We’re Shorting Dignity PLC Stock 5

Warning: This blog post is not investment advice and neither is the report which it links to. By accessing either, you confirm that you have read and agree to the Terms of Use.

Hello,

We’re rapidly bringing price transparency to the funeral industry

At Beyond*, we’re on a mission to make choosing a funeral director a more transparent process. To that end, and to date, we have signed up over 800 independent funeral directors to share their full, itemised, comparable prices online.

There are, however, two large obstacles to price transparency in this market, namely Dignity PLC and Coop Funeralcare. They represent 34% of the market and are desperate to avoid price transparency, despite occasional claims otherwise.

UK Funeral Market Affiliation Dignity PLC
UK Funeral Market Affiliation

Dignity’s business model is unsustainable

Why such shyness with prices? It’s because they are significantly more expensive than the rest of the market – Dignity by 83% compared to prices on our site. If they were to put transparent, easily comparable prices online, consumers might realise this price differential and take their business elsewhere.

Dignity are, in my view, the worst offenders – because not only do they hide their prices, they also hide their name. When they buy up independent funeral directors, they don’t rebrand them as Dignity. Instead they keep the old family name above the door, so that consumers don’t realise that the branch has become part of a corporate. They simply swap out the staff, put the prices up and no-one’s the wiser.

Here at Beyond, we believe that Dignity’s business practice and model are unsustainable. We think it has been propping up its share price with unearned price increases and self-defeating acquisitions for years. That it is a house built on sand, with a tsunami on the horizon.

We’ve published a detailed analysis on their business

Now, I hear you say, it’s easy to make a few disparaging comments about a £1.3bn market cap company. Especially a company who could be seen as a competitor. So, to that end, I offer you two tokens of our conviction.

Firstly, today we publish a 13,000-word analysis of Dignity PLC entitled “The Reaper Calls For Dignity” written by my co-founder James Dunn. Within the report he examines Dignity’s business in detail, using both publicly available information and our market expertise to make a clear case that they are grossly overvalued.

And we’re shorting Dignity’s stock

Secondly, we are so confident of their failings that we have taken a short position on Dignity stock to the tune of £50,000. To clarify, we have placed Beyond’s money (and some of our own) on the belief that Dignity’s share price will fall. I’m not sure this is traditional business practice or expenditure for a start-up. Then again, I’m not sure there has been another such market where a large incumbent has escaped even the lightest of scrutiny.

We’ve been in the funeral industry for a couple of years now and one of the key things that has stood out to me is that, notwithstanding the many genuine people trying their hardest to serve the consumer, there is an entrenched fear of rocking the boat; of calling out the elephants in the room. Despite the constant public consternation at funeral price cost rises, there is little desire from the industry associations or the media to call out the big guys and their opaque practices, which drive up prices and bring the overall industry into disrepute.

Well, today Dignity PLC, here’s us calling you out.

Best

Ian

P.S. Dignity CEO Mike McCollum recently sold most of his shares – we wonder why?

 

*Previously Funeralbooker

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5 Comments

  1. Will read the detailed report with interest, thanks. I couldn’t agree more with the fear of ‘rocking the boat’. As a team of over 30 celebrants, we have been trying to challenge the outrageous prices for years but all this has meant is that FDs won’t use our team, a form of blacklisting going on for anyone who will speak out about it. I would be happy to share a several pieces of info with you.

  2. Brian Howard B M &C Howard Funeral Services. I will send you a copy of a letter that I wrote to the local press and MP Mr I Duncan Smith then minister of the DWP in 2013, there was quite a few letters sent during 2012 and 2013 concerning the Social Funeral Fund, Dignity, Co-op, and the NAFD. The problem with Dignity, Co-op funeral care, and other funeral groups are backed up by the NAFD which is just puppet and not fit for purpose.

  3. Dignity stock fallen from £22 at time of article to under £10 today.

    classic case of a business that has enjoyed high margins but is vulnerable as the higher priced service offered does not add value to the customer.

  4. Only just discovered this website. What an excellent and accurate piece of research. Well done. Whether or not it was your intention, you’ve benifited society as a whole. Thank you.

  5. Amazing that Dignity’s share price has recovered a little after an initial 20% drop in the in the light of the Competition and Markets Authority investigations into the funeral market – you’d have though the only way was down!

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What Makes a Good Funeral? 0

A wicker coffin decorated with flowers by the team at Full Circle Funerals

What makes a ‘good’ funeral?

Most people in the funeral profession have their own (usually quite personal) idea of what the answer to this question should be.

For the eco-minded funeral director, it’s often things like willow coffins and natural burials. Others pride themselves on their traditional horse-drawn carriages and excellent embalming. And there’s always the odd funeral director who seems to think it’s all about having a lot of cars (so many cars).

