Good first half for Dignity

FUNERAL services group Dignity has seen an increase in both revenue and profit before tax in the 26 week period to June 28.

In an interim results statement issued this morning the Sutton Coldfield firm – the UK’s only listed funeral services provider – reported a 14.3% increase in revenue to £133.2m (2012 corresponding period: £116.5m) while profit before tax was up 17.6% to £32m (2012: £27.2m). 

Dignity said funeral operations have performed strongly, with client satisfaction remaining high and average incomes remaining robust.

The crematoria division has shown further good volume growth as recently opened locations continue to mature. Despite the number of pre-arranged funeral plan sales being slightly down on the prior year, good cost control has resulted in operating profit before recoveries growing year on year, the firm says.

Dignity said it is pleased is with how the integration of Yorkshire funeral services business Yew Holdings has progressed. Since acquiring the business in January, operating profits of £2.1m have been achieved.

In July Dignity completed an issue of further secured notes which has raised £97.7m of gross proceeds. Some of these proceeds have been used to repay the group’s £34m term loan obtained on the acquisition of Yew Holdings.

Mike McCollum, chief executive of Dignity, said: “The first half of 2013 has seen a strong operating performance from our established operations and our largest single acquisition. Since the period end, we have announced a proposed third return of cash since flotation.

“The group remains on track to achieve the board’s expectations for the full year.”