Dignity Share Discussion Threads

[bigboyo] 11/6/2004 15:51

When one dies does it matter what happens to the body ?

Wooden coffins cause lots of enviroment damage, most being just veneer on MDF

A simple burial/cremation in a shroud within an eco forest or eco crematorium would be far better.

Dignity in how one LIVES not in the process of disposing of the body that carries the soul to eternal heaven ( if you ar lucky !! )

However, I am still a bulll on the share !!

[bingobingham] 11/6/2004 15:50

Creamygoodness,
Thanks for your views, and please don't take my comments the wrong way. I'm only winding you up.

unimog does make a good point that some of Dignity's operations still trade under a family name, which should be beneficial as people tend to think a family run business offer a more personal touch. Not always the case though!

It will be interesting to see what aquisitions are made over the coming months?

Please keep this thread up to date with your views.

Cheers

[tipsytoad] 11/6/2004 14:59

this is a business that will prosper, by the very nature of it
the name 'dignity' says it all,
that is what we all wish for when our time comes,
im sure, for our familys sake at least.
Any one in this trade has to be a winner
this is one business that is guaranteed not to run out of customers.

[creamygoodness] 10/6/2004 15:05

Nice one bingo. :-)They can have our business any time they want. They only have to push the right amount of money our way.

I`m not trying to deramp the company at all. And we obviously disagree on the care and service level thing. All too often we have families coming to us as they don`t want to use the bigger companies because they`ve used them before and felt that the service was too impersonal. Thats not to say they are all like that though. Dignity pride themselves on their level of care, but it doesn`t take away from the fact that when it is your family name above the door you tend to give that bit extra.

You`re also slightly wrong about everyone using the local companies. It doesn`t always work like that. We are based about 20 miles from a big Northern city and we do alot of work from there. This despite there being numerous co-op, dignity and independent, branches located there.

And please don`t suggest that I`m only deramping to stop our business going belly up. We`ve just had our best year ever. I really don`t think that my views posted on here are going to make any difference to anyone.

Anyway. Just my views. We all make our own judgements and you have made yours. So therefore I wish all holderswell and hope you all make money from them.

Stay lucky

[bingobingham] 10/6/2004 13:48

Not too much data out there at the moment, so it's difficult to see where it's heading. Shares recently rated the share a buy, which backed up my thoughts exactly.

Creamygoodness's views in my opinion, are not very realistic. Firstly, I really do not see how being a large listed company is going to affect the quality of care and level of service. We have a Dignity here in York and people will generally use who ever is local. By listing they have raised additional cash and I'm certain this will help to grow the business over the longer term.

Also, he mentions that hard to predict year on year growth. On the contrary, it would be easier as the death rate has been steady for many years. Also the population is increasing resulting in more dead folks. This business is certainly easier to predict than most other types of business. So long as Dignity can increase their market share, which is their intention, then I predict the shareholders will benefit.

Obviously, Creamygoodness being a funeral director himself, is attempting to de-ramp this share so his business doesn't go belly up.

Watch out.....Dignity is coming for you!!!!!!!!!!!!!

[pb01] 09/6/2004 11:27

Chart is looking very strong with nice breakout. Any ideas where this is heading next ?

[inigof] 27/5/2004 11:49

Company in a no growth sector? In a sector where it's bound to consolidation (as it's already happened in America) a company with strong management and that keeps an eye on costs should thrive. Add this to the fact that the increase in market share gives it pricing power and that it can buy business for less than half it's own p/e and you have here an above 15% profit grower in the next few years. No wonder this is the kind of company Peter lynch's loves.

[creamygoodness] 14/5/2004 12:28

Thanks for that BigBobJoyLove.

