Dignity PLC Third quarter trading update (9287E)

TIDMDTY

RNS Number : 9287E

Dignity PLC

09 November 2015

 
 For immediate release   9 November 2015 
 

Dignity plc

Third 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 third quarter of 2015.

 
 
                                        39 week        39 week   Increase 
                                         period         period        per 
                                          ended          ended       cent 
                                   25 September   26 September 
                                           2015           2014 
--------------------------------  -------------  -------------  --------- 
 Revenue (GBPmillion)                     227.0          196.4       15.6 
 Underlying operating profit(1) 
  (GBPmillion)                             78.1           64.0       22.0 
 Number of deaths                       446,000        409,000        9.0 
--------------------------------  -------------  -------------  --------- 
 
 

(1) Underlying operating profit is calculated as profit excluding profit (or loss) on sale of fixed assets, external transaction costs and exceptional items.

The number of deaths in the third quarter of the year was flat at 129,000 (2014: 129,000), compared to the 13 per cent increase in deaths in the first six months of the year. As a result, the year to date position is approximately nine per cent higher than the comparable period last year.

Average incomes remain robust and in the year to date total revenues are almost 16 per cent higher than last year. Costs continue to be in line with the Board's expectations, allowing for the higher volumes. Underlying operating profits increased 22 per cent to GBP78.1 million (2014: GBP64.0 million) in the year to date.

The Laurel acquisition, completed in July 2015, is performing as expected, with integration of the business well underway. Further details of operational performance will be provided in the Group's 2015 annual report.

In addition to the Laurel acquisition, the Group has acquired a total of 12 funeral locations for consideration of GBP10.9 million, bringing its total investment in the year to GBP49.2 million.

The Group is also pleased to confirm that its planning application for a crematorium in Derby has been successful. This location should start operating in 2017.

Given the continued high number of deaths relative to 2014, the Group expects to outperform current market expectations in the full year 2015. However, there remains a strong possibility that the number of deaths in 2016 may in turn be significantly lower and therefore the Group's expectations for 2016 and beyond remain unchanged.

There were no other significant transactions in the period to 8 November 2015.

Mike McCollum, Chief Executive of Dignity, commented:

"2015 continues to be a year of very strong operational performance for the Group. We remain focused on the fundamentals of our business: we have maintained very high levels of customer service, costs are well controlled and corporate development opportunities continue to be pursued."

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:

Mike McCollum, Chief Executive

Steve Whittern, Finance Director

   Dignity plc                                                             [phone] 

Richard Oldworth

Sophie McNulty

Robbie Ceiriog-Hughes

   Buchanan                                                             [phone] 

www.buchanan.uk.com

This information is provided by RNS

The company news service from the London Stock Exchange

END

TSTEAKFKELXSFFF

(END) Dow Jones Newswires

November 09, 2015 02:00 ET (07:00 GMT)