Decrease in mortality after Covid and changes in regulations hit funeral home firm Dignity as revenue falls by a fifth
- It says the death toll fell 19% to 166,000 for the quarter
- As a result, its core operating income fell 67% to £ 9 million
- Executes the agreement with investors on the waiver of financial agreements on bonds
Compared to the same period last year, the revenues of the funeral firm Dignity fell by 22 percent to 73.9 million pounds due to the “fall in mortality.”
Shares of business in Birmingham fell after he said the death toll in the UK in the three months to March was below the five-year average as the number of Covid-19-related deaths fell.
It says the death toll fell 19 percent to 166,000 in the quarter, resulting in core operating income fell 67 percent to £ 9 million.
Compared to the same period last year, the revenues of the funeral firm Dignity fell by 22% to 73.9 million pounds due to “falling mortality”
Dignity is shared traded 8.5 percent lower at 457.5 points at 11am.
His work was also affected by lower average income per funeral after the company cut prices in September 2021 amid regulatory sector controls.
However, the company has grown its share of the funeral and cremation market.
This comes after the firm earlier this year entered into an agreement with its bondholders to waive financial agreements on its bonds.
Overall, the group, founded in 1994, said it held 21,200 burials in the first 13 weeks of the year, compared to 23,800 in the same period last year.
Meanwhile, he conducted 20,800 cremations against 22,600 in the first quarter of 2021.
As part of its “strategic review” in January, the firm closed a number of central offices, leading to a number of cuts.
It has also suspended some marketing and digital activities as part of cost-cutting measures.
Commenting on the results, Dignity CEO Gary Channon said: “Although the impact of the pandemic has complicated comparisons over the year, the first signs of our new strategy are.”
“Increasing competitiveness is reflected in the growing growth of market share due to average income at funerals.
“The cumulative effect of falling mortality after the pandemic during a period of strategic change for the group is something we defended ourselves against when looking for and negotiating a deal with our bondholders.
“It gives us the opportunity to follow the right long-term strategy, no matter what happens to this year’s mortality rate.”
Funeral income of Dignity decreased by 22% to 73.9 million pounds
Source link Funeral income of Dignity decreased by 22% to 73.9 million pounds