Dignity PLC (LON:DTY) saw an increase in the number of deaths in the third quarter but the beleaguered funerals operator still reported lower sales and profits.
Underlying operating profit of £11.2mln in the 13 weeks to 27 September was down 8.2% on the same period last year, though this was an improved performance from the first half of the year and means profits are down 30% to £47.9mln after nine months.
READ: Dignity drops as funeral regulation to be brought 'in line with other financial products'
Dignity revealed underlying revenue of £225.4mln for the year to date, down 8% year on year, with revenue from the funeral division down 7% in the quarter and crematoria flat, while central costs were slightly higher.
Deaths rose 1% to 132,000 year on year in the quarter, following a 1% fall in the second quarter and a 12% decrease in the first, meaning for the year to date the number is down 5% on last year and if unless it rises more than 1% in the fourth quarter will be the lowest number of deaths since 2014.
Earlier in the year the company, which along with the rest of the industry is being investigated by the Financial Conduct Authority, warned that unless the number of deaths increased it was likely to take a multimillion-pound hit to its bottom line this year.
Chief executive Mike McCollum said he was pleased with the group's progress so far this year: “Although deaths are lower, market share remains robust, the transformation plan remains on track and our journey to build a more modern technologically enabled business that offers clients a high-quality service at a variety of price points remains firmly intact.”
Dignity shares were down 2% to 516.5p in early trade on Mondy morning.