Funerals business Dignity (DTY) has announced plans for another of its regular returns of cash to shareholders. Repeating a process it has successfully carried out before, Dignity is planning to restructure its securitised debt obligations which will have the benefit of reducing the company’s debt servicing costs as well as freeing up funds for a cash return.
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As a result of the proposed reorganisation of its debts, Dignity should find itself paying £34m a year to service its debts, a 15 per cent reduction, and be able to return 100p a share or £54m to investors.