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Latest News

Dignity's profits hit by cheaper funerals

Wells Funeral Services


Funeral provider Dignity recorded losses across all but one of its services in its latest financial results as competitors, including Co-op Funeralcare, focused on offering cheaper funerals.

In the 13 weeks to 28 September 2018, the underlying operating profit for the firm’s funeral division was £11.1m compared to last year’s £15.3m. The pre-need and central overheads recorded a decrease in underlying profits of £300,000 and £7.4m respectively. Its crematoria arm stayed flat with underlying operating profits of £8.8m.

Overall, its underlying quarterly profits fell 39 percent to £12.2m from £19.9m.

James Dunn, co-founder of funeral price comparison site Beyond, added: “Dignity’s results speak resoundingly to the changing shape of the funeral sector. Death may be permanent but the funeral market is in the process of radical change.

“The provider, which is in the middle of a restructuring, has historically reaped the rewards of an incredibly uncompetitive market. Despite targeting price reductions, Dignity is still very much overpriced when compared to your typical independent business. The average funeral director fee of chains – such as Dignity – is still 56 percent higher than that of independents.”