Negative company announcements soar

Figures released by KPMG have revealed that the number of negative company
announcements surged to a record high in the three months to June this year,
reaching 1,385, the highest recorded number since March 2003.

Negative announcements included profit warnings, redundancies and significant

‘Worryingly, the sector pressures are in conjunction with a rise in the
number of consumers struggling with debts and significant increases in energy
prices,’ said Philip Davidson, head of restructuring advisory at KPMG.

‘Although the figures are exacerbated by a major rise in the number of
warnings in the health sector, which have risen from 42 in the March quarter to
135 in the June quarter, even without the effect of health the figures are at
their highest level since 2004,’ he added.

Not all sectors fared poorly, however, as the industrial sector recorded
little change in the level of warnings. Meanwhile, the building and construction
sector showed a drop of 21%.

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