Dignity Share Discussion Threads

[siskinbird] 06/12/2005 14:17

I hadn't realised how close DTY is to being a candidate for admittance to the FTSE 250. Take a look at this, where today DTY ranks as number 361 (the FTSE 250 companies, roughly, are those from 101 - 350):-



That would certainly attract some interest from the tracker funds....

[m.t.glass] 17/11/2005 13:07

"...makes me think they have an informed view..."

Hey, you don't think (..nah) they secretly importing infected birds?


Dignity plc Xmas Card?

[tinker] 17/11/2005 12:07

I suppose this could backfire on DTY (no pun intended) as if they are gearing up for a pandemic and it doesn't occur this winter they'll have spent on extra materials and labour without the increased income . . . which makes me think they have an informed view.

[woodsman2004] 17/11/2005 09:43

To be honest a cold winter is much more likely to have a beneficial effect on the share price than future pandemic which no one knows when it will come or how bad it will be.

I have close connections with the care of the elderly and there is a general consensus that the recent mild winters has led to a considerable "overhang" of frail old people. Unfortunately for them a cold winter, if we get one, will correct this.

Peter Hindley knows this but he is more PC in his language than me when he talks of death rates being below average but natually correcting!

[tinker] 17/11/2005 09:28

from today's Independent - Morbid I know but I was in DTY before the bird flu scare started so I guess that makes it easier.

Undertaker gears up for pandemic
By Susie Mesure
Published: 17 November 2005
Dignity, the undertaker, is preparing to work round-the-clock to churn out enough coffins to meet the potential spike in demand if avian flu hits these shores in earnest.

The funeral company, quoted on the Alternative Investment Market, reckons it can handle twice as many deaths if it adopts emergency measures such as cutting the length of its average cremation service by one third and extending the opening hours of its crematoria.

Co-operative Funeral Care, which buries more bodies in the country than any other undertaker, revealed yesterday it was working closely with the National Association of Funeral Directors about how best to handle a pandemic. "We are working on contingency plans," a spokesman said without elaborating.

Peter Hindley, Dignity's chief executive, was happier to give details: "We are making preparations in our coffin factory to introduce double shifts. We will work throughout the night to make sure we have enough coffins available."

However, the deceased will have to settle for a standard coffin rather than a choice of final resting places as Mr Hindley would reconfigure the factory to make just one type of coffin.

Drawing on evidence from the flu pandemic that hit the US at the start of the last century, Mr Hindley said: "It's at the crematoria where we come up with a capacity problem." He said Dignity would extend the opening hours of its 22 crematoria and cut the service from 45 to 30 minutes.

Dignity, the undertaker, is preparing to work round-the-clock to churn out enough coffins to meet the potential spike in demand if avian flu hits these shores in earnest.

The funeral company, quoted on the Alternative Investment Market, reckons it can handle twice as many deaths if it adopts emergency measures such as cutting the length of its average cremation service by one third and extending the opening hours of its crematoria.

Co-operative Funeral Care, which buries more bodies in the country than any other undertaker, revealed yesterday it was working closely with the National Association of Funeral Directors about how best to handle a pandemic. "We are working on contingency plans," a spokesman said without elaborating.
Peter Hindley, Dignity's chief executive, was happier to give details: "We are making preparations in our coffin factory to introduce double shifts. We will work throughout the night to make sure we have enough coffins available."

However, the deceased will have to settle for a standard coffin rather than a choice of final resting places as Mr Hindley would reconfigure the factory to make just one type of coffin.

Drawing on evidence from the flu pandemic that hit the US at the start of the last century, Mr Hindley said: "It's at the crematoria where we come up with a capacity problem." He said Dignity would extend the opening hours of its 22 crematoria and cut the service from 45 to 30 minutes.

[gswredland] 16/11/2005 12:34

thanks for that Bill

[billfisher98] 15/11/2005 11:54

Panmure Gordon has a buy rating and 475p price target for Dignity according to Citywire:

[woodsman2004] 15/11/2005 09:01

Seems like a solid performance which can only improve when death rates pick up and naturally self-correct, which of course they will at some point soon.

