Dignity
Dignity, the country’s largest operator of funeral services, has published a quarterly trading update this morning which is likely to be well received by investors. Three months ago the business announced a strategic overhaul including a simplified pricing structure which it believed would see a greater number of ‘basic’ funeral services being carried out. Today’s numbers showed a less dramatic shift than had been expected so this combined with a 7% year-on-year increase in mortality has had the consequence of lifting Q1 revenues by £2m to £95m. The board still expects 2018 to be volatile, but these numbers are well ahead of what had been expected.
SEGRO
More good news coming indirectly from the retail sector, with a trading update from the warehouse operator, SEGRO. The company has had a bumper first quarter with much of the upside coming from securing warehouse lets to the likes of online retailers Zalando and Shop Direct, plus a big signing for an IKEA facility in Paris. The question is often asked as to whether retail is still a sector worth investing in but do these numbers – and those of Intu earlier in the week – mean that it’s the supporting services that are actually seeing the yields?
De La Rue
There’s an update out from secure printers De La Rue today, but by all accounts the most interesting point in here is the declaration that they won’t now contest having lost the UK passport contract to a French company. De La Rue had previously said it would contest the decision, citing security concerns and the drastically lower cost quoted by Gemalto. Profits for the year are also tipped to come in slightly below forecasts with the £4m bid cost for the failed passport contract weighing here. Expect a turbulent day for the stock.
