Zillah Byng-Thorne breathes new life into Dignity funeral company

One of the UK’s top CEOs has been breathing new life into Dignity.

Zillah Byng-Thorne, former boss of publisher Future, is in charge of reviving the fortunes of the funeral company after it was bought in a deal led in 2023 by insurance magnate Sir Peter Wood, founder of Direct Line.

Dignity had struggled on the London Stock Exchange, where it posted heavy losses year on year, before being privatized 18 months ago as families opted for cheaper services, cutting back on options such as funeral cars and hearses as a cost of living. The current crisis is hitting our pockets.

The company was also hit by regulatory intervention in 2021 after the Financial Conduct Authority (FCA) forced funeral directors to display standardized price lists and prevented them from soliciting business through places such as care homes.

But under Byng-Thorne, 50, the company has shown signs of recovery and is forecast to post profits of £45m by 2024, a 25 per cent improvement on last year.

Under his leadership, Dignity sold around 400 listed properties and closed unprofitable establishments.

Byng-Thorne said: ‘These properties have accumulated over the years as the company bought out family funeral directors. Some have sat unused for years and were not even let out. Truly extraordinary.

Some analysts have speculated that the company could quickly return to the London stock market once the move is complete.

Byng-Thorne added: ‘This is an 18-month job. The company needs to build solid foundations and then see some growth. But I think, realistically, any meaningful exit is five years away.”

Last week, the company expanded its digital operations and acquired end-of-life services provider Farewill for £13 million. Farewill offers online tools for writing wills, organizing estates and arranging cremations.

The hope is that the deal to buy the digital start-up will help Dignity gain a bigger share of a funeral care services market expected to reach £145bn by the end of the decade as populations in the West age. .

Dignity, based in Sutton Coldfield in the West Midlands, is one of the country’s two large funeral companies, along with Co-op Funeralcare.

It employs 3,500 people, has 600 branches, operates 45 crematoriums and 27 cemeteries and has issued 361,500 prepaid funeral plans.

Dignity was taken private in April last year for £789 million, including debt, by a consortium formed by SPW One, Wood’s investment vehicle, and

Castelnau Group, a London-listed investment company managed by Phoenix Asset Management Partners.