First quarter trading update

RNS Number : 6981M

Dignity PLC

11 May 2015

 

 For immediate release                                                                                       11 May 2015

Dignity plc

First quarter trading update

Dignity plc (Dignity or the Group), the UK's only listed provider of funeral related services, announces its trading update for the first quarter of 2015.

	13 week	13 week	Increase
	period ended	period ended	per cent
	27 March	28 March
	2015	2014
Revenue (£million)	85.5	69.1	23.7
Underlying operating profit1 (£million)	35.8	25.8	38.8
Number of deaths	175,000	147,000	19.0

¹ Underlying operating profit is calculated as profit excluding profit (or loss) on sale of fixed assets, external transaction costs and exceptional items.

As expected at the time of the Group's 2014 preliminary results published in March, the number of deaths in the first quarter has been very high, approximately 19 per cent above 2014, which in turn was approximately 7 per cent below the previous year. However, data from previous years indicates that large variances in the number of deaths at the end of the first quarter tend to normalise by the end of the year.

The Group's current assumption is that the number of deaths in 2015 will be broadly flat on the previous year. Average incomes continue to be robust and overheads well controlled, with the Group yet to decide on the timing of any changes to its pricing. Taking all of these factors into account, the Group's overall expectations for the year are positive and unchanged.

The Group has acquired 10 funeral locations since the start of the year, for an investment of approximately £8 million.

There were no other significant transactions in the period to 10 May 2015.

Mike McCollum, Chief Executive of Dignity commented:

"The year has started very strongly compared to a weak first quarter last year. Our client surveys confirm that even though the business is very busy, service levels remain extremely high thanks to the continued dedication of our employees. The Group's expectations for the full year remain positive and unchanged."

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 the Secured Notes issued in October 2014 in connection with the securitisation.

Copies of these reports are available at http://www.dignityfuneralsplc.co.uk.

For further information please contact:

Dignity plc                                                             [phone]

Mike McCollum, Chief Executive

Steve Whittern, Finance Director

Buchanan                                                             [phone]

Richard Oldworth

Sophie McNulty

Robbie Ceiriog-Hughes

www.buchanan.uk.com

 

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