Funeral provider makes progress on ‘critical’ transformation strategy
Funeral provider Dignity said it is encouraged by the progress made in its “critical” transformation strategy amid growing competition in the sector.
The Sutton Coldfield-based company reported underlying operating profits of £12.2m, compared to £19.9m in the same period in 2017. But despite the significant drop during its third quarter, it said its operating performance was in line with expectations.
It has been a challenging year for the company, which saw its share price fall by half in January when it released a profits warning. The sector is currently being disrupted by a price war.
Dignity, which saw its shares drop in September after Co-op offered to beat the cost of ceremonies offered by rivals, said funeral market share continued to show good momentum in the third quarter, while its transformation programme, where it plans to enhance the customer proposition, invest in and simplify the operating model, and streamline support to enable investment, was progressing well.
Dignity and the Co-op are the biggest players in the UK funeral market, with market shares of 12% and 16% respectively, and are battling it out for dominance.
Mike McCollum, chief executive of Dignity, said: “We are pleased with how the group has performed in the period and following these results our expectations for the full year remain unchanged.
“Our work on the transformation plan is critical and we are encouraged by the progress that has been made in the initial weeks. Alongside the expansion of our digital offerings, we continue to provide a greater choice for consumers and our focus on high standards and excellent client service remains central to our plans for the future. The group’s significant research projects highlight the need for minimum professional standards and support calls for regulation that we have been making for some time.”
Dignity owns more than 500 funeral directors and operates 22 crematoriums, reported revenue of £244.2m, up from £243.9m.
