'
For more information
Mike McCollum, Chief Executive
Steve Whittern, Finance Director
Dignity plc +44 (0) 121 354 1557
Richard Oldworth
Suzanne Brocks
Christian Goodbody
Buchanan Communications +44 (0) 20 7466 5000