(Alliance News) - Dignity PLC on Wednesday said profit in the first part of the year declined as death rates start to fall, as the new management team unveiled its strategy for the funeral operator.
Underlying operating profit in the 21 weeks to May 21 was GBP30.7 million, "slightly behind the prior year", the company said in a trading update ahead of its annual general meeting. That's after UK deaths in April and May fell 7% year-on-year. In the first quarter, deaths were 27% higher year-on-year.
Shares were up 3.8% to 663.00 pence in London Wednesday mid-morning.
Executive Chair Gary Channon outlined his strategy for the company he took over in April, after an intervention by activist shareholder Phoenix UK Fund Ltd. He is targeting a 20% funerals market share for Dignity by 2031, up from 12% in May this year.
The company will focus on selling funeral plans in branches rather than over the phone, saying contracts with call centre operators are uneconomical and "not representative of the high standards we would expect."
The firm also will invest in facilities, branding and staff training.
"Our vision is for Dignity to be the UK's leading end of life business, renowned for its excellence and high standards, represented and embedded in the community with strong local brands, whilst offering the best service for the best prices," Channon said.
By Ivan Edwards; ivanedwards@alliancenews.com
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