Increasing death rate helps funeral director Dignity achieve strong Q1

A higher number of deaths in the first quarter of the year, together with strong sales of its pre-paid funeral plans have helped to boost revenue and profits for listed funeral directors, Dignity.

The Sutton Coldfield group saw Q1 revenue increase 15% to £93.3m (Q1 2016: £81.2m), while underlying operating profits rose 20% to £37.4m (Q1 2016: £31.1m).

Deaths during the period rose 7% to 167,000 (Q1 2016: 156.000).

The group said the increasing number of deaths had been foreseen but data from previous years indicated that large variances in the number of deaths at the end of the first quarter tended to normalise by the end of the year.

The group said its current assumption continued to be that the number of deaths in 2017 would  be lower than 2016 (which was a 53-week period).

Dignity said it was also boosted by a rise in average incomes, while the pre-arranged funeral plan business was trading well, with sales significantly up in the quarter compared to 2016.

acquisition activity in the period saw the group complete the takeover of 12 funeral locations and one small crematorium for approximately £20m.

It said further acquisitions were expected throughout the year. In addition, the group opened three satellite locations in the period, submitted a planning application for a new crematorium and is still awaiting a decision on another crematorium planning application.

Mike McCollum, chief executive of Dignity, said: “This has been a strong start to the year, with all parts of the business performing well. The group’s expectations for the full year remain positive and unchanged.”