Funeral firm Dignity posts rise in revenue amid Covid-19 crisis
Funeral provider Dignity has posted higher revenue in the first nine months of the year following a sharp spike in deaths caused by the outbreak of coronavirus.
The London-listed firm booked underlying revenue of £234.5m to 25 September, up four per cent on the same period last year.
The figures reflected a higher number of deaths across the UK following the outbreak of coronavirus earlier this year.
Dignity conducted 61,700 funerals in the first three quarters of the year, up from 52,100 in 2019.
But following the “terrible impact” of Covid in the second quarter, Dignity said the number of deaths in the third quarter was broadly flat on the previous year.
Underlying operating profit for the first nine months of the year slipped eight per cent to £44.2m, reflecting the impact of lockdown restrictions on funerals and the closure of crematoria.
Dignity said it will continue its strategic review into the company, which is set to conclude in the second quarter of next year.
The firm has already completed a restructuring plan that will boost its reported earnings by roughly £10m and has identified annual cost savings of £8m.
Dignity said it was also preparing for the outcome of a market study being carried out by the Competition and Markets Authority, as well upcoming regulation of the pre-paid funeral market by the City watchdog.
The company said it would defer the search for a new chief executive to coincide with the outcomes of both its strategic review and the looming regulation.
“We have played a crucial role in the country’s fight against Covid-19, whilst simultaneously challenging ourselves to do things better, collaborate constructively in the CMA’s market investigation, deal with continued fierce competition and finally start the work that will see our long held call for pre-need regulation become a reality,” said executive chairman Clive Whiley.
“Ultimately it will take a combination of the serious pricing and product trials, alongside competitor reactions and the CMA final outcome, to define a strategy that harnesses the full capacity and bandwidth of our business, where we remain determined to grow market share without further dilution for shareholders.”