A higher number of deaths helped UK funeral company Dignity plc (LON:DTY) to deliver an increase in first half profits and revenue.
The company said the number of deaths it dealt with in the six months to 30 June were 308,000, up 2% from 302,000 the same period a year earlier.
Underlying profit rose 9% to a record £46.1mln from £42.4mln in 2016 and revenue edged up 7% to £59.5mln from £55.6mln.
READ: Funerals provider Dignity sees shares drop as worries over a loss of market share offset growth in 2016 profits
Dignity raised its interim dividend by 10% to 8.65p from 7.85p.
"The year has started well for the group, with good operational performance, continued excellent customer survey results and further acquisitions of established funeral businesses,” said chief executive Mike McCollum.
However, McCollum cautioned that the company remains alert to the strategic challenges it faces in a competitive environment with aggressive pricing activity on funerals and pre-arranged funeral plans.
“This is reflected in the ongoing development of our digital strategy and the leadership we have demonstrated in calling for proper regulation of pre-arranged funeral plans,” he said.
“We will continue to review the scope of our service offering in the light of changing consumer demands and build on our strong market-leading position."
Dignity to launch social media service
Dignity expects incremental costs of up to £1.0mln in 2017 to improve its online presence in its funeral locations in the UK.
The company is also launching a new service for customers to make it easier for them to notify family members about funeral arrangements through social media and the internet .The service will allow families to arrange flowers and make donations online.
Funerals and cremations rise
The group had 811 funeral locations at the end of the first half, compared to 777 last year, following the acquisition of additional sites. It conducted 36,700 funerals during the period, flat on last year.
Dignity performed 33,700 cremations, compared to 28,900 in 2016, as it expanded its locations to 45 from 39 last year.
Looking ahead, the company said it continues to expect the number of deaths in 2017 to be slightly lower than last year but its guidance for the full year remains “positive and unchanged”.
Shares rose 0.35% to 2,569p in morning trading.