In a brief update that you can read here, the United Kingdom’s largest funeral services provider issued a statement that says they expect profits to be higher than expected for 2018 due to higher than expected revenue while overhead has been kept lower than expected.
Dignity plc also stated that their market share had remained “robust” which included small growth and as a result their operating profits were expected to be about $US 101 million. . which is ahead of their expectations. The company also said that deaths in the UK were about what the company expected.
This surprise comes following large price reductions in 2018, partly as a result of the government’s competition and market authority’s negative comments toward funeral service pricing in the United Kingdom.
Funeral Director Daily take: This is an interesting development. While they cut their basic funeral price, the revenue came in higher than expected. It will be interesting to try to decipher what that tells us.
Early in 2018 Dignity plc put into place what they call their “transformation plan” which included cutting prices, spending more on marketing, and simplifying their business operational model. At this point, it seems like that is working.
Dignity plc operates about 700 death care locations across the United Kingdom.