Funeral group Dignity reports first quarter revenue growth

Funeral services company Dignity reported an 11 per cent jump in first quarter revenue as the number of deaths rose seven per cent.

Funeral services company Dignity reported an 11 per cent jump in first quarter revenue as the number of deaths rose seven per cent.

Revenue for the three months to end of March came to £67.8m, compared to £61.1m the previous year.

Underlying operating profit climbed 8.5% to £25.4m from the prior year's £23.4m.

The group said the overall performance was ahead of management's expectations, driven by a higher number of deaths compared to the same period in 2012.

In January, the firm completed the acquisition of Yew Holdings, a business including 40 funeral locations and two crematoriums.

The newly purchased business is trading in line with forecasts and integration is on track. However, it has diluted the overall growth in average income per funeral in the first quarter as anticipated.

The company has also purchased one other funeral location and opened seven satellite locations since the start of the year.

"This is a good performance by the group with the first quarter being ahead of our expectations," said Chief Executive Officer, Mike McCollum.

"The integration of Yew Holdings is progressing well and the initial performance is encouraging. All three divisions of the business are performing strongly. Our outlook remains positive and our full year expectations are unchanged."

Shares fell 0.14% to 1,444p at 08:48 Monday.

RD

Recommended

Share tips of the week
Share tips

Share tips of the week

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
14 May 2021
Share tips of the week
Share tips

Share tips of the week

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
30 Apr 2021
The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021

Most Popular

How will Joe Biden’s capital gains tax rise affect crypto prices?
Bitcoin & crypto

How will Joe Biden’s capital gains tax rise affect crypto prices?

The US president wants to increase capital gains tax – and that’s going to hit a lot of American cryptocurrency speculators. Saloni Sardana looks at h…
14 May 2021
Inheritance tax planning: the rules around gifting
Inheritance tax

Inheritance tax planning: the rules around gifting

There are plenty of legal ways to minimise an inheritance tax bill. Perhaps the simplest is to give away assets to reduce the size of your estate. Dav…
11 May 2021
Are we nearing the end of the negative bond yield era?
Government bonds

Are we nearing the end of the negative bond yield era?

As inflation gets going, the era of the negative bond yield – that investors have to pay governments for the privilege of lending them money – might b…
14 May 2021