Dignity profits up as dead rise

Funeral services provider Dignity said an increase in the number of deaths in the UK had helped boost profits in the first half.

Pre-tax profits in the six months to 29 June were up 11% to 27.2m and the firm increased its dividend 10% to 5.36p.

Earnings per share were up 14.5% to 38.7p as the company went on the acquisition trail, buying eight funeral locations and opening nine satellite locations so far in 2012.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

The firm said its book of unfulfilled pre-arranged funeral plans had increased since December 2011 by about 10,000 to 275,000, with plan sales significantly ahead of the previous year.

Chief Executive Mike McCollum hailed a strong first half performance with over 99% of clients saying the firm met or exceeded their expectations.

"The core business has performed well, we have expanded our portfolio of funeral locations and crematoria, and the book of pre-arranged funeral plans continues to grow," he said.

"The group remains on track to achieve the board's expectations for the full year."