Yew Holdings acquistion boosts results at Dignity

THE acquisition of Yorkshire-based Yew Holdings earlier this year has helped funeral services group Dignity achieve an increase in both revenue and profits.

The UK’s only stock market listed funeral services provider said Yew Holdings, bought in January, has already contributed £2.1m of operating profit to the group, which today reported a 14.3% increase in revenue to £133.2m (2012: £116.5m) while profit before tax was up 17.6% to £32m (2012: £27.2m) in the 26 week period to June 28.

Sutton Coldfield-based 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 funer-al plan sales being slightly down on the prior year, good cost control has result-ed in operating profit before recoveries growing year on year, the firm says.
 
Dignity said it is pleased is with how the integration of Yew Holdings has progressed.

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.”