Increase in death rate has positive impact on Dignity’s figures

FUNERAL services group Dignity has had a good start to the year with revenue up nearly £7m on the same period last year.

In a Q1 management statement, the Sutton Coldfield-based firm – the UK’s only listed provider of funeral related services – revealed revenue of £67.8m for the 13 week period ending March 29, compared to £61.1m for the same period last year.

Its underlying profit was also up at £25.4m (2012: £23.4m).

Dignity says overall performance is ahead of management’s expectations as a result of the number of deaths being approximately 7% higher than the same period in 2012.

As in previous years, it is anticipated that the number of deaths will normalise over the full year.

In January, Dignity completed the £58.3m acquisition of Yorkshire-based rival Yew Holdings, comprising 40 funeral locations and two crematoria. This acquisition has traded in line with management’s expectations and integration is on track.

But as expected, this acquisition has diluted the overall growth in average income per funeral compared to the same period last year, with the core business continuing to show robust average income.

Dignity has acquired one further funeral location and has opened seven satellite locations since the start of the year.

Mike McCollum, chief executive of Dignity, said: “This is a good performance by the group with the first quarter being ahead of our expectations. The integration of Yew Holdings is progressing well and the initial performance is encouraging. All three divisions of the business are performing strongly.

“Our outlook remains positive and our full year expectations are unchanged.”

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