The company charges up to £ 3,578 for a full-service funeral and around £ 2,047 for a basic package.
He said restrictions on funeral services meant that the average cost of his full service had dropped from around £ 400 in April to £ 3,150 as he removed accessories such as limousines. The company performed 20,000 funerals in the first quarter of this year.
Overall, Dignity said average funeral income fell from £ 2,648 in the first quarter to £ 2,200 in April.
As part of measures to reduce the spread of the coronavirus, the government has declared that only close relatives should attend funeral services and respect the rules of physical distance.
Dignity announced an 11% drop in operating profit in the first quarter due to a number of factors, including “the early impact of Covid-19”. The UK coronavirus lockdown began on March 23.
The company said the number of deaths in the first quarter had increased 1% year-over-year to 161,000, but had experienced a dramatic increase since then as the virus spread across the United Kingdom.
“Unfortunately, since the end of the quarter, the UK has recorded more than 20,000 deaths in a single week, the highest since the start of 2000,” said Clive Whiley, executive president of Dignity. “Covid-19 presents a unique set of challenges for the UK as a whole and for dignity.”
The Office for National Statistics said in April that the number of deaths in England and Wales was almost double what was normally expected.
Whiley said Dignity would not make staff available or seek government funding during the health emergency.
“The various government programs designed to protect people’s jobs and livelihoods are aimed at small businesses and sectors threatened more directly than dignity,” he said.
Dignity said it has £ 57 million in cash and will pass its next financial covenant test in late June. However, the publicly traded company has said it will fail another test, called a restricted payment condition, which prevents the transfer of excess cash between group companies.
“Any money not authorized to be transferred while the CPP is not reached will be available for transfer at a later date once the CPP is reached,” the company said. “Concretely, the failure of the CPP will not have a significant impact on the daily functioning of the group.”