Dignity profit falls 30 per cent as fewer people die
Dignity, the UK’s only listed funeral firm, saw its underlying operating profit slip 30 per cent for the year to date, driven by a significantly lower number of deaths.
Profit fell from £68.6m in 2018 to £47.9m this year. Underlying revenue also fell eight per cent, from 244.2m in 2018 to 225.4m.
Despite the fall in profits, Dignity’s share price rose 4.7 per cent today, to 552.3p.
Read more: Funeral firm Dignity suspends dividend as deaths slump
Compared to the same period last year, 432,000 people died in the 39 weeks up to the end of September, down from 455,000 in 2018.
The UK is set for its lowest year of deaths since 2014, with a total number of 577,000, 3.7 per cent lower than in 2018.
The group’s performance was in line with company expectations, and was bolstered by a market share of 11.9 per cent.
Mike McCollum, the group’s chief executive, said: “I am pleased with the group’s progress so far this year.
“Although deaths are lower, market share remains robust, the transformation plan remains on track and our journey to build a more modern technologically enabled business that offers clients a high-quality service at a variety of price points remains firmly intact.”
The group’s outlook remains unchanged from its previous results, but will be heavily dependent on the number of deaths.
In March, the Competition and Markets Authority (CMA) said they would launch an enquiry into the funeral sector due to fears over increased pricing.
The cost of the average funeral has risen 6 per cent a year for the past 14 years, a rate double that of inflation.
Read more: Grave danger: Dignity posts falling profit as death rate dips
The CMA said it was concerned that people in vulnerable circumstances could find themselves under pressure.
Main image credit: Getty