Funeral provider Dignity reports profit increase due to coronavirus deaths
Funeral services provider Dignity reported an increase in profits in the first half of the year due to a surge in deaths during the coronavirus pandemic.
Dignity’s share price jumped more than seven per cent this morning.
The figures
Dignity said the number of deaths rose 23 per cent and its underlying pretax profit grew to £26.5m from £23.9m a year earlier.
Revenue increased from £155.3m to £169.1m.
Average income per funeral was £2,461 pounds compared with £2,919 pounds in 2019, as people chose simpler services during the coronavirus lockdown.
Why it’s interesting
The company, which owns around 800 funeral locations and operates 46 crematoria in Britain, said deaths in the second quarter “materially exceeded any level witnessed in the last 20 years”.
Dignity did not furlough any employees or seek any financial assistance from government during the first half of the year.
The firm was eligible for £5.5m of business rates relief, all of which will be invested in personal protective equipment.
Dignity said it is continuing to plan for localised second peaks of Covid-19 during the third quarter of this year. A key part of the preparation will be staffing, it said.
Absence levels during the first half peaked at 16 per cent compared to normal levels of one to two per cent.
The company will update on its strategic review, which began in 2018, later this year.
What Dignity said
Dignity executive chairman Clive Whiley said: “”The turbulent trading conditions experienced in recent months have reinforced the need for businesses to be managed proactively in order to respond promptly to unexpected events.
“In particular, I would like to pay tribute to our staff, whose tireless efforts to support each other and our clients during these testing times has gone some way to allowing adequate closure for the bereaved.
“Their professionalism and flexibility have been crucial to providing respectful, high quality care to the deceased and their families notwithstanding the daily obstacles presented by the pandemic: whether it be high levels of colleague absence, the costly challenge of sourcing personal protective equipment or managing the pressure on mortuary space.
“Their resilience leaves me in no doubt that the conclusion of our root and branch review of the business will ensure the Group is ready for any challenge in the future.”