30/07/2014
Interim results for the 26 week period ended 27 June 2014
Dignity plc (Dignity or the Group), the UK's only listed provider of funeral related services, announces its unaudited interim results for the 26 week period ended 27 June 2014.
| Financial highlights | 26 week period ended 27 June 2014 | 26 week period ended 28 June 2013 | Increase / (decrease) per cent |
|---|---|---|---|
| Revenue (£million) | 133.1 | 133.2 | (0.1) |
| Underlying operating profit(a) (£million) | 45.6 | 45.3 | 0.7 |
| Underlying profit before tax(a) (£million) | 32.3 | 33.1 | (2.4) |
| Underlying earnings per share(b) (pence) | 46.7 | 44.0 | 6.1 |
| Cash generated from operations(c) (£million) | 53.3 | 47.8 | 11.5 |
| Operating profit (£million) | 44.8 | 44.2 | 1.4 |
| Profit before tax (£million) | 31.5 | 32.0 | (1.6) |
| Basic earnings per share (pence) | 45.2 | 42.1 | 7.4 |
| Interim dividend(d) (pence) | 6.49 | - | n/a |
(a) Underlying profit is calculated as profit excluding profit (or loss) on sale of fixed assets and external transaction costs.
(b) Underlying earnings per share is calculated as profit on ordinary activities after taxation, before profit (or loss) on sale of fixed assets, external transaction costs (both net of tax) and exceptional items, divided by the weighted average number of Ordinary Shares in issue in the period.
(c) Cash generated from operations excludes external transaction costs and exceptional pension contributions.
(d) An interim dividend was not paid separately in 2013, but was instead included within the £1.08 Return of Cash per Ordinary Share paid in August 2013.
As anticipated, the first half of the year started quietly compared to the strong first half performance in 2013. Deaths in the first half of the year were 7.0 per cent lower than in the same period in 2013, when reported deaths rose by 5.6 per cent.
Underlying operating profit was flat at £45.6 million (2013: £45.3 million) despite the significant reduction in the number of deaths. Average incomes in each division were strong and costs across the Group were well controlled.
The Board's current assumption is that the number of deaths will be between 535,000 and 550,000 in 2014. No individual year in the last 30 years has witnessed a reduction of more than 5 per cent in the number of deaths compared to the previous year. On this basis and assuming average incomes and market share remain robust and overheads under control, the Group's overall expectations for the year are positive and unchanged.
The Group has acquired eight funeral locations and has opened two satellite locations since the start of the year, representing an investment of £5.2 million.
Mike McCollum, Chief Executive of Dignity plc commented:
“The Group has continued to perform well despite the first half being significantly quieter than last year. Underpinning this performance is our outstanding customer service and strong operational efficiency. Our financial expectations for the full year remain positive and unchanged.”
The 2014 Interim Report will shortly be available on the Group's Investor website Results and reports pages.
For more information:
Mike McCollum, Chief Executive
Steve Whittern, Finance Director
Dignity plc
+44 (0) 207 466 5000
Richard Oldworth
Sophie McNulty
Clare Akhurst
Buchanan
+44 (0) 207 466 5000
www.buchanan.uk.com