But what happens when we ask bereaved families what they think?

Dr Sarah Jones, funeral director at Open Circle Funerals and author of the excellent Funerals, Your Way, has just completed a study that did just that. A collaboration with Dr Julie Rugg from the University of York’s Cemetery Research Group, the research revealed the five key factors that matter to families most. We caught up with Sarah to find out more.

 

Hi Sarah! What inspired you to do this research?

Having started my working life in healthcare, I was ‘brought up’ to make sure that everything I did was based on evidence.

Once I began arranging funerals, I naturally wanted to take the same approach. So, I began looking at all the writing available on funerals. But what I found was mostly based on anecdote, opinion or the personal reflections of professionals. And even the more robust research made assumptions about what was important, without having asked bereaved people themselves. I thought we could do better.

 

What were you trying to find out through your research?

Ultimately, I’d like to understand whether a funeral has any impact on wellbeing at all. What difference does a ‘good’ funeral make?

But before we can look at that, we need to understand what a good funeral is. Which aspects of a funeral are most important to families? Only then can we establish if, when all these factors are in place, there is an impact on how bereaved people feel.

 

How did you conduct your research?

Dr Julie Rugg and I designed and co-lead the study with the University of York. We recruited participants using newspaper articles and social media and asked them open questions about their experience of arranging or attending a funeral. We spoke to more than 50 people. Meanwhile, we had ethical oversight from an advisory committee made up of industry experts.

 

People aren’t always comfortable talking about death. Was it hard to find participants?

Actually, no! We thought that it might be, but in the end we had to stop recruiting new participants once we had interviewed 53 people. People were surprisingly forthcoming, too: the average interview was around an hour and a half long. We gathered a huge amount of data from these ‘experts by experience’!

 

What did you find out?

Once our interviews were complete, Dr Rugg analysed them to understand what people consistently said mattered to them. The five themes that emerged were:An infographic showing Dr Jones' findings

  1. Were funeral wishes known?
  2. Were decisions inclusive?
  3. Was the funeral director responsive?
  4. Was contact with the body helpful?
  5. Did the funeral event meet expectations?

 

Why did it matter if funeral wishes were known?

People spoke in detail about how meaningful it was to be able to fulfil funeral wishes after someone has died. If their wishes were unknown, it often meant that the family worried about whether they’d done the right thing. Interestingly, it didn’t seem to matter if the instructions were detailed or not. It was enough to just have some direction.

 

What does it mean that decisions were inclusive?

How well a family worked together to arrange the funeral had a significant impact on how satisfied they were with it. Most families seemed to try hard to manage this. But in some cases, people felt deliberately excluded from arrangements, or felt that their opinions were ignored. These people were the most dissatisfied with the funeral.

 

Any key takeaways for funeral directors?

First impressions count. People often commented on whether the funeral director had got the tone right straight off the bat – and this initial impression seemed to set the tone for the relationship.

One thing that might surprise funeral directors is that while some people wanted to be given a lot of personalisation, choice and control over the funeral, others did not.

Essentially, funeral directors need to have the emotional intelligence and skill to be able to understand and deliver the kind of support that each individual family wants and needs. There’s no one-size-fits-all option.

 

You mention contact with the body: do families want more, or less?

It varied. While some people found being with the body consoling, others didn’t need or want that contact at all. But time and again we heard that it was important. Contact with the body of the person who had died, at the right time, was a key talking point. It matters a great deal to many people.

 

What about embalming?

Not wanting to bias our interviewees, we didn’t ask any direct questions about embalming. But the people who raised it themselves did so in a negative way – citing various interventions which had occurred without their prior knowledge.

 

Did any of your findings really surprise you?

For me, one of the most striking findings was that different people found meaning in very different elements of the funeral.

For some people, this happened at the time of death.  For others, it was the act of carrying the coffin, writing the eulogy or lovingly preparing the written service booklet.  Some people found the choice of coffin or flowers important; others couldn’t even remember what had been chosen.

 

What would you like others to draw from your work?

Funeral services are under a lot of scrutiny at the moment. It’s the perfect time to reassess the kind of support we offer bereaved families. And there’s no denying that the people who shared their accounts with us really challenged some of the current thinking about funerals and what people want from a funeral director.

What I’d like this study to do is help people in the funeral profession benefit from the perspective of bereaved people. After all, we all want to offer the best possible support to the families who place their trust in us.

Want to find out more about the study? A full report can be downloaded for free here.

Isn’t it About Time You Made a Will? 0

couple holding hands

Most of us plan on making a will – one day. One of these days, we think. One, far-off day, when we have a bit of time free, and nothing better to do. I should really get on that.

But every year, thousands of us die without one. 60% of Brits don’t have a will. And while that number dwindles as we get older, the consequences of dying without a will when you’re young can be, in a way, even more devastating.

