LONDON (Alliance News) - Funeral services provider Dignity PLC on Monday said its results for the first 39 weeks of 2016 were slightly ahead of its expectations, driven by a higher number of deaths in the second and third quarters.
FTSE 250 constituent Dignity has warned consistently that the death rate in the UK would be lower in 2016 following an exceptionally high rate in 2015. In the second and third quarters, however, the death rate was ahead of its forecast.
For the 39 weeks to September 23, 434,000 deaths occurred in the UK, still down from the 446,000 in the 39 weeks to September 25, 2015, but ahead of expectations.
Underlying operating profit, which excludes one-offs, was GBP75.8 million in the 39-week period, down from GBP78.1 million a year earlier, but this measure grew by GBP1.8 million year-on-year in the third quarter. Revenue in the nine-month period was GBP229.3 million, up from GBP227.0 million a year before.
However, Dignity said its funeral market share for 2016 has been lower than expected. Still, it anticipates underlying operating profit for 2016 to slightly outpace market expectations.
"Our objective is to lead the funeral sector in professional standards and service. I believe we do this and that we continue to improve. Our clients value this which is why they return to us and recommend us, allowing us to report strong financial results today," said Mike McCollum, Dignity's chief executive.
"Our expectations are that 2016 will be a stronger year than previously expected and remain positive and unchanged for 2017 and beyond," he added.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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