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Dignity sticks with full-year guidance despite improved trading
Funeral services provider Dignity said on Thursday that it was sticking with its full-year guidance despite improved trading since its first-quarter results last month.
The company, which issued a profit warning at the start of the year on the back of increased competition, bumped up its profit expectations for the year in April following the introduction of price cuts to combat competition.
Trading since the update in April has improved, taking full-year expectations higher. Nevertheless, Dignity's outlook for the year remains unchanged.
Non-executive chairman Peter Hindley was due to say at the annual general meeting: "The board believes that it is too early to conclude that the trading experienced to date is indicative of the likely funeral price and volume mix going forwards. The results of the ongoing price and service trials across the Group's entire portfolio are crucial in determining our future market position.
"However, the data from these trials is still at a very early stage and it is not yet possible to draw any meaningful conclusions. The board continues to believe that trading during 2018 will be volatile."
Dignity also said on Thursday that it supports the Treasury consultation on the funeral plan sector and the Competition and Markets Authority's investigation of the funeral and crematoria industries, both of which were announced on 1 June.
Hindley said he was looking forward to "sharing the work we have already collated to support the calls for regulation we have been making for some time".
At 1120 BST, the shares were down 0.8% to 1,078.70p.