(Reuters) - Britain's Dignity Plc said on Friday it continued to be in "significant need" for capital after the funeral services provider posted a 68% slump in annual operating profit, hurt by lower prices and cost pressures.
The company, which in January agreed to a 281 million pound ($348 million) takeover by a consortium backed by investment firms SPWOne V Ltd, Castelnau Group, and Phoenix Asset Management Partners, said the completion of the transaction remained subject to Financial Conduct Authority's change of control approval and shareholder nod.
The group, which completed an operational restructure last year when its working pattern returned to a regular level following an ease in pandemic-related casualties, is now battling a slower market-share growth.
The funeral operator, which owns 725 funeral locations and 46 crematoria in Britain, said it was presently unable to fund additional capital expenditure from operations and had to limit marketing expenses as it continued to draw upon available facilities to manage liquidity in the short and medium-term.
The group has drawn 15 million pounds of its 50 million pound facility with Phoenix UK Fund Ltd and expects to utilise the rest of the amount this year.
It reported an underlying operating profit of 17.9 million pounds for the 52-week period ended Dec. 30, while revenue slipped 13% to 270.5 million pounds.
($1 = 0.8074 pounds)