Funeral firm Dignity going strong

SUTTON Coldfield funeral services group Dignity has seen an increase in both revenue and profit.

In a quarter three management statement covering the 39 week period to September 26, Dignity – the UK’s only listed funeral services company – reported revenue of £196.4m, a 3% increase on 2013’s £190.6m figure.

Its underlying operating profit was 6.3% higher at £64m (2013: £60.2m).
Dignity said that the number of deaths in the third quarter was approximately 129,000 compared to around 122,000 in the comparative period last year.

While deaths at the end of June were 7%  lower than the previous year, deaths after 39 weeks were approximately 3.5% lower than the same period in 2013.

The company says its working assumption of the total number of deaths in 2014 continues to be between 535,000 and 550,000, with the number of deaths after 39 weeks consistent with this assumption.
 
Explaining its figures, Dignity said it is a combination of revenue growth as a result of the number of funerals performed together with robust average incomes, supported by good cost control. 
 
Since Dignity’s last results announcement on July 30, 11 additional funeral locations have been acquired (for an investment of £12.1m). In the year to date, this brings the total number of funeral locations acquired to 19 (for a total investment of £17.3m and new satellite locations opened to two. 

Dignity has successfully reset its securitised debt structure, reducing total annual debt service obligations (interest and principal) from circa £40m per annum to approximately £33m per annum.

Mike McCollum, chief executive of Dignity, said: “The group’s operating performance in the third quarter has been strong, with the group now showing good operating profit growth year on year.

“Outstanding customer service and strong operational efficiency continue to underpin our activities.

“Our financial expectations for the full year remain positive and unchanged.”