Surge in deaths boosts Dignity in the first half

The funeral services company arranged 39,700 funerals in the six months to the end of June – an 8% increase from a year earlier.

Revenue increased 3% to £174.7m but underlying pre-tax profit fell 6% to £43.4m as Dignity reduced prices and took less in upfront payments from funeral plans under scrutiny from the government and the competition regulator.

Dignity said the results were better than it had expected and would support its investment programme. UK deaths rose 8% in the first quarter and 1% in the second quarter and Dignity expects 600,000 deaths in all of 2018.

Mike McCollum, Dignity’s chief executive, said: "We are pleased with the strong and better than originally expected financial performance in the first half of this year. Strong cash generation will support planned investments and costs which form part of our plan for the funeral business.”

The Competition and Markets Authority launched a review of the UK’s £2bn funeral market in May to make sure consumers got a fair deal.

Dignity shares, which have more than halved in the past year, rose 6.8% to £10.81 at 10:42 BST.