Dignity first-half profit boosted by rise in bereavements

(ShareCast News) - Funeral services provider Dignity posted a 44% jump in underlying first-half pre-tax profit on higher demand for its offerings, following a 13% increase in the number of deaths for the 26-week period ended 26 June.Pre-tax profit came in at £46.5m from £32.3m in the same period last year, on revenue of £158.7m, up 19.2% from £133.1m.The company said the number of deaths was 13% higher in the first half of 2015 compared with the same time last year. As a direct consequence, underlying operating profits were up 31% at £59.7m.Dignity said it will pay an interim dividend of 7.14p per share, up 10% from last year.The group said it has acquired 46 funeral locations and opened one satellite location since the start of the year, representing an aggregate investment of £47.2m. This includes the acquisition of 36 locations from Laurel Funerals for a consideration of £38m, which completed on 13 July.As a result of the high number of deaths in the first half, Dignity expects results for the full-year to be ahead of its expectations.Chief executive Mike McCollum said: "This has been a very strong half year for the group. Client service standards remain excellent and I am delighted with our performance. We have invested £47.2m in acquisitions so far this year from cash on our balance sheet which should help to create further value for our shareholders in the future." At 1023 BST, the group's shares were up 3.6% at 2,455p.