E&Y: six-year record in UK profit warnings

E&Y: six-year record in UK profit warnings

UK-listed companies have issued the highest number of profit warnings in six years in the fallout from the credit crunch

The global credit crisis looks set to continue as a tidal wave of profit
warnings, particularly in the retail industy in the fourth quarter, confirmed
its impact beyond the financial sector, according to the latest research by
Ernst
& Young
.

The E&Y research shows profit warnings reached a six-year record in the
fourth quarter of 2007, at 107 – up 22% on the same period last year and the
highest figure since the fourth quarter of 2001.

Total warnings for the year, at 384, were the highest since 2001. According
to the report, one in five warnings in the last three months of 2007 – most of
them from outside the financial sector, particularly the retail industry – cited
the fallout from the US sub-prime mortgage as the main reason for the profit
warning.

This week’s
British Chambers of
Commerce
(BCC) quarterly economic survey is said by insiders to be ‘flashing
red’ as output, orders and expectations are all down sharply, except for
companies’ expectations of price rises, which are at a record high, The
Times
reports.

Read
story The Times

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource