BusinessCompany NewsE&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

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