Alex and Nic’s story

In 2018, Alex and her husband Nic were starting a family. A “typical London couple,” the two of them had met online 10 years before, and had been married for 4. Now settled into their own home, they’d started planning for a baby. But all that was derailed in an instant when Nic died of a pulmonary embolism.

He was just 39.

“You don’t expect someone of 39 just to drop down dead,” Alex says. “He just died very, very suddenly.” Nic had a blood clot in his leg, which travelled to his lungs and became a fatal pulmonary embolism. The condition often strikes out of the blue, and rapidly becomes deadly. Sufferers can be almost any age.

“My whole world exploded,” Alex says. “A decade’s worth of building a life, of hopes and ideas of what the future will be, was just ripped apart.”

“You don’t think the worst is going to happen to you, but, actually, it does happen.”

Nic hadn’t made a will. While the two of them had discussed it – the latest conversation being just a week before Nic’s death – the task hadn’t been high on their to-do list as future parents.

“Life just gets in the way, and you never think it’s that urgent, do you?” Alex explains. “Most of my friends are in their mid-30s, and they have kids, and they don’t have a will. Now, I try to tell people: ‘You don’t think the worst is going to happen to you but, actually, it does happen to people.’”

With Nic gone and no will, Alex had the heartbreaking task of trying to guess what he would have wanted. A funeral had to be planned; Nic’s belongings had to go somewhere; their home, with its mortgage, had to be accounted for – and all without any instructions. It was hard.

“You’re doing your best, but you don’t actually know if it’s what the person would have wanted.”

“Telling institutions that, as a spouse, you’re entitled to this, that or the other is tricky, because it’s not clear what he wanted, necessarily,” Alex says.

That lack of direction hit hard on an emotional level, as well. For Nic’s funeral, Alex wanted a cremation with a Humanist ceremony, like their wedding – while some of his family would have preferred a Catholic ceremony.

In the end, Alex chose the Humanist option. But that was “based on a gut feeling,” about what Nic would have preferred, she explains. “And that feels terrible, because you’re doing your best, but you don’t actually know if it’s what the person would have wanted.”

“I guess people get too upset to talk about these things because they don’t want to think about their death. But it meant that I was angry with him for a while, because he was disorganised – and he should have prioritised this aspect of our lives.”

“You don’t want to debase what you’re feeling by talking about money.”

The lack of will wasn’t the only issue. Nic had a pension, but as it was set up before Alex and Nic were together, the beneficiary was his mother. The pension provider refused to make a change that would recognise Alex’s arguably greater claim as Nic’s spouse, only eventually compromising on a 50-50 split. Alex and her mother-in-law had to agree a final, much fairer, settlement between themselves.

“Luckily, you know, she’s an incredibly kind woman and she was happy with that,” Alex says. “But not everyone would have done that.

It’s a terrible thing to think about at a moment in your life when you’re grieving, and you don’t want to debase what you’re feeling by talking about money.”

In the end, Alex was saved a lot of hardship by something almost incidental. While Nic hadn’t made any provisions just in case something happened to him, his workplace had a ‘death in service’ policy that meant that she received enough money to pay off a lot of the mortgage.

It could have been much worse, she admits. “We were just at a point where I was getting ready to be pregnant and to be way more reliant on him financially. I’d already taken a slightly less-stressful job, and all of that stuff that women do. And yet he didn’t have a will or life insurance. It was just sheer luck that he worked for a company that had good employment benefits.”

“I consider myself lucky.”

Alex’s status as Nic’s wife also meant that under intestacy law, she could inherit most of his estate. Other bereaved partners aren’t so fortunate.

“We were married, and so I had a certain level of legal protection, even if we hadn’t got around to doing a will,” Alex says.

“I’ve heard stories from people who weren’t married to their long-term partner, and so their partner’s parents came and took away X, Y or Z amount of money, or whatever they could take – and they’re not even considered the next-of-kin. My heart goes out to them, because it all gets much blurrier.

“I miss Nic more than I can say. But I still consider myself lucky, because it could have been so much worse.”

A year and a half on, Alex is finally in a better position, at least, financially. But she has some advice for those who are putting off making their wills: “Stop procrastinating and get on with it! And have honest conversations with your friends and family. Even if he’d told his mum what he wanted, but not me, I wouldn’t care.

“Obviously, you should formalise it in a will, but just writing down anything about what you want will make a difference. Just get on and do it.”

Make a will today

Ready to make your will? Click here to use Beyond’s online will service. It takes just 15 minutes to protect your loved ones and get peace of mind.


Do you have a story to tell?

Have you struggled because someone close to you died without making a will? We would love to hear from you. Contact our team at [email protected] to tell your story.