Measured as return on capital, leading British companies’ profitability was 6.98% for the quarter to September 2002, compared with 7.57% to June 2002, according to Experian.
It has now more than halved since June 1999, when profitability was recorded at 14.18%
Over the last four years profitability decline has increased for each of the years. The worst-hit sectors include IT, media telecommunications and engineering.
Only the oil sector reported an increase in profit levels.
The drop reflected falling business confidence and is unlikely to improve given the current conflict in Iraq.
Peter Brooker from Experian said it was ‘debatable whether consumers will have the confidence to prop up the economy’ during and after the war.
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements
Charles Tilley's departure from CIMA leaves the accounting world quieter, but his institute with an exciting foundation