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.

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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."