3rd Apr 2020 12:25
(Alliance News) - Dignity PLC on Friday said it is considering branch closure as coronavirus is hurting operations.
In addition, the funeral services provider said it has agreed with Chief Executive Mike McCollum that he will leave with immediate effect. Dignity said a process to find a new CEO has commenced.
In the interim Clive Whiley, who was appointed as non-executive chair back in September, has agreed to temporarily step up to the role of executive chair.
Meanwhile, Independent Non-Executive Director Jane Ashcroft stepped down from the board immediately following the completion of her contractual term.
"First, I would like to thank Mike for his extensive efforts over many years, in particular in leading the group as chief executive officer for the last eleven," said Whiley.
"Secondly, I would like to thank Jane both personally for her guidance since my appointment and on behalf of the board, given the valuable contribution she has provided over the last eight years, and she leaves with our thanks."
Whiley added: "Finally, whilst we are indeed operating in extraordinary circumstances, the acceleration of the root & branch strategic review of the business initiated upon my appointment, which is due to be completed in June, was designed to strategically position the business for all eventualities."
Dignity highlighted that the impact of Covid-19 and associated guidance from the government are having direct consequences for the company.
The company said some staff - particularly operational - are unable to perform their duties from home and are also unable to come into work. This is causing operational challenges and, therefore, Dignity said it may need to close some of its branches. Dignity has withdrawn its limousines from use, due to social distancing rules.
Furthermore, the company said its crematoria are likely to witness lower memorial sales, while the ban on social gatherings could hurt the average income per funeral and per cremation in the coming months.
Dignity shares were trading 3.2% lower in London on Friday at 256.95 pence each.
By Evelina Grecenko; [email protected]
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