Dignity reports rise in underlying operating profit

10th Nov 2014 11:41

Funeral services provider Dignity saw revenue climb 3% in the 39 weeks to 26 September, helping to drive a 6.3% increase in underlying operating profit.The number of funerals performed, together with robust average incomes and good cost control, helped lift revenue to £196.4m and operating profit to £64m.The number of deaths in the third quarter of 2014 totalled approximately 129,000, compared to around 122,000 in the comparative period, meaning that for the 39-week period, the total number of deaths was approximately 3.5% lower than the same period in 2013.The board's working assumption of the total number of deaths in 2014 continues to be between 535,000 and 550,000 and as such the board's expectations for the year remain unchanged.Trading since the quarter end continued to be in line with management's expectations.Since the group's last results announcement, it has acquired 11 additional funeral locations at a cost of £12.1m.Mike McCollum, the chief executive of Dignity, said: "The group's operating performance in the third quarter has been strong, with the group now showing good operating profit growth year on year. Outstanding customer service and strong operational efficiency continue to underpin our activities. Our financial expectations for the full year remain positive and unchanged."