13/03/2019
Preliminary results for the 52 week period ended 28 December 2018
Dignity plc
Preliminary results for the 52 week period ended 28 December 2018
Dignity plc (Dignity, the Company or the Group), the UK’s only listed provider of funeral related services, announces its preliminary results for the 52 week period ended 28 December 2018.
| Financial highlights | 52 week period ended 28 December 2018 | 52 week period ended 29 December 2017 | Increase / (decrease) per cent |
|---|---|---|---|
| Revenue (£million) | 315.6 | 324.0 | (3) |
| Underlying operating profit (£million) | 80.2 | 104.6 | (23) |
| Underlying profit before tax (£million) | 54.4 | 77.8 | (30) |
| Underlying earnings per share (pence) | 85.8 | 128.3 | (33) |
| Underlying cash generated from operations (£million) | 101.9 | 115.4 | (12) |
| Operating profit (£million) | 66.3 | 98.0 | (32) |
| Profit before tax (£million) | 40.5 | 71.2 | (43) |
| Basic earnings per share (pence) | 63.0 | 115.8 | (46) |
| Cash generated from operations (£million) | 94.9 | 112.5 | (16) |
| Interim dividend paid in the period (pence) | 8.64 | 8.64 | - |
| Final dividend proposed in respect of the period (pence) | 15.74 | 15.74 | - |
| Deaths | 599,000 | 590,000 | 2 |
Alternative performance measures
All measures marked as underlying in the table above and throughout this Preliminary Announcement are alternative performance measures. The reasons for the Group’s use of alternative performance measures, definitions and where relevant, reconciliations are provided in the section on alternative performance measures at the end of this announcement.
Key points
- Number of deaths as expected;
- Comparable funeral market share increased slightly following significant declines in 2016 and 2017;
- Simple funeral pricing reset;
- Unbundled funeral replacing full service package;
- Simplicity service offering expanded;
- Transformation team in place;
- 3 year detailed Transformation Plan established;
- Good performance from crematoria; and
- Pre-need environment remains challenging.
Mike McCollum, Chief Executive of Dignity plc, commented:
“2018 marked the beginning of a period of radical change for Dignity. We reduced our funeral prices, created a broader range of choices for clients and embarked on plans to transform the business by the end of 2021.
Our vision is to lead the funeral sector in terms of quality, standards and value-for-money. To achieve this we are building a more coherent, cohesive and technology-enabled business, one geared to meeting the changing needs of our customers. I am pleased with the progress we made during the year, we built momentum and our Transformation Plan is on track. A lot of work remains to be done, but I am confident that with our highly experienced staff and the new transformation expertise we have brought in, we will achieve our goals.
2019 is likely to mark the start of the Competition and Markets Authority’s (‘CMA’s) investigation into our industry. Our surveys demonstrate that the majority of clients assume the funeral industry is regulated, when it is not. Some may assume that they will receive the same quality of service from different operators irrespective of price. They will not. I am proud that underpinning all of the changes we are making to our business is a continued, relentless commitment to the highest levels of client service. This commitment makes me confident that we have the quality necessary to achieve our ambition of getting ahead of the competitive curve, leading the industry and providing sustainable growth.”
For more information
| Mike McCollum, Chief Executive | |
| Steve Whittern, Finance Director | |
| Dignity plc | +44 (0)20 7466 5000 |
| Richard Oldworth | |
| Chris Lane | |
| Catriona Flint | |
| Buchanan | +44 (0)20 7466 5000 |
| www.buchanan.uk.com | Dignity@buchanan.uk.com |
Notes
An analysts' briefing will be held at 9:00 am this morning at the offices of Buchanan, 107 Cheapside, London, EC2V 6DN.
A live audio webcast and conference call facility will be available.
| Webcast | http://webcasting.buchanan.uk.com/broadcast/5c61476be6e1d92d38f4d21b |
| Conference call | UK Toll: +44 3333000804 |
| (Listen only) | UK Toll Free: 08003589473 |
| Participant PIN code: 19727101# | |
| URL for international dial in numbers: | |
| http://events.arkadin.com/ev/docs/NE_W2_TF_Events_International_Access_List.pdf |
The webcast link and conference call will be listen only.
A webcast replay facility will be available after the analyst meeting via the same link
Dignity’s preliminary results and corporate presentation are available at
https://www.dignityfunerals.co.uk/corporate/investors/.
For further information, please contact dignity@buchanan.uk.com