By Chris Bailey of Financial Orbit | Wednesday 17 March 2021
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
First a few words on Dignity (DTY) where I highlighted my deep caution with the ‘the UK’s only listed provider of funeral related services’ back in 2017 and 2018. The company is still facing a regulatory enquiry by the FCA with more thoughts expected in the third quarter of this year. As I noted back in November here, there are many other industry changes also around, particularly the rise of cheaper alternatives. Today’s full-year numbers may have seen a rise in sales (sadly of course assisted by the Covid-19 challenges) but underlying profitability is still sharply down as the heightened competitive realities continue to impact. The shares might be up 5% to over 630p today but it remains a strong avoid for me.
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