Midlands profit warnings increase in Q2

THE number of profit warnings issued by quoted companies in the Midlands increased to six in Q2 2015, compared with four in both the previous quarter and the corresponding period in 2014, according to EY’s latest Profit Warnings report.
 
UK profit warnings fell to a near two year low in Q2 2015, with UK quoted companies issuing just 57 warnings – a drop of 26% compared to the previous quarter and six fewer than the same period of 2014.
 
Tom Lukic, restructuring partner at EY in the Midlands, said: “These Midlands results – which are in contrast to the national decline in profit warnings – highlight the challenges faced by a number of regional PLCs during the second quarter of 2015.
 
“Despite the improving global economic outlook and a decisive General Election result in May, which appeared to set the ball rolling on contract and investment decisions, planning and forecasting remains tough for many companies. The summer has brought renewed uncertainties and challenges, and there remain enduring issues dragging on profits.
 
“Rising competition and disruptive new entrants and trends – combined with overcapacity and ‘noflation’ – create tough conditions in which to raise prices, maximise profits and forecast accurately.

“Companies in the Midlands need to focus on operational and capital resilience to thrive, and meet rising investor expectations in this volatile environment.”

Close