Dignity Share Discussion Threads

[reels] 19/8/2020 12:24

Goldman Sachs picked up over 5% and given recent changes to funerals; this looks interesting. Blue horse likes ;))

[qs99] 19/8/2020 08:37

interesting GS just bought a piece DYOR

[encoreagain1] 18/8/2020 18:28

how is it being valued based on £55m cash generation for H1 ? confusing with the trusts now being consolidated?

[velocytongo] 18/8/2020 17:49

EPS growth and return of the dividend

[velocytongo] 18/8/2020 17:49

EPS growth and return of the dividend

[encoreagain1] 18/8/2020 17:25

anyone know the next trigger for these ?

[acv74] 17/8/2020 18:53

Got stopped out earlier...shame

[exile] 17/8/2020 09:09

Rhetorical question... I did... fingers crossed.

[exile] 17/8/2020 09:03

Who is going to buy the dip ???

[exile] 14/8/2020 08:46

Sadly the GOV Cull continues. Not only are all over 50's admitted to hospital put on an automatic "Do not resuscitate" they have St Johns Ambulance in on the act. Once a respected organisation they are now giving flawed advice on CPR that could actually kill people who have a chance of survival. I know this sounds far fetched but anyone with medical quals or those who are CPR trained look here.

[acv74] 13/8/2020 17:51

In at 335p about a week ago with a £10 pp s/b. Loving this rise.Sadly I sold 4pp at sub £6, but will let the rest run, still looks cheap

[hotdog23] 13/8/2020 17:42

So what next for Dignity?Next major milestone for me will be when they re-instate a dividend.No real view on timing. Any thoughts?

[hotdog23] 13/8/2020 17:35

Agreeing with the sentiments expressed by VT and imatsu on debt.Folks, if you are bothering to pick individual stocks, do yourself a massive favour and always go to the source financial statements. And if you don't understand them, no time like the present to start learning.

[velocytongo] 13/8/2020 17:07

Imatsu .. I'm a bit confused by the CMAs decision as an investigation has to be limited to two years by statute and that expires in March 2021 .. so I'm not clear that they have legal powers beyond that time .. the decision not to fix prices and not to create a regulator is the best outcome possible .. at the very least I expected a regulator .. this was no more than a slap on wrist and a warning to behave .. as an aside, I read the only institutions that increase prices in the pandemic were the councils, who are cash strapped and need the money .. this may have created a dilemma for the CMA who is in their interim findings mentioned they were minded to fix prices (hence the massive sigh of relief of today) using the council crematoria as a benchmark .. but if the councils raised their prices to those of private operators, then how would the CMA set prices? .. I do think that DTY have really lucked out because the CMA would be very concerned about creating disruption in the face of a second outbreak and due to C19 this govt does not have the bandwidth, money or inclination to set up a regulator.

[imastu pidgitaswell] 13/8/2020 16:43

Absolutely on the debt issue. not so sure on the CMA Report.

They basically (to me) seem to be saying that there are issues in the industry that they want to address ("On the one hand, it is clear that the funerals sector is not working well and that reforms will be needed") but cannot (at the moment) because of CV19 ("On the other hand, the pandemic has created insurmountable obstacles to some of the solutions needed to design and implement far-reaching reform of the sector at this stage.")

But they plan to return to it and in the meantime are recommending that the likes of DTY, er, tell people some more stuff. In other words, an extension of the pre-existing racket, but cards are marked and they will revisit.



Just my interpretation of it - a question of where this settles as a result.

[rb1206] 13/8/2020 16:38

Velocy : Appreciate it, thx.

[velocytongo] 13/8/2020 16:26

Oh dear. I've already said in a previous post that the £1.2bn are long dated funeral prepaids .. this is not DEBT, which some people seem to think it is .. these liabilities are matched by £920m of investments, which means there is a deficit of £280m, spread out over 13 years .. there is £540m of gross debt and £80m of gross cash (net £460m) .. the company has loads of liquidity, no near term debt redemptions (it's like a mortgage, which amortises over 25 years of interest and principal and is £33m a year) and now with the CMA off its back is in the clear.

If ADVFN says that it's got £1.8bn of debt that is wildly incorrect. They are prepaid funeral liabilities. Example. I go to DTY and pay for my funeral today and give DTY the cash. Let's say it costs £3,000. I give DTY £3,000 which simultaneously creates a liability (they have to guarantee my funeral at today's rate) and an asset (they have my cash, which they invest in the expectation that it will rise in value at the same rate as the cost of my funeral in the future). It is simply incorrect to call that debt. Moreover, these are all small scale liabilities and if the returns don't cover the costs of the funeral, DTY will still provide it, albeit at a lower margin (and this is a very high margin business).

The only real issue was the possibility of the CMA fixing prices and potentially bankrupting DTY. That risk has now over.

[con90210] 13/8/2020 16:25

Took a punt earlier and paid off big time. Gap up tomorrow?

[rb1206] 13/8/2020 16:19

imastu : Thx for that appreciate it.

[imastu pidgitaswell] 13/8/2020 16:01

Are you serious? You don't read the financial statements, you rely on ADVFN headline data?



Note 10.


The numbers you are quoting include those contract liabilities in note 9 - which are matched with the financial assets in the debtors part of the balance sheet - and in note 6.

[rb1206] 13/8/2020 15:38

Velocy : ADVFN financials show net debt of £1.8b, are you saying that's incorrect.

[velocytongo] 13/8/2020 15:14

hat .. once the market forgets about the debt, which it will because it is no longer a problem and it is £500m and not the £1.8bn that is being bandied around by the financial illiterate and it's got £80m of gross cash, investors will rate it on a p/e basis .. I reckon on £1 EPS in the next 12 months and with a market of 15 that's a £15 share price and that's before you factor a growth rating that it will almost certainly get if there's a second wave and/or when there's a pick up in the death rate .. investors will are flocking anything that's got perceived growth and rated as quality .. just check out the mid 40 multiples on stocks like Renishaw and Games Workshop .. the same will happen here .. the market has a short memory .. VTongo

[glavey] 13/8/2020 15:07

There will be a backlash, the CMA were supposed to be protecting ordinary people from the gouging that's going on (at all levels).