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Dignity PLC shares fell on Wednesday after the funeral services provider said that revenue and profit decreased in the first quarter of 2022, due to UK deaths dropping below the five-year average.
Dignity shares were trading 5.3% lower at 473.50 pence each in London on Wednesday morning.
The Sutton Coldfield, England-based company recorded underlying revenue of £73.9 million in the quarter ended April 1, down 22% from £94.7 million a year before.
Underlying operating profit declined 67% to £9.0 million from £27.1 million.
Dignity pointed to a decrease in the absolute number of deaths in the UK by 19% to 166,000 from 204,000 a year before, with the comparison figure inflated by the virus pandemic.
‘Covid-19 has continued to have a distorting impact on the business both in terms of operations and the financial results. The death rate in the UK was significantly higher in the corresponding first quarter period during 2021, making comparisons to previous years difficult,’ Dignity said.
What's more, deaths in the first quarter of 2022 were slightly below the five-year average, excluding 2020 and 2021.
Dignity said that both its funeral market share and crematoria market share grew strongly, as its new strategy started to deliver growth.
The company also implemented a number of ‘difficult operational changes’ in January and expects to see ‘significant’ long-term cost savings as a result.
However, Dignity cautioned that these changes will take time to manifest in its overall financial position.
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