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Undertaker Dignity assures investors of future rise in deaths to boost profits

Lianna Brinded
Head of Yahoo Finance UK
Source: Getty

Britain’s only listed provider of funeral related services, Dignity (DTY.L), assured investors in its first quarter trading update that a predicted long-term rise in UK deaths will boost results in the future.

“Longer-term expectations, based on the Office for National Statistics (‘ONS’) forecasts, remain unchanged. The ONS expects long-term increases in the number of deaths, reaching approximately 700,000 per year by 2040,” it said in a statement.

The assurance comes as Dignity reported a sales and profits drop for the 13-week period ending 29 March 2019, compared to the same period last year. Revenue fell by 15% and underlying operating profit fell 42%.

It attributed the decline to a 12% drop in the number of deaths in the UK in the first three months of 2019 to 159,000 people.

“Historical data indicates that it is likely that this proportional decrease will not continue throughout the remainder of the year and that the full year will finish within approximately 3% of the previous year,” it added.