Dignity reports an 8% decline in underlying profit due to higher overhead costs.
Underlying funeral service provider revenues were 4% higher than last year.
The UK company states that 44% of the funerals it held in October were full-service funerals.
In a report on Monday, Dignity plc (LON: DTY) said that its revenues for the first three quarters of the current fiscal year were 4% higher overall. The funeral service provider attributed the increase to the ongoing coronavirus pandemic, which led to an increase in cremations and funerals this year. Dignity also said it was no longer looking for a new CEO.
The company’s shares fell less than 1% in pre-market trading on Monday, but rose 4% when the market opened. In the year to date, the company’s shares have fallen nearly 6% on the stock market. Confused about choosing a reliable stock broker for online trading? To make your choice easier, here is a comparison of the few top brokers.
Dignity plc reports £234.5 million underlying revenues
According to Dignity plc:
“Following the terrible impact of COVID-19 in the second quarter of this year, the number of deaths in the third quarter remained largely unchanged from last year”.
The COVID-19 crisis has so far infected more than 1.1 million people in the UK and caused over 49 thousand deaths.
In the first nine months, which ended on September 25, one of the largest funeral service providers in the UK reported that it had conducted 61,700 funerals nationwide, compared to 52,100 in the previous year.
The underlying revenue during this period was £234.5 million sterling. The underlying profit, on the other hand, showed an 8% decrease compared to the previous year due to higher overheads.
The dignity says that 44% of the funerals in October were full service.
As befits dignity, people have opted for simpler funerals in line with social distance in recent months. However, before the government announced new COVID-19 restrictions, 44% of the funerals it held in October were full-service funerals.
As a result, a funeral cost an average of £2,480 in October, compared to a slightly lower £2,381 in the third quarter. In a separate news release from the UK, tour operator On the Beach Group plc said that cancellation rates were over 90% this summer as the coronavirus pandemic brought demand for travel and tourism almost to a standstill this year.
Dignity plc’s stock market performance was quite negative last year with an annual decline of more than 10%. At the time of writing this article, the funeral home is estimated at £281.61 million and has a price-to-earnings ratio of 21.49.