Dignity Share Discussion Threads

[bloodhound] 17/7/2009 15:29

Swine flu could drive this up big time.

[knowsleyman] 17/7/2009 09:12

Have been watching for some time. Was about to buy when there was that huge directors sale. That told me, or so I thought, that the price would have much further to fall as they would certainly know what was going on in the company. For a change, a large director sale has not preceeded bad news and the price has surged upwards.
This swine flue will also probably give the business a short term lift in turnover as well!!!!!!

[mike24] 15/7/2009 09:27

24/7
ECMO is a new technique used when patients lungs are functioning
poorly, the UK has just 5 beds available with all being used, with
nhs now seeking beds abroad, the nhs is a bloody shambles
added 2k more of dty this am

[salpara111] 12/5/2009 11:12

Well, when I topped up at £5 a week or so ago I was hoping to exit at £6 in 3 months or so but now I think I will just hold on and wait for 650p.

[d0ubtf1re] 12/5/2009 10:55

This BB is like a morgue if you excuse the pun. Great write up in today's Daily Mail.

[spob] 11/5/2009 19:05

The resurrection for Dignity begins here

[spob] 11/5/2009 18:42

from FT Alphaville

Dignity, death and securitisation

Posted by Neil Hume on May 11 10:20.

Death is living up to its reputation as the ultimate defensive business.

Dignity, the UK's only listed provider of funeral services, has issued a trading statement on Monday morning and business is err, booming.

In the first quarter of the year, operating profits rose 15.3 per cent to £20.4m on sales up 12.8 per cent. Operating margins were up 80 basis points. Shares in Dignity are currently up 40p at 578p.

Here's chief executive Mike McCollum comment on the statement.

This is a very strong start to the year. All three businesses continue to perform well and we remain on track for the full year.'

The three businesses being funeral services, crematoria and pre-arranged funeral plans.

According to analysts the update highlights the resilience of the company and its reasonable valuation.
KBC Peel Hunt.

We expect Dignity to trade well through the recession. The majority of funerals are paid out of the estate of the deceased and thus should be relatively immune from a desire to limit spending. The key areas at risk (limos and memorials) held up well in the last recession and have not seen weakness in the current recession. Furthermore sales of pre-arranged funerals tend to pick up in a recession.

Panmure Gordon.

At current levels Dignity trades on 13.5x 2009E EPS falling to 12.4x in 2010E, which is close to historic trough levels when the business was floated in 2004. The valuation on an EV/EBITDA basis also looks reasonable on 9.2x in 2009E and 8.6x in 2010E, backed with an attractive FCF yield of 6.6% rising to 7.4% in 2010E.


Indeed.

But what FT Alphaville had not realised is that Dignity has actually indulged in some mutant finance, although in a much smaller way than someone like Punch Taverns, aka the Toxic Pub Company.

Six years ago, Dignity replaced all of its debt with £220m of "investment rated" securitised debt.

The debt was issued in two tranches at fixed rates of interest and listed on the Irish Stock Exchange:
• £110million Class A Secured 6.310% Notes due 2023; and
• £100 million Class B 8.151% Notes due 2031.

And three years later it issued some more.

On 20 February 2006 the Group issued a further £45.55 million Class A Secured 6.310% Notes due 2023 and £32.50 million Class B Secured 8.151% Notes due 2031.

Dignity argues that the nature of business makes securitisation an appropriate funding technique.

The Board considers that maintaining a leveraged balance sheet is appropriate for the Group, given the highly stable and predictable nature of its cash flows. This predictability is matched in the Secured Notes. The principal and interest on the Secured Notes amortise fully over their life and are completely repaid by 2031. The interest rate is fixed for the life of the Secured Notes and interest is calculated on the outstanding principal. This has the benefit of maximising shareholder returns, whilst leaving sufficient flexibility to invest in the growth of the business.

And who are we to argue with that. But securitising death? Is nothing sacred?

[spob] 11/5/2009 18:41

Only three things are certain in life .... Taxes, Death and more Taxes

[miata] 11/5/2009 07:49

Dignity has seen double-digit increases in both sales and profits in the first three months of the current year.

Sales in the three months to March rose by 12.8% to £52,9m, while operating profits rose by 15.3% to £20.4m. Trading since March continues to be in line with management's expectations, Dignity added.

"This is a very strong start to the year. All three businesses continue to perform well and we remain on track for the full year," chief executive Mike McCollum commented.

[cw2000] 10/5/2009 23:05

One feels tempted to by a share in pns just to enjoy the agm!

[philo124] 10/5/2009 21:57

YEP saw that.

jUST READ HIS (PNS) STATEMENT- WHAT A CORKER!

I BET HE'S GOOD VALUE AT LUNCH

[eburne1960] 10/5/2009 13:59

"BUY" in the Sunday Telegraph today.

[salpara111] 09/5/2009 14:26

knowsleyman , Thanks for the pointer to the PNS Chairmans' statement. Absolutely priceless, I was reading away at the part that I assumed was "the ramblings" only to find that I had not even got to the "official ramblings" section.
I can honestly say that I have never seen a set of publicly listed accounts containing that sort of information in my life...absolutely priceless! cheered up this recently redundant individual no end!

[creamygoodness] 08/5/2009 08:38

What a fantastic read. I particularly like the bit about his preferred style of short trousers.

[knowsleyman] 08/5/2009 08:11

If anyone fancies a good, strictly un PC, read then look at the results for PNS and move to the Chairman's ramblings. An annual event worth looking at!!!!!!!

[the big fella] 07/5/2009 13:31

You must be getting excited - a 20p rise in one day. A whole 4%. Well done. Now remind me , what was your average buy price.

[mr hangman] 07/5/2009 13:28

Up we go up we go

[jonc] 07/5/2009 13:14

Impressive bounce.


Sell!!

[ted32] 07/5/2009 12:16

There is a number of reasons why Aegon is selling. I've topped up around the £5 level

[knowsleyman] 07/5/2009 11:59

Still a watcher. The market does appear to have taken the Aegon offload very well. Personally I do not understand it.

Just as a thought anyone intersted in fairly reliable income could look at THB. I am a holder!!!!!!!!!!!!! DYOR.

[miata] 06/5/2009 15:40

Aegon seems to want to sell what can be absorbed by the market.

[joshalexander] 06/5/2009 15:35

People can make as much noise as they wish.
The share price does the taking here - and right now its screaming.
Watch out below IMO.

[mr hangman] 06/5/2009 15:24

Sorry DonARS*HOLE another trouble maker has turned up