InvoCare has boosted its information technology and digital spend, putting towards its PC, tablet and phone refresh program, and progressed on building out a new innovation hub.
The funeral and crematorium provider's platform investment costs rose to $5.7 million across shared service centre projects and ERP implementation, with another $4.7 million spent on SaaS-related spending, now considered an incurred expense under accounting changes.
In its half year 2022 results, the funeral provider responsible for over 290 funeral locations and 17 cemeteries and crematoria, stated its strategic momentum continued during the period, focusing on investing in optimising foundations.
InvoCare CEO Olivier Chretien told investors the company achieved “important milestones” including the implementation of a new payroll system, investment in three new shared service centres, “as well as ongoing process standardisation and simplification”.
Chretien added InvoCare prepared for a new cemeteries and crematoria enterprise resource planning (ERP) software rollout, following the completion of its major program last year.
“The steps we've taken to address our foundations over the past 18 months as positioned as well as we move into the next phase of strategy with an increased focus on profitable organic and acquisitive goals,” Chretien said.
InvoCare will invest in making use of its CRM data, and will enhance its “employee value proposition to help us win and retain more than our fair share of talent”
The business will “increasingly focus on growth” to maximise “the return on investment from our network clusters, be more sophisticated in how we scheduled our workforce and continuing our journey in upgrading our ERP”.
“We are looking at the rapid digitisation of our offering and ecosystem and continue to invest in new digital offerings.”
“We have recently scaled up resources in our national customer care contact centre to enable them to take more staff calls and are supporting them with dedicated CRM systems linking the telephone field and in-location experience.
“We also progressively rebuilding key websites on a modern technology stack and [will add] greater digital self-service capabilities and ecommerce and have some exciting launches coming up including live chat.”
Chretien added progress on its new innovation hub “connects InvoCare to an ecosystem of innovators and partners, enabling mutually beneficial collaboration and unlocking the potential for people.”
InvoCare employees have now begun utilising smart glasses technology, enabling training and remote support to regional mortuary employees from central locations.
Its investment in the digital memorisation business, Memory, now offers digital memorial timelines through the majority of Australian full-service funerals.
Chretien added the company will look to build out its partnership pipeline and its portfolio through mergers and acquisition opportunities.
InvoCare’s $5 million growth and network costs included digital project initiatives comprising websites, ecommerce and CRM projects and other network property projects.
While its total capital expenditure dropped from $22.9 million to $18.4 million over the half the company intends to continue its platform investment on ERP solutions for wider business and investment in digital solutions and ecommerce
Over the half statutory revenue rose 9 percent to $285.4 million, and it reported a loss that narrowed by 139 percent to $16.8 million.
Its operating earnings before interest and taxes (EBIT) over the half were up 10 percent to $44.0 million and reported $16.8 million in losses.
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