Quiet start to the year for Dignity, outlook in line

12th May 2014 07:50

- Quiet start to new financial year- Drop in the number of deaths compared to year before- Overall expectations for the year are unchangedFTSE-250 funeral services group Dignity said the year has started quietly compared with the strong first quarter in 2013 after a decline in the number of deaths and overall expectations for the year are unchanged. Deaths in the first quarter fell 7.5% from the same period in 2013, when reported deaths rose by 6.7%. "However, data from previous years indicates that large variances in the number of deaths compared to the prior year at the end of the first quarter tend to normalise to within 3% by the end of the year," the group explained in a company statement.The UK's only listed funeral services firm, said underlying operating profit rose 1.6% to 25.8m in the first quarter of 2014 while revenue advanced 1.9% to 69.1m. "The group's current assumption is that there will be 550,000 deaths in 2014, approximately 2% below the prior year and broadly in line with 2012. On this basis and given that average incomes are robust and overheads well controlled, the group's overall expectations for the year are unchanged."Chief Executive Mike McCollum commented: "As anticipated, the year has started slowly compared to a strong first quarter last year. However, with the exception of the low volumes in the first quarter, the group's businesses are performing well and in line with management's expectations."Dignity has bought eight funeral locations and has opened two satellite locations since the start of the year. CJ