Dignity Share Discussion Threads

[salpara111] 21/3/2006 09:08

Well I have been in since 340 and quite frankly I am really surprised that there has been zero reaction to the results today which I thought were excellent, if I didnt have such a large chunk of my portfolio in the stock I would be adding today!

[davpat] 21/3/2006 09:03

Well, if we're going down the 'tongue in cheek' track again, I suppose the client feedback was got before and not after the event! With all the 'prior' arrangements available on the market now (eg.Tesco points card tie up) the whole thing appears to be being made less and less of an ordeal than it once was. How one can feel 'satisfied' with it though is still hard to believe! Still if it pushes the share price up to heaven, so be it. Roll on the satisfaction!
Incidentally, does anyone have any feel for the share registration requirements to enable qualification for the £1 per share return in August? I suppose the arrangement has to be ratified first, but as a newcomer to this I wondered if anyone had any past experience.
DAVPAT

[m.t.glass] 21/3/2006 09:00

None of the folk they buried came back to complain?

[melody9999] 21/3/2006 08:34

Look like solid results to me. My favourite bit is:

"Client satisfaction continues at record levels".

Wonder how they researched that!

[davpat] 21/3/2006 08:02

Hardly struggling! Positive results, and another little share price breakout on the cards?

[gucci] 13/3/2006 18:00

struggling

[m.t.glass] 13/3/2006 10:30

Meanwhile ...Every little helps

[siskinbird] 08/3/2006 10:46

There was an article on Radio 4 this morning (on "Yesterday in Parliament") about a debate in the Houe of Lords yesterday about the rapidly rising costs of funerals - over 60% increase in 5 years, they said - and whether the Office for Fair Trading should have a look at the industry. Doesn't sound like particularly good news for our company....

[chester] 06/3/2006 08:49

Chartwise, looks like we're heading back up.

[m.t.glass] 06/3/2006 08:48

Tipped by Questor in the Telegraph as "one to tuck away. Buy."


The Questor column
Edited by James Quinn (Filed: 04/03/2006)


Dignity looks a long-term buy in spite of slowing death rates

Even though death comes to us all, can a slowdown in the death rate spell trouble for Dignity, which makes its money from trying to ease other people's grief?



The Sutton Coldfield-based company was unduly knocked in the week by news - put into the market by its own broker Panmure Gordon - that Britain's death rate is on the wane.

Although Panmure analyst Charlie Cottam's update to institutional investors was clearly entitled "Strange death rate not a concern", it was not enough to stop City wags picking up the data and suggesting there was undue trouble ahead for Dignity.

What Mr Cottam actually said was the British death rate for 2006 looked to be down 7pc based on figures showing 82,000 deaths in January and February against 88,000 in the same two months in 2005.

He did caution that February historically tends to be a slow month - for whatever reason - and that March was particularly strong last year and so all is not lost.

Although these are mere statistics, and can be interpreted whichever way investors choose, such movements can obviously have an impact on Dignity as it has a proportionally high fixed-cost base due to the sheer nature of its business.

Dignity has to update bondholders on its first quarter's performance, and this is likely to be weaker than the same period last year given the changes in the death rate.

However, overall potential for the current and future years is unlikely to be significantly affected by such a blip, and investors should instead focus on the company's strong points.

Dignity is a strong operator, keeping the local name and branding of the funeral homes it buys to ensure customers are given the personal touch that is needed at such times.

In spite of such a personal touch, it is leading consolidation in the industry, with around 12pc of the market compared with Co-operative Funeralcare's 14pc.

It is also fast becoming a one-stop shop, offering memorials, headstones, flowers and a host of other extras to make the whole process easier for bereaved friends and relatives.

Financially, full-year results to December 2005 are due on March 21. The company told investors last month that it is planning a 100p-a-share cash return to shareholders in August, as well as paying off its £12m pension deficit and raising £90m of more attractive long-term debt, meaning it will have £250m of debt by the end of 2007.

But such astute financial engineering shows the company is in good shape and highlights the board's commitment to shareholders.

Since floating on the junior Alternative Investment Market in April 2004, the funeral director's shares have more than doubled from a 230p float price to their recent level around 463¾p.

Panmure Gordon believes Dignity has the potential to deliver earnings growth of around 15pc a year, which combined with the special dividend and close-to-market-leading position means the shares - last tipped as a hold in September 2005 - although not cheap are worth tucking away for the long term. Buy.

[bingobingy] 05/3/2006 22:05

got that one wrong gucci! I don't think we'll be seeing those levels again.

[gucci] 16/2/2006 12:55

440p to 460p looking more possible
gld i sold at 475p

[gucci] 07/2/2006 15:45

out for now chester
460 or 440p looks likely especially if markets turn short term

[chester] 03/2/2006 20:29

Been out all day but very pleased to come back to another new High.
So whats all this about B shares. I'll have to take a closer look at the news.

