Dignity Share Discussion Threads

[melody9999] 01/4/2005 21:53

couldn't agree more Dom. Good to see someone presenting facts not opinion. And reality is that acquisitions in this business no different to any other - with the op margins Dignity enjoy , can you really believe they are doing anything other than offering what they believe the biz is worth.... and if it is not accepted then they walk away.

[domyoung99] 31/3/2005 21:31

Mryesyes,

I'm afraid you're utterly misinformed. Dignity make near 30% operating margins! This might tire you out, but give it a go - try reading the Prelim RNS and realise that there is a lot of clearly explained one-off costs related to the IPO - i.e. refinancing their debt for a much cheaper rate etc.

Secondly, the management have very clearly stated that they have rigorous procedures when selecting acquisitions. Bear in mind that the vast majority of sellers are simply sons/daughters inheriting a business they don't particularly want to operate...

You should be feeling thoroughly embarrassed by your stupidity.

[belize1970] 31/3/2005 18:00

Is it true that Dignity sponser Micheal Howard?

Anyway, when the Tories get in and they cut NHS spending on the elderly by £20 Billion or so this share should really fly. Clouds, silver linings and all that..!

[mryesyes] 30/3/2005 22:07

IMHO the problem here is that every undertaker in the country has 2 permanent options

1. Carry on trading if you know your business is booming

2. Guess who will buy it if you know its a dog, disliked locally etc DIGNITY plc!!!

£3m profit on £300m turnover is simply a virtual loss; as they are buying going concerns they cannot say the 1% profit on turnover is because of acquisitions; but it does beg the question of the quality of those acquisitions and the obvious operators who sell out to them know what they are selling. Dignity are finding out they got the unpopular outfits aren't they.

[comingindry] 14/3/2005 19:19

Anyone have a view on todays late trade.Was it a sell or a buy?

[gswredland] 13/3/2005 09:55

agreed Melody! I really like this stock long term.Have bought more recently.

[melody9999] 12/3/2005 17:43

be very happy if DTY returns to the odd tick up or 2 every day. what could be better?!

[woodsman2004] 11/3/2005 14:52

I there is an outbreak of bird flu or spanish flu in the UK, we will have more to worry about than the price of shares!

Remember the 20m+ that died in Europe after WW1 - AND the fit and healthy died in disproportionately high numbers.

[comingindry] 04/3/2005 19:00

Bird Flu could push this share upwards,anyone any ideas of other shares which may benefit.I don't want to be morbid but this is a fact.

[melody9999] 03/3/2005 23:05

Susan - the figures for profit (as announced) and shares in circulation are factual. The PE ratio is the variable. You are quite right in saying 12 is too low based on current profits, and that is exactly the point. We expect the share price to rise to bring the PE back to 18 or so. That assumes of course that Dignity's future growth is consistent with the current level. Any acceleration means that the share will command a higher PE rating, and the share price will rise. The reverse is true if people don't die (unlikely!) or Dignity fail to maintain their 'market share' or control their costs.
Hope this helps.

[melody9999] 03/3/2005 22:50

Nice to be acknowledged by the CEO.

Dear Interested Investor

Dignity PLC announced Preliminary Results for the calendar year ended December 2004 on RNS at 7 a.m. today. As you have previously expressed interest in our company, I am taking the opportunity to give you more information about these results.

To read the announcement in full, please follow this link to our website, where you can also register for future email alerts by visiting the home page.

Thank you for your continued interest in Dignity PLC.

Kind regards

Peter Hindley
Chief Executive
Dignity PLC

[m.t.glass] 03/3/2005 22:07

cheers Mr yy.

I am up against the limit on my spreadbetting account at present, having pushed it to the maximum from the start of this year (generating a £34.4k gain in 2 months which is nice) otherwise I would probably have taken out an upbet for the immediate rise on DTY, and maybe bought shares in time for the May 4 xd date and held till next winter. Instead i have bought shares early. I may yet rejig this bet-vs-holdings DTY position once some of my other bets expire mid-March.

[mryesyes] 03/3/2005 17:05

Oh M.T.Glass you needn't have sold the stock was quite as you thought originally
as you have confirmed by buying back in today ahead of your pre-resultsd plan to wait for the summer.
You have proved you had no inside information, that you were right and showed a good degree of caution. Applause from the yes yes camp

[belize1970] 03/3/2005 12:23

So, no one knows (or is prepared to share) the real EPS or PE?

[susan widdowson] 03/3/2005 10:30

Does anyone know the real EPS?
Sharecast's offering below confuses me even more!

LONDON (SHARECAST) - Funeral director Dignity swung into annual profit and expects to make further progress in 2005.

Following costs of a debt restructuring ahead of its float last April profit before tax came in at £3.1m from a £3.5m loss in 2003. Sales rose 5% in the period to £135.7m.

"The successful flotation of the company has created a strong base for the future development of the business. We expect to achieve this by a combination of further acquisitions, opening new locations and seeking further partners for our pre-arranged funeral plan business," the group said in a company statement.

Dignity plans to pay a final dividend of 3.75p a share, making a total of 5.625p.

[m.t.glass] 03/3/2005 09:59

- I'm back onboard.

[gswredland] 03/3/2005 09:48

I did sell last month but have got back in. These are a good long term hold imo

[woodsman2004] 03/3/2005 09:06

Note that the profit preformance on a reduced overall death rate. Remember that the death rate WILL return to normal at some point!

Yes this is a good steady banker for your portfolio. Whilst I am sitting on a tidy gain since floatation, I have no intention of selling any. I will also top up on any weakness (however I think this is unlikely).

[susan widdowson] 03/3/2005 09:02

Can someone clarify the EPS please?
I make it 22M / 80M = 27.5p
(22m profit divided by the 80m shares in issue which gives a PE of arouund 12, far too low) - However I think the real EPS is nearer 18p - can someone say why?

[salpara111] 03/3/2005 09:00

Well, I'm pretty comfortable with my recent investment. This is one of those stocks which behaves like a support services company in that the visibility and variability of its earnings stream is good due to the fact that as someone mentioned "we are all going to die"!
I dont expect it to double overnight but given their current market share there is plenty of opportunity for them to grow both organically and acquisitively for at least 5 years.
As long as the company focuses on its operational details and cost control then it should be a solid grower.

[aughton 3] 03/3/2005 08:59

quality 1 and 2 melody

[maywillow] 03/3/2005 07:30

LONDON (AFX) - Funeral-related services provider Dignity PLC reported a rise
in full-year pretax profit before goodwill and exceptionals to 22 mln stg from
16.8 mln a year earlier, while sales rose 5 pct in the period to 135.7 mln.
Results were slightly ahead of expectations despite a lower than anticipated
death rate, the group said in a statement.
Chief executive Peter Hindley said: "The group continues to trade well and
we expect to make further progress in 2005."
Dignity plans to pay a final dividend of 3.75 pence a share, making a total
of 5.625p.
It added it will seek to achieve growth by a combination of further
acquisitions, opening new locations and seeking further partners for its
pre-arranged funeral plan business.
[e-mail]
lam

[melody9999] 02/3/2005 13:11

Some reasonable buys going through prior to results - any one have any views?