DTY.L Share News (DTY)

(Sharecast News) - Funeral services provider Dignity posted a drop in first-quarter profits and revenues on Wednesday as it pointed to lower deaths.

In the 13 weeks to 1 April, underlying operating profits fell 67% to £9m, with underlying revenues down 22% at £73.9m. The number of deaths declined 19% on the first quarter of last year to 166,000.

Dignity attributed the weak operating performance in the quarter to the lower number of deaths than the corresponding period last year and lower average revenues per funeral following a move to more competitive pricing in September 2021.

Chief executive Gary Channon said: "Whilst the impact of the pandemic has made year-on-year comparisons difficult, the early signs of our new strategy are coming through. Increased competitiveness is showing up in across-the-board growth in market share at the cost of average revenue per funeral.

"The combined effect of the drop in the death rate following the pandemic during a time of strategic change for the group is what we were protecting against when we sought and agreed the deal with our bondholders. That gives us the ability to pursue the right long-term strategy whatever happens to the death rate this year. It also gives us the time to agree a more long-term solution for the capital structure which we are currently working on."

At 0825 BST, the shares were down 8% at 460p.