Fewer deaths make for lower revenue at Dignity
Sales took a turn for the worse at Dignity in the first quarter, with the funeral services provider reporting a 5% decrease in revenue in the 13 weeks to 25 March on Monday, to £81.2m.
Dignity
549.00p
16:45 24/05/23
FTSE 250
20,522.81
16:38 14/11/24
FTSE 350
4,459.02
16:38 14/11/24
FTSE All-Share
4,417.25
16:54 14/11/24
General Retailers
4,604.94
16:38 14/11/24
Underlying operating profit at the FTSE 250 firm also dipped 13%, to £31.1m.
The company’s board blamed the drops on 2015’s abnormally high death rate, saying the quarter’s 156,000 deaths were more comparable to the 147,000 recorded in the first quarter of 2014 than the 175,000 in the period last year.
Against the first quarter of 2014, revenue was up 18% and underlying operating profit up 21%.
"I am pleased with the group's performance in the first quarter, which was consistent with our expectations and supported by surveys that continue to demonstrate the outstanding work being done by our staff,” said Dignity chief executive Mike McCollum.
Dignity’s board said average incomes continued to be robust with overheads well controlled. Its only major transaction during the quarter was the acquisition of one funeral location.
“The group's expectations for the full year remain unchanged,” McCollum added.