Profit warnings down, but EY boss warns against ‘complacency’

Just four North West companies issued profit warnings in the third quarter of 2017, down from 10 in Q1 and 11 in Q2.

That is half of the number of profit warnings issued in the same quarter last year, according to EY’s latest Profit Warnings report.

However, this is not consistent with the national trend. Across the UK, quoted companies issued 75 warnings in Q3 2017 – a 67% increase on the previous quarter (45) and significantly above the average levels of warnings (62) for a third quarter – taking the total for the year so far to 195.

The FTSE sectors issuing the most profit warnings in Q3 2017 were: Support services (13), general retailers (eight), software and computer services (five), and Travel & Leisure (five).

Sam Woodward, EY’s head of restructuring in the North West, said: “The low level of profit warnings in Q3 across the North West should not lead to complacency.

“For UK plc generally, summer brought more mixed fortunes, with the contrast between accelerating overseas markets and the slowing UK economy increasing.

“Many businesses besieged by pricing pressures before Brexit are also now feeling the brunt of rising domestic uncertainty and rising costs.”