Dignity funeral provider’s shares down over 50 per cent after pricing change

Shares in funeral provider Dignity plummeted this morning after the group said it would slash prices.

Dignity’s management said the change in pricing would mean results for 2018 fall short of market expectations.

Shares in the company were down 53 per cent in morning trading to 900p.

Standard funerals will be 25 per cent cheaper from today at £1,995 in England and Wales, while other packages will be subject to a price freeze.

The board took te decision “with a view to protecting market share and repositioning the Group for future growth”, according to the statement.

“Customers are increasingly price-conscious and in an over-supplied industry, are shopping around more. This continues to have an increasing impact on the Group’s market share, with a significant reduction in the average number of funerals per location noted since 2015.”

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While the group has committed to being the “best-quality service provider in the market place”, it has also said it will need to run funerals “more efficiently and effectively”.

Digital marketing will also become a focus, with the company aiming to lead the funeral market in this field. The group has said it will spend £2m on promotional activities this year.

Dignity’s shares fell near the end of last year after its competitors cut prices, and the group has been warning of “aggressive” competition since August.