Dignity swings to £156m loss in H1 FY22
Dignity said the drop in revenues and profits is due to a combination of factors, including fluctuations in the death rate as the number of deaths decreased by 6% in the period
Dignity plc has revealed it swung to a loss in the 26 week period ended 1 July 2022 (H1 FY22) as its pre-tax profits dropped from £50.5m to -£156m.
Operating profits also fell by 61% in the period to £14.7m, compared to £37.8 in H1 FY21, and revenues declined 12% year-on-year from £189m to £166.9m.
Dignity said the drop in revenues and profits is due to a combination of factors, including fluctuations in the death rate as the number of deaths decreased by 6% in the period, down from 340,000 to 319,000.
The group added that a change in its pricing strategy and the introduction of a direct cremation service through its funeral network led to the decline.
Dignity also recorded a total impairment of £62.9m of the group’s non-current assets following slower funeral market share growth, combined with more branch direct cremations rather than full adult funerals being performed than originally anticipated.
Kate Davidson, CEO of Dignity plc, said: “We have continued to deliver excellent customer service whilst also implementing our new strategy, as well as preparing and achieving FCA regulatory approval for new funeral plan rules, whilst recognising the short-term adverse impact on our financial performance.
“Our people have risen to these challenges and, through the embedding of our principles and values introduced earlier this year, we believe that we are well placed to achieve our key aims of becoming the leading end-of-life service provider in the UK and a deserving and rewarding employer.”
