Profits up at funeral group: Plantsbrook advances 38%

COST-CUTTING and a lower interest charge helped to lift profits 38 per cent at Plantsbrook, Britain's biggest quoted funerals company, writes John Murray.

The rise - to pounds 9m before tax - came despite a scaling back of operations that saw turnover drop to pounds 49.8m from pounds 53.4m.

Plantsbrook, founded by Howard Hodgson, disposed of 52 branches in small towns as part of a programme to reshape its network of more than 300 outlets. The company also sold its memorial manufacturer and its crematorium.

Peter Hindley, chief executive, said Plantsbrook now had 9 per cent of the funerals market and planned to open about 15 new branches this year, concentrating on larger conurbations.

Plantsbrook's debts were also cut significantly via a pounds 10.5m rights issue and a pounds 2m private placing. The ratio of debt to shareholders' funds fell from 75 to 54 per cent.

Mr Hindley said that the 'Dignity' pre-paid funerals division broke even after marketing costs were cut sharply.

'We have concentrated on the core business - getting the branch network right and controlling costs,' he said. Central administration costs were reduced by pounds 2.7m and staffing levels fell 17 per cent to about 1,270.

Earnings per share were 6.78p (5.51p) and the total dividend was held at 2p. The shares closed 1p higher at 79p.