Dignity H1 profit rises as deaths increase

FTSE 250 funeral company Dignity reported a rise in first-half profit on Wednesday as deaths increased.

In the 26 weeks to 30 June, underlying pre-tax profit rose 9% to £46.1m on revenue of £169.8m, up 7% from the first half of last year. This came as the number of deaths increased to 308,000 from 302,000.

The company lifted its interim dividend by 10% to 8.64p per share.

Dignity said it bought 14 additional funeral locations in the period and seven new satellite locations and closed two locations. At 30 June, the group operated a network of 811 funeral locations versus 777 in June last year.

Chief executive Mike McCollum said: “The year has started well for the group, with good operational performance, continued excellent customer survey results and further acquisitions of established funeral businesses. The group's expectations for the full year remain unchanged.

“As a board, we remain alert to the strategic challenges facing the group in a changing and increasingly competitive environment. This is reflected in the ongoing development of our digital strategy and the leadership we have demonstrated in calling for proper regulation of pre-arranged funeral plans. We will continue to review the scope of our service offering in the light of changing consumer demands and build on our strong market-leading position."

At 1010 BST, the shares were up 0.3% to 2,568p.