11th Nov 2013 11:47
LONDON (Alliance News) - Funeral service provider Dignity PLC Monday said growth in operating profits over the third quarter has been slower than in the first half of the year, but was still GBP700,000 ahead of the same quarter in 2012.
Dignity said the slower growth was a result of there being fewer deaths in the quarter, which were just 97% of those in the corresponding quarter last year, whereas the number of deaths in the first half was 5.6% ahead of the year prior.
"All parts of the business continue to perform well. Our outlook remains positive and our expectations for the remainder of this year and 2014 are unchanged," Chief Executive Mike McCollum said in a statement. The company said trading since the quarter end has continued to be in line with management expectations.
Underlying operating profit, excluding profit on sale of fixed assets and external transaction costs, was GBP60.2 million in the 39 week period ended September 27, compared with GBP53.4 million for the corresponding period the year prior.
The FTSE 250 company said its GBP58.3 million acquisition of funeral and crematoria business Yew Holdings was continuing to integrate well, contributing GBP3.1 million of underlying operating profit in the year to date, slightly ahead of management expectations.
At the half year, total underlying operating profit was GBP45.3 million, up from GBP39.2 million at the same point in 2012, while Yew Holdings had contributed GBP2.1 million at that point, which was then described as in line with Dignity's expectations.
Revenue increased 13% to GBP190.6 million.
Dignity shares were Monday quoted at 1,431.19 pence, up 1.6%.
By Samuel Agini; [email protected]; @samuelagini
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