A total of 342
warnings were issued by listed companies in the UK in 2006, compared with
381 in 2005, according to research released by
Ernst & Young.
This represented a year-on-year drop of 10%.
Research for the fourth quarter of 2006, revealed that there were 88 profit
warnings, 8% down on the fourth quarter of 2005 but an increase of 3.5% from
quarter three of 2006.
The most common reason for a profit warning was a ‘shortfall in sales’ (42%),
while 27% of companies cited ‘difficult trading conditions’ and 19% gave
‘delayed or discontinued contracts’ as their primary reason for a warning.
In 2006, 75% of companies issuing profit warnings had a turnover of under
£200m, compared with 70% in 2005 and 67% in 2004.
The Financial Reporting Council has issued guidance regarding the annual reporting of 1,200 large and smaller listed companies. The letter highlighted the key issues and improvements that can be made in the 2016 reporting season
Baldwins Accountancy Group has continued investment in the north-east and appointed David Fish as a director in its corporate finance team
UK M&A activity bounced back strongly in July and August, according to analysis by the deals practice at PwC.
Smith & Williamson has added Jim Clark and Philip Marsden, of Marsden Clark Corporate Finance Limited, to its corporate finance team.