[gucci] 03/2/2006 15:48

500p on monday at this rate

[siskinbird] 03/2/2006 14:04

Bingo
I've no idea, but I'm looking around on the internet to see if I can find out anything useful.

It looks as if it's just a way of issuing shares to existing shareholders, free of charge, so that we can then cash in or convert to ordinary shares. Class B shares don't appear to have the same voting rights attached to them.

For example, here's a section from a FAQ document about Rolls-Royce B shares:-


"B shares are shares in Rolls-Royce Group plc (the "Company") with limited voting rights that can, during defined periods, be redeemed for cash or, alternatively, can be converted into ordinary shares. You do not have to pay for B shares they are issued as fully paid bonus shares."

Full text at

Hope this helps - I'm no expert. It would be useful if others could contribute their expertise.

[bingobingy] 03/2/2006 13:55

Can someone explain this to me. B shares. How does this work then?

[siskinbird] 03/2/2006 13:42

Perhaps I spoke too soon - up we go! I guess if you issue an RNS at 12:43 on a Friday, not everyone sees it immediately.

I bet that those trades of 50,000 each first thing this morning were buys, not sells as reported on ADVFN.

[siskinbird] 03/2/2006 13:23

Oh heck, I need advice on the technicalities here! They say they are going to give us all £1 per share. So why has the share price gone up just 9p or so?

Whatever the technicalities, this certainly seems to underline the long-term strength of the business. Onward & upward!

[gucci] 03/2/2006 13:04

CHESTER!!! CHESTER!!
where are you?

[gucci] 03/2/2006 13:00

thx for that india - now we'll have a lovely run up to 520p towards march 21t imo

[india93] 03/2/2006 12:51

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Dignity PLC
03 February 2006



For Immediate Release 3 February 2006

Dignity plc

('Dignity' or 'the Group')

Proposed Issue of Further Notes and £80m Return of Value


Dignity plc, Britain's largest single provider of funeral-related services,
announces that its subsidiary, Dignity Finance plc (a subsidiary of Dignity
(2002) Ltd, the holding company of the securitised sub-group of Dignity plc)
intends to issue Further Notes under its existing whole business securitisation.

Dignity Finance plc has issued a Preliminary Offering Circular relating to the
issue of £42.5 million Class A Fixed Rate Notes due 2023 and £32.5 million Class
B Fixed Rate Notes due 2031. The proceeds of the issue are expected to be
approximately £85 million net of expenses and fees. It is envisaged that the
fund raising, arranged through lead manager and sole bookrunner to the
transaction, The Royal Bank of Scotland plc, will be completed in the week
commencing 20th February 2006.

Dignity plc intends to return approximately £80 million (£1 per share) to
shareholders by way of the issue and redemption of B shares. Under the terms of
the existing Notes the transfer of funds from the Dignity (2002) Ltd securitised
sub-group cannot be made until August 2006. It is planned that an Extraordinary
General Meeting will be convened immediately following the Annual General
Meeting on 8th June 2006 to approve the necessary changes to the authorised
share capital and the Articles of Association to allow the B shares to be issued
and redeemed. In order to aid comparability of the financial record it is
planned that a share consolidation will accompany the return of value. A
circular containing full details of the proposals, including a detailed
timetable, will be sent to shareholders in due course.

Given this intended substantial return of value the directors do not propose to
pay a final dividend for 2005, which would otherwise have been payable in June
2006 but expect to resume dividend payments with the 2006 interim dividend
payable in October 2006.

Upon completion of the fund raising Dignity currently intends to pay
approximately £10 million into its final salary pension schemes thereby largely
eliminating their deficits under FRS17.

Commenting on the issue of the Further Notes and the proposed return of value,
Peter Hindley, CEO said:

'Dignity is a business that produces a strong and stable cash flow, which has
increased significantly since the original securitisation in 2003. This growth
allows the Group to sustain and service a higher level of gearing. As a
consequence of this and current attractive long term interest rates the
directors have decided to issue Further Notes, raising approximately £85 million
net of expenses and fees. This will increase the annual interest expense by
approximately £5 million per annum. It is our intention, subject to shareholder
approval, to return the vast majority of the funds raised (£80 million or £1 per
share) to our shareholders. We will use the remaining amount, together with some
existing cash resources to largely eliminate the Group's FRS17 pension deficit.
The Directors believe that the return of value is consistent with maximising
total shareholder returns through an efficient balance sheet, which nevertheless
leaves sufficient flexibility to continue to grow the business.

I am pleased to report that the Group has continued to make further progress and
is trading in line with expectations.'

Dignity will announce Preliminary results for the 52-week period ended 30th
December 2005 on Tuesday 21st March 2006.



For further information please contact:

Dignity plc 0121 354 1557
Peter Hindley, Chief Executive
Mike McCollum, Finance Director

Buchanan Communications 0207 466 5000
Richard Oldworth/Suzanne Brocks




This information is provided by RNS
The company news service from the London Stock Exchange



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[india93] 03/2/2006 12:50

new rns - debt raising and return to shareholders !