A FUNERAL business set up to bolster income at a Bishop's Hull-based hospice has reported heavy losses.

St Margaret's Funerals lost £243,684 in the financial year to April 2020, following on from an amended loss of £80,685 the previous year.

There has been opposition in some quarters of St Margaret's Hospice for diversifying by setting up the funeral franchise.

Among critics is long-term supporter Mike Perrin, who said: "I took a leading part in publicly criticising the hospice when the idea was first put forward and it saddens me to see that my fears were correct.

"I see also that the franchise idea has been shelved with no one taking up the offer except Taunton.

"My wife and I worked hard over many years raising funds and it saddens me to see money being lost on this venture.

"Why they continue with their heads in the sand baffles me. Stick to what they know best - looking after people."

A spokesperson for St Margaret's said: "Our funeral business, St Margaret’s Funerals, continues to be well received by families across the county whether they have been cared for by St Margaret’s Hospice or not.

"Sales are growing, but no profit has been recorded for 2019/20 due to the delayed opening of our second funeral home.

"The onset of the coronavirus pandemic in the final quarter of the year delayed the conversion and opening of our Bridgwater premises, but we are pleased to report it opened in November 2020.

"The addition of this second home will improve the operational efficiency of St Margaret’s Funerals due to economies of scale.

"The forecasts for St Margaret’s Funerals have been revised and continue to be reviewed by trustees and the executive.

“Hospice Funerals LLP was incorporated in October 2017 to enable other hospices throughout the UK to provide funeral services via a franchising arrangement.

"At the time this model was viewed as an innovative way to help the wider hospice sector provide complementary services and opportunities for income generation.

"While there has been continued interest from other hospices, no franchises beyond our own funeral home business have been set up.

"Hospice Funerals has been dormant during the coronavirus pandemic, and the trustees have therefore taken the decision to fully impair the goodwill associated with this business until the market restabilises.

"St Margaret’s own funeral homes, in Bridgwater and Taunton, will continue to operate and serve the local community.

"The decision to impair Hospice Funerals has been made in the context of the financial uncertainty of the coronavirus pandemic and reflects the emerging national picture, where hospices across the UK are reporting the need to rethink their business models and review their investment plans as they fight to remain operational and deliver frontline clinical services.

“St Margaret’s Funerals has increased the number of funerals it provides to the local community each year of trading supporting both families cared and supported by the hospice and within the wider community.”