Dignity FY09 Pre-Tax Profit Rises - Update

(RTTNews) - Funeral services provider Dignity plc (DTY.L: News ) reported Thursday, in it preliminary results, a 6% increase in pre-tax profit for the 52-week period ended 25 December 2009, driven by revenue growth across segments, "good" cost control and better operating margins. The group declared a higher final dividend and also said its outlook for the full year remains positive.

The UK-based group's pre-tax profit for the year rose 6% to GBP 37.5 million from GBP 35.4 million last year. Underlying profit before tax, which excludes profit on sale of fixed assets, was up 6% to GBP 36.4 million from GBP 34.3 million.

Profit attributable to equity shareholders was GBP 26.6 million or 41.8 pence per share, up from GBP 24.6 million or 38.8 pence per share. Underlying earnings per share rose 6% to 40.5 pence from 38.2 pence in 2008, as underlying operating profit increased 8% to GBP 56.4 million from GBP 52.1 million last year.

Dignity's revenues were GBP 184.7 million, up 5% from $175.8 million.

During the year, total estimated number of deaths in Britain were 545 thousand, of which number of funerals performed were 65 thousand. Funeral market share excluding Northern Ireland was 11.8%. This compares to earlier year's estimated deaths in Britain of 553 thousand, of which funerals performed were 68, 700. Funeral market share excluding Northern Ireland was 12.3% last year.

Funeral services arm registered revenues of GBP 138.5 million, higher than GBP 137.2 million last year. Dignity noted that discretionary spend on funerals were "very robust," however, the group's results were affected by reduced number of funerals performed, which was offset by "good cost control."

Crematoria segment recorded revenues of GBP 34.4 million, up from GBP 29.2 million in the prior year. The group performed 42,700 cremations in 30 operating crematoria, representing 7.8% of deaths in Britain. This compares to year-ago's 39,600 cremations in 25 crematoria, representing 7.2% of deaths in Britain. Profitability in this segment was driven by strong performance in owned and acquired crematoria. Further, the company informed that work started at four locations to install new mercury abatement equipment required under new legislation.

In the pre-arranged funeral plans division the group saw revenues of GBP 11.8 million, higher than GBP 9.4 million in 2008. the division's number of unfulfilled pre-arranged funeral plans increased to 216 thousand from 204 thousand, as a result of focus on marketing activity with its partners.

Dignity said that it intends to propose a final dividend of 8.07 pence per share, up from 7.34 pence last year, to be paid from profits generated in 2009. The dividend, subject to shareholders' approval, would be payable on 25 June 2010, to members on the register at close of business on 28 May 2010. This will result in a total dividend of 12.1 pence per share versus 11.0 pence per share paid in 2008, representing a 10% increase.

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