Lower death rate slackens growth pace at Dignity

SUTTON Coldfield funeral services group Dignity has seen a hike in both revenue and profits but a lower death rate during the third quarter has seen its growth rate pegged back.

Announcing its results for the 39 week period ending September 27 the firm – the UK’s only listed funeral services group – revealed a revenue figure of £190.6m, 12.5 % up on the £169.4m achieved in the corresponding period last year.

Underlying operating profit was also up at £60.2m, 12.7% up on last year’s £53.4m figure.

Dignity said the growth in operating profits in the quarter has been slower than the first half of the year.

“This is a consequence of the number of deaths in the quarter being approximately 97% of the same period last year. The number of deaths in the first half of the year was 5.6% higher than the prior year,” it said.
 
The firm said the integration of Yorkshire rival Yew Holdings – acquired in January for £58.3m – has progressed well.

“Operating performance is strong, with the acquisition contributing £3.1m of underlying operating profit in the year to date, slightly ahead of management’s expectations,” it said.
 
Since the group’s last results announcement on July 31, four additional funeral locations have been acquired (for an investment of £1.5m) and one new satellite location has been opened. In the year to date, this brings the total number of funeral locations acquired to 45, crematoria acquired to two (for a total investment of £60.7m) and new satellite locations opened to ten. 
 
Chief executive Mike McCollum said: “I am pleased with the operating performance of the group in the period. All parts of the business continue to perform well.
 
“Our outlook remains positive and our expectations for the remainder of this year and 2014 are unchanged.”