Dignity reports modest rise in revenue and profit

Funeral services provider Dignity achieved a modest rise in both revenue and underlying profit before tax during the year ended December 30th 2011.

Revenues rose 5.5% from £199.1m to £210.1m, while underlying operating profit rose to £64.5m (2010: £61.0m) and underlying pre-tax profit gained 3% to £41.6m from £40.4m. Actual profit before tax rose from £39.8m to £40.3m.

Underlying earnings per share leapt 18.8p to 55.1p, while basic earnings per share jumped 33.5p to 62.6p.

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Chief Executive Mike McCollum said: "We have made good progress in each of our businesses. Customer service remains excellent. We have developed and acquired new funeral and crematoria locations, pre-arranged sales continued to grow strongly and the core business has performed well. This, combined with the full effect of the 2010 Return of Value has resulted in a 19% increase in EPS.

"Whilst 2012 has started more quietly than 2011, the board remains confident in the group's prospects and its expectations for 2012 remain positive and unchanged."

The final dividend was 9.77p, compared to 8.88p the previous year.

Cash at the end of the period fell slightly from £48.1m to £36.9m.

NR