Funeral parlours and crematoria operator Dignity PLC (LON:DTY) pleased the market with half-year results that were better than expected.
The funeral services provider started the year with a profit warning as a result of increased price competition but things seem to be settling down, helped by the slightly grisly news that the number of deaths in the UK increased to 324,000 from 308,000 in the first half of last year.
READ: Dignity sticks with full-year outlook despite strong second quarter
Revenue rose 3% to £174.7mln from £169.8mln the year before but underlying profit before tax declined 6% to £43.4mln from £46.1mln.
The interim dividend was held at 8.64p.
The company claimed the results were ahead of the market's expectations and that it increased market share during the period.
"We are pleased with the strong and better than originally expected financial performance in the first half of this year,” said Mike McCollum, the chief executive of Dignity.
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“Strong cash generation will support planned investments and costs which form part of our plan for the funeral business. Our focus remains on building a new lower-cost model in our funeral business which will provide more competitive prices and a superior, future-ready proposition. We have made good progress, but it is still early days,” he cautioned.
“We have completed our operating review which has yielded a three-part transformation plan while our trials continue to yield valuable information. We are confident that the changes will position Dignity for long-term, sustainable and profitable growth while maintaining the highest possible standards of client service," McCollum said.
Broker Peel Hunt said it would make no change to its forecasts and stuck with its 'hold' rating.
Shares in Dignity were up 7.8% at 1,091p in mid-morning trading but are down from 1,820p at the end of 2017.