Companies: DTY   

Dignity, the UK's only quoted undertaker, carries out funeral services, cremations and pre-arranged funeral plans. Bossed by chief executive Peter Hindley, the group delivered full year figures ahead of expectations and is ready to spend up to £80m on acquisitions in the funeral parlour and crematoria industry. Profits before goodwill, exceptionals and one-off finance charges rose 31% to £22m in the year to December, on turnover up 5% to £135.7m, with cost control offsetting the lower number of recorded deaths. At the pre-tax line, profits were £3.1m, versus losses of £3.5m last time. Dignity also boasted some strong operating cashflow of £44.1m, taking year-end cash balances to £24.9m. Last year, Dignity performed 67,600 funerals from its 512 funeral homes, and 38,400 cremations from 22 crematoria. The group is market leader in the provision of funeral plans and unfulfilled plans grew to 170,200 (164,300) by the year-end. Total recorded deaths were 574,500, down from 592,200 in 2003 - but Hindley insists rate fluctuation is self-correcting and Government estimates for 2005 suggest 579,700 deaths are on the cards! Dignity, which raised £123m in April 2004 to repay expensive debt, diversify its shareholder base and drive growth, has spent £8.8m on acquisitions since float. On the lookout for deals, we feel Dignity is worth holding for its consolidation prospects and strong cash generation.