In morning trade the InvoCare Limited (ASX: IVC) share price has edged higher following the release of a trading update.
At the time of writing the funerals company's shares are up 1% to $14.74.
What was in the update?
Later today InvoCare is holding its annual general meeting in Barangaroo, Sydney. Ahead of the meeting the company released an update on its performance in the first quarter of FY 2019.
According to the release, due to improved trading conditions and the number of deaths beginning to revert to the long-term trend, in the first quarter InvoCare posted a 7.8% increase in gross sales revenue compared to the prior corresponding period.
In addition to this, management revealed that its unaudited operating EBITDA was up 22.2% in the first quarter and its operating margin lifted by 2.5 percentage points.
This ultimately led to the company reporting a 9% increase in operating earnings after tax for the quarter.
The company's chief executive officer, Martin Earp, appeared to be pleased with the company's performance during the quarter.
He said: "As we outlined in February, the improved trading we experienced in the early part of the year has continued through Quarter 1. Our commitment to our key growth strategies of Protect & Grow and regional markets has been reflected in the positive results. The number of deaths has begun to return to the long-term trend and we remain focussed on our key strategies to meet the changing customer needs and to profitably grow market share."
However, Mr Earp has decided against providing the market with any guidance for the full year at this stage.
The release explains: "Due to the difficulty associated with accurately forecasting winter trading, InvoCare is not providing a full year forecast at this time. A further update on performance will be provided at the 2019 InvoCare Half Year Results Announcement in August."
Elsewhere, the shares of fellow funerals company Propel Funeral Partners Ltd (ASX: PFP) are trading flat this morning.
