Dignity PLC 2018 trading update (0709N)

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RNS Number : 0709N

Dignity PLC

15 January 2019

 
       For immediate release         15 January 2019 
 

Dignity plc

2018 trading update

Dignity plc (Dignity or the Group), the UK's only listed provider of funeral related services, announces a trading update following the conclusion of 2018.

2018 financial performance

Initial indications suggest 599,000 deaths in the year, consistent with the Group's expectations. However, operating performance in the fourth quarter was stronger than expected, principally due to:

   --      Comparable market share remaining robust and showing small growth year on year; 
   --      Funeral average income remaining higher than anticipated; 

-- Overheads being lower than expected, partly due to the timing of some marketing spend which will now occur in 2019.

As a consequence, the Group expects (subject to audit) to report underlying operating profits of approximately GBP79 million, which is ahead of current market expectations.

Good progress continues to be made on the Transformation Plan. Following the price reductions introduced in 2018, the Board continues to expect average funeral incomes to be lower in 2019 than in 2018 and there are therefore no changes to the Board's expectations for 2019.

The Group will report its preliminary results on 13 March 2019.

For more information

Mike McCollum, Chief Executive

Steve Whittern, Finance Director

   Dignity plc                                                              [phone] 

Richard Oldworth

Chris Lane

Catriona Flint

   Buchanan                                                                [phone] 
   www.buchanan.uk.com                                        [e-mail] 

Notes

Forward-looking statements

This announcement and the Dignity plc investor website may contain certain 'forward-looking statements' with respect to Dignity plc ('Company') and the Group's financial condition, results of its operations and business, and certain plans, strategy, objectives, goals and expectations with respect to these items and the economies and markets in which the Group operates.

Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as 'anticipates', 'aims', 'due', 'could', 'may', 'should', 'will', 'would', 'expects', 'believes', 'intends', 'plans', 'targets', 'goal' or 'estimates' or, in each case, their negative or other variations or comparable terminology. Forward-looking statements are not guarantees of future performance. By their very nature forward-looking statements are inherently unpredictable, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Many of these assumptions, risks and uncertainties relate to factors that are beyond the Group's ability to control or estimate precisely. There are a number of such factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, changes in the economies and markets in which the Group operates; changes in the legal, regulatory and competition frameworks in which the Group operates; changes in the markets from which the Group raises finance; the impact of legal or other proceedings against or which affect the Group; changes in accounting practices and interpretation of accounting standards under IFRS, and changes in interest and exchange rates.

Any forward-looking statements made in this announcement or the Dignity plc investor website, or made subsequently, which are attributable to the Company or any other member of the Group, or persons acting on their behalf, are expressly qualified in their entirety by the factors referred to in this statement. Each forward-looking statement speaks only as of the date it is made. Except as required by its legal or statutory obligations, the Company does not intend to update any forward-looking statements.

Nothing in this announcement or on the Dignity plc investor website should be construed as a profit forecast or an invitation to deal in the securities of the Company.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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January 15, 2019 02:00 ET (07:00 GMT)