On December 28, 2018, InvoCare Limited (ASX: IVC) has announced the resignation of Mr. Gary Stead as an independent Non-executive Director with effect from 31 December 2018. Following the release, the share price of the company decreased by 0.281% on December 28, 2018.
InvoCare Limited (ASX: IVC) provides funeral services to families at a critical time in their lives. The company got listed in 2003, and it employs more than 1,800 people.
The chairman, Mr. Bart Vogel, has appreciated the valuable contribution of Mr. Gary. The chairman also recognized that Gary had played an important role on the Board in the development and promotion of the core protect and grow strategy, which also includes the redevelopment of many InvoCare’s facilities, and he also made a shift in the culture of the business. As chair of the Finance, Capital & Investment Committee, he has always been the driving force behind the regional expansion strategy. Gary’s in-depth knowledge in debt and capital markets, M&A, and into the business, in general, have helped InvoCare to shape its platform for growth.
On November 12, 2018, the management stated that they need to change their business model for the survival of the business. Management mentioned that the traditional business model was relied on acquisitions in ANZ capitals and above CPI increases in price drives the revenue growth. In 2015, the company announced the inflection point where it would be hard to deliver historic returns by using the traditional business model. Customer preferences are changing, and acquisition opportunities in core markets are decreasing as IVC had a dominant market share in the market, so the company intended to change its business model.
In funeral business, boomers are having a significant influence on funerals. Right now, they are looking for a more up-lifting or memorable experience. They are now focusing on creating an experience in relation to the celebration of life. They are looking for more quality of life and are moving to regional areas which are out of traditional IVC core markets.
Nowadays, the customers are more price aware it does not mean they are price conscious. Customers are also increasing their awareness of commodities like coffins, flowers, etc. Customers prefer professional services in their funeral, and they also want more choices for a better experience.
Half Yearly Financial Performance: In 1HFY18, the company garnered operating sales revenue amounting to $225.7 million while its Net profit amounted to $20.8 million.
We will now look at today’s performance of IVC. On December 28, 2018, InvoCare Limited ended the session on the negative note as the stock price has settled at A$10.650 per share which implies the marginal downfall of A$0.030per share or 0.281%. The market capitalization of the company stood at circa $1.18 Bn. The stock price of the company is trading towards the lower range, and the annual dividend yield of the company stood at 4.21%. Let us now see how the stock has been performing from the past few months. In the time span of the previous six and three months, the stock delivered the returns of -22.23% and -12.32%, respectively. However, in the previous one month, PGF delivered the return of -11.15%.
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