Dignity PLC AGM Statement (5623Q)
June 07 2018 - 1:00AM
UK Regulatory
TIDMDTY
RNS Number : 5623Q
Dignity PLC
07 June 2018
For immediate release 7 June 2018
Dignity plc
('Dignity' or 'the Group')
AGM Statement
Dignity plc, the UK's only listed provider of funeral related
services, will hold its Annual General Meeting ('AGM') at 11.00
a.m. today. At the meeting, the Group's Non-Executive Chairman,
Peter Hindley, will make the following statement.
"Although 2017 was another successful year for the Group with
the pre-arranged and crematoria businesses performing strongly, in
January 2018 we announced decisive action to modify our pricing
strategy and market positioning. This action was taken to protect
market share and reposition the Group for future growth in the face
of changing market conditions and increased competition. Since that
January announcement we have provided three updates in quick
succession.
In our Preliminary Results statement announced on 14 March 2018
we said that we expected trading in 2018 to be volatile because the
relationship between funeral price, service and volume would take
time to settle down. Furthermore, we said that an initial analysis
of the mix of funerals, since the introduction of the reduced
simple funeral price, had shown a step change in the number of
simple funerals conducted by the Group, at a run rate of
approximately 15 percent of all funerals, lower than the 20 percent
originally anticipated by the Board. We also commented that the
absolute number of deaths in the first two months of 2018 was
approximately seven percent higher than the previous year.
Our First Quarter Trading Update was announced on 18 April 2018,
in which we said that the death rate trend was running at
approximately eight percent ahead of last year for the first
quarter. Based on this, the Board confirmed that it believed that
results for the full year would be ahead of market expectations.
The Group has seen full year market expectations subsequently
increase.
The Group issued its First Quarter Results announcement on 14
May 2018, and as well as providing more detail on our ongoing
strategic work, we restated that the current year is all about
completing the review of our funeral business and ensuring we
continue to provide the excellent service our clients expect from
us.
Following our First Quarter Results announcement we can report
that trading since then has remained strong, however, our outlook
for the year remains unchanged.
The Board believes that it is too early to conclude that the
trading experienced to date is indicative of the likely funeral
price and volume mix going forwards. The results of the ongoing
price and service trials across the Group's entire portfolio are
crucial in determining our future market position. However, the
data from these trials is still at a very early stage and it is not
yet possible to draw any meaningful conclusions. The Board
continues to believe that trading during 2018 will be volatile.
We support the Treasury consultation on the funeral plan sector
and the Competition and Markets Authority market study of the
funeral and crematoria industries, which were both announced on 1
June and look forward to sharing the work we have already collated
to support the calls for regulation we have been making for some
time.
On 1 August 2018, the Group will announce its Interim Results
for the 26-week period ended 29 June 2018 and the Board will
provide a further update on the results of our ongoing service
trials and the operational review being undertaken in conjunction
with L.E.K. Consulting from which a comprehensive multi-year plan
will be developed and actioned."
For further information please contact:
Dignity
Mike McCollum, Chief Executive +44 (0)20 7466 5000
Steve Whittern, Finance Director
Buchanan Communications
Richard Oldworth +44 (0)20 7466 5000
Chris Lane
Catriona Flint
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END
AGMLLFLRRSIRIIT
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