Dignity profits down, as 2016 (thankfully!) fails to repeat 2015’s “abnormally high” number of deaths
With the unusually high number of celebrity deaths so far this year, it may feel like people are dropping like flies. However, one company has proved that isn't so and it's caused a dent in their bottom line.
Dignity revealed today that its profits and revenues dipped in its most recent quarter, but, thankfully, this is because less people are dying.
The company, which is the UK's only listed funeral-related services provider, reported that underlying operating profits for its 13-week period ended 25 March fell to £31.1m, down 13 per cent on £35.8m for the equivalent period in 2015.
Meanwhile, revenue decreased to £81.2m, down five per cent from the prior year's £85.5m.
On a more positive note, the number of deaths in the first quarter of 2016 was 156,000, down 11 per cent on 175,000 in the first quarter of 2015, which the company called "abnormally high compared to long term trends".
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Instead, the company believes that the death rate in 2016 will be more on par with that of 2014's, when 147,000 died during the first quarter. In the same period of 2014, the company's revenue was £69.1m, while underlying operating profits were £25.8m.
"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 Mike McCollum, chief executive of Dignity. "The group’s expectations for the full year remain unchanged."
Dignity also revealed in its trading statement that it had acquired one new funeral location during the period.
At time of writing, shares in the FTSE 250 company were down 2.2 per cent at 2,449p.