News in brief: Profit warnings down
The absence of global conflicts over the past three months has led to a dramatic drop in company profit warnings, according to a study by Ernst & Young.
Between April and June 2003, only 39 profit warnings were issued – down from 52 on the previous quarter. The firm says this is due to the disappearance of external shocks rather than an improvement in business environment.
Grant Thornton has led the management buyout of Welton Bibby & Baron, Europe’s largest paper bag manufacturer, from its parent British Polythene Industries for £7.8m. The company employs 220 people and has annual sales of over £20m. Its clients include Marks & Spencer and Tate & Lyle.
Management buyout deals are on the increase according to KPMG’s private equity group. The firm said activity is picking up, with large deals in the pipeline. Partner Charles Milner added: ‘Larger transactions have come through recently including Linpac and Holmes Place, and the possibility of a delisting of Debenhams.’