21st Sep 2021 09:53
(Alliance News) -Â Dignity PLC on Tuesday reported a slip in interim revenue as it conducted fewer funerals and cremations in the period.
The funeral services provider said revenue in the half-year to June 25 fell 4% to GBP189.0 million, though it swung to a pretax profit of GBP50.5 million from last year's GBP12.1 million loss.
Profit was boosted by a GBP50.2 million remeasurement of financial assets, after a hit of GBP14.6 million a year ago.
Operating profit, which excludes the remeasurement, fell to GBP40.8 million from GBP44.2 million.
Dignity said that as restrictions eased on funeral attendance, average revenue per funeral increased 6.8% to GBP2,628 in the first half of 2021 from GBP2,461 a year ago. This was on fewer funerals - at 41,400 in the period, down 10% from 46,000 year-on-year. In the pre-pandemic 2019 period, it conducted 36,200 funerals.
It performed 38,900 cremations, down from 42,500 a year ago. Deaths in the half were down 8% year-on-year at 340,000.
"Amongst all this turbulence market share is much harder to judge because the differences between time of death and time of funeral change. However, we believe our underlying share has declined outside of our trial areas. We observed the same effect in our crematoria," said Dignity.
An "accelerated programme of investment" in its premises has started, with an initial focus on catching up on essential maintenance. Dignity said the pandemic hindered its ability to do work and resulted in a drop in the run rate of capital expenditure, which is now reversing - however, it is too early to tell how much will need to be spent to ensure its estate meets client expectations.
The company said: "With all the recent changes just underway and the new regulatory changes just beginning to impact as well as the unpredictability of Covid-19 we will continue to refrain from providing guidance."
Dignity added that it is not "contemplating dividends" at this time, instead continuing to work on plans to improve its capital structure.
Shares in Dignity were down 2.8% at 722.00 pence in London on Tuesday morning.
By Lucy Heming;Â [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
DTY.L