Undertaker gets handle on costs

BRITAIN'S only quoted undertakers saw underlying profits soar in the first half of the year despite a significant fall in the annual number of deaths.

Dignity conducted 1,000 fewer funerals and 800 fewer cremations in the last six months, as the death rate fell by 3.6%.

But underlying profits rose 30.9% to £12.3m as a tight control on costs paid off. Chief executive Peter Hindley said: 'We've spent a lot of time sourcing cheaper materials. For example, we now have the coffin handles, which are plastic, manufactured in China.'

Fluctuations in the death rate have little impact on costs as Dignity relies on casual staff to drive hearses and carry coffins.

Paying off expensive mezzanine debt led to a one-off £15.3m exceptional charge, which together with a further £1m of goodwill write-offs produced a pre-tax-loss of £3.9m. Dignity will pay an interim dividend of 1.875p.