goblins investment in death, page-3

Thanks Bendigo for your response and you are correct after further investigation. They benefit from a steady income stream as the services are provided.

Can't see too many paying that far in advance though so it should be good for the companys earnings?
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Please note this is an old report so figures are inaccurate now.

Valuable future
income streams
InvoCare has over $220 million of prepaid funeral funds held in trust,
an increase of 11% on the prior year. These funds provide a valuable future
income stream as the services are provided. Additionally there is the
opportunity to enhance operating margins if prepaid funeral investment
returns continue to exceed cost increases.
Prepaid funerals offered by the company’s Guardian Plan are funeral services
that are planned for and paid in advance. These Plans offer financial peace
of mind to consumers knowing their affairs are in order, their wishes will be
carried out as planned and their family has been relieved of a financial burden.
Key strategies of 2005
InvoCare Annual Report 2005
Financial highlights 2005
Results at a glance
$ million unless otherwise stated
2005 2004 % change
Sales Revenues 148.2 148.3 –
Operating EBITDA 45.4 43.9 +3
Profit from Sale of Fixed Assets 2.0 2.0 –
Profit After Tax 20.1 19.3 +5
Earnings per Share (Basic) (cents per share) 21.0 20.4 +3
Total Assets 279.3 269.0 +3
Prepaid Funeral Funds in Trust 220.9 198.6 +11
Funeral Homes (number) 128 123
Cemeteries and Crematoria (number) 12 12
Employees (full time equivalents) 792 809
Net Profit After Tax $20.1 million
Operating EBITDA $45.4 million
Earnings Per Share 21.0 cents
Sales Revenue $148.2 million
Fully Franked Dividends ordinary 16.5 cents
special 10.5 cents