Funeral services group Dignity in good shape

SUTTON Coldfield funeral services business Dignity has reported an increase in both revenue and profits.

The firm – the only listed funeral business – recorded revenue of  £229.6m in the 52 weeks to December 28, a 9% increase on 2011’s £210.1m figure.

In its preliminary results for the period, announced to the Stock exchange today, it also reported profit before tax of £45.4, a 13% increase over 2011’s £40.3m figure.

The firm said it invested £10.6m to acquire 18 funeral locations during the period while 19 satellite locations opened within the funeral business.

Dignity said it has had another strong year of pre-arranged funeral plan sales, with unfulfilled pre-arranged funeral plans increasing to 290,000.

In January the group completed the acquisition of Yew Holdings Limited for £58.3m. Funding for the acquisition, associated external transaction costs and anticipated one off capital expenditure of £2.5m was through a combination of a £24.2m equity placing and £39.8m of additional debt facilities.

Dignity chief executive Mike McCollum said:  “I am pleased with the performance of the group. Client satisfaction remains exceptionally high, underlying operating profits increased 8% and underlying earnings per share increased 14%.

“Each operating division has made good progress in the year and is well placed for the future.  The board remains confident in the group’s prospects and its expectations for 2013 remain positive and unchanged.”