ferret's stock to watch: invocare limited

Ferret's Stock to Watch: INVOCARE LIMITED
08:19, Wednesday, 1 September 2004

A COMPANY WITH A BUSINESS THAT GOES ON FOR EVER


Sydney - Wednesday - August 31:(RWE)
************************************

OVERVIEW
********

Some investors shy away from a company that deals in death but it
is a never ending business and people accept their services as a
necessity.

It is naturally a sombre event for some but for others it is a
celebration of a life well lived.

Years ago there was a tv show called the Mavis Brampton Show with
the late Gordon Chater who always tried to shock the audience so they did
a skit called "Dying is Coffin up".

It brought the house down although people in the industry were
not impressed despite the fact that it made funeral directors much more
human in the eyes of many.

It was about the time Richard Davis, chief executive of InvoCare
was talking about when he says on the company's web site, "Increasingly people are becoming more open to discussing
'death'.

He says this change has been due in part to the influences of
other cultures brought to Australia by migrants.

Mostly though, it comes from a general change in the way we view
funerals.

"They are now looked upon as a chance to 'celebrate a life'
through personalising the service to reflect the life of the individual
and generally making the service itself special.

It is the details which become so important when arranging a
funeral.

SHARE PRICE MOVEMENTS
*********************

Shares of InvoCare yesterday rose 6c to $2.80. Rolling high for
the year has been $2.84 and a low of $1.87. Dividend is 6.4c to yield
2.29 per cent.

InvoCare Ltd is Australia's largest private funeral, cemetery
and crematorium operator.

Today it is well on track to achieve its 2004 prospectus forecast
with the company balancing its books on December 31.

Last Friday the company released its half-year results to
June 30, which saw net profit rise 1.8 per cent to $5.34 million on
total revenue up 1.5 per cent to $73.42 million.

Operating EBITDA rose 14 per cent to $19.3 million.

Mr Davis said, "the pleasing result exceeded forecast and was
consistent with the company's strong market share position and the
apparent increase in deaths".

Consistent with indications provided in the prospectus, in
announcing the 2003 results on March 4 and at the annual meeting on May
31, a fully franked interim dividend of 6.4c a share has been declared
for payment on October 12 to shareholders registered September 24.

Mr Davis said that whilst the company was still keen to pursue
acquisition opportunities, its operational focus continued to be on
improving service levels and growing the existing business by extending
the reach of its brands.

InvoCare operates from 135 locations across the country, of
which 123 are funeral homes and 12 cemeteries and/or crematoria, the
latter being located in NSW and Queensland.

Its businesses include the well-known Simplicity Funerals and
White Lady Funerals.

BACKGROUND
**********

Invocare Ltd joined the Australian Stock Exchange list on
December 4, 2003.

The company's website says that in most ways, the funeral
industry is a business like any other.

It is a profession, employing managers and staff dealing with
resources, regulatory and customer issues.

It exists in a highly competitive marketplace operating locally
and internationally.

InvoCare places itself in a position to lead the funeral industry
because fundamentally it takes itself beyond the realm of an ordinary
business.

Mr Davis believes that as an operator in the funeral industry,
Invocare is capable of innovation and improvement.

"We employ people who view their role as more than just a job.

"It is a vocation which relies on the caring approach taken by our
staff to service families with compassion.

" The industry goes beyond the funeral itself.

" After the cremation or burial has taken place, the memorial
options give the family an opportunity to provide a place to grieve and
remember," Mr Davis declared.

This is a tradition which dates back to the building of the
pyramids, that has come a long way.

"Again the attention to detail and personalising the memorial are
important.

"There are many options to choose from, not just in the memorial
itself but in the provision of a Memorial Park.

"Standards of landscaped beauty are maintained to keep in touch
with the local environment, providing a resting place which is peaceful
to visit while also reflective of the area where people lived," he said.

InvoCare is an Australian company and the country's the largest
provider of funeral services.

ENDS

Copyright © 2004 RWE Australian Business News. All rights reserved.

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Cheers,

Fig Jam