(Alliance News) -Â Funeral services provider Dignity PLC on Monday reported a rise in year-to-date revenue but a fall in profit, as it said it is deferring a search for a new chief executive.
Underlying revenue in the 39 weeks to September 25 amounted to GBP234.5 million, up 4% on a year ago. However, underlying operating profit was down 8% at GBP44.2 million.
Deaths in the year-to-date were up 15% at 498,000.
"Following the terrible impact of Covid-19 in the second quarter this year, the number of deaths in the third quarter was broadly flat on the prior year. The final quarter of 2019 witnessed 152,000 deaths and deaths in October were broadly flat on the prior year. The group will not speculate on the most likely outcome for the remainder of the year, however it is possible that the tragic events of 2020 may mean 2021 and 2022 could experience a lower number of deaths than in 2019," said Dignity.
Funeral underlying operating profit in the year-to-date was GBP38.5 million, down from GBP40.8 million in the same period a year ago, while Crematoria profit rose to GBP32.5 million from GBP29.6 million. Central overheads increased to GBP26.8 million from GBP22.5 million.
Given ongoing uncertainty, Dignity said it is not providing guidance on 2020 and beyond.
"I am pleased with the progress Dignity has made in my first year as chairman. During that time, we have played a crucial role in the country's fight against Covid-19, whilst simultaneously challenging ourselves to do things better, collaborate constructively in the CMA's market investigation, deal with continued fierce competition and finally start the work that will see our long held call for pre-need regulation become a reality," said Executive Chair Clive Whiley.
He added: "We still have a long way to go and the strategic review will take time to ensure we are prepared for every eventuality. Ultimately it will take a combination of the serious pricing and product trials, alongside competitor reactions and the CMA final outcome, to define a strategy that harnesses the full capacity and bandwidth of our business, where we remain determined to grow market share without further dilution for shareholders."
Dignity also said it has deferred its search for a new chief executive to align with both its strategic review, to be set out fully in July 2021, and the outcome of UK Competition & Markets Authority investigation, due in March 2021. Whiley will continue as executive chair in the interim.
Shares in Dignity were up 0.5% at 558.00 pence in London on Monday.
By Lucy Heming;Â lucyheming@alliancenews.com
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