Midlands profit warnings hit eight-year high

In the nine months to the end of September, quoted companies in the Midlands issued 33 profit warnings, the highest year-to-date total since 2008 (36), according to EY’s latest Profit Warnings Report.

In quarter three (Q3) of 2019 (August, July and September), EY recorded 10 profit warnings from businesses based in the Midlands, down from 12 in the previous quarter (Q2), but double the number issued in Q3 2018 (5). Of the 10 profit warnings issued in the region in Q3 2019, half were from the retail sector.

Dan Hurd, EY’s Head of Restructuring for the Midlands, commented: “Listed businesses in the Midlands look to be having a tough time, comparable to 2008. Nationally the retail sector continues to face considerable challenge and economic uncertainty will affect the decision-making of local businesses, which could drive profit warnings further in the remaining weeks of 2019.”