Questor share-tips: Dignity remains a buy

630AM GMT twelve March 2010

Dignity

Reflecting the delayed and solid expansion form of the company, revenues rose 5pc to �184.7m and pre-tax enlarge rose 6pc to �37.5m.

The organisation has a plan of consolidating in the fragmented marketplace of family-owned wake directors. The association paid for 7 businesses last year and has combined a serve dual given the begin of the stream year. It additionally acquired five crematoria and proposed the building a whole of dual new crematoria buildings.

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This equates to the association is right away handling 537 wake executive sites opposite the country. The sum series of funerals achieved last year was 65,000, down from 68,700 in 2008, but the normal cost of each rose 6.6pc. Excluding Northern Ireland, Dignitys funerals represented 11.8pc of deaths in the UK in 2009.

The last division of 8.07p brings the sum payout for the year to 12.1p, a 10pc year on year increase. The last remuneration will be done on Jun 25. The shares are usually agreeable 2pc, so there is range for increase, but the organisation does have about �250m of debt to service.

The shares were endorsed at 538p on May 10 last year as a protected breakwater in uneasy times. The shares are right away up 27pc compared with a marketplace up 25pc.

They are trade on a current-year gain mixed of 15.6 times, that appears entirely priced, but the successful indication equates to the position stays buy, nonetheless gains are expected to be solid rather than rapid.