Funeral director Dignity (LON: DTY) is not showing any significant signs of improving performance and a poor fourth quarter performance led to a profit downgrade.
There was a 10% increase in deaths in the UK. but Dignity reported a lower profit. This appears to be due to the offsetting effect of lower pricing and higher costs. Peel Hunt has reduced its 2021 pre-tax profit forecast from £34m to £25.5m.
The outlook for profit remains poor with the likelihood of a normalising death rate. There could even be a lower than normal death rate over the next few years.
Securitisation covenant
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