Ann: FY18 Half Year Results Announcement Date, page-207

First, apologies to SHJ shareholders this is the last post I will make here. In my opinion DTY is in no danger of going broke or even a capital raising. I will explain why:

1. All debt is publicly traded bonds with a maturity in 2049, with no debt covenants to breach. That is, no refinancing, no rollover and all risk is in the bond, not the company. Unlike STO which did and still does have large bank debts along with massive upcoming fixed costs. Management of STO have skillful steered them through what could have been a disastrous period. The capital raising in late 2016 was well done and stopped STO from going under. DTY does not need a capital raising.

2. DTY has interest payments of 33 million and very little in the way of capital works liabilities. Last year DTY generated some 115 million pounds of cash from operations. FCF - i.e. after deducting tax, interest expenses and maintenance was some 55 million pounds (on a 440 million market cap). Admittedly this year's earnings will be lower after rebasing earnings much like woolworths did last year. This is the reason the share price fell from 28 pounds at its height to a bit over 8 pounds today. Simply a rebasing of expectations in their budget brand funeral service.

3. Around 450 000 people have funeral insurance with DTY. These funds are invested by independent trust funds and investment losses on products are nonrecourse. This is only a small part of the DTY business and even in an extreme scenario offers limited downside. My comments were around the investing practices of the funds rather than material risk to the business.

4. DTY is in an industry that can predict the number of deaths and hence available market, to a level of accuracy not seen in most industries (i.e. to a couple of %). As opposed to the resource industry. Oil could be anything from $40 to $100 USD a barrel next year - or perhaps even outside of these values.

Like STO, DTY has many quality physical assets and unlike STO, has a predictable income stream and no debt covenants. These are the reasons why I am confident in this investment.