‘Resilient’ performance in year when worst was feared

Pre-tax profits were down more than 40% at funerals provider Dignity, but the group was still able to claim it outperformed market expectations in a “challenging and transitional year”.

The market faced disruption and discounting during 2018, which had forced the Sutton Coldfield-based group to issue a stark profit warning a year ago that halved its share price.

Its shares are still trading close to a six-year low, but the group’s management believe its 2018 results show a much more robust company.

Chairman Peter Hindley, who has previously announced his intention to step down this year, said: “In 2018 we delivered a resilient performance, ahead of market expectations in what was a challenging and transitional year.

“The group is undergoing radical change. We have built momentum and our plan is on track. The board is confident that we will achieve our goal of transforming the group as planned over the next three years.”

Pre-tax profits were down 43% to £40.5m in the 52 weeks to December 28, 2018, although revenues slipped just 3% to £315.6m.

The group has provided guidance that 2019’s underlying profits will be below 2018, but in line with market expectations.

It then expects its transformation strategy to begin delivering increased profits with “solid single digit increases” in earnings “appropriate and achievable” in the medium term.

Mike McCollum, chief executive of Dignity, said: “2018 marked the beginning of a period of radical change for Dignity. We reduced our funeral prices, created a broader range of choices for clients and embarked on plans to transform the business by the end of 2021.

“Our vision is to lead the funeral sector in terms of quality, standards and value-for-money. To achieve this we are building a more coherent, cohesive and technology-enabled business, one geared to meeting the changing needs of our customers. I am pleased with the progress we made during the year, we built momentum and our Transformation Plan is on track.”

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