BusinessCompany NewsProfit warnings surge by 15%

Profit warnings surge by 15%

Profit warnings jumped more than 15% during the third quarter of 2004, nearly double the figure for the same period in 2003.

Link: Retail sector struggling under deluge of bad news

Between July and September, UK listed companies issued 74 profit warnings, with September being the worst month recording 38 warnings, according to a survey by Ernst & Young.

The third quarter figure is up from 64 warnings issued during the second quarter and the highest since the beginning of the year.

Industries issuing the most warnings were household goods and textiles with general retailers and media and entertainment companies following behind.

Andrew Wollaston, corporate restructuring partner at E&Y, said: ‘Despite the late burst in September, we do not predict a sharp increase of warnings as the economic environment remains cautious but positive.

‘With the annual growth of UK GDP still well above 3% and UK interest rates expected to reach 5% in the coming months, consumer and corporate confidence remain relatively strong, albeit marked by caution over spending decisions.’

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