Profit warnings hit seven year high
UK quoted companies issued 313 profit warnings in 2015, up from 299 in the previous year and the highest annual total since 2008, according to EY’s latest Profit Warnings report.
The final quarter of 2015 saw 100 profit warnings issued from 7.3% of UK quoted companies, representing the highest quarterly total since Q1 2009 and the highest percentage of companies warning in a single quarter since Q4 2001. During 2015, 17.3% of current UK quoted companies warned, the highest annual percentage of companies warning since 2008.
Although companies are benefiting from a period of economic growth they are also contending with intense competition and rapid economic and structural change in their markets. Oil & Gas is the most obvious example of a sector under pressure, but it is not the only industry struggling to get to grips with new realities.
The FTSE sectors which issued the highest number of profit warnings in the final quarter of 2015 were: Support Services (16), Electronic & Electrical Equipment (7), General Retailers (7), Media (6) and Travel & Leisure (6).