Lower death rate leaves Dignity feeling flat

FUNERAL services group Dignity has experienced flat trading conditions with both revenue and profit before tax largely aping last year’s performance.

In the 26 period ending June 27, the Sutton Coldfield company recorded revenue of £133.1m (H1 2013: £133.2m) and profit before tax of £31.5m (H1 2013 £32m).

The company – the UK’s only listed funeral services group – said there had been a significant reduction in the number of deaths during the period.

Deaths in the first half of the year were 7% lower than in the same period in 2013, when reported deaths rose by 5.6%.
 
The board’s current assumption is that the number of deaths will be between 535,000 and 550,000 in 2014. No individual year in the last 30 years has witnessed a reduction of more than 5% in the number of deaths compared to the previous year.

“On this basis and assuming average incomes and market share remain robust and overheads under control, the group’s overall expectations for the year are positive and unchanged,” it said.

Dignity said average incomes in each division were strong and costs across the group were well controlled.

The group has acquired eight funeral locations and has opened two satellite locations since the start of the year, representing an investment of £5.2m.

Chief executive Mike McCollum said: “The group has continued to perform well despite the first half being significantly quieter than last year.

“Underpinning this performance is our outstanding customer service and strong operational efficiency. Our financial expectations for the full year remain positive and unchanged.”

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