UK funeral service provider Dignity flags cash woes after 68% profit slump (updated)
31/03/2023 08:20
(Adds details on debt, background)
March 31 (Reuters) - Britain's Dignity Plc DTY.L said
on Friday it continued to be in "significant need" for capital
after the funeral services provider posted a 68% slump in annual
operating profit, hurt by lower prices and cost pressures.
The company, which in January agreed to a 281 million pound
($348 million) takeover by a consortium backed by investment
firms SPWOne V Ltd, Castelnau Group CGL.L , and Phoenix Asset
Management Partners, said the completion of the transaction
remained subject to Financial Conduct Authority's change of
control approval and shareholder nod.
The group, which completed an operational restructure last
year when its working pattern returned to a regular level
following an ease in pandemic-related casualties, is now
battling a slower market-share growth.
The funeral operator, which owns 725 funeral locations and
46 crematoria in Britain, said it was presently unable to fund
additional capital expenditure from operations and had to limit
marketing expenses as it continued to draw upon available
facilities to manage liquidity in the short and medium-term.
The group has drawn 15 million pounds of its 50 million
pound facility with Phoenix UK Fund Ltd and expects to utilise
the rest of the amount this year.
It reported an underlying operating profit of 17.9 million
pounds for the 52-week period ended Dec. 30, while revenue
slipped 13% to 270.5 million pounds.
($1 = 0.8074 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; editing by
Uttaresh Venkateshwaran)
((abyjose.koilparambil@thomsonreuters.com; +917483275231;))