Dignity continues to benefit from higher death rate

FUNERAL services group Dignity has seen its revenue increase by 15.6% up to the end of the third quarter, on a year on year basis.

The Sutton Coldfield firm – the UK’s only listed funeral services group – revealed revenue of £227m in the 39 week period ended September 25 (2014: £196.4m).

Underlying operating profit was up by 22% to £78.1m (2014: £64m).

Dignity revealed there had been 446,000 deaths during the period, a 9% increase on 2014’s 409,000.

However, the number of deaths in the third quarter of the year was flat at 129,000 (2014: 129,000).

The firm said average incomes remain robust and costs continue to be in line with the board’s expectations.
 
The Laurel acquisition, completed in July 2015, is performing as expected, with integration of the business well underway.
 
In addition to the Laurel acquisition, the group has acquired a total of 12 funeral locations for consideration of £10.9m, bringing its total investment in the year to £49.2m.
 
Derby has also confirmed that its planning application for a crematorium in Derby has been successful. This location should start operating in 2017.
 
Given the continued high number of deaths relative to 2014, the group expects to outperform current market expectations in the full year 2015. However, there remains a strong possibility that the number of deaths in 2016 may in turn be significantly lower and therefore the group’s expectations for 2016 and beyond remain unchanged.
 
Mike McCollum, chief executive of Dignity, said: “2015 continues to be a year of very strong operational performance for the group.

“We remain focused on the fundamentals of our business: we have maintained very high levels of customer service, costs are well controlled and corporate development opportunities continue to be pursued.”