Higher death rates benefit funeral director Dignity

HIGHER death rates in the second and third quarters of the year have benefited Sutton Coldfield funeral directors, Dignity.

The company, the UK’s only listed funeral director, said in a third quarter trading update the higher number of deaths had improved the company’s expectations for the year to date.

Revenue for the 39 weeks to September 23, 2016 was £229.3m, up 1% compared with the same period last year (£227m) but up 16.8% on the previous year (£196.4m).

Underlying operating profits in the same 39-week period were £75.8m, (2015: £78.1m), a drop of 2.9%, although an increase of 18.4% in 2014 when the death rate was lower.

During the first nine months, the group acquired 11 funeral locations for an aggregate investment of £11.3m and opened nine satellite locations. Since the end of Q3, the group has acquired a further two funeral locations.
 
The group has also confirmed the acquisition of the remaining leasehold crematorium location from Funeral Services Ltd (trading as Co-op Funeralcare). The £43m deal, for five crematoria (three freehold locations and two leasehold locations), completing last month.
 
“Although as expected, the deaths in 2016 have been lower than the exceptional level seen in 2015, they have been higher than the group anticipated based on longer term trends. At the same time, the group’s funeral market share, having been stronger in 2015, is lower than the group expected,” it said.

“Taking these factors into account the group expects underlying operating profits to be slightly ahead of current market expectations for 2016. Its expectations for 2017 and beyond remain positive and unchanged.”