[chester] 15/11/2005 07:48

For Immediate Release 15 November 2005

Dignity plc

('Dignity' or 'the Group')

Unaudited quarterly results for the 39 week period to 30 September 2005

Dignity plc, Britain's largest single provider of funeral-related services,
namely funeral services, cremations and pre-arranged funeral plans, announces
its unaudited trading statement for the 39 week period ended 30 September 2005.

Group revenue for the 39 week period ended 30 September 2005 increased by 7.3%
to #107.7 million (2004: #100.4 million).

Operating profit for the same period increased by 11.7% to #31.6 million (2004:
#28.3 million).

[bingobingy] 08/11/2005 17:13

Sis,

I'll look into that. Although i wasn't aware of the current PE I just knew it wouldn't be 700.

Bing

[siskinbird] 08/11/2005 15:48

Bingobingy
Thanks - I don't think it is a mistake, but I think I've answered my own question anyway! Basic eps for the 12 mnths to Dec 2004 (ie the last full year's results) were 0.6p according to the results themselves. Given the current share price, that does give us a p/e of around 700. However eps for the first six mnths of 2005 were 13.8, so that starts to get us into more sensible territory, assuming trading and margins for the second half are similar. Nevertheless, does anyone have access to any brokers' forecasts please?

[bingobingy] 08/11/2005 12:37

It's a mistake.

[siskinbird] 08/11/2005 12:27

Can anyone explain to me how we can justify a pe ratio of over 700 (according to ADFVN) on this share?

[hyper al] 07/11/2005 23:11

The share price is going to heaven, so it has a very long way to go.

[bingobingy] 07/11/2005 22:48

Aye, let's have some more!

[chester] 07/11/2005 16:33

Another good day.....

[gulliverr] 04/11/2005 13:52

Thank you. An interesting article which I have saved to my info file. Just by the way, my wife and I stipulated a woodland funeral in our wills some 5 years ago so the lack of a discount is not a disincentive!

[gulliverr] 04/11/2005 13:04

Bingo, your second sentence doesn't make any logical sense as a look at the chart reveals. There is also a 7 point spread! This, of course, discourages day trading and you might think this is a good thing. When it comes to POTENTIAL growth, I pointed out that the number of deaths per annum is stable and that growth would have to come from acquisition, an expensive option and not likely to be very rapid. This is why I suspect the recent highs are about as far as it is likely to go near term. I have a buy target of 395 but I won't lose any sleep over it!

[bingobingy] 04/11/2005 12:53

Being near to it's recent high is of not really relevant. It's been like that since the company first floated. You could have said that a year ago and look where you'd be now. Bizarre thing to state IMO. I also disagree with Woodsman re. the growth of the share price. There's no reason whatsoever it cannot continue as it has done. The rise in share price certainly hasn't matched the growth in revenue. It's based on the fact the investors 'like the look' of the company, especially the POTENTIAL growth. Gul, the company only recently started trading and I'd rather the company ploughed money into long term growth than pay us large divi's. Look at the share price growth, I'm surprised that isn't good enough!

[gulliverr] 04/11/2005 10:39

I note that the numbers of deaths seem to remain stable year on year. That's interesting. However, the share price seems close to its recent high point which is off-putting.
I see what you mean about fragmented. They have about 20% of disposals leaving 80% to a multitude of smaller busineses. However, growing organically by purchase would be expensive and very long term. In the meantime they are not over-generous with dividends, 2% isn't it.

[woodsman2004] 04/11/2005 10:29

Looks like lots of little investments by private investors.

Its a pretty safe tip for Investors Chronicle to make - a safe house in a storm etc etc.

Those newly on boeard may not get the spectacular share price growth that we have enjoyed, but they will get a growing business in a still highly fragmented market with steady and predictable sales.

[gulliverr] 04/11/2005 09:39

The reason for the rise is I took a good look at it yesterday and put it on my list to buy when it broke below 400. As always happens, it went the other way!
That's a pretty creepy thought Woodsman!
On the good side If IC are tipping it, it may well soon start dropping again.

[davpat] 04/11/2005 09:27

Thanks for that dcb, and yes chester I'll certainly keep the faith a while longer, but I've been badly affected by 'whip-saws' in the past and haven't quite got rid of the memories!

[dcb] 04/11/2005 09:17

davpat, tipped in Investors' Chronicle this morning