I`m not looking to knock this company but I would be a bit concerned about the profits being boosted by cuts in marketing and other costs. This is all well and good but Funeral Directors live and die (No pun intended-or maybe) on the amount of funerals they do. You can`t go on cutting costs as a way of making extra money if you aren`t doing the work you were expecting.
The article says that their funeral numbers were down in Q1. This seems strange as almost all the funeral directors I know have had a very busy start to the year. Our numbers for last year were around 30% up and we`ve started the new year ahead again. Maybe their drop in numbers is with the private sector fighting back against the big boys. I know that the Co-op are desperately trying win back numbers from the family companies.
The funeral profession is very people orientated and many people prefer the personal touch that you get from the smaller companies where you are generally given more time and care. Thats not to say that there are no caring people working for the big companies. There are. But bereaved families are quite often just seen as numbers. But its all about looking after people and when its your family name above the door you tend to have a lot more pride in the service you give. Sometimes this is lacking in the bigger companies where it is just a job to a lot of people - and it shows.
Last point before I finish my lecture. It is very hard to predict year on year growth in profits as the business is quite unique in the way that we are very much in the hands of nature. Nobody can accuratley tell you next years death rate or even next weeks. If people don`t die you can`t bury them and there`s not a thing you can do about it!!
As I said in my earlier post, I`m interested in this company but I don`t think I`ll be making an investment.
Lecture over. Probably not much use from a financial point of view but they are thoughts from a Funeral Director who has been doing it for far too long.
Hope I haven`t bored you all to death. But if I have, come to our company. You`ll get a better service....

[spcecks] 14/5/2004 08:42

BIGBOBJOYLOVE THANKYOU VERY MUCH.

[bigbobjoylove] 14/5/2004 07:37

Dignity (DTY) – 252.5p BUY
This week's trading update was bang in line with expectations, showing turnover up by 7% to £37 million and profits before interest, tax and depreciation sharply ahead by 17% at £14 million.

These maiden profits, following the stock market flotation last month, pushed the shares to a new peak of 252p compared to the 233p price achieved on first day dealings.

House broker Investec Securities' target price in a year's time is 304p. This is based on a PE of 15 to reflect the excellent visibility and strong profit growth.

Admittedly, the big jump in first-quarter profit margins and profits was helped by a sharp cut in marketing as well as good cost control, with costs up only £200,000 in the period.

However, the number of funerals fell more than expected in the first quarter due to the mild winter. The death rate declined by 2.5% instead of the expected 0.8%. Britain's population is growing only slowly, with more people living longer. But the death rate is expected to revert to the norm during the course of this year.

Dignity is planning to increase its market share by buying more funeral businesses and crematoria. The North Lanarkshire crematorium is due to open in a few months. Funeral services, from over 500 parlours, account for 75% of profits with crematoria services providing 20%.

Sales of lucrative funeral plans, to fund the cost of the funeral, is rising steadily from 24,000 last year to an expected 26,000 this year, supplying the balance of 5% of profits.

The company can repeat the old business trick of buying private businesses cheaply at less than half its own PE rating, thereby sharply boosting its profits. It plans to pay around £100 million – snapping up about 100 funeral parlours over the next decade.

There are other gains too, in terms of marketing costs, administration expenses and bulk buying of coffins.

The plus for Dignity is the money it collects from the deceased's Trusts for funeral costs. This contributed £1.2 million in the first quarter.

The negative, however, is its huge debt – after the £235 million management buy-out in 2002 – amounting to £265 million. Interest amounted to £31 million last year but will almost halve this year following the flotation proceeds.

Profit growth should average around 12% a year, lifting the pre-tax total from £1.5 million in 2003 to almost £20 million this year, £23 million next year and £26 million in 2006.

Shares Summary

The one certainty in life is that you are going to die. Whether it will be with Dignity is uncertain but the company plans to lift its share of the £1 billion a year funerals market by almost half from its current 13% over the next 10 years. This makes the shares an excellent long-term investment.

