Dignity Q1 revenue up 15%, reiterates full-year expectations

Dignity reported a 15% jump in revenue for the first quarter as underlying profit and the number of deaths rose and the company reiterated its full-year expectations.

The group, which provides funeral-related services, said revenue rose to £93.3m in the 13 weeks to the end of March from £81.2m the year before, as underlying operating profit grew to £37.4m from £31.1m. Meanwhile, the number of deaths increased to 167,000 from 156,000.

Still, the group said it continues to assume that the number of deaths this year will be lower than 2016.

Dignity said its pre-arranged funeral plan business is trading well, with sales significantly higher than the first quarter of last year. In addition, the company has completed the acquisition of a total of 12 funeral locations and one small crematorium for around £20m. This includes one funeral location acquired after 31 March, but prior to the date of this announcement.

Further acquisition activity is expected throughout the year and Dignity has opened three satellite locations in the period, submitted a planning application for a new crematorium and is still awaiting a decision on another crematorium planning application.

Chief executive Mike McCollum said: "This has been a strong start to the year, with all parts of the business performing well. The group's expectations for the full year remain positive and unchanged."