Business: Largest provider of funeral services, cremations and pre-arranged funeral plans

Vital stats:
Market Value: £202 million
Historic PE 2003: nil
Prospective PE 2004: 15.0
Prospective PE 2005: 13.0
Prospective PE 2006: 11.4
Prospective dividend yield: 2.3%
NMS: 10,000
Spread: 2.0%


--------------------------------------------------------------------------------

[creamygoodness] 13/5/2004 22:12

Hello all.
I`ve kept a watchful eye on this one since the float as it`s my line of work. (Someone has to do it!!)
Bingo- The funeral industry is so fragmented with thousands of private, family owned companies out there so I suppose you could say that their main competitors are either the Co-Op or or the whole of the private sector.
Their figures don`t look bad but If our business (and other private funeral directors that I know) are anything to go by then a lot of it could be due to a generally busy year compared to the one before. There`s no gaurentee that this year will be as good as the last though - its the nature of the business.
Our last financial year has just ended and we were about 30% up on the previous one. We`ll be luck to do that again.
Dignity are always looking for aquisitions to add to their numbers and I think quite a bit of the money raised from the float is going towards this.I`d be interested to hear what shares mag said as well as there is a lot of rubbish talked about by journalists who really don`t have a clue how the funeral profession works. Then again I dont have much of a clue about this financial lark!!
Good luck

[spcecks] 13/5/2004 15:35

bigbobjoylove ..could you post what shres mag said thanks.

[bigbobjoylove] 13/5/2004 07:37

tipped in shares mag.

[bingobingham] 12/5/2004 15:58

One thing is for sure, we won't run out of dead people so the business should remain strong and hopefully take market share to achieve further growth.

Does anyone know of Dignity's main competitors? Its a market that I know hardly anything about so will not invest until I'm sure of the business

[bigbobjoylove] 10/5/2004 07:36

very strong trading:



Dignity, Britain's largest single provider of funeral-related services, namely
funeral services, cremations and pre-arranged funeral plans, has today published
unaudited quarterly results for the 13 week period to 26 March 2004.

This statement forms the first report on trading since the Company's successful
flotation on the Official List of the London Stock Exchange on 8 April 2004.

Group turnover for the 13 week period ended 26 March 2004 increased by 6.6% to
£37.3 million (2003: £35.0 million).

Profit before interest, tax, depreciation, amortisation and exceptional items
increased by 17.2% to £14.3 million (2003: £12.2 million).

In addition, the Group received £1.2 million (2003: £nil) in the quarter in
respect of one off recoveries from the pre-need Trusts. These recoveries are
expected to be classified as exceptional income in the Interim and Final reports
for the year.

Peter Hindley, Chief Executive of Dignity plc commented:

'This has been a very busy time for the Group and I am very pleased with these
results which are in line with our expectations.'

In accordance with the terms of the securitisation carried out in April 2003,
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 notes issued in
connection with the securitisation confirming compliance with the covenants
established under the securitisation.

Copies of these reports are available at

[bigbobjoylove] 06/5/2004 11:36

looks like a buy note is out or coming out on these judging by size of buys.

[maywillow] 04/5/2004 12:37

LONDON (AFX) - Dignity PLC said Panmure Gordon has exercised, in its
entirety, the over-allotment option over 9.782 mln shares in the company, taking
the total offering size to 74.999 mln shares.
Gross proceeds received by the selling shareholders from the
exercise of the over-allotment option amounted to approximately 22.5 mln stg.
rf/

[neopolitan] 28/4/2004 19:23

Anyone know where to find details of the financial fundamentals of this down to earth firm? The website gives details of a MBO, nothing of this years float. Link below:

[blowson2000] 28/4/2004 14:22

im "Dying" to get in.Excuse the pun. But im waiting till shes back at 235p.

[spcecks] 27/4/2004 13:02

added a few more of these to my holding.

[choppa] 25/4/2004 21:14

Exactly neopolitan. Just a form of option for the stabilisation holder. But like you say this does not need support and should climb from here.

[neopolitan] 25/4/2004 11:13

Thanks choppa, if I've understood it right, the effect of stabilisation offers support (ie not resistance) to prevent the price slipping below the issue price but expires at the end of the month. Interesting, it doesn't look like it's in need of support at the moment.

[choppa] 25/4/2004 08:51

Have a look at this re: share stabilisation